Bill Text: CA AB1396 | 2013-2014 | Regular Session | Amended
Bill Title: Department of Financial Services.
Sponsorship: Slight Partisan Bill (Democrat 7-4)
Status: (Engrossed - Dead) 2013-06-27 - Re-referred to Com. on G.O. [AB1396 Detail]
Download: California-2013-AB1396-Amended.html
BILL NUMBER: AB 1396 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 19, 2013
INTRODUCED BY Committee on Banking and Finance (Dickinson (Chair),
Morrell (Vice Chair), Achadjian, Blumenfield, Bonta, Chau, Gatto,
Harkey, Linder, Perea, Torres, and Weber)
MARCH 6, 2013
An act to amend Sections 25005, 29503, and 31004 of the
Corporations Code, to amend Sections 125, 300, 320, 4805.055, 5104,
5106, 12003, 14003, 14200.1, 14200.2, 17002, 18002, 18002.5, 22005,
30002, 31055, and 50003 of, to repeal and add Sections 321, 351, and
371 of, and to amend the headings of Chapter 3 (commencing with
Section 300) of, and Article 2 (commencing with Section 320) of
Chapter 3 of Division 1 of, the Financial Code, and to amend Sections
11552, 13978.6, and 13984 of, and to add Section 12804 to, the
Government Code, relating to financial institutions.
LEGISLATIVE COUNSEL'S DIGEST
AB 1396, as amended, Committee on Banking and Finance. Department
of Financial Services.
Existing law, until July 1, 2013, creates the Department of
Corporations and the Department of Financial Institutions within the
Business, Transportation and Housing Agency. The Department of
Corporations provides for the licensure and regulation of businesses
engaged in financial transactions, including securities brokers and
dealers, investment advisors, financial planners, and certain
fiduciaries and lenders, as specified. The Department of Financial
Institutions oversees the operation of state-chartered financial
institutions, including banks, credit unions, and various entities
providing financial services. The Commissioner of Corporations and
the Commissioner of Financial Institutions are responsible for
overseeing and carrying out the duties and responsibilities of their
respective departments.
The Governor's Reorganization Plan No. 2 of 2012 (GRP 2),
effective July 1, 2013, abolishes the Department of Corporations and
the Department of Financial Institutions and transfer their
responsibilities to the Department of Business Oversight, which would
be established within the Business and Consumer Services Agency. The
executive officer of the new Department of Business Oversight would
be the Commissioner of Business Oversight. The department is
organized to include a Division of Corporations and a Division of
Financial Institutions, each of which would be overseen by a deputy
commissioner of the department.
This bill would delete references to the Department of Business
Oversight, as provided for in the GRP 2, and would instead transfer
the duties of the Department of Corporations and the Department of
Financial Institutions to the Department of Financial Services, as
specified. The bill also would make various technical changes
provided for in the GRP 2.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25005 of the Corporations Code is amended to
read:
25005. "Commissioner" means the Deputy
Commissioner of Financial Services for the Division of
Corporations. Services.
SEC. 2. Section 29503 of the Corporations Code is amended to read:
29503. "Commissioner" means the Deputy
Commissioner of Financial Services for the Division of
Corporations. Services.
SEC. 3. Section 31004 of the Corporations Code is amended to read:
31004. "Commissioner" means the Deputy
Commissioner of Financial Services for the Division of
Financial Institutions. Services.
SEC. 4. Section 125 of the Financial Code is amended to read:
125. "Commissioner" means the Commissioner of Financial Services
and "department" means the Department of Financial Services.
SEC. 5. The heading of Chapter 3 (commencing with Section 300) of
Division 1 of the Financial Code is amended to read:
CHAPTER 3. DEPARTMENT OF FINANCIAL SERVICES
SEC. 6. Section 300 of the Financial Code, as amended by Section 5
of Chapter 147 of the Statutes of 2012, is amended to read:
300. (a) In this section:
(1) "Business and industrial development corporation" means a
corporation licensed under Division 15 (commencing with Section
31000).
