Senate Bill 1128 (Smith – 1979)
Chapter 1029, Statutes of 1979, SB 1128
Sections 1695, et seq., relating to home equity sales contracts, were added to the Civil Code in 1979 following legislative passage of Senate Bill 1128. (See Exhibit #1g) Senate Bill 1128 was introduced on April 6, 1979 by Senator Jerry Smith and was reportedly sponsored by the Attorney General's Office. (See Exhibits #1a; #3; #7, page 1; and #14, document PE‑1)
Senate Bill 1128 was heard by the Senate Committee on Judiciary and the Senate Committee on Finance. (See Exhibits #3 and #5) On the Assembly side, the measure was heard before the Assembly Committee on Judiciary and the Assembly Committee on Ways and Means. (See Exhibits #8 and #10) This bill was amended five times as it was considered by both Houses. (See Exhibits #1b through #1f) Subsequent to legislative approval, Senate Bill 1128 was approved by Governor Edmund G. Brown, Jr., and was recorded by the Secretary of State as Chapter 1029 of the Statutes of 1979. (See Exhibits #1g and #2)
The Department of Consumer Affairs' Enrolled Bill Report of Senate Bill 1128 explained the purpose of the bill, in part, as follows:
SB 1128, sponsored by the Attorney General, seeks to curb unscrupulous and fraudulent business practices of individuals who purchase homes in foreclosure (i.e. equity purchasers) or individuals who offer services to homeowners whose property is in foreclosure (i.e. foreclosure consultants).
(See Exhibit #14, document PE‑3)