Bill Text: CA AB2763 | 2013-2014 | Regular Session | Chaptered
Bill Title: State government operations.
Spectrum: Unknown
Status: (Passed) 2014-09-18 - Chaptered by Secretary of State - Chapter 401, Statutes of 2014. [AB2763 Detail]
Download: California-2013-AB2763-Chaptered.html
BILL NUMBER: AB 2763 CHAPTERED
BILL TEXT
CHAPTER 401
FILED WITH SECRETARY OF STATE SEPTEMBER 18, 2014
APPROVED BY GOVERNOR SEPTEMBER 18, 2014
PASSED THE SENATE AUGUST 27, 2014
PASSED THE ASSEMBLY AUGUST 28, 2014
AMENDED IN SENATE AUGUST 21, 2014
INTRODUCED BY Committee on Accountability and Administrative Review
MARCH 26, 2014
An act to amend Sections 10176.1 and 19869 of the Business and
Professions Code, to amend Sections 1936.01, 2924.12, 2924.17,
2924.19, and 2924.20 of the Civil Code, to amend Sections 580d and
684.115 of the Code of Civil Procedure, to amend Sections 163, 201,
2510, 2601, 5122, 7122, 9122, and 12302 of the Corporations Code, to
amend Sections 371, 380, 1514, 2105, 5106, 14381, 14382, 14652.5,
18002.5, 18022.5, and 23001 of the Financial Code, to amend Sections
6254.5, 7465, 7474, 7480, 13975.2, 13995.40.5, 65040.9, and 66620 of,
to amend the heading of Part 4.5 (commencing with Section 13975) of
Division 3 of Title 2 of, to amend and renumber Sections 13975.1 and
13978.6 of, to repeal Chapter 5 (commencing with Section 13999) of
Part 4.7 of Division 3 of Title 2 of, and to repeal Chapter 9.7
(commencing with Section 8790) of Division 1 of Title 2 of, the
Government Code, to amend Section 44272.5 of the Health and Safety
Code, to amend Sections 12414.31 and 12710 of the Insurance Code, to
amend Section 2802 of the Penal Code, and to amend Section 22003 of,
and to repeal Section 22553.2 of, the Public Utilities Code, relating
to state government.
LEGISLATIVE COUNSEL'S DIGEST
AB 2763, Committee on Accountability and Administrative Review.
State government operations.
(1) Existing law and the Governor's Reorganization Plan No. 2 of
2012 (GRP 2), effective on July 3, 2012, and operative on July 1,
2013, assigns and reorganizes the functions of state government among
executive officers, agencies, and other state entities.
This bill would generally enact conforming changes to statutes to
reflect the assignment and reorganization of the functions of state
government within the newly established structure of state
government. This bill would reallocate specified duties of
reorganized and abolished state entities and their officers to
established state entities and officers, including, but not limited
to, reallocating specified duties of the abolished Business,
Transportation and Housing Agency and its secretary to the Governor's
Office of Business and Economic Development, the Transportation
Agency and its secretary, and the Business, Consumer Services, and
Housing Agency and its secretary. This bill would further reallocate
certain existing duties to the Department of Business Oversight and
its commissioner and other specified duties from the California
Gambling Control Commission to the Department of Justice.
(2) The Space Enterprise Development Act requires the Business,
Transportation and Housing Agency, an abolished agency, to implement
a space enterprise development program to foster activities that
increase the competitiveness of space enterprise in California.
This bill would repeal the act.
(3) Existing law establishes the California Collider Commission
composed of the Governor, the Lieutenant Governor, the Treasurer, the
President of the University of California, the Director of Finance,
and the Secretary of Business, Transportation and Housing, an
abolished state office. Existing law creates the commission for the
purpose of representing the state before various entities in federal
government concerning a proposal by the United States Department of
Energy to construct a particle accelerator, known as a
superconducting super collider. Existing law also authorizes land
acquisition, financing alternatives, including an authorization for a
bond issuance, and employment training and other support programs to
site and construct the federal superconducting super collider within
the state.
This bill would repeal these provisions.
(4) Existing law requires, subject to a specified condition and
relating in part to the Secretary of Business, Transportation and
Housing, an abolished state office, the advertised rate for a rental
car to include certain charges.
This bill would remove that condition.
(5) This bill would make technical, nonsubstantive, and conforming
changes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 10176.1 of the Business and Professions Code is
amended to read:
10176.1. (a) (1) Whenever the commissioner takes any enforcement
or disciplinary action against a licensee, and the enforcement or
disciplinary action is related to escrow services provided pursuant
to paragraph (4) of subdivision (a) of Section 17006 of the Financial
Code, upon the action becoming final the commissioner shall notify
the Insurance Commissioner and the Commissioner of Business Oversight
of the action or actions taken. The purpose of this notification is
to alert the departments that enforcement or disciplinary action has
been taken, if the licensee seeks or obtains employment with entities
regulated by the departments.
(2) The commissioner shall provide the Insurance Commissioner and
the Commissioner of Business Oversight, in addition to the
notification of the action taken, with a copy of the written
accusation, statement of issues, or order issued or filed in the
matter and, at the request of the Insurance Commissioner or the
Commissioner of Business Oversight, with any underlying factual
material relevant to the enforcement or disciplinary action. Any
confidential information provided by the commissioner to the
Insurance Commissioner or the Commissioner of Business Oversight
shall not be made public pursuant to this section. Notwithstanding
any other provision of law, the disclosure of any underlying factual
material to the Insurance Commissioner or the Commissioner of
Business Oversight shall not operate as a waiver of confidentiality
or any privilege that the commissioner may assert.
(b) The commissioner shall establish and maintain, on the Web site
maintained by the Bureau of Real Estate, a database of its
licensees, including those who have been subject to any enforcement
or disciplinary action that triggers the notification requirements of
this section. The database shall also contain a direct link to the
databases, described in Section 17423.1 of the Financial Code and
Section 12414.31 of the Insurance Code and required to be maintained
on the Web sites of the Department of Business Oversight and the
Department of Insurance, respectively, of persons who have been
subject to enforcement or disciplinary action for malfeasance or
misconduct related to the escrow industry by the Insurance
Commissioner and the Commissioner of Business Oversight.
(c) There shall be no liability on the part of, and no cause of
action of any nature shall arise against, the State of California,
the Bureau of Real Estate, the Real Estate Commissioner, any other
state agency, or any officer, agent, employee, consultant, or
contractor of the state, for the release of any false or unauthorized
information pursuant to this section, unless the release of that
information was done with knowledge and malice, or for the failure to
release any information pursuant to this section.
SEC. 2. Section 19869 of the Business and Professions Code is
amended to read:
19869. A request for withdrawal of any application may be made at
any time prior to final action upon the application by the chief by
the filing of a written request to withdraw with the department. For
the purposes of this section, final action by the department means a
final determination by the chief regarding his or her recommendation
on the application to the commission. The commission shall not grant
the request unless the applicant has established that withdrawal of
the application would be consistent with the public interest and the
policies of this chapter. If a request for withdrawal is denied, the
department may go forward with its investigation and make a
recommendation to the commission upon the application, and the
commission may act upon the application as if no request for
withdrawal had been made. If a request for withdrawal is granted with
prejudice, the applicant thereafter shall be ineligible to renew its
application until the expiration of one year from the date of the
withdrawal. Unless the commission otherwise directs, no fee or other
payment relating to any application is refundable by reason of
withdrawal of an application.
SEC. 3. Section 1936.01 of the Civil Code is amended to read:
1936.01. (a) For the purpose of this section, the following
definitions shall apply:
(1) "Airport concession fee" means a charge collected by a rental
company from a renter that is the renter's proportionate share of the
amount paid by the rental company to the owner or operator of an
airport for the right or privilege of conducting a vehicle rental
business on the airport's premises.
(2) "Quote" means an estimated cost of rental provided by a rental
company or a third party to a potential customer by telephone,
in-person, computer-transmission, or other means, that is based on
information provided by the potential customer and used to generate
an estimated cost of rental, including, but not limited to, any of
the following: potential dates of rental, locations, or classes of
car.
(3) "Tourism commission assessment" means the charge collected by
a rental company from a renter that has been established by the
California Travel and Tourism Commission pursuant to Section 13995.65
of the Government Code.
(b) Notwithstanding subdivision (n) of Section 1936, the following
provisions shall apply:
(1) A rental company shall only advertise a rental rate that
includes the entire amount, except taxes, a customer facility charge,
if any, and a mileage charge, if any, that a renter must pay to hire
or lease the vehicle for the period of time to which the rental rate
applies.
(2) When providing a quote, or imposing charges for a rental, the
rental company may separately state the rental rate, taxes, customer
facility charge, if any, airport concession fee, if any, tourism
commission assessment, if any, and a mileage charge, if any, that a
renter must pay to hire or lease the vehicle for the period of time
to which the rental rate applies. A rental company may not charge in
addition to the rental rate, taxes, a customer facility charge, if
any, airport concession fee, if any, tourism commission assessment,
if any, and a mileage charge, if any, any fee that must be paid by
the renter as a condition of hiring or leasing the vehicle, such as,
but not limited to, required fuel or airport surcharges other than
customer facility charges and airport concession fees.
(3) If customer facility charges, airport concession fees, or
tourism commission assessments are imposed, the rental company shall
do each of the following:
(A) At the time the quote is given, provide the person receiving
the quote with a good faith estimate of the rental rate, taxes,
customer facility charge, if any, airport concession fee, if any, and
tourism commission assessment, if any, as well as the total charges
for the entire rental. The total charges, if provided on an Internet
Web site, shall be displayed in a typeface at least as large as any
rental rate disclosed on that page and shall be provided on a page
that the person receiving the quote may reach by following links
through no more than two Internet Web site pages, including the page
on which the rental rate is first provided. The good faith estimate
may exclude mileage charges and charges for optional items that
cannot be determined prior to completing the reservation based upon
the information provided by the person.
(B) At the time and place the rental commences, clearly and
conspicuously disclose in the rental contract, or that portion of the
contract that is provided to the renter, the total of the rental
rate, taxes, customer facility charge, if any, airport concession
fee, if any, and tourism commission assessment, if any, for the
entire rental, exclusive of charges that cannot be determined at the
time the rental commences. Charges imposed pursuant to this
subparagraph shall be no more than the amount of the quote provided
in a confirmed reservation, unless the person changes the terms of
the rental contract subsequent to making the reservation.
(C) Provide each person, other than those persons within the
rental company, offering quotes to actual or prospective customers
access to information about customer facility charges, airport
concession fees, and tourism commission assessments as well as access
to information about when those charges apply. Any person providing
quotes to actual or prospective customers for the hire or lease of a
vehicle from a rental company shall provide the quotes in the manner
described in subparagraph (A).
(4) In addition to the rental rate, taxes, customer facility
charges, if any, airport concession fees, if any, tourism commission
assessments, if any, and mileage charges, if any, a rental company
may charge for an item or service provided in connection with a
particular rental transaction if the renter could have avoided
incurring the charge by choosing not to obtain or utilize the
optional item or service. Items and services for which the rental
company may impose an additional charge, include, but are not limited
to, optional insurance and accessories requested by the renter,
service charges incident to the renter's optional return of the
vehicle to a location other than the location where the vehicle was
hired or leased, and charges for refueling the vehicle at the
conclusion of the rental transaction in the event the renter did not
return the vehicle with as much fuel as was in the fuel tank at the
beginning of the rental. A rental company also may impose an
additional charge based on reasonable age criteria established by the
rental company.
(5) A rental company may not charge any fee for authorized drivers
in addition to the rental charge for an individual renter.
(6) If a rental company states a rental rate in print
advertisement or in a telephonic, in-person, or computer-transmitted
quote, the rental company shall clearly disclose in that
advertisement or quote the terms of any mileage conditions relating
to the rental rate disclosed in the advertisement or quote,
including, but not limited to, to the extent applicable, the amount
of mileage and gas charges, the number of miles for which no charges
will be imposed, and a description of geographic driving limitations
within the United States and Canada.
(7) (A) When a rental rate is stated in an advertisement, in
connection with a car rental at an airport where a customer facility
charge is imposed, the rental company shall clearly disclose the
existence and amount of the customer facility charge. For the
purposes of this subparagraph, advertisements include radio,
television, other electronic media, and print advertisements. If the
rental rate advertisement is intended to include transactions at more
than one airport imposing a customer facility charge, a range of
charges may be stated in the advertisement. However, all rental rate
advertisements that include car rentals at airport destinations shall
clearly and conspicuously include a toll-free telephone number
whereby a customer can be told the specific amount of the customer
facility charge to which the customer will be obligated.
(B) If any person or entity other than a rental car company,
including a passenger carrier or a seller of travel services,
advertises a rental rate for a car rental at an airport where a
customer facility charge is imposed, that person or entity shall,
provided they are provided with information about the existence and
amount of the charge, to the extent not specifically prohibited by
federal law, clearly disclose the existence and amount of the charge.
If a rental car company provides the person or entity with rental
rate and customer facility charge information, the rental car company
is not responsible for the failure of that person or entity to
comply with this subparagraph.
(8) If a rental company delivers a vehicle to a renter at a
location other than the location where the rental company normally
carries on its business, the rental company may not charge the renter
any amount for the rental for the period before the delivery of the
vehicle. If a rental company picks up a rented vehicle from a renter
at a location other than the location where the rental company
normally carries on its business, the rental company may not charge
the renter any amount for the rental for the period after the renter
notifies the rental company to pick up the vehicle.
(9) Except as otherwise permitted pursuant to the customer
facility charge, a rental company may not separately charge, in
addition to the rental rate, a fee for transporting the renter to the
location where the rented vehicle will be delivered to the renter.
(c) A renter may bring an action against a rental company for the
recovery of damages and appropriate equitable relief for a violation
of this section. The prevailing party shall be entitled to recover
reasonable attorney's fees and costs.
(d) Any waiver of any of the provisions of this section shall be
void and unenforceable as contrary to public policy.