(2) "Payment instrument" has the same meaning as set forth in
Section 33059.
(3) "Traveler's check" has the same meaning as set forth in
Section 1803.
(b) There is in the state government, in the Business, Consumer
Services, and Housing Agency, a Department of Financial Services,
which has charge of the execution of, among other laws, the laws of
this state relating to any of the following: (1) banks or trust
companies or the banking or trust business; (2) savings associations
or the savings association business; (3) credit unions or the credit
union business; (4) persons who engage in the business of receiving
money for transmission to foreign nations or such business; (5)
issuers of traveler's checks or the traveler's check business; (6)
issuers of payment instruments or the payment instrument business;
(7) business and industrial development corporations or the business
and industrial development corporation business ,
; or (8) insurance premium finance agencies or the
insurance premium finance business.
SEC. 7. The heading of Article 2 (commencing with Section 320) of
Chapter 3 of Division 1 of the Financial Code is amended to read:
Article 2. Commissioner of Financial Services
SEC. 8. Section 320 of the Financial Code is amended to read:
320. The chief officer of the Department of Financial Services is
the Commissioner of Financial Services. The Commissioner of
Financial Services is the head of the department, with the authority
and responsibility over all officers, employees, and activities in
the department, and, except as otherwise provided in this code, is
subject to the provisions of the Government Code relating to
department heads, but need not reside in Sacramento.
SEC. 9. Section 321 of the Financial Code is repealed.
SEC. 10. Section 321 is added to the Financial Code, to read:
321. (a) In this section, "order" means any approval, consent,
authorization, exemption, denial, prohibition, requirement, or other
administrative action, applicable to a specific case.
(b) The office of the Commissioner of Financial Institutions and
the Department of Financial Institutions are abolished. All powers,
duties, responsibilities, and functions of the Commissioner of
Financial Institutions and the Department of Financial Institutions
are transferred to the Commissioner of Financial Services and the
Department of Financial Services, respectively. The Commissioner of
Financial Services and the Department of Financial Services succeed
to all of the rights and property of the Commissioner of Financial
Institutions and Department of Financial Institutions, respectively;
the Commissioner of Financial Services and the Department of
Financial Services are subject to all the debts and liabilities of
the Commissioner of Financial Institutions and the Department of
Financial Institutions, respectively, as if the Commissioner of
Financial Services and the Department of Financial Services had
incurred them. Any action or proceeding by or against the
Commissioner of Financial Institutions or the Department of Financial
Institutions may be prosecuted to judgment, which shall bind the
Commissioner of Financial Services or the Department of Financial
Services, respectively, or the Commissioner of Financial Services or
the Department of Financial Services may be proceeded against or
substituted in place of the Commissioner of Financial Institutions or
the Department of Financial Institutions, respectively. References
in the Constitution of the State of California or in any statute or
regulation to the Superintendent of Banks or the Commissioner of
Financial Institutions or to the State Banking Department or the
Department of Financial Institutions mean the Commissioner of
Financial Services or the Department of Financial Services,
respectively. All agreements entered into with, and orders and
regulations issued by, the Commissioner of Financial Institutions or
the Department of Financial Institutions shall continue in effect as
if the agreements were entered into with, and the orders and
regulations were issued by, the Commissioner of Financial Services or
the Department of Financial Services, respectively.
(c) The office of the Commissioner of Corporations and the
Department of Corporations are abolished. All powers, duties,
responsibilities, and functions of the Commissioner of Corporations
and the Department of Corporations are transferred to the
Commissioner of Financial Services and the Department of Financial
Services, respectively. The Commissioner of Financial Services and
the Department of Financial Services succeed to all of the rights and
property of the Commissioner of Corporations and Department of
Corporations, respectively; the Commissioner of Financial Services
and the Department of Financial Services are subject to all the debts
and liabilities of the Commissioner of Corporations and the
Department of Corporations, respectively, as if the Commissioner of
Financial Services and the Department of Financial Services had
incurred them. Any action or proceeding by or against the
Commissioner of Corporations or the Department of Corporations may be
prosecuted to judgment, which shall bind the Commissioner of
Financial Services or the Department of Financial Services,
respectively, or the Commissioner of Financial Services or the
Department of Financial Services may be proceeded against or
substituted in place of the Commissioner of Corporations or the
Department of Corporations, respectively. References in the
Constitution of the State of California or in any statute or
regulation to the Commissioner of Corporations or the Department of
Corporations mean the Commissioner of Financial Services or the
Department of Financial Services, respectively. All agreements
entered into with, and orders and regulations issued by, the
Commissioner of Corporations or the Department of Corporations shall
continue in effect as if the agreements were entered into with, and
the orders and regulations were issued by, the Commissioner of
Financial Services or the Department of Financial Services,
respectively.
