Substitute Senate Bill No. 1032 Summary

• Requires providers of sales-based commercial financing (up to $250,000) to make specific disclosures including total amount, disbursement amount, finance charges, repayment amounts, payment schedules, and additional fees in a format prescribed by the Banking Commissioner, effective July 1, 2024.

• Mandates recipient signature (electronic or written) on all required disclosures before proceeding with financing and prohibits providers from revoking specific offers for at least three calendar days after issuance except for underwriting verification or recipient request.

• Providers and commercial financing brokers must register with the Banking Commissioner by October 1, 2024, pay an initial fee of $1,000 and annual fee of $500, and disclose any judgments, cease and desist orders, or convictions involving fraud or money laundering.

• Prohibits commercial financing contracts from waiving a recipient's right to notice, judicial hearing, or prior court order in connection with prejudgment remedies, making any such provisions unenforceable.

• Imposes civil penalties on providers violating the act and authorizes the Banking Commissioner to seek injunctions and exercise enforcement powers on behalf of affected recipients.