SEC. 4. Section 2924.12 of the Civil Code, as added by Section 16
of Chapter 86 of the Statutes of 2012, is amended to read:
2924.12. (a) (1) If a trustee's deed upon sale has not been
recorded, a borrower may bring an action for injunctive relief to
enjoin a material violation of Section 2923.55, 2923.6, 2923.7,
2924.9, 2924.10, 2924.11, or 2924.17.
(2) Any injunction shall remain in place and any trustee's sale
shall be enjoined until the court determines that the mortgage
servicer, mortgagee, trustee, beneficiary, or authorized agent has
corrected and remedied the violation or violations giving rise to the
action for injunctive relief. An enjoined entity may move to
dissolve an injunction based on a showing that the material violation
has been corrected and remedied.
(b) After a trustee's deed upon sale has been recorded, a mortgage
servicer, mortgagee, trustee, beneficiary, or authorized agent shall
be liable to a borrower for actual economic damages pursuant to
Section 3281, resulting from a material violation of Section 2923.55,
2923.6, 2923.7, 2924.9, 2924.10, 2924.11, or 2924.17 by that
mortgage servicer, mortgagee, trustee, beneficiary, or authorized
agent where the violation was not corrected and remedied prior to the
recordation of the trustee's deed upon sale. If the court finds that
the material violation was intentional or reckless, or resulted from
willful misconduct by a mortgage servicer, mortgagee, trustee,
beneficiary, or authorized agent, the court may award the borrower
the greater of treble actual damages or statutory damages of fifty
thousand dollars ($50,000).
(c) A mortgage servicer, mortgagee, trustee, beneficiary, or
authorized agent shall not be liable for any violation that it has
corrected and remedied prior to the recordation of a trustee's deed
upon sale, or that has been corrected and remedied by third parties
working on its behalf prior to the recordation of a trustee's deed
upon sale.
(d) A violation of Section 2923.55, 2923.6, 2923.7, 2924.9,
2924.10, 2924.11, or 2924.17 by a person licensed by the Department
of Business Oversight or the Bureau of Real Estate shall be deemed to
be a violation of that person's licensing law.
(e) No violation of this article shall affect the validity of a
sale in favor of a bona fide purchaser and any of its encumbrancers
for value without notice.
(f) A third-party encumbrancer shall not be relieved of liability
resulting from violations of Section 2923.55, 2923.6, 2923.7, 2924.9,
2924.10, 2924.11, or 2924.17 committed by that third-party
encumbrancer, that occurred prior to the sale of the subject property
to the bona fide purchaser.
(g) A signatory to a consent judgment entered in the case entitled
United States of America et al. v. Bank of America Corporation et
al., filed in the United States District Court for the District of
Columbia, case number 1:12-cv-00361 RMC, that is in compliance with
the relevant terms of the Settlement Term Sheet of that consent
judgment with respect to the borrower who brought an action pursuant
to this section while the consent judgment is in effect shall have no
liability for a violation of Section 2923.55, 2923.6, 2923.7,
2924.9, 2924.10, 2924.11, or 2924.17.
(h) The rights, remedies, and procedures provided by this section
are in addition to and independent of any other rights, remedies, or
procedures under any other law. Nothing in this section shall be
construed to alter, limit, or negate any other rights, remedies, or
procedures provided by law.
(i) A court may award a prevailing borrower reasonable attorney's
fees and costs in an action brought pursuant to this section. A
borrower shall be deemed to have prevailed for purposes of this
subdivision if the borrower obtained injunctive relief or was awarded
damages pursuant to this section.
(j) This section shall not apply to entities described in
subdivision (b) of Section 2924.18.
(k) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 5. Section 2924.12 of the Civil Code, as added by Section 16
of Chapter 87 of the Statutes of 2012, is amended to read:
2924.12. (a) (1) If a trustee's deed upon sale has not been
recorded, a borrower may bring an action for injunctive relief to
enjoin a material violation of Section 2923.55, 2923.6, 2923.7,
2924.9, 2924.10, 2924.11, or 2924.17.
(2) Any injunction shall remain in place and any trustee's sale
shall be enjoined until the court determines that the mortgage
servicer, mortgagee, trustee, beneficiary, or authorized agent has
corrected and remedied the violation or violations giving rise to the
action for injunctive relief. An enjoined entity may move to
dissolve an injunction based on a showing that the material violation
has been corrected and remedied.
(b) After a trustee's deed upon sale has been recorded, a mortgage
servicer, mortgagee, trustee, beneficiary, or authorized agent shall
be liable to a borrower for actual economic damages pursuant to
Section 3281, resulting from a material violation of Section 2923.55,
2923.6, 2923.7, 2924.9, 2924.10, 2924.11, or 2924.17 by that
mortgage servicer, mortgagee, trustee, beneficiary, or authorized
agent where the violation was not corrected and remedied prior to the
recordation of the trustee's deed upon sale. If the court finds that
the material violation was intentional or reckless, or resulted from
willful misconduct by a mortgage servicer, mortgagee, trustee,
beneficiary, or authorized agent, the court may award the borrower
the greater of treble actual damages or statutory damages of fifty
thousand dollars ($50,000).
(c) A mortgage servicer, mortgagee, trustee, beneficiary, or
authorized agent shall not be liable for any violation that it has
corrected and remedied prior to the recordation of a trustee's deed
upon sale, or that has been corrected and remedied by third parties
working on its behalf prior to the recordation of a trustee's deed
upon sale.
(d) A violation of Section 2923.55, 2923.6, 2923.7, 2924.9,
2924.10, 2924.11, or 2924.17 by a person licensed by the Department
of Business Oversight or the Bureau of Real Estate shall be deemed to
be a violation of that person's licensing law.
(e) No violation of this article shall affect the validity of a
sale in favor of a bona fide purchaser and any of its encumbrancers
for value without notice.
(f) A third-party encumbrancer shall not be relieved of liability
resulting from violations of Section 2923.55, 2923.6, 2923.7, 2924.9,
2924.10, 2924.11, or 2924.17 committed by that third-party
encumbrancer, that occurred prior to the sale of the subject property
to the bona fide purchaser.
(g) A signatory to a consent judgment entered in the case entitled
United States of America et al. v. Bank of America Corporation et
al., filed in the United States District Court for the District of
Columbia, case number 1:12-cv-00361 RMC, that is in compliance with
the relevant terms of the Settlement Term Sheet of that consent
judgment with respect to the borrower who brought an action pursuant
to this section while the consent judgment is in effect shall have no
liability for a violation of Section 2923.55, 2923.6, 2923.7,
2924.9, 2924.10, 2924.11, or 2924.17.
(h) The rights, remedies, and procedures provided by this section
are in addition to and independent of any other rights, remedies, or
procedures under any other law. Nothing in this section shall be
construed to alter, limit, or negate any other rights, remedies, or
procedures provided by law.
(i) A court may award a prevailing borrower reasonable attorney's
fees and costs in an action brought pursuant to this section. A
borrower shall be deemed to have prevailed for purposes of this
subdivision if the borrower obtained injunctive relief or was awarded
damages pursuant to this section.
(j) This section shall not apply to entities described in
subdivision (b) of Section 2924.18.
(k) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 6. Section 2924.12 of the Civil Code, as added by Section 17
of Chapter 86 of the Statutes of 2012, is amended to read:
2924.12. (a) (1) If a trustee's deed upon sale has not been
recorded, a borrower may bring an action for injunctive relief to
enjoin a material violation of Section 2923.5, 2923.7, 2924.11, or
2924.17.
(2) Any injunction shall remain in place and any trustee's sale
shall be enjoined until the court determines that the mortgage
servicer, mortgagee, trustee, beneficiary, or authorized agent has
corrected and remedied the violation or violations giving rise to the
action for injunctive relief. An enjoined entity may move to
dissolve an injunction based on a showing that the material violation
has been corrected and remedied.
(b) After a trustee's deed upon sale has been recorded, a mortgage
servicer, mortgagee, trustee, beneficiary, or authorized agent shall
be liable to a borrower for actual economic damages pursuant to
Section 3281, resulting from a material violation of Section 2923.5,
2923.7, 2924.11, or 2924.17 by that mortgage servicer, mortgagee,
trustee, beneficiary, or authorized agent where the violation was not
corrected and remedied prior to the recordation of the trustee's
deed upon sale. If the court finds that the material violation was
intentional or reckless, or resulted from willful misconduct by a
mortgage servicer, mortgagee, trustee, beneficiary, or authorized
agent, the court may award the borrower the greater of treble actual
damages or statutory damages of fifty thousand dollars ($50,000).
(c) A mortgage servicer, mortgagee, trustee, beneficiary, or
authorized agent shall not be liable for any violation that it has
corrected and remedied prior to the recordation of the trustee's deed
upon sale, or that has been corrected and remedied by third parties
working on its behalf prior to the recordation of the trustee's deed
upon sale.
(d) A violation of Section 2923.5, 2923.7, 2924.11, or 2924.17 by
a person licensed by the Department of Business Oversight or the
Bureau of Real Estate shall be deemed to be a violation of that
person's licensing law.
(e) No violation of this article shall affect the validity of a
sale in favor of a bona fide purchaser and any of its encumbrancers
for value without notice.
(f) A third-party encumbrancer shall not be relieved of liability
resulting from violations of Section 2923.5, 2923.7, 2924.11, or
2924.17 committed by that third-party encumbrancer, that occurred
prior to the sale of the subject property to the bona fide purchaser.
(g) The rights, remedies, and procedures provided by this section
are in addition to and independent of any other rights, remedies, or
procedures under any other law. Nothing in this section shall be
construed to alter, limit, or negate any other rights, remedies, or
procedures provided by law.
(h) A court may award a prevailing borrower reasonable attorney's
fees and costs in an action brought pursuant to this section. A
borrower shall be deemed to have prevailed for purposes of this
subdivision if the borrower obtained injunctive relief or was awarded
damages pursuant to this section.
(i) This section shall become operative on January 1, 2018.
SEC. 7. Section 2924.12 of the Civil Code, as added by Section 17
of Chapter 87 of the Statutes of 2012, is amended to read:
2924.12. (a) (1) If a trustee's deed upon sale has not been
recorded, a borrower may bring an action for injunctive relief to
enjoin a material violation of Section 2923.5, 2923.7, 2924.11, or
2924.17.
(2) Any injunction shall remain in place and any trustee's sale
shall be enjoined until the court determines that the mortgage
servicer, mortgagee, trustee, beneficiary, or authorized agent has
corrected and remedied the violation or violations giving rise to the
action for injunctive relief. An enjoined entity may move to
dissolve an injunction based on a showing that the material violation
has been corrected and remedied.
(b) After a trustee's deed upon sale has been recorded, a mortgage
servicer, mortgagee, trustee, beneficiary, or authorized agent shall
be liable to a borrower for actual economic damages pursuant to
Section 3281, resulting from a material violation of Section 2923.5,
2923.7, 2924.11, or 2924.17 by that mortgage servicer, mortgagee,
trustee, beneficiary, or authorized agent where the violation was not
corrected and remedied prior to the recordation of the trustee's
deed upon sale. If the court finds that the material violation was
intentional or reckless, or resulted from willful misconduct by a
mortgage servicer, mortgagee, trustee, beneficiary, or authorized
agent, the court may award the borrower the greater of treble actual
damages or statutory damages of fifty thousand dollars ($50,000).
(c) A mortgage servicer, mortgagee, trustee, beneficiary, or
authorized agent shall not be liable for any violation that it has
corrected and remedied prior to the recordation of the trustee's deed
upon sale, or that has been corrected and remedied by third parties
working on its behalf prior to the recordation of the trustee's deed
upon sale.
(d) A violation of Section 2923.5, 2923.7, 2924.11, or 2924.17 by
a person licensed by the Department of Business Oversight or the
Bureau of Real Estate shall be deemed to be a violation of that
person's licensing law.
(e) No violation of this article shall affect the
validity of a sale in favor of a bona fide purchaser and any of its
encumbrancers for value without notice.
(f) A third-party encumbrancer shall not be relieved of liability
resulting from violations of Section 2923.5, 2923.7, 2924.11, or
2924.17 committed by that third-party encumbrancer, that occurred
prior to the sale of the subject property to the bona fide purchaser.
(g) The rights, remedies, and procedures provided by this section
are in addition to and independent of any other rights, remedies, or
procedures under any other law. Nothing in this section shall be
construed to alter, limit, or negate any other rights, remedies, or
procedures provided by law.
(h) A court may award a prevailing borrower reasonable attorney's
fees and costs in an action brought pursuant to this section. A
borrower shall be deemed to have prevailed for purposes of this
subdivision if the borrower obtained injunctive relief or was awarded
damages pursuant to this section.
(i) This section shall become operative on January 1, 2018.
SEC. 8. Section 2924.17 of the Civil Code, as added by Section 20
of Chapter 86 of the Statutes of 2012, is amended to read:
2924.17. (a) A declaration recorded pursuant to Section 2923.5
or, until January 1, 2018, pursuant to Section 2923.55, a notice of
default, notice of sale, assignment of a deed of trust, or
substitution of trustee recorded by or on behalf of a mortgage
servicer in connection with a foreclosure subject to the requirements
of Section 2924, or a declaration or affidavit filed in any court
relative to a foreclosure proceeding shall be accurate and complete
and supported by competent and reliable evidence.
(b) Before recording or filing any of the documents described in
subdivision (a), a mortgage servicer shall ensure that it has
reviewed competent and reliable evidence to substantiate the borrower'
s default and the right to foreclose, including the borrower's loan
status and loan information.
(c) Until January 1, 2018, any mortgage servicer that engages in
multiple and repeated uncorrected violations of subdivision (b) in
recording documents or filing documents in any court relative to a
foreclosure proceeding shall be liable for a civil penalty of up to
seven thousand five hundred dollars ($7,500) per mortgage or deed of
trust in an action brought by a government entity identified in
Section 17204 of the Business and Professions Code, or in an
administrative proceeding brought by the Department of Business
Oversight or the Bureau of Real Estate against a respective licensee,
in addition to any other remedies available to these entities. This
subdivision shall be inoperative on January 1, 2018.