SEC. 11. Section 351 of the Financial Code is repealed.
SEC. 12. Section 351 is added to the Financial Code, to read:
351. (a) The chief officer of the Division of Corporations is the
Senior Deputy Commissioner of Financial Services for the
Division of Corporations. The Senior Deputy Commissioner of
Financial Services for the Division of Corporations shall, under the
direction of the commissioner, administer the laws of this state
that were, prior to July 1, 2013, under the charge of the Department
of Corporations. The Senior Deputy Commissioner of
Financial Services for the Division of Corporations shall be
appointed by the Governor , subject to Senate confirmation,
and shall hold office at the pleasure of the Governor. The
Senior Deputy Commissioner of Financial Services for the
Division of Corporations shall receive an annual salary as fixed by
the Governor.
(b) The chief officer of the Division of Financial Institutions is
the Senior Deputy Commissioner of Financial Services for
the Division of Financial Institutions. The Senior Deputy
Commissioner of Financial Services for the Division of Financial
Institutions shall, under the direction of the commissioner,
administer the laws of this state that were, prior to July 1, 2013,
under the charge of the Department of Financial Institutions. The
Senior Deputy Commissioner of Financial Services for the
Division of Financial Institutions shall be appointed by the Governor
, subject to Senate confirmation, and shall hold office at
the pleasure of the Governor. The Senior Deputy
Commissioner of Financial Services for the Division of Financial
Institutions shall receive an annual salary as fixed by the Governor.
SEC. 13. Section 371 of the Financial Code is repealed.
SEC. 14. Section 371 is added to the Financial Code, to read:
371. (a) There is in the Department of Financial Services, the
Division of Corporations. The Division of Corporations
Corporations, under the direction of the Senior Deputy
Commissioner of Financial Services 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 Financial Services, the
Senior Deputy Commissioner of Financial Services for the
Division of Financial Institutions. The Under
the direction of the senior deputy commissioner, the Division
of Financial Institutions 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. 15. Section 4805.055 of the Financial Code is amended to
read:
4805.055. "Commissioner" means the Deputy
Commissioner of Financial Services for the Division of
Financial Institutions. Services.
SEC. 16. Section 5104 of the Financial Code is amended to read:
5104. "Commissioner" means Deputy the
Commissioner of Financial Services for the Division of
Financial Institutions. Services.
SEC. 17. Section 5106 of the Financial Code is amended to read:
5106. "Department" means the Division of Financial
Institutions in the Department of Financial Services.
SEC. 18. Section 12003 of the Financial Code is amended to read:
12003. "Commissioner" means the Deputy
Commissioner of Financial Services for the Division of
Corporations , or any deputy, investigator, auditor, or any
other person employed by him or her.
SEC. 19. Section 14003 of the Financial Code is amended to read:
14003. "Commissioner" means the Deputy
Commissioner of Financial Services for the Division of
Financial Institutions. Services.
SEC. 20. Section 14200.1 of the Financial Code is amended to read:
14200.1. There is in the Department of Financial Services, the
Office of Credit Unions. The Office of Credit Unions has charge of
the execution of the laws of this state relating to credit unions or
to the credit union business.
