For purposes of this title, the following definitions apply: (a) âAutomated clearinghouseâ means any federal reserve bank, or an organization established in agreement with the National Automated Clearing House Association, that operates as a clearinghouse for transmitting or receiving entries between banks or bank accounts and authorizes an electronic transfer of funds between these banks or bank accounts. (b) (1) âBrokerâ means a person who is engaged in the business of performing any of the following acts in connection with commercial financing made by a provider: (A) Transmitting confidential data about a prospective recipient to a provider with the expectation of compensation in connection with making a referral. (B) Making a referral to a provider under an agreement with the provider that a prospective recipient referred by the person to the provider meet certain criteria involving confidential data. (C) Participating in a negotiation of commercial financing between a provider and prospective recipient. (D) Counseling, advising, or making recommendations to a prospective recipient about a commercial financing transaction based on the prospective recipientâs confidential data. (E) (i) Participating in the preparation of any commercial financing documents, including, but not limited to, commercial financing applications, other than providing a prospective recipient blank copies of commercial financing documents. (ii) Notwithstanding clause (i), transmitting information that is not confidential data to a provider at the request of a prospective recipient shall not, by itself, constitute participation in the preparation of commercial financing documents. (F) Communicating to a prospective recipient a providerâs approval decisions related to a commercial financing transaction. (G) Charging a fee to a prospective recipient for any services related to a prospective recipientâs application for a commercial financing transaction from a provider. (2) Notwithstanding paragraph (1), a person is not a âbrokerâ under this title solely because they take any of the following acts: (A) Performing support tasks, including, but not limited to, typing, word processing, data entry, filing, billing, answering phone calls, taking and receiving messages, and scheduling, in support of the performance by a broker of any of the activities described in subparagraphs (E) to (G), inclusive, of paragraph (1). (B) Furnishing a consumer report to a covered entity by a consumer reporting agency in accordance with subsection (a) or (c) of Section 1681b of Title 15 of the United States Code. (C) Furnishing a consumer credit report, as defined in Section 1785.3, to a covered entity by a consumer credit reporting agency in accordance with subdivision (a) or paragraph (1) of subdivision (b) of Section 1785.11. (D) Furnishing a prequalifying report, as defined in Section 1785.3, to a covered entity by a consumer credit reporting agency in accordance with paragraph (2) of subdivision (b) of Section 1785.11. (E) Distributing or disseminating to a prospective recipient of a providerâs marketing materials or factual information about the provider, its lending activities, or its loan products, including, but not limited to, the providerâs interest rates, the providerâs minimum or maximum loan amounts or loan periods, or a general description of the providerâs underwriting criteria. (c) âCommercial financingâ has the same meaning as defined in Section 22800 of the Financial Code. (d) âConfidential dataâ means any of the following: (1) A bank account number. (2) A bank statement. (3) A credit or debit card account number. (4) A credit score, as defined in Section 1785.15.1. (5) All or a portion of a social security number. (6) Personal or business income information, including information self-reported by the person. (7) A taxpayer or employer identification number. (e) âCovered entityâ means either of the following: (1) A provide
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