Bill Text: CA AB33 | 2009-2010 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Child abduction: sex offender identification.
Spectrum: Bipartisan Bill
Status: (Passed) 2010-09-24 - Chaptered by Secretary of State - Chapter 224, Statutes of 2010. [AB33 Detail]
Download: California-2009-AB33-Amended.html
BILL NUMBER: AB 33 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 23, 2009
AMENDED IN SENATE JUNE 11, 2009
AMENDED IN ASSEMBLY MARCH 24, 2009
AMENDED IN ASSEMBLY FEBRUARY 10, 2009
INTRODUCED BY Assembly Member Nava
DECEMBER 1, 2008
An act to amend Sections 11302 and 11310 of, to amend and
repeal Section 10015 of, and to amend, repeal, and add
Sections 10000, 10050, 11301, and 11313 of, the Business and
Professions Code, to amend, repeal, and add Sections 25005 and 31004
of the Corporations Code, to amend Sections 4970 and 23001 of, to
amend and repeal Section 252 of, to amend, repeal, and add Sections
112, 210, 4805.055, 5104, 5106, 12003, 14003, 17002, 18002, 18002.5,
22005, 30002, 31055, and 33045.5 of, to add Sections 23002 and
50003.5 to, and to add Division 0.5 (commencing with Section 25) to,
the Financial Code, and to amend, repeal, and add Sections 13975 and
13978.6 of the Government Code, relating to financial services.
LEGISLATIVE COUNSEL'S DIGEST
AB 33, as amended, Nava. Financial services.
Existing law establishes the Department of Financial Institutions,
the Department of Corporations, the Department of Real Estate, and
the Office of Real Estate Appraisers in the Business, Transportation
and Housing Agency.
Existing law provides for the licensing and regulation of, among
others, banks, credit unions, and other financial institutions by the
Commissioner of Financial Institutions. Existing law provides for
the licensing and regulation of, among others, residential mortgage
lenders and finance lenders by the Commissioner of Corporations.
Existing law provides for the licensing and regulation of, among
others, real estate brokers and salespersons by the Real Estate
Commissioner. Existing law provides for the licensure and regulation
of real estate appraisers by the Director of the Office of Real
Estate Appraisers.
This bill would do the following, effective July 1, 2011: (1)
establish a new Department of Financial Services (DFS) in the
Business, Transportation and Housing Agency (BTHA), (2) designate the
chief officer of DFS as the Commissioner of Financial Services, (3)
transfer the powers, duties, purposes, jurisdiction,
responsibilities, and functions of the DOC and DFI to 2 new divisions
under the DFS, the Division of Corporations and the Division of
Financial Institutions, (4) designate the Commissioner of
Corporations and the Commissioner of Financial Institutions as the
directors of the Division of Corporations and the Division of
Financial Institutions, respectively, (5) establish a new Office of
Financial and Real Estate Consumer Advocacy within the
DFS, and (6) transfer authority over real estate appraisers to the
Department of Real Estate (DRE) under the Real Estate Law.
This bill would, effective July 1, 2012, transfer from the DRE to
the Division of Corporations the authority to license and regulate
real estate licensees that provide lending, mortgage brokerage
services, and business opportunity activities , as specified
.
In order to implement the above provisions, this bill would
require the BTHA, DFI, DOC, DRE, and the Office of Real Estate
Appraisers to, on or before January 1, 2011, make specified
recommendations regarding the consolidation of these entities or
their respective operations. The bill would make findings and
declarations in this regard, and would make technical and conforming
changes to related provisions and definitions.
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. The Legislature finds and declares all of the
following:
(a) The regulation and oversight of financial services in
California is principally divided between two regulators, the
Department of Financial Institutions and the Department of
Corporations.
(b) California is one of only a few states that separate the
regulation of financial services among different licensing agencies.
California is also anomalous in that three state departments regulate
and oversee mortgage brokerage as well as the sale of specified
business opportunity activities.
(c) This division of oversight is most apparent in the regulation
of home mortgage lending that is split among multiple licensing
schemes, including the California Finance Lenders Law, the California
Residential Mortgage Lending Act, the Real Estate Law, and laws
governing the operation of state and federally chartered banks or
credit unions. This division of oversight has made it cumbersome
and expensive for California to consistently implement, across three
departments, major advancements in consumer protection such as the
federal guidance on nontraditional mortgage product risks and
statement on subprime mortgage lending, the SAFE Mortgage Licensing
Act and, most recently, the California Foreclosure Prevention Act.
(d) The Department of Real Estate and the Office of Real Estate
Appraisers protect consumers in real estate transactions by licensing
real estate agents and appraisers, respectively.
(e) This partition of regulation dilutes consumer protection and
creates confusion and unnecessary administrative difficulties for
financial services entities.
(f) The current regulatory system creates licensing arbitrage,
with entities seeking out licenses from various regulators in order
to obtain an advantage.
(g) It is in the public's best interest effective July 1, 2011, to
have a single regulator, the Commissioner of a new Department of
Financial Services, ultimately responsible for the regulation of
financial services in California previously spread among the
Department of Corporations to be transferred intact to the new
Department of Financial Services as the Division of Corporations, the
Department of Financial Institutions to be transferred intact to the
new Department of Financial Services as the Division of Financial
Institutions, and the Department Real Estate, which shall remain as a
separate department, but which, effective July 1, 2012, shall
transfer its regulation of financial services with the same level of
consumer protections to the new Division of Corporations within the
Department of Financial Services as set forth in subdivision (d) of
Section 25 of Division 0.5 of the Financial Code. It is in the public'
s best interest to combine the other operations of the Department of
Real Estate and the Office of Real Estate Appraisers while remaining
compliant with federal provisions related to the regulation of real
estate appraisers.
(h) It is in the public's best interest at this time to not expand
or contract existing authorities of the existing departments,
commissioners, or directors upon transfer and renaming except as set
forth in subdivision (d) of Section 25 of Division 0.5 of the
Financial Code. It is in the public's best interest at this time to
not expand or contract any existing duties, including fiduciary
duties, of their licensees. It is, however, in the public's best
interest to have the outgoing administration collect public comment
and make recommendations on a series of potential future changes for
later consideration by the Legislature, and regulators as set forth
in Sections 48 to 50, inclusive, of Division 0.5 of the Financial
Code.