SEC. 21. Section 14200.2 of the Financial Code is amended to read:
14200.2. The Chief Officer of the Office of Credit Unions is the
Deputy Commissioner of Financial Services for the
Office of Credit Unions. The Chief Deputy
Commissioner of the Office of Credit Unions , under the
direction and on behalf of the Senior Deputy Commissioner of Business
Oversight for the Division of Financial Institutions, shall
administer the laws of this state relating to credit unions or the
credit union business under the direction of and on behalf
of the commissioner. The Chief business. The Deputy
Commissioner of the Office of Credit Unions shall be appointed
by the Governor and shall hold office at the pleasure of the
Governor. The Chief Deputy Commissioner
of the Office of Credit Unions shall receive an annual salary as
fixed by the Governor.
SEC. 22. Section 17002 of the Financial Code is amended to read:
17002. "Commissioner" means the Deputy
Commissioner of Financial Services for the Division of
Corporations. Services.
SEC. 23. Section 18002 of the Financial Code is amended to read:
18002. "Commissioner" means the Deputy
Commissioner of Financial Services for the Division of
Financial Institutions. Services.
SEC. 24. Section 18002.5 of the Financial Code is amended to read:
18002.5. "Department" means the Division of Financial
Institutions in the Department of Financial Services.
SEC. 25. Section 22005 of the Financial Code is amended to read:
22005. "Commissioner" means the Deputy
Commissioner of Financial Services for the Division of
Corporations. Services.
SEC. 26. Section 30002 of the Financial Code is amended to read:
30002. "Commissioner" means the Deputy
Commissioner of Financial Services for the Division of
Corporations. Services.
SEC. 27. Section 31055 of the Financial Code is amended to read:
31055. "Commissioner" means the Deputy
Commissioner of Financial Services for the Division of
Financial Institutions or any person to whom the
deputy commissioner delegates the authority to act for him
or her in the particular matter.
SEC. 28. Section 50003 of the Financial Code is amended to read:
50003. (a) "Annual audit" means a certified audit of the licensee'
s books, records, and systems of internal control performed by an
independent certified public accountant in accordance with generally
accepted accounting principles and generally accepted auditing
standards.
(b) "Borrower" means the loan applicant.
(c) "Buy" includes exchange, offer to buy, or solicitation to buy.
(d) "Commissioner" means the Deputy Commissioner
of Financial Services for the Division of Corporations.
Services.
(e) "Control" means the possession, directly or indirectly, of the
power to direct, or cause the direction of, the management and
policies of a licensee under this division, whether through voting or
through the ownership of voting power of an entity that possesses
voting power of the licensee, or otherwise. Control is presumed to
exist if a person, directly or indirectly, owns, controls, or holds
10 percent or more of the voting power of a licensee or of an entity
that owns, controls, or holds, with power to vote, 10 percent or more
of the voting power of a licensee. No person shall be deemed to
control a licensee solely by reason of his or her status as an
officer or director of the licensee.
(f) "Depository institution" has the same meaning as in Section 3
of the Federal Deposit Insurance Act, and includes any credit union.
(g) "Engage in the business" means the dissemination to the
public, or any part of the public, by means of written, printed, or
electronic communication or any communication by means of recorded
telephone messages or spoken on radio, television, or similar
communications media, of any information relating to the making of
residential mortgage loans, the servicing of residential mortgage
loans, or both. "Engage in the business" also means, without
limitation, making residential mortgage loans or servicing
residential mortgage loans, or both.
(h) "Federal banking agencies" means the Board of Governors of the
Federal Reserve System, the Comptroller of the Currency, the
Director of the Office of Thrift Supervision, the National Credit
Union Administration, and the Federal Deposit Insurance Corporation.
(i) "In this state" includes any activity of a person relating to
making or servicing a residential mortgage loan that originates from
this state and is directed to persons outside this state, or that
originates from outside this state and is directed to persons inside
this state, or that originates inside this state and is directed to
persons inside this state, or that leads to the formation of a
contract and the offer or acceptance thereof is directed to a person
in this state (whether from inside or outside this state and whether
the offer was made inside or outside the state).