SEC. 9. Section 2924.17 of the Civil Code, as added by Section 20
of Chapter 87 of the Statutes of 2012, is amended to read:
2924.17. (a) A declaration recorded pursuant to Section 2923.5
or, until January 1, 2018, pursuant to Section 2923.55, a notice of
default, notice of sale, assignment of a deed of trust, or
substitution of trustee recorded by or on behalf of a mortgage
servicer in connection with a foreclosure subject to the requirements
of Section 2924, or a declaration or affidavit filed in any court
relative to a foreclosure proceeding shall be accurate and complete
and supported by competent and reliable evidence.
(b) Before recording or filing any of the documents described in
subdivision (a), a mortgage servicer shall ensure that it has
reviewed competent and reliable evidence to substantiate the borrower'
s default and the right to foreclose, including the borrower's loan
status and loan information.
(c) Until January 1, 2018, any mortgage servicer that engages in
multiple and repeated uncorrected violations of subdivision (b) in
recording documents or filing documents in any court relative to a
foreclosure proceeding shall be liable for a civil penalty of up to
seven thousand five hundred dollars ($7,500) per mortgage or deed of
trust in an action brought by a government entity identified in
Section 17204 of the Business and Professions Code, or in an
administrative proceeding brought by the Department of Business
Oversight or the Bureau of Real Estate against a respective licensee,
in addition to any other remedies available to these entities. This
subdivision shall be inoperative on January 1, 2018.
SEC. 10. Section 2924.19 of the Civil Code, as amended by Section
17 of Chapter 76 of the Statutes of 2013, is amended to read:
2924.19. (a) (1) If a trustee's deed upon sale has not been
recorded, a borrower may bring an action for injunctive relief to
enjoin a material violation of Section 2923.5, 2924.17, or 2924.18.
(2) An injunction shall remain in place and any trustee's sale
shall be enjoined until the court determines that the mortgage
servicer, mortgagee, beneficiary, or authorized agent has corrected
and remedied the violation or violations giving rise to the action
for injunctive relief. An enjoined entity may move to dissolve an
injunction based on a showing that the material violation has been
corrected and remedied.
(b) After a trustee's deed upon sale has been recorded, a mortgage
servicer, mortgagee, beneficiary, or authorized agent shall be
liable to a borrower for actual economic damages pursuant to Section
3281, resulting from a material violation of Section 2923.5, 2924.17,
or 2924.18 by that mortgage servicer, mortgagee, beneficiary, or
authorized agent where the violation was not corrected and remedied
prior to the recordation of the trustee's deed upon sale. If the
court finds that the material violation was intentional or reckless,
or resulted from willful misconduct by a mortgage servicer,
mortgagee, beneficiary, or authorized agent, the court may award the
borrower the greater of treble actual damages or statutory damages of
fifty thousand dollars ($50,000).
(c) A mortgage servicer, mortgagee, beneficiary, or authorized
agent shall not be liable for any violation that it has corrected and
remedied prior to the recordation of the trustee's deed upon sale,
or that has been corrected and remedied by third parties working on
its behalf prior to the recordation of the trustee's deed upon sale.
(d) A violation of Section 2923.5, 2924.17, or 2924.18 by a person
licensed by the Department of Business Oversight or the Bureau of
Real Estate shall be deemed to be a violation of that person's
licensing law.
(e) A violation of this article shall not affect the validity of a
sale in favor of a bona fide purchaser and any of its encumbrancers
for value without notice.
(f) A third-party encumbrancer shall not be relieved of liability
resulting from violations of Section 2923.5, 2924.17, or 2924.18,
committed by that third-party encumbrancer, that occurred prior to
the sale of the subject property to the bona fide purchaser.
(g) The rights, remedies, and procedures provided by this section
are in addition to and independent of any other rights, remedies, or
procedures under any other law. Nothing in this section shall be
construed to alter, limit, or negate any other rights, remedies, or
procedures provided by law.
(h) A court may award a prevailing borrower reasonable attorney's
fees and costs in an action brought pursuant to this section. A
borrower shall be deemed to have prevailed for purposes of this
subdivision if the borrower obtained injunctive relief or damages
pursuant to this section.
(i) This section shall apply only to entities described in
subdivision (b) of Section 2924.18.
(j) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 11. Section 2924.19 of the Civil Code, as amended by Section
18 of Chapter 76 of the Statutes of 2013, is amended to read:
2924.19. (a) (1) If a trustee's deed upon sale has not been
recorded, a borrower may bring an action for injunctive relief to
enjoin a material violation of Section 2923.5, 2924.17, or 2924.18.
(2) An injunction shall remain in place and any trustee's sale
shall be enjoined until the court determines that the mortgage
servicer, mortgagee, beneficiary, or authorized agent has corrected
and remedied the violation or violations giving rise to the action
for injunctive relief. An enjoined entity may move to dissolve an
injunction based on a showing that the material violation has been
corrected and remedied.
(b) After a trustee's deed upon sale has been recorded, a mortgage
servicer, mortgagee, beneficiary, or authorized agent shall be
liable to a borrower for actual economic damages pursuant to Section
3281, resulting from a material violation of Section 2923.5, 2924.17,
or 2924.18 by that mortgage servicer, mortgagee, beneficiary, or
authorized agent where the violation was not corrected and remedied
prior to the recordation of the trustee's deed upon sale. If the
court finds that the material violation was intentional or reckless,
or resulted from willful misconduct by a mortgage servicer,
mortgagee, beneficiary, or authorized agent, the court may award the
borrower the greater of treble actual damages or statutory damages of
fifty thousand dollars ($50,000).
(c) A mortgage servicer, mortgagee, beneficiary, or authorized
agent shall not be liable for any violation that it has corrected and
remedied prior to the recordation of the trustee's deed upon sale,
or that has been corrected and remedied by third parties working on
its behalf prior to the recordation of the trustee's deed upon sale.
(d) A violation of Section 2923.5, 2924.17, or 2924.18 by a person
licensed by the Department of Business Oversight or the Bureau of
Real Estate shall be deemed to be a violation of that person's
licensing law.
(e) A violation of this article shall not affect the validity of a
sale in favor of a bona fide purchaser and any of its encumbrancers
for value without notice.
(f) A third-party encumbrancer shall not be relieved of liability
resulting from violations of Section 2923.5, 2924.17, or 2924.18,
committed by that third-party encumbrancer, that occurred prior to
the sale of the subject property to the bona fide purchaser.
(g) The rights, remedies, and procedures provided by this section
are in addition to and independent of any other rights, remedies, or
procedures under any other law. Nothing in this section shall be
construed to alter, limit, or negate any other rights, remedies, or
procedures provided by law.
(h) A court may award a prevailing borrower reasonable attorney's
fees and costs in an action brought pursuant to this section. A
borrower shall be deemed to have prevailed for purposes of this
subdivision if the borrower obtained injunctive relief or damages
pursuant to this section.
(i) This section shall apply only to entities described in
subdivision (b) of Section 2924.18.
(j) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 12. Section 2924.20 of the Civil Code, as added by Section 23
of Chapter 86 of the Statutes of 2012, is amended to read:
2924.20. Consistent with their general regulatory authority, and
notwithstanding subdivisions (b) and (c) of Section 2924.18, the
Department of Business Oversight and the Bureau of Real Estate may
adopt regulations applicable to any entity or person under their
respective jurisdictions that are necessary to carry out the purposes
of the act that added this section. A violation of the regulations
adopted pursuant to this section shall only be enforceable by the
regulatory agency.
SEC. 13. Section 2924.20 of the Civil Code, as added by Section 23
of Chapter 87 of the Statutes of 2012, is amended to read:
2924.20. Consistent with their general regulatory authority, and
notwithstanding subdivisions (b) and (c) of Section 2924.18, the
Department of Business Oversight and the Bureau of Real Estate may
adopt regulations applicable to any entity or person under their
respective jurisdictions that are necessary to carry out the purposes
of the act that added this section. A violation of the regulations
adopted pursuant to this section shall only be enforceable by the
regulatory agency.
SEC. 14. Section 580d of the Code of Civil Procedure is amended to
read:
580d. (a) Except as provided in subdivision (b), no deficiency
shall be owed or collected, and no deficiency judgment shall be
rendered for a deficiency on a note secured by a deed of trust or
mortgage on real property or an estate for years therein executed in
any case in which the real property or estate for years therein has
been sold by the mortgagee or trustee under power of sale contained
in the mortgage or deed of trust.
(b) The fact that no deficiency shall be owed or collected under
the circumstances set forth in subdivision (a) does not affect the
liability that a guarantor, pledgor, or other surety might otherwise
have with respect to the deficiency, or that might otherwise be
satisfied in whole or in part from other collateral pledged to secure
the obligation that is the subject of the deficiency.
(c) This section does not apply to a deed of trust, mortgage, or
other lien given to secure the payment of bonds or other evidences of
indebtedness authorized or permitted to be issued by the
Commissioner of Business Oversight or which is made by a public
utility subject to the Public Utilities Act (Part 1 (commencing with
Section 201) of Division 1 of the Public Utilities Code).
SEC. 15. Section 684.115 of the Code of Civil Procedure is amended
to read:
684.115. (a) A financial institution may, and if it has more than
nine branches or offices at which it conducts its business within
this state shall, designate one or more central locations for service
of legal process within this state. Each designated location shall
be referred to as a "central location." If a financial institution
elects or is required to designate a central location for service of
legal process, the financial institution shall file a notice of its
designation with the Department of Business Oversight which filing
shall be effective upon filing and shall contain all of the
following:
(1) The physical address of the central location.
(2) The days and hours during which service will be accepted at
the central location.
(3) If the central location will not accept service of legal
process directed at deposit accounts maintained or property held at
all of the financial institution's branches or offices within this
state, or if the service accepted at the central location will not
apply to safe-deposit boxes or other property of the judgment debtor
held by or for the judgment debtor, the filing shall also contain
sufficient information to permit a determination of the limitation or
limitations, including, in the case of a limitation applicable to
certain branches or offices, an identification of the branches or
offices as to which service at the central location will not apply
and the nature of the limitation applicable to those branches or
offices. If the limitation will apply to all branches or offices of
the financial institution within this state, the filing may indicate
the nature of the limitation and that it applies to all branches or
offices, in lieu of an identification of branches or offices as to
which the limitation applies. To the extent that a financial
institution's designation of a central location for service of legal
process covers the process directed at deposit accounts, safe-deposit
boxes, or other property of the judgment debtor held by or for the
judgment debtor at a particular branch or office located within this
state, the branch or office shall be a branch or office covered by
central process.
(b) Should a financial institution required to designate a central
location fail to do so, each branch of that institution located in
this state shall be deemed to be a central location at which service
of legal process may be made, and all of the institution's branches
or offices located within this state shall be deemed to be a branch
or office covered by central process.
(c) Subject to any limitation noted pursuant to paragraph (3) of
subdivision (a), service of legal process at a central location of a
financial institution shall be effective against all deposit accounts
and all property held for safekeeping, as collateral for an
obligation owed to the financial institution or in a safe-deposit box
if the same is described in the legal process and held by the
financial institution at any branch or office covered by central
process and located within this state. However, while service of
legal process at the central location will establish a lien on all
property, if any property other than deposit accounts is physically
held by the financial institution in a county other than that in
which the designated central location is located, the financial
institution shall include in its garnishee's memorandum the location
or locations of the property, and the judgment creditor shall obtain
a writ of execution covering the property and directed to the levying
officer in that county to accomplish the turnover of the property
and shall forward the writ and related required documentation to the
levying officer in the county in which the property is held.
(d) A financial institution may modify or revoke any designation
made pursuant to subdivision (a) by filing the modification or
revocation with the Department of Business Oversight. The
modification or revocation shall be effective when the Department of
Business Oversight's records have been updated to reflect the
modification or revocation, provided that the judgment creditor may
rely upon the superseded designation during the 30-day period
following the effective date of the revocation or modification.
(e) (1) The Department of Business Oversight shall update its
online records to reflect a filing by a financial institution
pursuant to subdivision (a) or a modification or revocation filed by
a financial institution pursuant to subdivision (d) within 10
business days following the filing by the financial institution. The
Department of Business Oversight's Internet Web site shall reflect
the date its online records for each financial institution have most
recently been updated.
(2) The Department of Business Oversight shall provide any person
requesting it with a copy of each current filing made by a financial
institution pursuant to subdivision (a). The Department of Business
Oversight may satisfy its obligation under this subdivision by
posting all current designations of a financial institution, or the
pertinent information therein, on an Internet Web site available to
the public without charge, and if that information is made available,
the Department of Business Oversight may impose a reasonable fee for
furnishing that information in any other manner.
(f) As to deposit accounts maintained or property held for
safekeeping, as collateral for an obligation owed to the financial
institution or in a safe-deposit box at a branch or office covered by
central process, service of legal process at a location other than a
central location designated by the financial institution shall not
be effective unless the financial institution, in its absolute
discretion, elects to act upon the process at that location as if it
were effective. In the absence of an election, the financial
institution may respond to the legal process by mailing or delivery
of the garnishee's memorandum to the levying officer within the time
otherwise provided therefor, with a statement on the garnishee's
memorandum that the legal process was not properly served at the
financial institution's designated location for receiving legal
process, and, therefore, was not processed, and the address at which
the financial institution is to receive legal process.
(g) If any legal process is served at a central location of a
financial institution pursuant to this section, all related papers to
be served on the financial institution shall be served at that
location, unless agreed to the contrary between the serving party and
the financial institution.
(h) This subdivision shall apply whenever a financial institution
operates within this state at least one branch or office in addition
to its head office or main office, as applicable, or a financial
institution headquartered in another state operates more than one
branch or office within this state, and no central location has been
designated or deemed to have been designated by the institution for
service of legal process relating to deposit accounts maintained at
the financial institution's head office or main office, as
applicable, and branches located within this state. If a judgment
creditor reasonably believes that, pursuant to Section 700.140 and,
if applicable, Section 700.160, any act of enforcement would be
effective against a specific deposit account maintained at a
financial institution described in this subdivision, the judgment
creditor may file with the financial institution a written request
that the financial institution identify the branch or office within
this state at which a specified account might be maintained by the
financial institution. The written request shall contain the
following statements or information:
(1) The name of the person reasonably believed by the judgment
creditor to be a person in whose name the specified deposit account
stands.