(i) It is in the public's best interest to create a formal Office
of Financial and Real Estate Consumer Advocacy to advise the
Commissioner of Financial Services and the Real Estate Commissioner
on how their departments can provide a high degree of service and
protection to the public, and to be responsible for outreach to
financial real estate consumers.
SEC. 2. Section 10000 of the Business and Professions Code is
amended to read:
10000. This part may be cited as the Real Estate Law.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 3. Section 10000 is added to the Business and Professions
Code, to read:
10000. (a) This part and Part 3 (commencing with Section 11300)
may be cited as the Real Estate Law.
(b) This section shall become operative on July 1, 2011.
SEC. 4. Section 10050 of the Business and Professions Code is
amended to read:
10050. There is in the Business and Transportation Agency a
Department of Real Estate, the chief officer of which department is
named the Real Estate Commissioner.
It shall be the principal responsibility of the commissioner to
enforce all laws in this part (commencing with Section 10000) and
Chapter 1 (commencing with Section 11000) of Part 2 of this division
in a manner which achieves the maximum protection for the purchasers
of real property and those persons dealing with real estate
licensees.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 5. Section 10050 is added to the Business and Professions
Code, to read:
10050. (a) There is in the Business and Transportation Agency a
Department of Real Estate, the chief officer of which department is
named the Real Estate Commissioner.
(b) It shall be the principal responsibility of the commissioner
to enforce all laws in this part (commencing with Section 10000),
Chapter 1 (commencing with Section 11000) of Part 2, and Part 3
(commencing with Section 11300) of this division, subject to
subdivision (c) of Section 49 of the Financial Code, in a manner that
achieves the maximum protection for the purchasers of real property
and those persons dealing with real estate licensees and real estate
appraisers.
(c) This section shall become operative on July 1, 2011.
SEC. 6. Section 11301 of the Business and Professions Code is
amended to read:
11301. There is hereby created within the Business,
Transportation and Housing Agency an Office of Real Estate Appraisers
to administer and enforce this part.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 7. Section 11301 is added to the Business and Professions
Code, to read:
11301. (a) There is hereby created within the Department of Real
Estate an Office of Real Estate Appraisers to administer and enforce
this part.
(b) This section shall become operative on July 1, 2011.
SEC. 8. Section 11302 of the Business and Professions Code is
amended to read:
11302. For the purpose of applying this part, the following
terms, unless otherwise expressly indicated, shall mean and have the
following definitions:
(a) "Agency" means the Business, Transportation and Housing
Agency.
(b) "Appraisal" means a written statement independently and
impartially prepared by a qualified appraiser setting forth an
opinion in a federally related transaction as to the market value of
an adequately described property as of a specific date, supported by
the presentation and analysis of relevant market information.
The term "appraisal" does not include an opinion given by a real
estate licensee or engineer or land surveyor in the ordinary course
of his or her business in connection with a function for which a
license is required under Chapter 7 (commencing with Section 6700) or
Chapter 15 (commencing with Section 8700) of Division 3, or Chapter
3 (commencing with Section 10130) or Chapter 7 (commencing with
Section 10500) and the opinion shall not be referred to as an
appraisal. This part does not apply to a probate referee acting
pursuant to Sections 400 to 408, inclusive, of the Probate Code
unless the appraised transaction is federally related.
(c) "Appraisal Foundation" means the Appraisal Foundation that was
incorporated as an Illinois not-for-profit corporation on November
30, 1987.
(d) "Appraisal Subcommittee" means the Appraisal Subcommittee of
the Federal Financial Institutions Examination Council.
(e) "Director" means the Director of the Office of Real Estate
Appraisers.
(f) "Federal financial institutions regulatory agency" means the
Federal Reserve Board, Federal Deposit Insurance Corporation, Office
of the Comptroller of the Currency, Office of Thrift Supervision,
Federal Home Loan Bank System, National Credit Union Administration,
the Resolution Trust Corporation, and any other agency determined by
the director to have jurisdiction over transactions subject to this
part.
(g) "Federally related real estate appraisal activity" means the
act or process of making or performing an appraisal on real estate or
real property in a federally related transaction and preparing an
appraisal as a result of that activity.
(h) "Federally related transaction" means any real estate-related
financial transaction which a federal financial institutions
regulatory agency engages in, contracts for or regulates and which
requires the services of a state licensed real estate appraiser
regulated by this part. This term also includes any transaction
identified as such by a federal financial institutions regulatory
agency.
(i) "License" means any license, certificate, permit,
registration, or other means issued by the office authorizing the
person to whom it is issued to act pursuant to this part within this
state.
(j) "Licensure" means the procedures and requirements a person
shall comply with in order to qualify for issuance of a license and
includes the issuance of the license.
(k) "Office" means the Office of Real Estate Appraisers.
(l) "Secretary" means the Secretary of the Business,
Transportation and Housing Agency.
(m) "State licensed real estate appraiser" is a person who is
issued and holds a current valid license under this part.
(n) "Uniform Standards of Professional Appraisal Practice" are the
standards of professional appraisal practice established by the
Appraisal Foundation.
(o) "Course provider" means a person or entity that provides
educational courses related to professional appraisal practice.
(p) "Commissioner" means the Real Estate Commissioner.
SEC. 9. Section 11310 of the Business and Professions Code is
amended to read:
11310. The Governor shall appoint, subject to confirmation by the
Senate, the Director of the Office of Real Estate Appraisers who
shall administer the licensing and certification program for real
estate appraisers. In making the appointment, consideration shall be
given to the qualifications of an individual that demonstrate
knowledge of the real estate appraisal profession.
(a) (1) Prior to July 1, 2011, the director shall serve at the
pleasure of the Governor and shall administer the licensing and
certification program in consultation with the Governor and
secretary. The salary for the director shall be fixed and determined
by the secretary with approval of the Department of Personnel
Administration.
(2) On and after July 1, 2011, the director shall serve at the
pleasure of the Governor and shall administer the licensing and
certification program in consultation with the Governor and the
commissioner. The salary for the director shall be fixed and
determined by the commissioner with approval of the Department of
Personnel Administration.
(3) Firewalls shall be maintained between the Department of Real
Estate and the Office of Real Estate Appraisers and its employees as
required in order to ensure compliance with federal law, to protect
the independence of the appraiser regulatory function from
realty-related activities, and to ensure that decisions relating to
appraisal license issuance, revocation, and disciplinary actions
shall be made by the Director of the Office of Real Estate Appraisers
and not by the Real Estate Commissioner.