(j) "Institutional investor" means the following:
(1) The United States or any state, district, territory, or
commonwealth thereof, or any city, county, city and county, public
district, public authority, public corporation, public entity, or
political subdivision of a state, district, territory, or
commonwealth of the United States, or any agency or other
instrumentality of any one or more of the foregoing, including, by
way of example, the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation.
(2) Any bank, trust company, savings bank or savings and loan
association, credit union, industrial bank or industrial loan
company, personal property broker, consumer finance lender,
commercial finance lender, or insurance company, or subsidiary or
affiliate of one of the preceding entities, doing business under the
authority of or in accordance with a license, certificate, or charter
issued by the United States or any state, district, territory, or
commonwealth of the United States.
(3) Trustees of pension, profit-sharing, or welfare funds, if the
pension, profit-sharing, or welfare fund has a net worth of not less
than fifteen million dollars ($15,000,000), except pension,
profit-sharing, or welfare funds of a licensee or its affiliate,
self-employed individual retirement plans, or individual retirement
accounts.
(4) A corporation or other entity with outstanding securities
registered under Section 12 of the federal Securities Exchange Act of
1934 or a wholly owned subsidiary of that corporation or entity,
provided that the purchaser represents either of the following:
(A) That it is purchasing for its own account for investment and
not with a view to, or for sale in connection with, any distribution
of a promissory note.
(B) That it is purchasing for resale pursuant to an exemption
under Rule 144A (17 C.F.R. 230.144A) of the Securities and Exchange
Commission.
(5) An investment company registered under the Investment Company
Act of 1940; or a wholly owned and controlled subsidiary of that
company, provided that the purchaser makes either of the
representations provided in paragraph (4).
(6) A residential mortgage lender or servicer licensed to make
residential mortgage loans under this law or an affiliate or
subsidiary of that person.
(7) Any person who is licensed as a securities broker or
securities dealer under any law of this state, or of the United
States, or any employee, officer, or agent of that person, if that
person is acting within the scope of authority granted by that
license or an affiliate or subsidiary controlled by that broker or
dealer, in connection with a transaction involving the offer, sale,
purchase, or exchange of one or more promissory notes secured
directly or indirectly by liens on real property or a security
representing an ownership interest in a pool of promissory notes
secured directly or indirectly by liens on real property, and the
offer and sale of those securities is qualified under the California
Corporate Securities Law of 1968 or registered under federal
securities laws, or exempt from qualification or registration.
(8) A licensed real estate broker selling the loan to an
institutional investor specified in paragraphs (1) to (7), inclusive,
or paragraph (9) or (10).
(9) A business development company as defined in Section 2(a)(48)
of the Investment Company Act of 1940 or a Small Business Investment
Company licensed by the United States Small Business Administration
under Section 301(c) or (d) of the Small Business Investment Act of
1958.
(10) A syndication or other combination of any of the foregoing
entities that is organized to purchase a promissory note.
(11) A trust or other business entity established by an
institutional investor for the purpose of issuing or facilitating the
issuance of securities representing undivided interests in, or
rights to receive payments from or to receive payments primarily
from, a pool of financial assets held by the trust or business
entity, provided that all of the following apply:
(A) The business entity is not a sole proprietorship.
(B) The pool of assets consists of one or more of the following:
(i) Interest-bearing obligations.
(ii) Other contractual obligations representing the right to
receive payments from the assets.
(iii) Surety bonds, insurance policies, letters of credit, or
other instruments providing credit enhancement for the assets.
(C) The securities will be either one of the following:
(i) Rated as "investment grade" by Standard and Poor's Corporation
or Moody's Investors Service, Inc. "Investment grade" means that the
securities will be rated by Standard and Poor's Corporation as AAA,
AA, A, or BBB or by Moody's Investors Service, Inc. as Aaa, Aa, A, or
Baa, including any of those ratings with "+" or "--" designation or
other variations that occur within those ratings.
(ii) Sold to an institutional investor.
(D) The offer and sale of the securities is qualified under the
California Corporate Securities Law of 1968 or registered under
federal securities laws, or exempt from qualification or
registration.