(2) If the name of the person reasonably believed by the judgment
creditor to be a person in whose name the specified deposit account
stands is not a judgment debtor identified in the writ of execution,
a statement that a person reasonably believed by the judgment
creditor to be a person in whose name the specified deposit account
stands will be appropriately identified in the legal process to be
served pursuant to Section 700.160, including any supplementary
papers, such as a court order or affidavit if the same will be
required by Section 700.160.
(3) The specific identifying number of the account reasonably
believed to be maintained with the financial institution and standing
in the name of the judgment debtor or other person.
(4) The address of the requesting party.
(5) An affidavit by the judgment creditor or the judgment creditor'
s counsel stating substantially the following:
"I hereby declare that this deposit account location request
complies with Section 684.115 of the Code of Civil Procedure, that
the account or accounts of the judgment debtor or other person or
persons appropriately identified in the legal process and specified
herein are subject to a valid writ of execution, or court order, that
I have a reasonable belief, formed after an inquiry reasonable under
the circumstances, that the financial institution receiving this
deposit account location request has an account standing in the name
of the judgment debtor or other person or persons appropriately
identified in the legal process, and that information pertaining to
the location of the account will assist the judgment creditor in
enforcing the judgment."
(i) The affidavit contemplated by subdivision (h) shall be signed
by the judgment creditor or the judgment creditor's counsel and filed
at the financial institution's head office located within this state
or, if the financial institution's head office is in another state,
at one of its branches or offices within this state. Failure to
comply with the requirements of subdivision (h) and this subdivision
shall be sufficient basis for the financial institution to refuse to
produce the information that would otherwise be required by
subdivision (j).
(j) Within 10 banking days following receipt by a financial
institution at the applicable location specified in subdivision (i)
of a request contemplated by subdivision (h), as to each specific
deposit account identified in the request contemplated by subdivision
(h), the financial institution shall respond by mailing, by
first-class mail with postage prepaid, to the requester's address as
specified in the request a response indicating the branch or office
location of the financial institution at which the specified deposit
account might be maintained, or, if the specified deposit account, if
it exists, would not be maintained at a specific location, at least
one place within this state at which legal process relating to the
deposit account should or may be served. The response to be furnished
pursuant to this subdivision shall not require the financial
institution to determine whether an account exists or, if an account
does exist, whether it would be reached by the legal process, rather,
the branch or office location shall be determined and reported by
the financial institution based solely upon its determination that an
account with the identifying number provided by the requester would
be maintained at that branch if an account did exist, and the
response shall not contain any information about the name in which
the account stands or any other information concerning the account,
if it exists. If more than one account number is specified in the
request, the financial institution's responses as to some or all of
those account numbers may be combined in a single writing.
(k) A response furnished in good faith by the financial
institution pursuant to subdivision (j) shall not be deemed to
violate the privacy of any person in whose name the specified deposit
account stands nor the privacy of any other person, and shall not
require the consent of the person in whose name the account stands
nor that of any other person.
(l) A financial institution shall not notify the person in whose
name the specified deposit account stands or any other person related
to the specified account of the receipt of any request made pursuant
to subdivision (h) and affecting that person's or persons' accounts
at the financial institution, provided that the financial institution
shall have no liability for its failure to comply with the
provisions of this subdivision.
SEC. 16. Section 163 of the Corporations Code is amended to read:
163. "Corporation subject to the Banking Law" (Division 1.1
(commencing with Section 1000) of the Financial Code) means:
(a) Any corporation which, with the approval of the Commissioner
of Business Oversight, is incorporated for the purpose of engaging
in, or which is authorized by the Commissioner of Business Oversight
to engage in, the commercial banking business under Division 1.1
(commencing with Section 1000) of the Financial Code.
(b) Any corporation which, with the approval
of the Commissioner of Business Oversight, is incorporated for the
purpose of engaging in, or which is authorized by the Commissioner of
Business Oversight to engage in, the industrial banking business
under Division 1.1 (commencing with Section 1000) of the Financial
Code.
(c) Any corporation (other than a corporation described in
subdivision (d)) which, with the approval of the Commissioner of
Business Oversight, is incorporated for the purpose of engaging in,
or which is authorized by the Commissioner of Business Oversight to
engage in, the trust business under Division 1.1 (commencing with
Section 1000) of the Financial Code.
(d) Any corporation which is authorized by the Commissioner of
Business Oversight and the Commissioner of Insurance to maintain a
title insurance department to engage in title insurance business and
a trust department to engage in trust business; or
(e) Any corporation which, with the approval of the Commissioner
of Business Oversight, is incorporated for the purpose of engaging
in, or which is authorized by the Commissioner of Business Oversight
to engage in, business under Article 1 (commencing with Section
1850), Chapter 21, Division 1.1 of the Financial Code.
SEC. 17. Section 201 of the Corporations Code is amended to read:
201. (a) The Secretary of State shall not file articles setting
forth a name in which "bank," " trust," "trustee," or related words
appear, unless the certificate of approval of the Commissioner of
Business Oversight is attached thereto. This subdivision does not
apply to the articles of any corporation subject to the Banking Law
on which is endorsed the approval of the Commissioner of Business
Oversight.
(b) The Secretary of State shall not file articles which set forth
a name which is likely to mislead the public or which is the same
as, or resembles so closely as to tend to deceive, the name of a
domestic corporation, the name of a foreign corporation which is
authorized to transact intrastate business or has registered its name
pursuant to Section 2101, a name which a foreign corporation has
assumed under subdivision (b) of Section 2106, a name which will
become the record name of a domestic or foreign corporation upon the
effective date of a filed corporate instrument where there is a
delayed effective date pursuant to subdivision (c) of Section 110 or
subdivision (c) of Section 5008, or a name which is under reservation
for another corporation pursuant to this title, except that a
corporation may adopt a name that is substantially the same as an
existing domestic corporation or foreign corporation which is
authorized to transact intrastate business or has registered its name
pursuant to Section 2101, upon proof of consent by such domestic or
foreign corporation and a finding by the Secretary of State that
under the circumstances the public is not likely to be misled.
The use by a corporation of a name in violation of this section
may be enjoined notwithstanding the filing of its articles by the
Secretary of State.
(c) Any applicant may, upon payment of the fee prescribed therefor
in the Government Code, obtain from the Secretary of State a
certificate of reservation of any name not prohibited by subdivision
(b), and upon the issuance of the certificate the name stated therein
shall be reserved for a period of 60 days. The Secretary of State
shall not, however, issue certificates reserving the same name for
two or more consecutive 60-day periods to the same applicant or for
the use or benefit of the same person, partnership, firm or
corporation; nor shall consecutive reservations be made by or for the
use or benefit of the same person, partnership, firm or corporation
of names so similar as to fall within the prohibitions of subdivision
(b).
SEC. 18. Section 2510 of the Corporations Code is amended to read:
2510. "Flexible purpose corporation subject to the Banking Law"
means any of the following:
(a) A flexible purpose corporation that, with the approval of the
Commissioner of Business Oversight, is incorporated for the purpose
of engaging in, or that is authorized by the Commissioner of Business
Oversight to engage in, the commercial banking business under the
Banking Law (Division 1.1 (commencing with Section 1000) of the
Financial Code).
(b) Any flexible purpose corporation that, with the approval of
the Commissioner of Business Oversight, is incorporated for the
purpose of engaging in, or that is authorized by the Commissioner of
Business Oversight to engage in, the industrial banking business
under the Banking Law (Division 1.1 (commencing with Section 1000) of
the Financial Code).
(c) Any flexible purpose corporation, other than a flexible
purpose corporation described in subdivision (d), that, with the
approval of the Commissioner of Business Oversight, is incorporated
for the purpose of engaging in, or that is authorized by the
Commissioner of Business Oversight to engage in, the trust business
under the Banking Law (Division 1.1 (commencing with Section 1000) of
the Financial Code).
(d) Any flexible purpose corporation that is authorized by the
Commissioner of Business Oversight and the Commissioner of Insurance
to maintain a title insurance department to engage in title insurance
business and a trust department to engage in trust business.
(e) Any flexible purpose corporation that, with the approval of
the Commissioner of Business Oversight, is incorporated for the
purpose of engaging in, or that is authorized by the Commissioner of
Business Oversight to engage in, business under Article 1 (commencing
with Section 1850) of Chapter 21 of Division 1.1 of the Financial
Code.
SEC. 19. Section 2601 of the Corporations Code is amended to read:
2601. (a) The Secretary of State shall not file articles setting
forth a name in which "bank," "trust," "trustee," or related words
appear, unless the certificate of approval of the Commissioner of
Business Oversight is attached to the articles. This subdivision does
not apply to the articles of any flexible purpose corporation
subject to the Banking Law on which is endorsed the approval of the
Commissioner of Business Oversight.
(b) The Secretary of State shall not file articles that set forth
a name that is likely to mislead the public or that is the same as,
or resembles so closely as to tend to deceive, the name of a domestic
corporation, the name of a domestic flexible purpose corporation, or
the name of a foreign corporation that is authorized to transact
intrastate business or has registered its name pursuant to Section
2101, a name that a foreign corporation has assumed under subdivision
(b) of Section 2106, a name that will become the record name of a
corporation or flexible purpose corporation or a foreign corporation
upon the effective date of a filed corporate instrument where there
is a delayed effective date pursuant to subdivision (c) of Section
110 or subdivision (c) of Section 5008, or a name that is under
reservation for another corporation or flexible purpose corporation
pursuant to this title, except that a flexible purpose corporation
may adopt a name that is substantially the same as an existing
corporation or flexible purpose corporation, foreign or domestic,
which is authorized to transact intrastate business or has registered
its name pursuant to Section 2101, upon proof of consent by the
domestic or foreign corporation or flexible purpose corporation and a
finding by the Secretary of State that under the circumstances the
public is not likely to be misled. The use by a flexible purpose
corporation of a name in violation of this section may be enjoined
notwithstanding the filing of its articles by the Secretary of State.
(c) Any applicant may, upon payment of the fee prescribed in the
Government Code, obtain from the Secretary of State a certificate of
reservation of any name not prohibited by subdivision (b), and upon
the issuance of the certificate the name stated in the certificate
shall be reserved for a period of 60 days. The Secretary of State
shall not, however, issue certificates reserving the same name for
two or more consecutive 60-day periods to the same applicant or for
the use or benefit of the same person, partnership, firm,
corporation, or flexible purpose corporation. No consecutive
reservations shall be made by or for the use or benefit of the same
person, partnership, firm, corporation, or flexible purpose
corporation of names so similar as to fall within the prohibitions of
subdivision (b).
SEC. 20. Section 5122 of the Corporations Code is amended to read:
5122. (a) The Secretary of State shall not file articles setting
forth a name in which "bank," "trust," "trustee," or related words
appear, unless the certificate of approval of the Commissioner of
Business Oversight is attached thereto.
(b) The Secretary of State shall not file articles which set forth
a name which is likely to mislead the public or which is the same
as, or resembles so closely as to tend to deceive, the name of a
domestic corporation, the name of a foreign corporation which is
authorized to transact intrastate business or has registered its name
pursuant to Section 2101, a name which a foreign corporation has
assumed under subdivision (b) of Section 2106 or a name which will
become the record name of a domestic or foreign corporation upon the
effective date of a filed corporate instrument where there is a
delayed effective date pursuant to subdivision (c) of Section 110, or
subdivision (c) of Section 5008, or a name which is under
reservation pursuant to this title, except that a corporation may
adopt a name that is substantially the same as an existing domestic
or foreign corporation which is authorized to transact intrastate
business or has registered its name pursuant to Section 2101, upon
proof of consent by such corporation and a finding by the Secretary
of State that under the circumstances the public is not likely to be
misled.
The use by a corporation of a name in violation of this section
may be enjoined notwithstanding the filing of its articles by the
Secretary of State.
(c) Any applicant may, upon payment of the fee prescribed therefor
in the Government Code, obtain from the Secretary of State a
certificate of reservation of any name not prohibited by subdivision
(b), and upon the issuance of the certificate the name stated therein
shall be reserved for a period of 60 days. The Secretary of State
shall not, however, issue certificates reserving the same name for
two or more consecutive 60-day periods to the same applicant or for
the use or benefit of the same person; nor shall consecutive
reservations be made by or for the use or benefit of the same person
of names so similar as to fall within the prohibitions of subdivision
(b).
SEC. 21. Section 7122 of the Corporations Code is amended to read:
7122. (a) The Secretary of State shall not file articles setting
forth a name in which "bank," "trust," "trustee," or related words
appear, unless the certificate of approval of the Commissioner of
Business Oversight is attached thereto.
(b) The Secretary of State shall not file articles pursuant to
this part setting forth a name which may create the impression that
the purpose of the corporation is public, charitable, or religious or
that it is a charitable foundation.
(c) The Secretary of State shall not file articles which set forth
a name which is likely to mislead the public or which is the same
as, or resembles so closely as to tend to deceive, the name of a
domestic corporation, the name of a foreign corporation which is
authorized to transact intrastate business or has registered its name
pursuant to Section 2101, a name which a foreign corporation has
assumed under subdivision (b) of Section 2106, a name which will
become the record name of a domestic or foreign corporation upon the
effective date of a filed corporate instrument where there is a
delayed effective date pursuant to subdivision (c) of Section 110, or
subdivision (c) of Section 5008, or a name which is under
reservation pursuant to this title, except that a corporation may
adopt a name that is substantially the same as an existing domestic
or foreign corporation which is authorized to transact intrastate
business or has registered its name pursuant to Section 2101, upon
proof of consent by such corporation and a finding by the Secretary
of State that under the circumstances the public is not likely to be
misled.
The use by a corporation of a name in violation of this section
may be enjoined notwithstanding the filing of its articles by the
Secretary of State.