(b) The director shall not be actively engaged in the appraisal
business or any other affected industry for the term of appointment,
and thereafter the director shall be subject to Section 87406 of the
Government Code.
(c) The director, in consultation with the secretary or, on and
after July 1, 2011, in consultation with the commissioner, and in
accordance with the State Civil Service Act, may appoint and fix the
compensation of legal, clerical, technical, investigation, and
auditing personnel as may be necessary to carry out this part. All
personnel shall perform their respective duties under the supervision
and direction of the director.
(d) The director may appoint not more than four deputy directors
as he or she deems appropriate. The deputy directors shall perform
their respective duties under the supervision and direction of the
director.
(e) Every power granted to or duty imposed upon the director under
this part may be exercised or performed in the name of the director
by the deputy directors, subject to conditions and limitations as the
director may prescribe.
SEC. 10. Section 11313 of the Business and Professions Code is
amended to read:
11313. The office is under the supervision and control of the
secretary. The duty of enforcing and administering this part is
vested in the director and he or she is responsible to the secretary
therefor. The director shall adopt and enforce rules and regulations
as are determined reasonably necessary to carry out the purposes of
this part. Those rules and regulations shall be adopted pursuant to
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 11. Section 11313 is added to the Business and Professions
Code, to read:
11313. (a) The office is under the supervision and control of the
commissioner. The duty of enforcing and administering this part is
vested in the director and he or she is responsible to the
commissioner therefor. The director shall adopt and enforce rules and
regulations as are determined reasonably necessary to carry out the
purposes of this part. Those rules and regulations shall be adopted
pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code.
(b) This section shall become operative on July 1, 2011.
SEC. 12. Section 25005 of the Corporations Code is amended to
read:
25005. "Commissioner" means the Commissioner of Corporations.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 13. Section 25005 is added to the Corporations Code, to read:
25005. (a) As used in this part, the following terms have the
following meanings:
(1) "Department of Corporations" or "department" means the
Department of Financial Services, Division of Corporations.
(2) "Commissioner of Corporations" or "commissioner" means the
Director of the Division of Corporations.
(b) This section shall become operative on July 1, 2011.
SEC. 14. Section 31004 of the Corporations Code is amended to
read:
31004. "Commissioner" means the Commissioner of Corporations.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 15. Section 31004 is added to the Corporations Code, to read:
31004. (a) As used in this part, the following terms have the
following meanings:
(1) "Department of Corporations" or "department" means the
Department of Financial Services, Division of Corporations.
(2) "Commissioner of Corporations" or "commissioner" means the
Director of the Division of Corporations.
(b) This section shall become operative on July 1, 2011.
SEC. 16. Division 0.5 (commencing with Section 25) is added to the
Financial Code, to read:
DIVISION 0.5. Consolidation of Financial Services
25. Effective July 1, 2011, there shall be in the state
government, in the Business, Transportation and Housing Agency, a
Department of Financial Services, which shall consist of the
following:
(a) The Division of Financial Institutions, comprised of the
former Department of Financial Institutions, which shall be primarily
responsible for the execution of all laws previously under that
department's jurisdiction subject to oversight by the Commissioner of
Financial Services.
(b) The Division of Corporations, comprised of the former
Department of Corporations, which shall be primarily responsible for
the execution of all laws previously under that department's
jurisdiction subject to oversight by the Commissioner of Financial
Services.
(c) The Office of Financial and Real Estate Consumer
Advocacy, which shall advise the Commissioner of Financial Services
and the Real Estate Commissioner on how the Department of
Financial Services can provide a high degree of service and
protection to the public, shall be responsible for public outreach to
financial consumers, and real estate
consumers, with the cooperation of the Departments of Financial
Services and Real Estate and shall perform such other duties as
determined by the Commissioner of Financial Services.
(d) (1) Effective July 1, 2012, the Department of Financial
Services, through the Division of Corporations, shall license and
regulate mortgage brokers, including those real estate licensees who
arrange loans secured by real property in the state, and shall
license and regulate those real estate licensees who provide
commercial and residential lending and business
opportunity activities, as determined pursuant to Section 48, all of
whom shall be deemed to be fiduciaries in their relationship with,
and have attendant fiduciary duties toward, their principals.
, including, but not limited to, those activities
described in Section 10008.5, Section 10030, subdivisions
(d) and (e) of Section 10131, and Section 10131.1 of the Business and
Professions Code, while maintaining the same level of consumer
protection now afforded. Nothing in this act or the regulations it
authorizes shall expand or di minish existing consumer
protections.
(2) (A) On or before January 1, 2012, the Commissioner of
Financial Services, in consultation with the Director of the Division
of Corporations and the Real Estate Commissioner, shall adopt
regulations creating a new license or licenses and setting related
fees such as the Commissioner of Financial Institutions
Services believes appropriate for the Department
of Financial Institutions Services ,
through the Division of Corporations, to assume responsibility for
the provisions of the Real Estate Law that allow real estate
licensees to provide commercial and residential lending,
mortgage brokerage services, and business opportunity
activities, as determined pursuant to Section 48, and including, but
not limited to, those activities described in subdivisions (d) and
(e) of Section 10131 of the Business and Professions Code.
opportunity activities, including, but not limited to, those
activities described in Section 10008.5, Section 10030, subdivisions
(d) and (e) of Section 10131, and Section 10131.1 of the Business and
Professions Code, while maintaining the same level of consumer
protection now afforded. Nothing in this bill or the
regulations it authorizes shall contract existing consumer
protections.
(B) As of the effective date of those regulations, which
shall be on or after July 1, 2012, persons holding
licenses a license or licenses and license
endorsements issued by the Department of Real Estate shall no
longer be authorized to provide lending, commercial and
residential mortgage brokerage services, and business
opportunity activities, including, but not limited to, those
activities described in subdivisions (d) and (e) of Section 10131 of
the Business and Professions Code, without first obtaining
those activities described in Section 10008.5, Section 10030,
subdivisions (d) and (e) of Section 10131, and Section 10131.1 of the
Business and Professions Code, without first obtaining a
license to do so from the Division of Corporations.
(e) Nothing in this bill shall expand or diminish existing
authorities of the existing departments or commissioners except as
set forth in subdivision (d) of Section 25. Nothing in this bill
shall expand or contract any existing duties, including fiduciary
duties, of their licensees. Nothing in this bill or the regulations
it authorizes shall contract existing consumer protections.