(k) "Institutional lender" means the following:
(1) The United States or any state, district, territory, or
commonwealth thereof, or any city, county, city and county, public
district, public authority, public corporation, public entity, or
political subdivision of a state, district, territory, or
commonwealth of the United States, or any agency or other
instrumentality of any one or more of the foregoing, including, by
way of example, the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation.
(2) Any bank, trust company, savings bank or savings and loan
association, credit union, industrial loan company, or insurance
company, or service or investment company that is wholly owned and
controlled by one of the preceding entities, doing business under the
authority of and in accordance with a license, certificate, or
charter issued by the United States or any state, district,
territory, or commonwealth of the United States.
(3) Any corporation with outstanding securities registered under
Section 12 of the Securities Exchange Act of 1934 or any wholly owned
subsidiary of that corporation.
(4) A residential mortgage lender or servicer licensed to make
residential mortgage loans under this law.
(l) "Law" means the California Residential Mortgage Lending Act.
(m) "Lender" means a person that (1) is an approved lender for the
Federal Housing Administration, Veterans Administration, Farmers
Home Administration, Government National Mortgage Association,
Federal National Mortgage Association, or Federal Home Loan Mortgage
Corporation, (2) directly makes residential mortgage loans, and (3)
makes the credit decision in the loan transactions.
(n) "Licensee" means, depending on the context, a person licensed
under Chapter 2 (commencing with Section 50120), Chapter 3
(commencing with Section 50130), or Chapter 3.5 (commencing with
Section 50140).
(o) "Makes or making residential mortgage loans" or "mortgage
lending" means processing, underwriting, or as a lender using or
advancing one's own funds, or making a commitment to advance one's
own funds, to a loan applicant for a residential mortgage loan.
(p) "Mortgage loan," "residential mortgage loan," or "home
mortgage loan" means a federally related mortgage loan as defined in
Section 3500.2 of Title 24 of the Code of Federal Regulations, or a
loan made to finance construction of a one-to-four family dwelling.
(q) "Mortgage servicer" or "residential mortgage loan servicer"
means a person that (1) is an approved servicer for the Federal
Housing Administration, Veterans Administration, Farmers Home
Administration, Government National Mortgage Association, Federal
National Mortgage Association, or Federal Home Loan Mortgage
Corporation, and (2) directly services or offers to service mortgage
loans.
(r) "Nationwide Mortgage Licensing System and Registry" means a
mortgage licensing system developed and maintained by the Conference
of State Bank Supervisors and the American Association of Residential
Mortgage Regulators for the licensing and registration of licensed
mortgage loan originators.
(s) "Net worth" has the meaning set forth in Section 50201.
(t) "Own funds" means (1) cash, corporate capital, or warehouse
credit lines at commercial banks, savings banks, savings and loan
associations, industrial loan companies, or other sources that are
liability items on a lender's financial statements, whether secured
or unsecured, or (2) a lender's affiliate's cash, corporate capital,
or warehouse credit lines at commercial banks or other sources that
are liability items on the affiliate's financial statements, whether
secured or unsecured. "Own funds" does not include funds provided by
a third party to fund a loan on condition that the third party will
subsequently purchase or accept an assignment of that loan.
(u) "Person" means a natural person, a sole proprietorship, a
corporation, a partnership, a limited liability company, an
association, a trust, a joint venture, an unincorporated
organization, a joint stock company, a government or a political
subdivision of a government, and any other entity.
(v) "Residential real property" or "residential real estate" means
real property located in this state that is improved by a
one-to-four family dwelling.
(w) "SAFE Act" means the federal Secure and Fair Enforcement for
Mortgage Licensing Act of 2008 (Public Law 110-289).
(x) "Service" or "servicing" means receiving more than three
installment payments of principal, interest, or other amounts placed
in escrow, pursuant to the terms of a mortgage loan and performing
services by a licensee relating to that receipt or the enforcement of
its receipt, on behalf of the holder of the note evidencing that
loan.