(d) Any applicant may, upon payment of the fee prescribed therefor
in the Government Code, obtain from the Secretary of State a
certificate of reservation of any name not prohibited by subdivision
(c), and upon the issuance of the certificate the name stated therein
shall be reserved for a period of 60 days. The Secretary of State
shall not, however, issue certificates reserving the same name for
two or more consecutive 60-day periods to the same applicant or for
the use or benefit of the same person; nor shall consecutive
reservations be made by or for the use or benefit of the same person
of names so similar as to fall within the prohibitions of subdivision
(c).
SEC. 22. Section 9122 of the Corporations Code is amended to read:
9122. (a) The Secretary of State shall not file articles setting
forth a name in which "bank," "trust," "trustee," or related words
appear, unless the certificate of approval of the Commissioner of
Business Oversight is attached thereto.
(b) The Secretary of State shall not file articles which set forth
a name which is likely to mislead the public or which is the same
as, or resembles so closely as to tend to deceive, the name of a
domestic corporation, the name of a foreign corporation which is
authorized to transact intrastate business or has registered its name
pursuant to Section 2101, a name which a foreign corporation has
assumed under subdivision (b) of Section 2106 or a name which will
become the record name of a domestic or foreign corporation upon the
effective date of a filed corporate instrument where there is a
delayed effective date pursuant to subdivision (c) of Section 110 or
subdivision (c) of Section 5008, or a name which is under reservation
pursuant to this title, except that a corporation may adopt a name
that is substantially the same as an existing domestic or foreign
corporation which is authorized to transact intrastate business or
has registered its name pursuant to Section 2101, upon proof of
consent by such corporation and a finding by the Secretary of State
that under the circumstances the public is not likely to be misled.
The use by a corporation of a name in violation of this section
may be enjoined notwithstanding the filing of its articles by the
Secretary of State.
(c) Any applicant may, upon payment of the fee prescribed therefor
in the Government Code, obtain from the Secretary of State a
certificate of reservation of any name not prohibited by subdivision
(b), and upon the issuance of the certificate the name stated therein
shall be reserved for a period of 60 days. The Secretary of State
shall not, however, issue certificates reserving the same name for
two or more consecutive 60-day periods to the same applicant or for
the use or benefit of the same person; nor shall consecutive
reservations be made by or for the use or benefit of the same person
of names so similar as to fall within the prohibitions of subdivision
(b).
SEC. 23. Section 12302 of the Corporations Code is amended to
read:
12302. (a) The Secretary of State shall not file articles setting
forth a name in which "bank," "trust," "trustee," or related words
appear, unless the certificate of approval of the Commissioner of
Business Oversight is attached thereto.
(b) The Secretary of State shall not file articles which set forth
a name which is likely to mislead the public or which is the same
as, or resembles so closely as to tend to deceive, the name of a
domestic corporation, the name of a foreign corporation which is
authorized to transact intrastate business or has registered its name
pursuant to Section 2101, a name which a foreign corporation has
assumed under subdivision (b) of Section 2106, a name which will
become the record name of a domestic or foreign corporation upon the
effective date of a filed corporate instrument where there is a
delayed effective date pursuant to this title, or a name which is
under reservation pursuant to this title, except that a corporation
may adopt a name that is substantially the same as an existing
domestic or foreign corporation which is authorized to transact
intrastate business or has registered its name pursuant to Section
2101, upon proof of consent by such corporation and a finding by the
Secretary of State that under the circumstances the public is not
likely to be misled.
(c) The use by a corporation of a name in violation of this
section may be enjoined notwithstanding the filing of its articles by
the Secretary of State.
(d) Any applicant may, upon payment of the fee prescribed therefor
in the Government Code, obtain from the Secretary of State a
certificate of reservation of any name not prohibited by subdivision
(c), and upon the issuance of the certificate the name stated therein
shall be reserved for a period of 60 days. The Secretary of State
shall not, however, issue certificates reserving the same name for
two or more consecutive 60-day periods to the same applicant or for
the use or benefit of the same person; nor shall consecutive
reservations be made by or for the use or benefit of the same person
of names so similar as to fall within the prohibitions of subdivision
(c).
SEC. 24. Section 371 of the Financial Code is amended to read:
371. (a) There is in the Department of Business Oversight, the
Division of Corporations, under the direction of the Senior Deputy
Commissioner of Business Oversight for the Division of Corporations.
The senior deputy commissioner has charge of the execution of the
laws of the state that were, prior to July 1, 2013, under the charge
of the Department of Corporations.
(b) There is in the Department of Business Oversight, the Division
of Financial Institutions under the direction of the Senior Deputy
Commissioner for the Division of Financial Institutions. The senior
deputy commissioner has charge of the execution of the laws of the
state that were, prior to July 1, 2013, under the charge of the
Department of Financial Institutions.
SEC. 25. Section 380 of the Financial Code is amended to read:
380. (a) The commissioner shall inform appropriate state and
federal officials charged with the regulation of financial
institutions or securities transactions of any enforcement actions,
including, but not limited to, civil or criminal actions, cease and
desist orders, license or authorization suspensions or revocations,
or an open investigation.
(b) The commissioner shall inform appropriate state and federal
officials charged with the regulation of financial institutions or
securities transactions if it appears that any bank, bank holding
company, savings association, savings and loan holding company,
credit union, industrial loan company, industrial loan holding
company, or other licensee of the department is conducting its
business in a fraudulent, unsafe, unsound, or injurious manner, or
has suffered or will suffer substantial financial loss or damage, and
it appears to the commissioner that the information is relevant to
the regulatory activities of the other agency.
SEC. 26. Section 1514 of the Financial Code is amended to read:
1514. A commercial bank may organize, sponsor, operate, control,
or render investment advice to, an investment company, or underwrite,
distribute, or sell securities of any investment company which has
qualified to sell its securities in this state pursuant to Part 2
(commencing with Section 25100) of Division 1 of Title 4 of the
Corporations Code, if the officers and employees of the bank who sell
these securities meet such standards with respect to training,
experience, and sales practices as established by the Secretary of
Business, Consumer Services, and Housing or the secretary's designee.
For the purpose of this section, "investment company" means an
investment company as defined in the Investment Company Act of 1940
(15 U.S.C., Sec. 80a-1 et seq.).
SEC. 27. Section 2105 of the Financial Code is amended to read:
2105. (a) Each licensee or agent shall prominently post on the
premises of each branch office that conducts money transmission a
notice stating that:
""If you have complaints with respect to any
aspect of the money transmission activities
conducted at this location, you may contact the
Department of Business Oversight at its toll-
free telephone number 1-800-275-2677, its
Internet Web site at
www.dbo.ca.gov/Consumer/consumer_services.asp,
or by mail at Department of Business
Oversight, Consumer Services, 1515 K Street,
Suite 200, Sacramento, CA 95814.''
(b) The commissioner may by order or regulation modify the content
of the notice required by this section. This notice shall be printed
in English and in the same language principally used by the licensee
or any agent of the licensee to advertise, solicit, or negotiate
either orally or in writing, with respect to money transmission at
that branch office. The information required in this notice shall be
clear, legible, and in letters not less than one-half inch in height.
The notice shall be posted in a conspicuous location in the
unobstructed view of the public within the premises. The licensee
shall provide to each of its agents the notice required by this
section. In those locations operated by an agent, the agent, and not
the licensee, shall be responsible for the failure to properly post
the required notice.
SEC. 28. Section 5106 of the Financial Code is amended to read:
5106. "Department" means the Department of Business Oversight.
SEC. 29. Section 14381 of the Financial Code is amended to read:
14381. The Credit Union Advisory Committee shall advise the
commissioner and the Deputy Commissioner of Business Oversight for
the Office of Credit Unions on matters relating to credit unions or
the credit union business.
SEC. 30. Section 14382 of the Financial Code is amended to read:
14382. (a) The Credit Union Advisory Committee consists of seven
members.
(b) The members of the Credit Union Advisory Committee shall be
appointed by the Secretary of Business, Consumer Services, and
Housing.
(c) The term of a member of the Credit Union Advisory Committee is
two years. However, a member may be reappointed.
(d) Membership in the Credit Union Advisory Committee is
voluntary. No person is required to accept an appointment to the
Credit Union Advisory Committee, and any member may resign by filing
a resignation with the commissioner.
(e) No member of the Credit Union Advisory Committee shall receive
any compensation, reimbursement for expenses, or other payment from
the state in connection with service on the Credit Union Advisory
Committee.
SEC. 31. Section 14652.5 of the Financial Code is amended to read:
14652.5. A credit union may organize, sponsor, operate, control,
or render investment advice to, an investment company, or underwrite,
distribute, or sell securities of any investment company which has
qualified to sell its securities in this state pursuant to Part 2
(commencing with Section 25100) of Division 1 of Title 4 of the
Corporations Code, if the officers and employees of the credit union
who sell these securities meet such standards with respect to
training, experience, and sales practices as established by the
Secretary of Business, Consumer Services, and Housing or the
secretary's designee. For the purpose of this section, "investment
company" means an investment company as defined in the Investment
Company Act of 1940 (15 U.S.C., Sec. 80a-1 et seq.).
SEC. 32. Section 18002.5 of the Financial Code is amended to read:
18002.5. "Department" means the Department of Business Oversight.
SEC. 33. Section 18022.5 of the Financial Code is amended to read:
18022.5. An industrial loan company may organize, sponsor,
operate, control, or render investment advice to, an investment
company, or underwrite, distribute, or sell securities of any
investment company which has qualified to sell its securities in this
state pursuant to Part 2 (commencing with Section 25100) of Division
1, Title 4 of the Corporations Code, if the officers and employees
of the industrial loan company who sell these securities meet such
standards with respect to training experience, and sales practices as
established by the Secretary of Business, Consumer Services, and
Housing or the secretary's designee. For the purpose of this section,
"investment company" means an investment company as defined in the
Investment Company Act of 1940 (15 U.S.C., Sec. 80a-1 et seq.).
SEC. 34. Section 23001 of the Financial Code is amended to read:
23001. As used in this division, the following terms have the
following meanings:
(a) "Deferred deposit transaction" means a transaction whereby a
person defers depositing a customer's personal check until a specific
date, pursuant to a written agreement for a fee or other charge, as
provided in Section 23035.
(b) "Commissioner" means the Commissioner of Business Oversight.
(c) "Department" means the Department of Business Oversight.
(d) "Licensee" means any person who offers, originates, or makes a
deferred deposit transaction, who arranges a deferred deposit
transaction for a deferred deposit originator, who acts as an agent
for a deferred deposit originator, or who assists a deferred deposit
originator in the origination of a deferred deposit transaction.
However, "licensee" does not include a state or federally chartered
bank, thrift, savings association, industrial loan company, or credit
union. "Licensee" also does not include a retail seller engaged
primarily in the business of selling consumer goods, including
consumables, to retail buyers that cashes checks or issues money
orders for a minimum fee not exceeding two dollars ($2) as a service
to its customers that is incidental to its main purpose or business.
"Licensee" also does not include an employee regularly employed by a
licensee at the licensee's place of business. An employee, when
acting under the scope of the employee's employment, shall be exempt
from any other law from which the employee's employer is exempt.
(e) "Person" means an individual, a corporation, a partnership, a
limited liability company, a joint venture, an association, a joint
stock company, a trust, an unincorporated organization, a government
entity, or a political subdivision of a government entity.
(f) "Deferred deposit originator" means a person who offers,
originates, or makes a deferred deposit transaction.
SEC. 35. Section 6254.5 of the Government Code is amended to read:
6254.5. Notwithstanding any other provisions of law, whenever a
state or local agency discloses a public record which is otherwise
exempt from this chapter, to any member of the public, this
disclosure shall constitute a waiver of the exemptions specified in
Sections 6254, 6254.7, or other similar provisions of law. For
purposes of this section, "agency" includes a member, agent, officer,
or employee of the agency acting within the scope of his or her
membership, agency, office, or employment.
This section, however, shall not apply to disclosures:
(a) Made pursuant to the Information Practices Act (commencing
with Section 1798 of the Civil Code) or discovery proceedings.
(b) Made through other legal proceedings or as otherwise required
by law.
(c) Within the scope of disclosure of a statute which limits
disclosure of specified writings to certain purposes.
(d) Not required by law, and prohibited by formal action of an
elected legislative body of the local agency which retains the
writings.
(e) Made to any governmental agency which agrees to treat the
disclosed material as confidential. Only persons authorized in
writing by the person in charge of the agency shall be permitted to
obtain the information. Any information obtained by the agency shall
only be used for purposes which are consistent with existing law.
(f) Of records relating to a financial institution or an affiliate
thereof, if the disclosures are made to the financial institution or
affiliate by a state agency responsible for the regulation or
supervision of the financial institution or affiliate.
(g) Of records relating to any person that is subject to the
jurisdiction of the Department of Business Oversight, if the
disclosures are made to the person that is the subject of the records
for the purpose of corrective action by that person, or if a
corporation, to an officer, director, or other key personnel of the
corporation for the purpose of corrective action, or to any other
person to the extent necessary to obtain information from that person
for the purpose of an investigation by the Department of
Corporations.
(h) Made by the Commissioner of Business Oversight under Section
450, 452, 8009, or 18396 of the Financial Code.
(i) Of records relating to any person that is subject to the
jurisdiction of the Department of Managed Health Care, if the
disclosures are made to the person that is the subject of the records
for the purpose of corrective action by that person, or if a
corporation, to an officer, director, or other key personnel of the
corporation for the purpose of corrective action, or to any other
person to the extent necessary to obtain information from that person
for the purpose of an investigation by the Department of Managed
Health Care.
SEC. 36. Section 7465 of the Government Code is amended to read:
7465. For the purposes of this chapter:
(a) The term "financial institution" includes state and national
banks, state and federal savings associations, trust companies,
industrial loan companies, and state and federal credit unions. Such
term shall not include a title insurer while engaging in the conduct
of the "business of title insurance" as defined by Section 12340.3 of
the Insurance Code, an underwritten title company, or an escrow
company.