26. The chief officer of the Department of Financial Services
shall be the Commissioner of Financial Services. The Commissioner of
Financial Services shall be the head of the department and, except as
otherwise provided in this code, shall be subject to the provisions
of the Government Code relating to department heads, but need not
reside in Sacramento.
27. The Commissioner of Financial Services shall be appointed by
the Governor and shall hold office at the pleasure of the Governor.
The appointment of the commissioner shall be subject to confirmation
by the Senate. The commissioner shall receive an annual salary fixed
by the Secretary of the Business, Transportation and Housing Agency
and the Department of Personnel Administration.
28. The Commissioner of Financial Services shall be a citizen of
the United States. The commissioner shall be chosen solely for his or
her qualifications and fitness to perform the duties of his or her
office.
29. Before entering upon the duties of his or her office, the
Commissioner of Financial Services shall take and subscribe to the
constitutional oath of office and file the same with the Secretary of
State.
30. The Commissioner of Financial Services shall be responsible
for the performance of all duties, the exercise of all powers and
jurisdiction, and the assumption and discharge of all
responsibilities formerly vested by law in the Department of
Financial Institutions and the Department of Corporations. As
described in Section 32, the Director of the Division of Financial
Institutions and the Director of the Division of Corporations shall
be vested with the primary responsibility for all of the duties,
powers, and jurisdiction of the former Commissioner of Financial
Institutions and the Commissioner of Corporations, respectively,
subject to oversight by the Commissioner of Financial Services. The
commissioner has, and may exercise, all the powers necessary or
convenient for the administration and enforcement of these laws. The
commissioner may issue such rules and regulations consistent with law
as he or she may deem necessary or advisable in executing the
powers, duties, and responsibilities of the Department of Financial
Services.
31. (a) (1) For purposes of this section, "federal law" includes,
but is not limited to, the United States Constitution, any federal
statute, any federal court decision, and any regulation, circular,
bulletin, interpretation, decision, order, and waiver issued by a
federal agency.
(2) The definitions set forth in Section 1700 apply to this
section.
(b) Notwithstanding any other provision of law, except as provided
in subdivision (c), if the Commissioner of Financial Services finds
that any provision of federal law applicable to financial services
providers doing business in this state is substantively different
from the provisions of this code applicable to financial services
providers organized under the laws of this state or operating under a
license issued by the state, the Commissioner of Financial Services
may, by regulation, if he or she deems it advisable, make that
provision of federal law applicable to financial services providers
organized under the laws of this state or operating under a license
issued by the state.
(c) (1) Section 11343.4 and Article 5 (commencing with Section
11346) and Article 6 (commencing with Section 11349) of Chapter 3.5
of Part 1 of Division 3 of Title 2 of the Government Code do not
apply to any regulation adopted under subdivision (b).
(2) The Commissioner of Financial Services shall file any
regulation adopted pursuant to subdivision (b), together with a
citation to this section as authority for the adoption and a citation
to the provisions of federal law made applicable by the regulation,
with the Office of Administrative Law for filing with the Secretary
of State and publication in the California Code of Regulations.
(3) Any regulation adopted under subdivision (b) shall become
effective on the date when it is filed with the Secretary of State
unless the Commissioner of Financial Services prescribes a later date
in the regulation or in a
written instrument filed with the regulation.
(4) Any regulation adopted under subdivision (b) shall expire at
12 p.m. on December 31 of the year following the calendar year in
which it becomes effective.
(5) Any regulation adopted pursuant to subdivision (b) shall be
subject to the following restrictions:
(A) The Commissioner of Financial Services shall not renew or
reinstate the regulation adopted pursuant to subdivision (b).
(B) The Commissioner of Financial Services shall not adopt a new
regulation pursuant to subdivision (b), to address the same
conformity issue that was addressed by the regulation that expired
pursuant to paragraph (4).
(d) The Commissioner of Financial Services may adopt regulations
pursuant to subdivision (b) that are exempt from the expiration and
restrictions of subdivision (c) if the regulations are adopted in
compliance with all provisions of Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of the Government Code,
including those listed in paragraph (1) of subdivision (c).
32. Effective July 1, 2011, the Division of Financial
Institutions shall be headed by the former Commissioner of Financial
Institutions who shall have the title Director of the Division of
Financial Institutions. Effective July 1, 2011, the Division of
Corporations shall be headed by the former Commissioner of
Corporations who shall have the title Director of the Division of
Corporations. After July 1, 2011, the Commissioner of Financial
Services shall have the authority to appoint the directors of these
divisions who shall hold office at the commissioner's pleasure.
33. The Office of Financial and Real Estate Consumer
Advocacy shall be headed by the Director of the Office of Financial
and Real Estate Consumer Advocacy who shall be appointed
by the Commissioner of Financial Services
Governor and shall serve at the commissioner's pleasure. The
Director of the Office of Financial and Real Estate
Consumer Advocacy shall be chosen solely for his or her
qualifications and fitness to perform the duties of his or her
office. The annual salary of the Director of the Office of Financial
and Real Estate Consumer Advocacy shall be fixed by the
Commissioner of Financial Services Secretary
of the Business, Transportation and Housing Agency and the
Department of Personnel Administration.
34. (a) Effective July 1, 2011, the Commissioner of Financial
Services and the Department of Financial Services shall succeed to
all the rights and property of the Commissioner of Corporations and
the Commissioner of Financial Institutions, and the Department of
Corporations and the Department of Financial Institutions,
respectively. The Commissioner of Financial Services and the
Department of Financial Services shall be subject to all the debts
and liabilities of the predecessor Commissioner of Corporations and
the Commissioner of Financial Institutions, and the Department of
Corporations and the Department of Financial Institutions, as if the
Commissioner of Financial Services and the Department of Financial
Services had incurred them.
(b) Any action or proceeding by or against the Commissioner of
Corporations, the Commissioner of Financial Institutions, the
Department of Corporations, 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. Alternatively, 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 Commissioner of Financial Institutions and the Department of
Corporations or the Department of Financial Institutions,
respectively.
(c) The following funds and accounts shall continue and shall
be under the jurisdiction of the Commissioner of Financial
Services: Services without being commingled.
These funds shall only be used for purposes set forth in existing
statutes or regulations pertaining to them, unless a subsequent
statute is enacted changing them.
(1) The Financial Institutions Fund created by Section 265.
(2) The Credit Union Fund created by Section 14354.
(3) The Guaranty Corporation Fund created by Section 18535.