(y) "Sell" includes exchange, offer to sell, or solicitation to
sell.
(z) "Unique identifier" means a number or other identifier
assigned by protocols established by the Nationwide Mortgage
Licensing System and Registry.
(aa) For purposes of
Sections 50142, 50143, and 50145, "nontraditional mortgage product"
means any mortgage product other than a 30-year fixed rate mortgage.
(ab) For purposes of Section 50141, "expungement" means the
subsequent order under the provisions of Section 1203.4 of the Penal
Code allowing such individual to withdraw his or her plea of guilty
and to enter a plea of not guilty, or setting aside the verdict of
guilty or dismissing the accusation, information, or indictment. With
respect to criminal convictions in another state, that state's
definition of expungement will apply.
SEC. 29. Section 11552 of the Government Code is amended to read:
11552. (a) Effective January 1, 1988, an annual salary of
eighty-five thousand four hundred two dollars ($85,402) shall be paid
to each of the following:
(1) Commissioner of Financial Services.
(2) Director of Transportation.
(3) Real Estate Commissioner.
(4) Director of Social Services.
(5) Director of Water Resources.
(6) Director of General Services.
(7) Director of Motor Vehicles.
(8) Executive Officer of the Franchise Tax Board.
(9) Director of Employment Development.
(10) Director of Alcoholic Beverage Control.
(11) Director of Housing and Community Development.
(12) Director of Alcohol and Drug Programs.
(13) Director of Statewide Health Planning and Development.
(14) Director of the Department of Personnel Administration.
(15) Director of Health Care Services.
(16) Director of Mental Health.
(17) Director of Developmental Services.
(18) State Public Defender.
(19) Director of the California State Lottery.
(20) Director of Fish and Wildlife.
(21) Director of Parks and Recreation.
(22) Director of Rehabilitation.
(23) Director of the Office of Administrative Law.
(24) Director of Consumer Affairs.
(25) Director of Forestry and Fire Protection.
(26) The Inspector General pursuant to Section 6125 of the Penal
Code.
(27) Director of Child Support Services.
(28) Director of Industrial Relations.
(29) Director of Toxic Substances Control.
(30) Director of Pesticide Regulation.
(31) Director of the Department of Managed Health Care.
(32) Director of Environmental Health Hazard Assessment.
(33) Director of Technology.
(34) Director of California Bay-Delta Authority.
(35) Director of California Conservation Corps.
(b) The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees. The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general salary increases provided for state
employees during that fiscal year.
SEC. 30. Section 12804 is added to the Government Code, to read:
12804. There is in the state government the Business and Consumer
Services Agency.
The Business and Consumer Services Agency consists of the
following: the Department of Consumer Affairs, the Department of
Housing and Community Development, the Department of Fair Employment
and Housing, the Department of Financial Services, the Department of
Alcoholic Beverage Control, the Alcoholic Beverage Control Appeals
Board, the California Horse Racing Board, and the Alfred E. Alquist
Seismic Safety Commission.
SEC. 31. Section 13978.6 of the Government Code, as amended by
Section 18 of Chapter 147 of the Statutes of 2012, is amended to
read:
13978.6. (a) There is in the Business, Consumer Services, and
Housing Agency a Department of Financial Services 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. 32. Section 13984 of the Government Code is amended to read:
13984. In order to ensure that Section 10240.3 of the Business
and Professions Code and Sections 215.5, 22171, and 50333 of the
Financial Code are applied consistently to all California entities
engaged in the brokering, originating, servicing, underwriting, and
issuance of nontraditional mortgage products, the secretary shall
ensure that the Director of Consumer Affairs or the Commissioner of
Real Estate, and the Commissioner of Financial Services coordinate
their policymaking and rulemaking efforts.
SEC. 33. Notwithstanding Section 12080.8 of the Government Code,
Sections 1 to 32, inclusive, of this act shall prevail over Section
35 of, Sections 40 to 67, inclusive, of, and Sections 197, 202, 215,
and 216 of, the Governor's Reorganization Plan No. 2 of 2012.