(b) The term "financial records" means any original or any copy of
any record or document held by a financial institution pertaining to
a customer of the financial institution.
(c) The term "person" means an individual, partnership,
corporation, limited liability company, association, trust, or any
other legal entity.
(d) The term "customer" means any person who has transacted
business with or has used the services of a financial institution or
for whom a financial institution has acted as a fiduciary.
(e) The term "state agency" means every state office, officer,
department, division, bureau, board, and commission or other state
agency, including the Legislature.
(f) The term "local agency" includes a county; city, whether
general law or chartered; city and county; school district; municipal
corporation; district; political subdivision; or any board,
commission or agency thereof; or other local public agency.
(g) The term "supervisory agency" means any of the following:
(1) The Department of Business Oversight.
(2) The Controller.
(3) The Administrator of Local Agency Security.
(4) The Bureau of Real Estate.
(5) The Department of Insurance.
(h) The term "investigation" includes, but is not limited to, any
inquiry by a peace officer, sheriff, or district attorney, or any
inquiry made for the purpose of determining whether there has been a
violation of any law enforceable by imprisonment, fine, or monetary
liability.
(i) The term "subpoena" includes subpoena duces tecum.
SEC. 37. Section 7474 of the Government Code is amended to read:
7474. (a) An officer, employee, or agent of a state or local
agency or department thereof, may obtain financial records under
paragraph (2) of subdivision (a) of Section 7470 pursuant to an
administrative subpoena or summons otherwise authorized by law and
served upon the financial institution only if:
(1) The person issuing such administrative summons or subpoena has
served a copy of the subpoena or summons on the customer pursuant to
Chapter 4 (commencing with Section 413.10) of Title 5 of Part 2 of
the Code of Civil Procedure, which copy may be served by an employee
of the state or local agency or department thereof; and
(2) The subpoena or summons includes the name of the agency or
department in whose name the subpoena or summons is issued and the
statutory purpose for which the information is to be obtained; and
(3) Ten days after service pass without the customer giving notice
to the financial institution that the customer has moved to quash
the subpoena.
(b) (1) In issuing an administrative subpoena or summons pursuant
to subdivision (a), the Attorney General or the Commissioner of
Business Oversight pursuant to the enforcement of statutes within his
or her jurisdiction, or the district attorney of any county in
connection with investigations of violations of antitrust law as
authorized by Section 16759 of the Business and Professions Code, may
petition a court of competent jurisdiction in the county in which
the records are located, and the court, upon a showing of a
reasonable inference that a law subject to the jurisdiction of the
petitioning agency has been or is about to be violated, may order
that service upon the customer pursuant to paragraph (1) of
subdivision (a) and the 10-day period provided for in paragraph (3)
of subdivision (a) be waived or shortened. For the purpose of this
subdivision, an "inference" is a deduction that may reasonably be
drawn by the Attorney General, the Commissioner of Business
Oversight, or the district attorney from facts relevant to the
investigation.
(2) Such petition may be presented to the court in person or by
telephoned oral statement which shall be recorded and transcribed. In
the case of telephonic petition, the recording of the sworn oral
statement and the transcribed statement shall be certified by the
magistrate receiving it and shall be filed with the clerk of the
court.
(3) Where the court grants such petition, the court shall order
the petitioning agency to notify the customer in writing of the
examination of records within a period to be determined by the court
but not to exceed 60 days of the agency's receipt of any of the
customer's financial records. The notice shall specify the
information otherwise required by paragraph (2) of subdivision (a),
and shall also specify the financial records which were examined
pursuant to the administrative subpoena or summons. Upon renewed
petition, the time of notification may be extended for an additional
30-day period upon good cause to believe that such notification would
impede the investigation. Thereafter, by application to a court upon
a showing of extreme necessity for continued withholding of
notification, such notification requirements may be extended for
three additional 30-day periods.
(4) The Attorney General shall not provide financial records
obtained pursuant to the procedure authorized in this subdivision to
a local law enforcement agency unless (i) that agency has
independently obtained authorization to receive such financial
records pursuant to the provisions of this chapter, or (ii) he or she
obtains such records in an investigation conducted wholly
independently of the local agency and not at its instigation or
request.
(c) Except as provided in this subdivision, nothing in this
chapter shall preclude a financial institution from notifying a
customer of the receipt of an administrative summons or subpoena. A
court may order a financial institution to withhold notification to a
customer of the receipt of an administrative summons or subpoena
when the court issues an order pursuant to subdivision (b) and makes
a finding that notice to the customer by the financial institution
would impede the investigation.
(d) If a customer files a motion to quash an administrative
subpoena or summons issued pursuant to subdivision (a), such
proceedings shall be afforded priority on the court calendar and the
matter shall be heard within 10 days from the filing of the motion to
quash.
SEC. 38. Section 7480 of the Government Code is amended to read:
7480. Nothing in this chapter shall prohibit any of the
following:
(a) The dissemination of any financial information that is not
identified with, or identifiable as being derived from, the financial
records of a particular customer.
(b) When any police or sheriff's department or district attorney
in this state certifies to a bank, credit union, or savings
association in writing that a crime report has been filed that
involves the alleged fraudulent use of drafts, checks, access cards,
or other orders drawn upon any bank, credit union, or savings
association in this state, the police or sheriff's department or
district attorney, a county adult protective services office when
investigating the financial abuse of an elder or dependent adult, or
a long-term care ombudsman when investigating the financial abuse of
an elder or dependent adult, may request a bank, credit union, or
savings association to furnish, and a bank, credit union, or savings
association shall furnish, a statement setting forth the following
information with respect to a customer account specified by the
requesting party for a period 30 days prior to, and up to 30 days
following, the date of occurrence of the alleged illegal act
involving the account:
(1) The number of items dishonored.
(2) The number of items paid that created overdrafts.
(3) The dollar volume of the dishonored items and items paid which
created overdrafts and a statement explaining any credit arrangement
between the bank, credit union, or savings association and customer
to pay overdrafts.
(4) The dates and amounts of deposits and debits and the account
balance on these dates.
(5) A copy of the signature card, including the signature and any
addresses appearing on a customer's signature card.
(6) The date the account opened and, if applicable, the date the
account closed.
(7) Surveillance photographs and video recordings of persons
accessing the crime victim's financial account via an automated
teller machine (ATM) or from within the financial institution for
dates on which illegal acts involving the account were alleged to
have occurred. Nothing in this paragraph does any of the following:
(A) Requires a financial institution to produce a photograph or
video recording if it does not possess the photograph or video
recording.
(B) Affects any existing civil immunities as provided in Section
47 of the Civil Code or any other provision of law.
(8) A bank, credit union, or savings association that provides the
requesting party with copies of one or more complete account
statements prepared in the regular course of business shall be deemed
to be in compliance with paragraphs (1), (2), (3), and (4).
(c) When any police or sheriff's department or district attorney
in this state certifies to a bank, credit union, or savings
association in writing that a crime report has been filed that
involves the alleged fraudulent use of drafts, checks, access cards,
or other orders drawn upon any bank, credit union, or savings
association doing business in this state, the police or sheriff's
department or district attorney, a county adult protective services
office when investigating the financial abuse of an elder or
dependent adult, or a long-term care ombudsman when investigating the
financial abuse of an elder or dependent adult, may request, with
the consent of the accountholder, the bank, credit union, or savings
association to furnish, and the bank, credit union, or savings
association shall furnish, a statement setting forth the following
information with respect to a customer account specified by the
requesting party for a period 30 days prior to, and up to 30 days
following, the date of occurrence of the alleged illegal act
involving the account:
(1) The number of items dishonored.
(2) The number of items paid that created overdrafts.
(3) The dollar volume of the dishonored items and items paid which
created overdrafts and a statement explaining any credit arrangement
between the bank, credit union, or savings association and customer
to pay overdrafts.
(4) The dates and amounts of deposits and debits and the account
balance on these dates.
(5) A copy of the signature card, including the signature and any
addresses appearing on a customer's signature card.
(6) The date the account opened and, if applicable, the date the
account closed.
(7) Surveillance photographs and video recordings of persons
accessing the crime victim's financial account via an automated
teller machine (ATM) or from within the financial institution for
dates on which illegal acts involving this account were alleged to
have occurred. Nothing in this paragraph does any of the following:
(A) Requires a financial institution to produce a photograph or
video recording if it does not possess the photograph or video
recording.
(B) Affects any existing civil immunities as provided in Section
47 of the Civil Code or any other provision of law.
(8) A bank, credit union, or savings association doing business in
this state that provides the requesting party with copies of one or
more complete account statements prepared in the regular course of
business shall be deemed to be in compliance with paragraphs (1),
(2), (3), and (4).
(d) For purposes of subdivision (c), consent of the accountholder
shall be satisfied if an accountholder provides to the financial
institution and the person or entity seeking disclosure, a signed and
dated statement containing all of the following:
(1) Authorization of the disclosure for the period specified in
subdivision (c).
(2) The name of the agency or department to which disclosure is
authorized and, if applicable, the statutory purpose for which the
information is to be obtained.
(3) A description of the financial records that are authorized to
be disclosed.
(e) (1) The Attorney General, a supervisory agency, the Franchise
Tax Board, the State Board of Equalization, the Employment
Development Department, the Controller, or an inheritance tax referee
when administering the Prohibition of Gift and Death Taxes (Part 8
(commencing with Section 13301) of Division 2 of the Revenue and
Taxation Code), a police or sheriff's department or district
attorney, a county adult protective services office when
investigating the financial abuse of an elder or dependent adult, a
long-term care ombudsman when investigating the financial abuse of an
elder or dependent adult, a county welfare department when
investigating welfare fraud, a county auditor-controller or director
of finance when investigating fraud against the county, or the
Department of Business Oversight when conducting investigations in
connection with the enforcement of laws administered by the
Commissioner of Business Oversight, from requesting of an office or
branch of a financial institution, and the office or branch from
responding to a request, as to whether a person has an account or
accounts at that office or branch and, if so, any identifying numbers
of the account or accounts.
(2) No additional information beyond that specified in this
section shall be released to a county welfare department without
either the accountholder's written consent or a judicial writ, search
warrant, subpoena, or other judicial order.
(3) A county auditor-controller or director of finance who
unlawfully discloses information he or she is authorized to request
under this subdivision is guilty of the unlawful disclosure of
confidential data, a misdemeanor, which shall be punishable as set
forth in Section 7485.
(f) The examination by, or disclosure to, any supervisory agency
of financial records that relate solely to the exercise of its
supervisory function. The scope of an agency's supervisory function
shall be determined by reference to statutes that grant authority to
examine, audit, or require reports of financial records or financial
institutions as follows:
(1) With respect to the Commissioner of Business Oversight by
reference to Division 1 (commencing with Section 99), Division 1.1
(commencing with Section 1000), Division 1.2 (commencing with Section
2000), Division 1.6 (commencing with Section 4800), Division 2
(commencing with Section 5000), Division 5 (commencing with Section
14000), Division 7 (commencing with Section 18000), Division 15
(commencing with Section 31000), and Division 16 (commencing with
Section 33000), of the Financial Code.
(2) With respect to the Controller by reference to Title 10
(commencing with Section 1300) of Part 3 of the Code of Civil
Procedure.
(3) With respect to the Administrator of Local Agency Security by
reference to Article 2 (commencing with Section 53630) of Chapter 4
of Part 1 of Division 2 of Title 5 of the Government Code.
(g) The disclosure to the Franchise Tax Board of (1) the amount of
any security interest that a financial institution has in a
specified asset of a customer or (2) financial records in connection
with the filing or audit of a tax return or tax information return
that are required to be filed by the financial institution pursuant
to Part 10 (commencing with Section 17001), Part 11 (commencing with
Section 23001), or Part 18 (commencing with Section 38001), of the
Revenue and Taxation Code.
(h) The disclosure to the State Board of Equalization of any of
the following:
(1) The information required by Sections 6702, 6703, 8954, 8957,
30313, 30315, 32383, 32387, 38502, 38503, 40153, 40155, 41122,
41123.5, 43443, 43444.2, 44144, 45603, 45605, 46404, 46406, 50134,
50136, 55203, 55205, 60404, and 60407 of the Revenue and Taxation
Code.
(2) The financial records in connection with the filing or audit
of a tax return required to be filed by the financial institution
pursuant to Part 1 (commencing with Section 6001), Part 2 (commencing
with Section 7301), Part 3 (commencing with Section 8601), Part 13
(commencing with Section 30001), Part 14 (commencing with Section
32001), and Part 17 (commencing with Section 37001), of Division 2 of
the Revenue and Taxation Code.
(3) The amount of any security interest a financial institution
has in a specified asset of a customer, if the inquiry is directed to
the branch or office where the interest is held.
(i) The disclosure to the Controller of the information required
by Section 7853 of the Revenue and Taxation Code.
(j) The disclosure to the Employment Development Department of the
amount of any security interest a financial institution has in a
specified asset of a customer, if the inquiry is directed to the
branch or office where the interest is held.
(k) The disclosure by a construction lender, as defined in Section
8006 of the Civil Code, to the Registrar of Contractors, of
information concerning the making of progress payments to a prime
contractor requested by the registrar in connection with an
investigation under Section 7108.5 of the Business and Professions
Code.
(l) Upon receipt of a written request from a local child support
agency referring to a support order pursuant to Section 17400 of the
Family Code, a financial institution shall disclose the following
information concerning the account or the person named in the
request, whom the local child support agency shall identify, whenever
possible, by social security number:
(1) If the request states the identifying number of an account at
a financial institution, the name of each owner of the account.
(2) Each account maintained by the person at the branch to which
the request is delivered, and, if the branch is able to make a
computerized search, each account maintained by the person at any
other branch of the financial institution located in this state.
(3) For each account disclosed pursuant to paragraphs (1) and (2),
the account number, current balance, street address of the branch
where the account is maintained, and, to the extent available through
the branch's computerized search, the name and address of any other
person listed as an owner.