(4) The State Corporations Fund created by subdivision (b) of
Section 13978.6 of the Government Code.
(5) Any other fund or account subject to the jurisdiction of the
former Department of Corporations or the former Department of
Financial Institutions.
(d) All agreements entered into with, and orders and regulations
issued by, the Commissioner of Corporations or the Commissioner of
Financial Institutions, or the Department of Financial Institutions
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.
35. (a) The Commissioner of Financial Services may make the
agreements that he or she deems necessary or appropriate in
exercising his or her powers.
(b) (1) The agreements authorized under subdivision (a) may
include, but are not limited to, agreements with agencies of this
state, of other states of the United States, of the United States, or
of foreign nations that regulate financial institutions, relating to
oversight of financial services.
(2) Any agreement with a governmental agency that regulates
financial services is exempt from the advertising and competitive
bidding requirements of the Public Contract Code.
36. Notwithstanding any other law, the Commissioner of Financial
Services may adopt and implement any method of accepting electronic
filings of applications, reports, or other matters, which, in the
opinion of the commissioner, is secure. Any method of electronic
filing chosen by the commissioner shall include a method to verify
the identity of the person making the filing. The verification shall
be deemed to satisfy all other verifications required by this
division, and shall have the same force and effect as the use of
manual signatures.
37. The Commissioner of Financial Services shall appoint a chief
deputy who shall hold office at the pleasure of the Commissioner of
Financial Services. The annual salary of the chief deputy shall be
fixed by the Commissioner of Financial Services with the approval of
the Director of Finance. The chief deputy shall be chosen solely for
his or her qualifications and fitness to perform the duties of his or
her office and for the ability to succeed to the office of the
Commissioner of Financial Services, if needed. If the Commissioner of
Financial Services is unable to perform his or her duties for more
than 30 consecutive days or if the office of the Commissioner of
Financial Services becomes vacant, the chief deputy shall have all
the powers and duties of the Commissioner of Financial Services until
the return or recovery of the Commissioner of Financial Services,
or, in case of a vacancy, until a new Commissioner of Financial
Services is appointed by the Governor and qualifies to hold office.
38. The Commissioner of Financial Services may employ deputies in
addition to the chief deputy and other employees that he or she may
need to discharge in a proper manner the duties imposed upon him or
her by law. The commissioner shall prescribe their duties and fix
their compensation in accordance with classifications made by the
State Personnel Board. The commissioner may also, at those times and
on those terms as may be approved by the Governor, employ those
attorneys as he or she may need.
39. Before entering upon the duties of his or her office, each
deputy of the Commissioner of Financial Services, the Director of the
Division of Financial Institutions, the Director of the Division of
Corporations, and the Director of the Office of Financial and
Real Estate Consumer Advocacy shall take and subscribe to the
constitutional oath of office and file the same with the Secretary of
State.
40. The Commissioner of Financial Services may require, at any
time, of any deputy, the Director of the Division of Financial
Institutions, the Director of the Division of Corporations, the
Director of the Office of Financial and Real Estate
Consumer Advocacy, or any other employee of the department, an
official bond in such amount as he or she may deem necessary. The
premium for bonds required by the commissioner shall be an expense of
the department.
41. On or before July 1, 2011, the Commissioner of Financial
Services shall adopt and promulgate a Conflict of Interest Code
pursuant to the provisions of Article 3 of Chapter 3 of Title 9 of
the Government Code (commencing with Section 87300). The Conflict of
Interest Code shall have the force of law and any violation of the
Conflict of Interest Code by a designated employee shall be deemed a
violation of Chapter 3 of Title 9 of the Government Code.
42. In addition to the offices previously maintained by the
Department of Financial Institutions and the Department of
Corporations, the Commissioner of Financial Services may establish
offices in any other location in the state that he or she considers
appropriate. The commissioner shall provide at the expense of the
department such office space, furniture, and equipment as may be
necessary or convenient for the transaction of the business of the
Department of Financial Services.
43. The Department of Financial Services may expend moneys in
accordance with law for the necessary travel expenses of officers and
employees of the department while traveling in the line of their
duties either within or without the state.
44. The Commissioner of Financial Services shall adopt and keep
an official seal. Papers executed by the Commissioner of Financial
Services in his or her official capacity pursuant to law and bearing
the seal, or copies thereof certified by him or her, shall be
received in evidence in like manner as the original and may be
recorded in the same manner and with the same effect as a deed
regularly acknowledged.
45. Notwithstanding any other law, as of July 1, 2011, all
references to the Department of Financial Institutions shall be
deemed to refer to the Division of Financial Institutions within the
Department of Financial Services and all references to the Department
of Corporations shall be deemed to refer to the Division of
Corporations within the Department of Financial Services.
46. (a) The Department of Real Estate shall continue to exist in
state government, subject to the limitations, effective July 1, 2012,
set forth in subdivision (d) of Section 25 with regard to authority
that is transferred to the Department of Financial Services, Division
of Corporations, and shall continue to be located within the
Business, Transportation and Housing Agency.
(b) Effective July 1, 2011, the Office of Real Estate Appraisers
shall be transferred to the Department of Real Estate. The Office of
Real Estate Appraisers shall be primarily responsible for the
execution of all laws previously under its jurisdiction subject to
oversight by the Director of the Office of Real Estate Appraisers.
The Real Estate Appraisers' Licensing and Certification Law (Part 3
(commencing with Section 11300) of Division 4 of the Business and
Professions Code), shall be deemed to be part of the Real Estate Law
(Part 1 (commencing with Section 10000) of Division 4 of the Business
and Professions Code).
47. After transfer to the Department of Real Estate on July 1,
2011, the Office of Real Estate Appraisers shall continue to be
headed by the Director of the Office of Real Estate Appraisers. The
Director of the Office of Real Estate Appraisers shall be appointed
by the Governor and shall serve at his or her pleasure. The
qualifications for t he position of Director of the Office
of Real Estate Appraisers shall remain unchanged.
48. On or before January 1, 2011, and for purposes of
implementation of Section 25, the Secretary of the Business,
Transportation and Housing Agency, in consultation with the
Commissioner of Financial Institutions, the Commissioner of
Corporations, and the Real Estate Commissioner, shall submit a report
to the Legislature that addresses the following:
(a) Recommendations regarding all appropriate areas for
consolidation of the operations, licensing frameworks, regulations,
and other aspects of, on and after July 1, 2011, the Department of
Financial Institutions and Department of Corporations, and of
pertinent commercial and residential lending, mortgage
brokerage, and business opportunity activities by Department of Real
Estate licensees.
