With six states currently in session, your team at ELFA is working to review and, where needed, to address all legislation filed that impacts your interests. ELFA’s efforts are focused on identifying any and all measures that would wrongly infringe on the operations of ELFA members in the commercial sector, addressing those bills that require our attention and conversely promoting legislation that addresses industry needs. Of the 180,000 expected state legislative bills filed across the 50 states in 2020, ELFA estimates there will be in excess of 2,000 bills introduced this year that may impact our members’ interests.
On Oct. 28, 2020 ELFA filed our third and final comments to the California Department of Financial Protection and Innovation’s (DFPI) last draft rules implementing SB 1235, the California enhanced financial disclosure law. ELFA’s hard-fought-for exemption for trues leases is protected. As the rule promulgation process continues and even if the department finalizes the regulations by Jan. 1, ELFA does not expect those regulations will be enforceable until July 1, 2021, to give lenders or “providers” the opportunity to get their forms in place and to comply with the new law. ELFA continues to monitor this closely and will certainly alert the membership as soon as we learn the date of implementation.
The DFPI provided notice that they would be holding a hearing on Nov. 9, 2020. ELFA testified at this hearing in support of our most recent comments highlighted above. Please provide your thoughts and overall observations to ELFA Vice President, State Government Relations, Scott Riehl.
New York Senate Bill 5470B and companion New York Assembly Bill 10118A were introduced in March “to require greater transparency from commercial financing providers consistently across financing products” with emphasis on commercial financing disclosures for recipients that do not intend to use the financing primarily for personal, family or household purposes. Recent amendments include exempting individual transactions over $500,000 wherein §802 Exemptions declares it shall not apply to, and shall not place any additional requirements or obligations upon, “(e) a lease as defined in section 2-A-103 of the uniform commercial code” and “(g) an individual commercial financing transaction in an amount over five hundred thousand dollars.”
ELFA’s exemption language, which was sought over two years, was certainly not everything we asked for; it was, however, one of the few exemptions permitted and passed. ELFA would like to express our thanks for collective input and guidance of the ELFA Legislative and Regulatory Subcommittee of the Legal Committee. Your insights on the revised scope of this legislation are welcomed in assessments sent to Scott Riehl, ELFA Vice President, State Government Relations.
ELFA sends out email updates on state legislative and regulatory activity as it occurs. You can receive this information by sending complete contact information to ELFA Vice President, State Government Relations Scott Riehl.
State Legislative Sessions: COVID-19 Impact
The COVID-19 crisis threatens multiple and unprecedented special sessions in states across the country. The prospect of full and part-time legislatures in session late into the year along with the unprecedented spread of gubernatorial executive orders only creates additional uncertainty in these already uncertain times.
Currently:
• 6 state legislatures are in regular session (MA, MI, NJ, NY, OH, PA)
• 1 session is interrupted due to COVID-19 (RI)
• 41 states are not in session
• 2 states are in special session (VA, WI)
• 7 states are pre-filing for 2021 (AL, FL, KY, MT, ND, NH, NV)
ELFA Files Comments on California SB 1235
On Oct. 28, 2020 ELFA filed our third and final comments to the California Department of Financial Protection and Innovation’s (DFPI) last draft rules implementing SB 1235, the California enhanced financial disclosure law. ELFA’s hard-fought-for exemption for trues leases is protected. As the rule promulgation process continues and even if the department finalizes the regulations by Jan. 1, ELFA does not expect those regulations will be enforceable until July 1, 2021, to give lenders or “providers” the opportunity to get their forms in place and to comply with the new law. ELFA continues to monitor this closely and will certainly alert the membership as soon as we learn the date of implementation. The DFPI provided notice that they would be holding a hearing on Nov. 9, 2020. ELFA testified at this hearing in support of our most recent comments highlighted above. Please provide your thoughts and overall observations to ELFA Vice President, State Government Relations, Scott Riehl.
New York Assembly and Senate Pass Financial Disclosure Legislation
On July 23, the New York Senate and Assembly passed New York Senate Bill 5470B / New York Assembly Bill 10118A, enhanced financial disclosure legislation significantly amended at the urging of ELFA to exempt from all requirements “a lease as defined in section 2-a-103 of the Uniform Commercial Code.” The legislation remains with the Senate and has not been transmitted yet to the Governor. The Senate has until the end of the year to transmit to the Governor or to hold. ELFA will continue to monitor this measure closely and report any movement.New York Senate Bill 5470B and companion New York Assembly Bill 10118A were introduced in March “to require greater transparency from commercial financing providers consistently across financing products” with emphasis on commercial financing disclosures for recipients that do not intend to use the financing primarily for personal, family or household purposes. Recent amendments include exempting individual transactions over $500,000 wherein §802 Exemptions declares it shall not apply to, and shall not place any additional requirements or obligations upon, “(e) a lease as defined in section 2-A-103 of the uniform commercial code” and “(g) an individual commercial financing transaction in an amount over five hundred thousand dollars.”
ELFA’s exemption language, which was sought over two years, was certainly not everything we asked for; it was, however, one of the few exemptions permitted and passed. ELFA would like to express our thanks for collective input and guidance of the ELFA Legislative and Regulatory Subcommittee of the Legal Committee. Your insights on the revised scope of this legislation are welcomed in assessments sent to Scott Riehl, ELFA Vice President, State Government Relations.
New York Legislation Requiring Financial Licensing Filed
New York Assembly Bill 10878 has been filed as companion legislation identical to New York Senate Bill 6688, a bill that has been the topic of ongoing discussions between ELFA and the sponsor and staff of the Senate Committee on Banks, State Senator James Sanders (D-Rochdale Village, Far Rockaway). AB 10878 is sponsored by Assembly Committee on Banks member Assemblywoman Kimberly Jean-Pierre (D-Lindenhurst), who serves as Chairman of the Assembly Subcommittee on Lending in Underserved Communities. The exemptions listed in §363-b of each bill are the same and do not include an exemption favorable to ELFA members. AB 10878 has been referred to the Assembly Committee on Banks and SB 6688 remains in the Senate Committee on Banks. ELFA is currently in discussions with the sponsors and committee staff, expressing our concerns and requesting critical changes to the legislation. Your views of this development can be shared with ELFA Vice President, State Government Relations, Scott Riehl.ELFA sends out email updates on state legislative and regulatory activity as it occurs. You can receive this information by sending complete contact information to ELFA Vice President, State Government Relations Scott Riehl.
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2020