(4) Whenever the request prohibits the disclosure, a financial
institution shall not disclose either the request or its response, to
an owner of the account or to any other person, except the officers
and employees of the financial institution who are involved in
responding to the request and to attorneys, employees of the local
child support agencies, auditors, and regulatory authorities who have
a need to know in order to perform their duties, and except as
disclosure may be required by legal process.
(5) No financial institution, or any officer, employee, or agent
thereof, shall be liable to any person for (A) disclosing information
in response to a request pursuant to this subdivision, (B) failing
to notify the owner of an account, or complying with a request under
this paragraph not to disclose to the owner, the request or
disclosure under this subdivision, or (C) failing to discover any
account owned by the person named in the request pursuant to a
computerized search of the records of the financial institution.
(6) The local child support agency may request information
pursuant to this subdivision only when the local child support agency
has received at least one of the following types of physical
evidence:
(A) Any of the following, dated within the last three years:
(i) Form 599.
(ii) Form 1099.
(iii) A bank statement.
(iv) A check.
(v) A bank passbook.
(vi) A deposit slip.
(vii) A copy of a federal or state income tax return.
(viii) A debit or credit advice.
(ix) Correspondence that identifies the child support obligor by
name, the bank, and the account number.
(x) Correspondence that identifies the child support obligor by
name, the bank, and the banking services related to the account of
the obligor.
(xi) An asset identification report from a federal agency.
(B) A sworn declaration of the custodial parent during the 12
months immediately preceding the request that the person named in the
request has had or may have had an account at an office or branch of
the financial institution to which the request is made.
(7) Information obtained by a local child support agency pursuant
to this subdivision shall be used only for purposes that are directly
connected with the administration of the duties of the local child
support agency pursuant to Section 17400 of the Family Code.
(m) (1) As provided in paragraph (1) of subdivision (c) of Section
666 of Title 42 of the United States Code, upon receipt of an
administrative subpoena on the current federally approved interstate
child support enforcement form, as approved by the federal Office of
Management and Budget, a financial institution shall provide the
information or documents requested by the administrative subpoena.
(2) The administrative subpoena shall refer to the current federal
Office of Management and Budget control number and be signed by a
person who states that he or she is an authorized agent of a state or
county agency responsible for implementing the child support
enforcement program set forth in Part D (commencing with Section 651)
of Subchapter IV of Chapter 7 of Title 42 of the United States Code.
A financial institution may rely on the statements made in the
subpoena and has no duty to inquire into the truth of any statement
in the subpoena.
(3) If the person who signs the administrative subpoena directs a
financial institution in writing not to disclose either the subpoena
or its response to any owner of an account covered by the subpoena,
the financial institution shall not disclose the subpoena or its
response to the owner.
(4) No financial institution, or any officer, employee, or agent
thereof, shall be liable to any person for (A) disclosing information
or providing documents in response to a subpoena pursuant to this
subdivision, (B) failing to notify any owner of an account covered by
the subpoena or complying with a request not to disclose to the
owner, the subpoena or disclosure under this subdivision, or (C)
failing to discover any account owned by the person named in the
subpoena pursuant to a computerized search of the records of the
financial institution.
(n) The dissemination of financial information and records
pursuant to any of the following:
(1) Compliance by a financial institution with the requirements of
Section 2892 of the Probate Code.
(2) Compliance by a financial institution with the requirements of
Section 2893 of the Probate Code.
(3) An order by a judge upon a written ex parte application by a
peace officer showing specific and articulable facts that there are
reasonable grounds to believe that the records or information sought
are relevant and material to an ongoing investigation of a felony
violation of Section 186.10 or of any felony subject to the
enhancement set forth in Section 186.11.
(A) The ex parte application shall
specify with particularity the records to be produced, which shall be
only those of the individual or individuals who are the subject of
the criminal investigation.
(B) The ex parte application and any subsequent judicial order
shall be open to the public as a judicial record unless ordered
sealed by the court, for a period of 60 days. The sealing of these
records may be extended for 60-day periods upon a showing to the
court that it is necessary for the continuance of the investigation.
Sixty-day extensions may continue for up to one year or until
termination of the investigation of the individual or individuals,
whichever is sooner.
(C) The records ordered to be produced shall be returned to the
peace officer applicant or his or her designee within a reasonable
time period after service of the order upon the financial
institution.
(D) Nothing in this subdivision shall preclude the financial
institution from notifying a customer of the receipt of the order for
production of records unless a court orders the financial
institution to withhold notification to the customer upon a finding
that the notice would impede the investigation.
(E) Where a court has made an order pursuant to this paragraph to
withhold notification to the customer under this paragraph, the peace
officer or law enforcement agency who obtained the financial
information shall notify the customer by delivering a copy of the ex
parte order to the customer within 10 days of the termination of the
investigation.
(4) An order by a judge issued pursuant to subdivision (c) of
Section 532f of the Penal Code.
(5) No financial institution, or any officer, employee, or agent
thereof, shall be liable to any person for any of the following:
(A) Disclosing information to a probate court pursuant to Sections
2892 and 2893.
(B) Disclosing information in response to a court order pursuant
to paragraph (3).
(C) Complying with a court order under this subdivision not to
disclose to the customer, the order, or the dissemination of
information pursuant to the court order.
(o) Disclosure by a financial institution to a peace officer, as
defined in Section 830.1 of the Penal Code, pursuant to the
following:
(1) Paragraph (1) of subdivision (a) of Section 1748.95 of the
Civil Code, provided that the financial institution has first
complied with the requirements of paragraph (2) of subdivision (a)
and subdivision (b) of Section 1748.95 of the Civil Code.
(2) Paragraph (1) of subdivision (a) of Section 4002 of the
Financial Code, provided that the financial institution has first
complied with the requirements of paragraph (2) of subdivision (a)
and subdivision (b) of Section 4002 of the Financial Code.
(3) Paragraph (1) of subdivision (a) of Section 22470 of the
Financial Code, provided that any financial institution that is a
finance lender has first complied with the requirements of paragraph
(2) of subdivision (a) and subdivision (b) of Section 22470 of the
Financial Code.
(p) When the governing board of the Public Employees' Retirement
System or the State Teachers' Retirement System certifies in writing
to a financial institution that a benefit recipient has died and that
transfers to the benefit recipient's account at the financial
institution from the retirement system occurred after the benefit
recipient's date of death, the financial institution shall furnish
the retirement system with the name and address of any coowner,
cosigner, or any other person who had access to the funds in the
account following the date of the benefit recipient's death, or if
the account has been closed, the name and address of the person who
closed the account.
(q) When the retirement board of a retirement system established
under the County Employees Retirement Law of 1937 certifies in
writing to a financial institution that a retired member or the
beneficiary of a retired member has died and that transfers to the
account of the retired member or beneficiary of a retired member at
the financial institution from the retirement system occurred after
the date of death of the retired member or beneficiary of a retired
member, the financial institution shall furnish the retirement system
with the name and address of any coowner, cosigner, or any other
person who had access to the funds in the account following the date
of death of the retired member or beneficiary of a retired member, or
if the account has been closed, the name and address of the person
who closed the account.
(r) When the Franchise Tax Board certifies in writing to a
financial institution that (1) a taxpayer filed a tax return that
authorized a direct deposit refund with an incorrect financial
institution account or routing number that resulted in all or a
portion of the refund not being received, directly or indirectly, by
the taxpayer; (2) the direct deposit refund was not returned to the
Franchise Tax Board; and (3) the refund was deposited directly on a
specified date into the account of an accountholder of the financial
institution who was not entitled to receive the refund, then the
financial institution shall furnish to the Franchise Tax Board the
name and address of any coowner, cosigner, or any other person who
had access to the funds in the account following the date of direct
deposit refund, or if the account has been closed, the name and
address of the person who closed the account.
SEC. 39. Chapter 9.7 (commencing with Section 8790) of Division 1
of Title 2 of the Government Code is repealed.
SEC. 40. The heading of Part 4.5 (commencing with Section 13975)
of Division 3 of Title 2 of the Government Code is amended to read:
PART 4.5. TRANSPORTATION AGENCY
SEC. 41. Section 13975.1 of the Government Code is amended and
renumbered to read:
12896. (a) This section applies to every action brought in the
name of the people of the State of California by the Commissioner of
Business Oversight before, on, or after the effective date of this
section, when enforcing provisions of those laws administered by the
Commissioner of Business Oversight which authorize the Commissioner
of Business Oversight to seek a permanent or preliminary injunction,
restraining order, or writ of mandate, or the appointment of a
receiver, monitor, conservator, or other designated fiduciary or
officer of the court, except actions brought against any of the
licensees specified in paragraphs (1) through (8), inclusive, of
subdivision (b) of Section 300 of the Financial Code that are
governed by other law. Upon a proper showing, a permanent or
preliminary injunction, restraining order, or writ of mandate shall
be granted and a receiver, monitor, conservator, or other designated
fiduciary or officer of the court may be appointed for the defendant
or the defendant's assets, or any other ancillary relief may be
granted as appropriate. The court may order that the expenses and
fees of the receiver, monitor, conservator, or other designated
fiduciary or officer of the court, be paid from the property held by
the receiver, monitor, conservator, or other court-designated
fiduciary or officer, but neither the state, the Business, Consumer
Services, and Housing Agency, nor the Department of Business
Oversight shall be liable for any of those expenses and fees, unless
expressly provided for by written contract.
(b) The receiver, monitor, conservator, or other designated
fiduciary or officer of the court may do any of the following subject
to the direction of the court:
(1) Sue for, collect, receive, and take into possession all the
real and personal property derived by any unlawful means, including
property with which that property or the proceeds thereof has been
commingled if that property or the proceeds thereof cannot be
identified in kind because of the commingling.
(2) Take possession of all books, records, and documents relating
to any unlawfully obtained property and the proceeds thereof. In
addition, they shall have the same right as a defendant to request,
obtain, inspect, copy, and obtain copies of books, records, and
documents maintained by third parties that relate to unlawfully
obtained property and the proceeds thereof.
(3) Transfer, encumber, manage, control, and hold all property
subject to the receivership, including the proceeds thereof, in the
manner directed or ratified by the court.
(4) Avoid a transfer of any interest in any unlawfully obtained
property including the proceeds thereof to any person who committed,
aided or abetted, or participated in the commission of unlawful acts
or who had knowledge that the property had been unlawfully obtained.
(5) Avoid a transfer of any interest in any unlawfully obtained
property including the proceeds thereof made with the intent to
hinder or delay the recovery of that property or any interest in it
by the receiver or any person from whom the property was unlawfully
obtained.
(6) Avoid a transfer of any interest in any unlawfully obtained
property including the proceeds thereof that was made within one year
before the date of the entry of the receivership order if less than
a reasonably equivalent value was given in exchange for the transfer,
except that a bona fide transferee for value and without notice that
the property had been unlawfully obtained may retain the interest
transferred until the value given in exchange for the transfer is
returned to the transferee.
(7) Avoid a transfer of any interest in any unlawfully obtained
property including the proceeds thereof made within 90 days before
the date of the entry of the receivership order to a transferee from
whom the defendant unlawfully obtained some property if (A) the
receiver establishes that the avoidance of the transfer will promote
a fair pro rata distribution of restitution among all people from
whom defendants unlawfully obtained property and (B) the transferee
cannot establish that the specific property transferred was the same
property which had been unlawfully obtained from the transferee.
(8) Exercise any power authorized by statute or ordered by the
court.
(c) No person with actual or constructive notice of the
receivership shall interfere with the discharge of the receiver's
duties.
(d) No person may file any action or enforce or create any lien,
or cause to be issued, served, or levied any summons, subpoena,
attachment, or writ of execution against the receiver or any property
subject to the receivership without first obtaining prior court
approval upon motion with notice to the receiver and the Commissioner
of Business Oversight. Any legal procedure described in this
subdivision commenced without prior court approval is void except as
to a bona fide purchaser or encumbrancer for value and without notice
of the receivership. No person without notice of the receivership
shall incur any liability for commencing or maintaining any legal
procedure described by this subdivision.
(e) The court has jurisdiction of all questions arising in the
receivership proceedings and may make any orders and judgments as may
be required, including orders after noticed motion by the receiver
to avoid transfers as provided in paragraphs (4), (5), (6), and (7)
of subdivision (b).
(f) This section is cumulative to all other provisions of law.
(g) If any provision of this section or the application thereof to
any person or circumstances is held invalid, that invalidity shall
not affect other provisions or applications of this section which can
be given effect without the invalid provision or application, and to
this end the provisions of this section are severable.
(h) The recordation of a copy of the receivership order imparts
constructive notice of the receivership in connection with any matter
involving real property located in the county in which the
receivership order is recorded.
SEC. 42. Section 13975.2 of the Government Code is amended to
read:
13975.2. (a) This section applies to every action brought in the
name of the people of the State of California by the Director of the
Department of Managed Health Care before, on, or after the effective
date of this section, when enforcing provisions of those laws
administered by the Director of the Department of Managed Health Care
which authorize the Director of the Department of Managed Health
Care to seek a permanent or preliminary injunction, restraining
order, or writ of mandate, or the appointment of a receiver, monitor,
conservator, or other designated fiduciary or officer of the court.
Upon a proper showing, a permanent or preliminary injunction,
restraining order, or writ of mandate shall be granted and a
receiver, monitor, conservator, or other designated fiduciary or
officer of the court may be appointed for the defendant or the
defendant's assets, or any other ancillary relief may be granted as
appropriate. The court may order that the expenses and fees of the
receiver, monitor, conservator, or other designated fiduciary or
officer of the court, be paid from the property held by the receiver,
monitor, conservator, or other court-designated fiduciary or
officer, but neither the state, the Health and Human Services Agency,
nor the Department of Managed Health Care shall be liable for any of
those expenses and fees, unless expressly provided for by written
contract.
(b) The receiver, monitor, conservator, or other designated
fiduciary or officer of the court may do any of the following subject
to the direction of the court:
(1) Sue for, collect, receive, and take into possession all the
real and personal property derived by any unlawful means, including
property with which that property or the proceeds thereof has been
commingled if that property or the proceeds thereof cannot be
identified in kind because of the commingling.
