BILL NUMBER: SB 1223INTRODUCED BILL TEXT INTRODUCED BY Senator Calderon FEBRUARY 18, 2010 An act to add Section 17412 to the Financial Code, relating to escrow agents. LEGISLATIVE COUNSEL'S DIGEST SB 1223, as introduced, Calderon. Escrow agents: auctions. Existing law, the Escrow Law, provides for the licensure and regulation by the Commissioner of Corporations of persons engaged in business as escrow agents, unless specifically exempted. A willful violation of the Escrow Law constitutes a crime. This bill would require an escrow agent to return or cause to be returned all deposits and fees received from a bidder in connection with an auction sale of real property, upon receipt of escrow instructions from the auctioneer or auction company directing the return of all funds placed on deposit by the bidder with that agent, as specified. Because a willful violation of that provision would constitute a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 17412 is added to the Financial Code, to read: 17412. An escrow agent shall return or cause to be returned all deposits and fees received from a bidder in connection with an auction sale of real property, upon receipt of escrow instructions from the auctioneer or auction company directing the return of all funds placed on deposit by the bidder with that agent. An escrow agent may recognize an auctioneer or auction company as the agent of the property seller for this purpose. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.