(b) Recommendations regarding any new or different authorities
needed to address any gaps in, or shortcomings of, the regulation of
financial services in California.
(c) Recommendations regarding the possible consolidation of the
regulation of any other financial services that currently takes place
outside of the jurisdiction of the Business, Transportation and
Housing Agency.
(d) Recommendations regarding the consolidation of the regulation
of home mortgage lending in California, including, but not limited
to, recommendations on licensing schemes, including the California
Finance Lenders Law (Division 9 (commencing with Section 22000), the
California Residential Mortgage Lending Act (Division 20 (commencing
with Section 50000), the Real Estate Law (Part 1 (commencing with
Section 10000) of Division 4 of the Business and Professions Code),
and laws governing the operation of state and federally chartered
banks or credit unions.
(e) Recommendations regarding any firewalls between the future
Department of Financial Services and its divisions and
office of the Office of Financial and Real
Estate Consumer Advocacy, or employees, that may be advisable.
(f) Recommendations regarding an efficient and effective
implementation of the federal Secure and Fair Enforcement for
Mortgage Licensing Act of 2008 (Public Law 110-289) within the
Department of Financial Services.
(g) Recommendations regarding additional changes that should be
made in light of any developments at the federal level regarding the
regulation of financial services.
(h) Recommendations to better serve and protect financial and
real estate consumers in California, including, but not
limited to, public outreach and public protections.
(i) Recommendations regarding the advisability of establishing
new recovery accounts to protect financial services
and real estate consumers in California.
(j) Recommendations regarding any staffing changes that are
advisable.
(k) Recommendations regarding any information technology changes
that are advisable.
(l) Recommendations regarding the optimal number, size, and
locations of offices for the Department of Financial Services and its
divisions and the Office of Financial and Real Estate
Consumer Advocacy.
(m) Recommendations regarding the structure of fees and other
revenue sources, as well as reserve accounts.
(n) The estimated cost impacts of all recommendations made and
details regarding how those estimated impacts are expected to
manifest.
(o) Any other recommendations the Secretary of the Business,
Transportation and Housing Agency believes would be helpful.
(p) Recommendations regarding any necessary statutory changes
required to achieve the recommendations made in the report.
(q) Recommendations regarding any necessary regulation changes
required to achieve the recommendations made in the report.
49. On or before January 1, 2011, and for purposes of
implementing Sections 46 and 47, the Secretary of the Business,
Transportation and Housing Agency in consultation with the Real
Estate Commissioner and the Director of the Office of Real Estate
Appraisers shall submit a joint report to the Secretary of
Business, Transportation and Housing Legislature
that addresses the following:
(a) Recommendations regarding the consolidation of the operations,
licensing frameworks, and other aspects of the Department of Real
Estate and the Office of Real Estate Appraisers.
(b) Recommendations regarding any new or different authorities
needed to effect the consolidation.
(c) Recommendations regarding any firewalls between the Department
of Real Estate and the Office of Real Estate Appraisers or employees
that may be advisable to ensure compliance with federal law. Those
recommendations shall protect the independence of the appraiser
regulatory function from realty related activities, and ensure that
decisions relating to appraisal license issuance, revocation, and
disciplinary actions shall be made by the Director of the Office of
Real Estate Appraisers and may not be made by the Real Estate
Commissioner.
(d)
(c) Recommendations regarding any necessary statutory
changes required to achieve the recommendations made in the report.
(e)
(d) Recommendations regarding any necessary regulation
changes required to achieve the recommendations in the report.
(f)
(e) Recommendations regarding the structure of fees and
other revenue sources, as well as reserve accounts.
(g)
(f) Recommendations regarding the future of the
Recovery Account of the Real Estate Fund and the advisability of
establishing additional or different recovery accounts to protect
consumers in real estate transactions in California.
(h)
(g) Recommendations regarding staffing changes that are
advisable.
(i)
(h) Recommendations regarding technology changes that
are advisable.
(j)
(i) Recommendations regarding state representation at
administrative hearings.
(k)
(j) The estimated cost impacts of all recommendations
made and details regarding how those estimated impacts are expected
to manifest.
(l)
(k) Any other recommendations that the Real Estate
Commissioner and the Director of the Office of Real Estate Appraisers
believes would be helpful.
(m)
(l) Recommendations addressing any federal level
restrictions or impositions on such consolidation of entities.
50. Fourteen days after the effective date of this act, the
Secretary of the Business, Transportation and Housing Agency shall
post the items listed in Sections 48 and 49 on the Internet Web site
of the agency in a manner that provides for public comment for a
period of 120 days. The posting shall also set forth a mailing
address for members of the public to use should they choose to submit
comments by mail instead of via the Internet Web site during this
period. All comments shall specifically reference the sections to
which they are directed. Public comments received shall be considered
in making the secretary's final recommendations pursuant to Sections
48 and 49.
SEC. 17. Section 112 of the Financial Code is amended to read:
112. "Commissioner" means the Commissioner of Financial
Institutions and "department" means the Department of Financial
Institutions.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 18. Section 112 is added to the Financial Code, to read:
112. (a) As used in this division, the following terms have the
following meanings:
(1) "Department of Financial Institutions" or "department" means
the Department of Financial Services, Division of Financial
Institutions.
(2) "Commissioner of Financial Institutions" or "commissioner"
means the Director of the Division of Financial Institutions.
(b) This section shall become operative on July 1, 2011.
SEC. 19. Section 210 of the Financial Code is amended to read:
210. The chief officer of the Department of Financial
Institutions is the Commissioner of Financial Institutions. The
Commissioner of Financial Institutions is the head of 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.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 20. Section 210 is added to the Financial Code, to read:
210. The Director of the Division of Financial Institutions is
the head of the Division of Financial Institutions, as specified in
Division 0.5 (commencing with Section 25).
This section shall become operative on July 1, 2011.
SEC. 21. Section 252 of the Financial Code is amended to read:
252. The commissioner shall adopt and keep an official seal.
Papers executed by the commissioner in his or her official capacity
pursuant to law and bearing the seal, or copies thereof certified by
him or her, shall be received in evidence in like manner as the
original and may be recorded in the same manner and with the same
effect as a deed regularly acknowledged.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 22. Section 4805.055 of the Financial Code is amended to
read:
4805.055. "Commissioner" means the Commissioner of Financial
Institutions.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 23. Section 4805.055 is added to the Financial Code, to read:
4805.055. (a) As used in this division, the following terms have
the following meanings:
(1) "Department of Financial Institutions" or "department" means
the Department of Financial Services, Division of Financial
Institutions.