(2) Take possession of all books, records, and documents relating
to any unlawfully obtained property and the proceeds thereof. In
addition, they shall have the same right as a defendant to request,
obtain, inspect, copy, and obtain copies of books, records, and
documents maintained by third parties that relate to unlawfully
obtained property and the proceeds thereof.
(3) Transfer, encumber, manage, control, and hold all property
subject to the receivership, including the proceeds thereof, in the
manner directed or ratified by the court.
(4) Avoid a transfer of any interest in any unlawfully obtained
property including the proceeds thereof to any person who committed,
aided or abetted, or participated in the commission of unlawful acts
or who had knowledge that the property had been unlawfully obtained.
(5) Avoid a transfer of any interest in any unlawfully obtained
property including the proceeds thereof made with the intent to
hinder or delay the recovery of that property or any interest in it
by the receiver or any person from whom the property was unlawfully
obtained.
(6) Avoid a transfer of any interest in any unlawfully obtained
property including the proceeds thereof that was made within one year
before the date of the entry of the receivership order if less than
a reasonably equivalent value was given in exchange for the transfer,
except that a bona fide transferee for value and without notice that
the property had been unlawfully obtained may retain the interest
transferred until the value given in exchange for the transfer is
returned to the transferee.
(7) Avoid a transfer of any interest in any unlawfully obtained
property including the proceeds thereof made within 90 days before
the date of the entry of the receivership order to a transferee from
whom the defendant unlawfully obtained some property if (A) the
receiver establishes that the avoidance of the transfer will promote
a fair pro rata distribution of restitution among all people from
whom defendants unlawfully obtained property and (B) the transferee
cannot establish that the specific property transferred was the same
property that had been unlawfully obtained from the transferee.
(8) Exercise any power authorized by statute or ordered by the
court.
(c) No person with actual or constructive notice of the
receivership shall interfere with the discharge of the receiver's
duties.
(d) No person may file any action or enforce or create any lien,
or cause to be issued, served, or levied any summons, subpoena,
attachment, or writ of execution against the receiver or any property
subject to the receivership without first obtaining prior court
approval upon motion with notice to the receiver and the Director of
the Department of Managed Health Care. Any legal procedure described
in this subdivision commenced without prior court approval is void
except as to a bona fide purchaser or encumbrancer for value and
without notice of the receivership. No person without notice of the
receivership shall incur any liability for commencing or maintaining
any legal procedure described by this subdivision.
(e) The court shall have jurisdiction of all questions arising in
the receivership proceedings and may make any orders and judgments as
may be required, including orders after noticed motion by the
receiver to avoid transfers as provided in paragraphs (4), (5), (6),
and (7) of subdivision (b).
(f) This section is cumulative to all other provisions of law.
(g) If any provision of this section or the application thereof to
any person or circumstances is held invalid, that invalidity shall
not affect other provisions or applications of this section that can
be given effect without the invalid provision or application, and to
this end the provisions of this section are severable.
(h) The recordation of a copy of the receivership order imparts
constructive notice of the receivership in connection with any matter
involving real property located in the county in which the
receivership order is recorded.
SEC. 43. Section 13978.6 of the Government Code is amended and
renumbered to read:
12895. (a) There is in the Business, Consumer Services, and
Housing Agency a Department of Business Oversight containing the
Division of Corporations, which has the responsibility for
administering various laws. In order to effectively support the
Division of Corporations in the administration of these laws, there
is hereby established the State Corporations Fund. All expenses and
salaries of the Division of Corporations shall be paid out of the
State Corporations Fund. Therefore, notwithstanding any provision of
any law administered by the Division of Corporations declaring that
fees, reimbursements, assessments, or other money or amounts charged
and collected by the Division of Corporations under these laws are to
be delivered or transmitted to the Treasurer and deposited to the
credit of the General Fund, all fees, reimbursements, assessments,
and other money or amounts charged and collected under these laws
shall be delivered or transmitted to the Treasurer and deposited to
the credit of the State Corporations Fund.
(b) Funds appropriated from the State Corporations Fund and made
available for expenditure for any law or program of the Division of
Corporations may come from the following:
(1) Fees and any other amounts charged and collected pursuant to
Section 25608 of the Corporations Code, except for fees and other
amounts charged and collected pursuant to subdivisions (o) to (r),
inclusive, of Section 25608 of the Corporations Code.
(2) Fees collected pursuant to subdivisions (a), (b), (c), and (d)
of Section 25608.1 of the Corporations Code.
SEC. 44. Section 13995.40.5 of the Government Code is amended to
read:
13995.40.5. Notwithstanding subdivision (d) of Section 13995.40,
the number of commissioners elected from each industry category
shall be determined by the weighted percentage of assessments from
that category, except that no more than six commissioners shall be
elected from the passenger car rental category.
SEC. 45. Chapter 5 (commencing with Section 13999) of Part 4.7 of
Division 3 of Title 2 of the Government Code is repealed.
SEC. 46. Section 65040.9 of the Government Code is amended to
read:
65040.9. (a) On or before January 1, 2004, the Office of Planning
and Research shall, if sufficient federal funds become available for
this purpose, prepare and publish an advisory planning handbook for
use by local officials, planners, and builders that explains how to
reduce land use conflicts between the effects of civilian development
and military readiness activities carried out on military
installations, military operating areas, military training areas,
military training routes, and military airspace, and other territory
adjacent to those installations and areas.
(b) At a minimum, the advisory planning handbook shall include
advice regarding all of the following:
(1) The collection and preparation of data and analysis.
(2) The preparation and adoption of goals, policies, and
standards.
(3) The adoption and monitoring of feasible implementation
measures.
(4) Methods to resolve conflicts between civilian and military
land uses and activities.
(5) Recommendations for cities and counties to provide drafts of
general plan and zoning changes that may directly impact military
facilities, and opportunities to consult with the military base
personnel prior to approving development adjacent to military
facilities.
(c) In preparing the advisory planning handbook, the office shall
consult with persons and organizations with knowledge and experience
in land use issues affecting military installations and activities.
(d) The office may accept and expend any grants and gifts from any
source, public or private, for the purposes of this section.
SEC. 47. Section 66620 of the Government Code is amended to read:
66620. The San Francisco Bay Conservation and Development
Commission is hereby created. The commission shall consist of 27
members, as follows:
(a) One member appointed by the Division Engineer, United States
Army Engineers, South Pacific Division, from his or her staff.
(b) One member appointed by the Administrator of the United States
Environmental Protection Agency, from his or her staff.
(c) One member appointed by the Secretary of Transportation from
his or her staff.
(d) One member appointed by the Director of Finance, from his or
her staff.
(e) One member appointed by the Secretary of Resources, from his
or her staff.
(f) One member appointed by the State Lands Commission, who shall
be a member of that commission or from its staff.
(g) One member appointed by the San Francisco Bay Regional Water
Quality Control Board, who shall be a member of that board.
(h) Nine county representatives consisting of one member of the
board of supervisors representative of each of the nine San Francisco
Bay area counties, appointed by the board of supervisors in each
county. Each county representative shall be a supervisor representing
a supervisorial district which includes within its boundaries lands
lying within San Francisco Bay.
(i) Four city representatives appointed by the Association of Bay
Area Governments from among the residents of the bayside cities in
each of the following areas:
(1) North Bay--Marin, Sonoma, Napa, and Solano Counties;
(2) East Bay--Contra Costa County (west of Pittsburg) and Alameda
County north of the southern boundary of Hayward;
(3) South Bay--Alameda County south of the southern boundary of
Hayward, Santa Clara County, and San Mateo County south of the
northern boundary of Redwood City;
(4) West Bay--San Mateo County north of the northern boundary of
Redwood City, and the City and County of San Francisco.
Each city representative shall be an elected city official.
(j) Seven representatives of the public, who shall be residents of
the San Francisco Bay area. Five of the representatives shall be
appointed by the Governor and their appointments shall be subject to
confirmation by the Senate. One of the representatives shall be
appointed by the Committee on Rules of the Senate, and one by the
Speaker of the Assembly.
SEC. 48. Section 44272.5 of the Health and Safety Code is amended
to read:
44272.5. (a) The commission shall develop and adopt an investment
plan to determine priorities and opportunities for the Alternative
and Renewable Fuel and Vehicle Technology Program created pursuant to
this chapter. The investment plan shall establish priorities for
investment of funds and technologies to achieve the goals of this
chapter and describe how funding will complement existing public and
private investments, including existing state programs that further
the goals of this chapter. The commission shall create and consult
with an advisory body as it develops the investment plan. The
advisory body is subject to the Bagley-Keene Open Meeting Act
(Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of
Division 3 of Title 2 of the Government Code). The commission shall,
at a minimum, hold one public hearing on the advisory body's
recommendations prior to approving the investment plan.
(b) Membership of the advisory body created pursuant to
subdivision (a) shall include, but is not limited to, representatives
of fuel and vehicle technology entities, labor organizations,
environmental organizations, community-based justice and public
health organizations, recreational boaters, consumer advocates,
academic institutions, workforce training groups, and private
industry. The advisory body shall also include representatives from
the Resources Agency, the Transportation Agency, the Labor and
Workforce Development Agency, and the California Environmental
Protection Agency.
(c) The commission shall hold at least three public workshops in
different regions of the state and one public hearing prior to
approving the investment plan. The commission shall annually update
and approve the plan. The commission shall reconvene and consult with
the advisory body created pursuant to subdivision (a) prior to
annually updating and approving the plan.
SEC. 49. Section 12414.31 of the Insurance Code is amended to
read:
12414.31. (a) (1) Whenever the commissioner takes any formal
enforcement or disciplinary action directly against an employee of a
title insurer, underwritten title company, or controlled escrow
company, for malfeasance or misconduct committed by the employee in
his or her performance of escrow-related services, upon the action
becoming final the commissioner shall notify the Real Estate
Commissioner and the Commissioner of Business Oversight of the action
or actions taken. The purpose of this notification is to alert the
departments that enforcement or disciplinary action has been taken,
if the employee seeks or obtains employment with entities regulated
by the departments.
(2) The commissioner
shall provide the Real Estate Commissioner and the Commissioner of
Business Oversight, in addition to the notification of the action
taken, with a copy of the written accusation, statement of issues, or
order issued or filed in the matter and, at the request of the Real
Estate Commissioner or Commissioner of Business Oversight, with any
underlying factual material relevant to the enforcement or
disciplinary action. Any confidential information provided by the
commissioner to the Commissioner of Business Oversight or the Real
Estate Commissioner shall not be made public pursuant to this
section. Notwithstanding any other law, the disclosure of any
underlying factual material to the Commissioner of Business Oversight
or the Real Estate Commissioner shall not operate as a waiver of
confidentiality or any privilege that the commissioner may assert.
(b) The commissioner shall establish and maintain, on the Internet
Web site maintained by the Department of Insurance, a separate and
readily identifiable database of all persons who have been subject to
any enforcement or disciplinary action that triggers the
notification requirements of this section. The database shall also
contain a direct link to the databases, described in Section 10176.1
of the Business and Professions Code and Section 17423.1 of the
Financial Code and required to be maintained on the Internet Web
sites of the Bureau of Real Estate and the Department of Business
Oversight, respectively, of persons who have been subject to
enforcement or disciplinary action for malfeasance or misconduct
related to the escrow industry by the Commissioner of Business
Oversight and the Real Estate Commissioner.
(c) There shall be no liability on the part of, and no cause of
action of any nature shall arise against, the State of California,
the Department of Insurance, the Insurance Commissioner, any other
state agency, or any officer, agent, employee, consultant, or
contractor of the state, for the release of any false or unauthorized
information pursuant to this section, unless the release of that
information was done with knowledge and malice, or for the failure to
release any information pursuant to this section.
SEC. 50. Section 12710 of the Insurance Code is amended to read:
12710. The California Major Risk Medical Insurance Program is
hereby created in the Health and Welfare Agency. The program shall be
managed by the Major Risk Medical Insurance Board. The board shall
consist of seven members, five of whom shall be appointed as follows:
The Governor shall appoint three members, subject to confirmation
by the Senate, and shall designate one of these appointees as chair
of the board. The Senate Committee on Rules shall appoint one member.
The Speaker of the Assembly shall appoint one member. The terms of
appointment shall be four years.
The Secretary of California Health and Human Services, or his or
her designee, shall serve on the board as ex officio, nonvoting
members.
The board shall appoint an executive director for the board, who
shall serve at the pleasure of the board. The executive director
shall receive the salary established by the Department of Human
Resources for exempt officials. The executive director shall
administer the affairs of the board as directed by the board, and
shall direct the staff of the board. The executive director may
appoint, with the approval of the board, staff necessary to carry out
the provisions of this part.
SEC. 51. Section 2802 of the Penal Code is amended to read:
2802. Commencing July 1, 2005, there is hereby continued in
existence within the Department of Corrections and Rehabilitation a
Prison Industry Board. The board shall consist of the following 11
members:
(a) The Secretary of the Department of Corrections and
Rehabilitation, or his or her designee.
(b) The Director of the Department of General Services, or his or
her designee.
(c) The Secretary of Transportation, or his or her designee.
(d) The Speaker of the Assembly shall appoint two members to
represent the general public.
(e) The Senate Committee on Rules shall appoint two members to
represent the general public.
(f) The Governor shall appoint four members. Of these, two shall
be representatives of organized labor, and two shall be
representatives of industry. The initial term of one of the members
appointed by the Speaker of the Assembly shall be two years, and the
initial term of the other shall be three years. The initial term of
one of the members appointed by the Senate Committee on Rules shall
be two years, and the initial term of the other shall be three years.
The initial terms of the four members appointed by the Governor
shall be four years. All subsequent terms of all members shall be for
four years. Each member's term shall continue until the appointment
and qualification of his or her successor.
SEC. 52. Section 22003 of the Public Utilities Code is amended to
read:
22003. Unless the context otherwise requires, the definitions and
general provisions contained in this chapter govern the construction
of this part.
SEC. 53. Section 22553.2 of the Public Utilities Code is repealed.