(2) "Commissioner of Financial Institutions" or "commissioner"
means the Director of the Division of Financial Institutions.
(b) This section shall become operative on July 1, 2011.
SEC. 24. Section 4970 of the Financial Code is amended to read:
4970. For purposes of this division:
(a) "Annual percentage rate" means the annual percentage rate for
the loan calculated according to the provisions of the federal Truth
in Lending Act and the regulations adopted thereunder by the Federal
Reserve Board.
(b) "Covered loan" means a consumer loan in which the original
principal balance of the loan does not exceed the most current
conforming loan limit for a single-family first mortgage loan
established by the Federal National Mortgage Association in the case
of a mortgage or deed of trust, and where one of the following
conditions are met:
(1) For a mortgage or deed of trust, the annual percentage rate at
consummation of the transaction will exceed by more than eight
percentage points the yield on Treasury securities having comparable
periods of maturity on the 15th day of the month immediately
preceding the month in which the application for the extension of
credit is received by the creditor.
(2) The total points and fees payable by the consumer at or before
closing for a mortgage or deed of trust will exceed 6 percent of the
total loan amount.
(c) "Points and fees" shall include the following:
(1) All items required to be disclosed as finance charges under
Sections 226.4(a) and 226.4(b) of Title 12 of the Code of Federal
Regulations, including the Official Staff Commentary, as amended from
time to time, except interest.
(2) All compensation and fees paid to mortgage brokers in
connection with the loan transaction.
(3) All items listed in Section 226.4(c)(7) of Title 12 of the
Code of Federal Regulations, only if the person originating the
covered loan receives direct compensation in connection with the
charge.
(d) "Consumer loan" means a consumer credit transaction that is
secured by real property located in this state used, or intended to
be used or occupied, as the principal dwelling of the consumer that
is improved by a one-to-four residential unit. "Consumer loan" does
not include a reverse mortgage, an open line of credit as defined in
Part 226 of Title 12 of the Code of Federal Regulations (Regulation
Z), or a consumer credit transaction that is secured by rental
property or second homes. "Consumer loan" does not include a bridge
loan. For purposes of this division, a bridge loan is any temporary
loan, having a maturity of one year or less, for the purpose of
acquisition or construction of a dwelling intended to become the
consumer's principal dwelling.
(e) "Original principal balance" means the total initial amount
the consumer is obligated to repay on the loan.
(f) "Licensing agency" shall mean the Department of Real Estate
for licensed real estate brokers, the Department of Corporations for
licensed residential mortgage lenders and licensed finance lenders
and brokers, and the Department of Financial Institutions for
commercial and industrial banks and savings associations and credit
unions organized in this state. On and after July 1, 2011, or as
otherwise specified, "licensing agency" shall instead be defined as
specified in Sections 25, 45, and 46.
(g) "Licensed person" means a real estate broker licensed under
the Real Estate Law (Part 1 (commencing with Section 10000) of
Division 4 of the Business and Professions Code), a finance lender or
broker licensed under the California Finance Lenders Law (Division 9
(commencing with Section 22000)), a residential mortgage lender
licensed under the California Residential Mortgage Lending Act
(Division 20 (commencing with Section 50000)), a commercial or
industrial bank organized under the Banking Law (Division 1
(commencing with Section 99)), a savings association organized under
the Savings Association Law (Division 2 (commencing with Section
5000)), and a credit union organized under the California Credit
Union Law (Division 5
(commencing with Section 14000)). Nothing in this division shall be
construed to prevent any enforcement by a governmental entity against
any person who originates a loan and who is exempt or excluded from
licensure by all of the licensing agencies, based on a violation of
any provision of this division. Nothing in this division shall be
construed to prevent the Department of Real Estate from enforcing
this division against a licensed salesperson employed by a licensed
real estate broker as if that salesperson were a licensed person
under this division. A licensed person includes any person engaged in
the practice of consumer lending, as defined in this division, for
which a license is required under any other provision of law, but
whose license is invalid, suspended or revoked, or where no license
has been obtained.
(h) "Originate" means to arrange, negotiate, or make a consumer
loan.
(i) "Servicer" has the same meaning provided in Section 6 (i)(2)
of the Real Estate Settlement Procedures Act of 1974.
SEC. 25. Section 5104 of the Financial Code is amended to read:
5104. "Commissioner" means the Commissioner of Financial
Institutions.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 26. Section 5104 is added to the Financial Code, to read:
5104. As used in this division, "Commissioner of Financial
Institutions" or "commissioner" means the Director of the Division of
Financial Institutions.
This section shall become operative on July 1, 2011.
SEC. 27. Section 5106 of the Financial Code is amended to read:
5106. "Department" means the Department of Financial
Institutions.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 28. Section 5106 is added to the Financial Code, to read:
5106. As used in this division, "Department of Financial
Institutions" or "department" means the Department of Financial
Services, Division of Financial Institutions.
This section shall become operative on July 1, 2011.
SEC. 29. Section 12003 of the Financial Code is amended to read:
12003. "Commissioner" means the Commissioner of Corporations of
the State of California, or any deputy, investigator, auditor, or any
other person employed by him or her.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 30. Section 12003 is added to the Financial Code, to read:
12003. (a) As used in this division, the following terms have the
following meanings:
(1) "Department of Corporations" or "department" means the
Department of Financial Services, Division of Corporations.
(2) "Commissioner of Corporations" or "commissioner" means the
Director of the Division of Corporations, or any deputy,
investigator, auditor, or any other person employed by him or her.
(b) This section shall become operative on July 1, 2011.
SEC. 31. Section 14003 of the Financial Code is amended to read:
14003. "Commissioner" means the Commissioner of Financial
Institutions of the State of California.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 32. Section 14003 is added to the Financial Code, to read:
14003. (a) As used in this division, the following terms have the
following meanings:
(1) "Department of Financial Institutions" or "department" means
the Department of Financial Services, Division of Financial
Institutions.
(2) "Commissioner of Financial Institutions" or "commissioner"
means the Director of the Division of Financial Institutions.
(b) This section shall become operative on July 1, 2011.
SEC. 33. Section 17002 of the Financial Code is amended to read:
17002. "Commissioner" means the Commissioner of Corporations.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 34. Section 17002 is added to the Financial Code, to read:
17002. (a) As used in this division, the following terms have the
following meanings:
(1) "Department of Corporations" or "department" means the
Department of Financial Services, Division of Corporations.
(2) "Commissioner of Corporations" or "commissioner" means the
Director of the Division of Corporations.
(b) This section shall become operative on July 1, 2011.
SEC. 35. Section 18002 of the Financial Code is amended to read:
18002. "Commissioner" means the Commissioner of Financial
Institutions of the State of California.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 36. Section 18002 is added to the Financial Code, to read:
18002. As used in this division, "Commissioner of Financial
Institutions" or "commissioner" means the Director of the Division of
Financial Institutions.
This section shall become operative on July 1, 2011.
SEC. 37. Section 18002.5 of the Financial Code is amended to read:
18002.5. "Department" means the Department of Financial
Institutions.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 38. Section 18002.5 is added to the Financial Code, to read:
18002.5. As used in this division, "Department of Financial
Institutions" or "department" means the Department of Financial
Services, Division of Financial Institutions.
This section shall become operative on July 1, 2011.
SEC. 39. Section 22005 of the Financial Code is amended to read:
22005. "Commissioner" means the Commissioner of Corporations.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 40. Section 22005 is added to the Financial Code, to read:
22005. (a) As used in this division, the following terms have the
following meanings:
(1) "Department of Corporations" or "department" means the
Department of Financial Services, Division of Corporations.
(2) "Commissioner of Corporations" or "commissioner" means the
Director of the Division of Corporations.
(b) This section shall become operative on July 1, 2011.
SEC. 41. 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 Corporations, except
as specified in Section 23002.
(c) "Department" means the Department of Corporations, except as
specified in Section 23002.
(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. 42. Section 23002 is added to the Financial Code, to read:
23002. (a) As used in this division, the following terms have the
following meanings:
(1) "Department of Corporations" or "department" means the
Department of Financial Services, Division of Corporations.
(2) "Commissioner of Corporations" or "commissioner" means the
Director of the Division of Corporations.
(b) This section shall become operative on July 1, 2011.
SEC. 43. Section 30002 of the Financial Code is amended to read:
30002. "Commissioner" means the Commissioner of Corporations.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 44. Section 30002 is added to the Financial Code, to read:
30002. (a) As used in this division, the following terms have the
following meanings:
(1) "Department of Corporations" or "department" means the
Department of Financial Services, Division of Corporations.
(2) "Commissioner of Corporations" or "commissioner" means the
Director of the Division of Corporations.
(b) This section shall become operative on July 1, 2011.
SEC. 45. Section 31055 of the Financial Code is amended to read:
31055. "Commissioner" means the Commissioner of Financial
Institutions, or any person to whom the Commissioner of Financial
Institutions delegates the authority to act for him or her in the
particular matter.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 46. Section 31055 is added to the Financial Code, to read:
31055. (a) As used in this division, the following terms have the
following meanings:
(1) "Department of Financial Institutions" or "department" means
the Department of Financial Services, Division of Financial
Institutions.
(2) "Commissioner of Financial Institutions" or "commissioner"
means the Director of the Division of Financial Institutions, or any
person to whom the director delegates the authority to act for him or
her in a particular matter.
(b) This section shall become operative on July 1, 2011.
SEC. 47. Section 33045.5 of the Financial Code is amended to read:
33045.5. "Commissioner" means the Commissioner of Financial
Institutions, or any person to whom the Commissioner of Financial
Institutions delegates the authority to act for the Commissioner of
Financial Institutions in this matter.
This section shall become inoperative on July 1, 2011, and, as of
January 1, 2012, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2012, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 48. Section 33045.5 is added to the Financial Code, to read:
33045.5. (a) As used in this division, the following terms have
the following meanings:
(1) "Department of Financial Institutions" or "department" means
the Department of Financial Services, Division of Financial
Institutions.
(2) "Commissioner of Financial Institutions" or "commissioner"
means the Director of the Division of Financial Institutions, or any
person to whom the director delegates the authority to act for him or
her in a particular matter.
(b) This section shall become operative on July 1, 2011.
SEC. 49. Section 50003.5 is added to the Financial Code, to read:
50003.5. (a) Notwithstanding Section 50003, as used in this
division, the following terms have the following meanings:
(1) "Department of Corporations" or "department" means the
Department of Financial Services, Division of Corporations.
(2) "Commissioner of Corporations" or "commissioner" means the
Director of the Division of Corporations.
(b) This section shall become operative on July 1, 2011.
SEC. 50. Section 13975 of the Government Code is amended to read:
13975. (a) The Business and Transportation Agency in state
government is hereby renamed the Business, Transportation and Housing
Agency. The agency consists of the State Department of Alcoholic
Beverage Control, the Department of the California Highway Patrol,
the Department of Corporations, the Department of Housing and
Community Development, the Department of Motor Vehicles, the
Department of Real Estate, the Department of Transportation, the
Department of Financial Institutions, the Department of Managed
Health Care, and the Board of Pilot Commissioners for the Bays of San
Francisco, San Pablo, and Suisun. The California Housing Finance
Agency is also located within the Business, Transportation and
Housing Agency, as specified in Division 31 (commencing with Section
50000) of the Health and Safety Code.
(b) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 51. Section 13975 is added to the Government Code, to read:
13975. (a) The Business and Transportation Agency in state
government is hereby renamed the Business, Transportation and Housing
Agency. The agency consists of the State Department of Alcoholic
Beverage Control, the Department of the California Highway Patrol,
the Department of Financial Services, the Department of Housing and
Community Development, the Department of Motor Vehicles, the
Department of Real Estate, the Department of Transportation, the
Department of Managed Health Care, and the Board of Pilot
Commissioners for the Bays of San Francisco, San Pablo, and Suisun.
The California Housing Finance Agency is also located within the
Business, Transportation and Housing Agency, as specified in Division
31 (commencing with Section 50000) of the Health and Safety Code.
(b) This section shall become operative on July 1, 2011.
SEC. 52. Section 13978.6 of the Government Code is amended to
read:
13978.6. (a) The Secretary of the Business, Transportation and
Housing Agency shall be generally responsible for the sound fiscal
management of each department, office, or other unit within the
agency. The secretary shall review and approve the proposed budget of
each department, office, or other unit. The secretary shall hold the
head of each department, office, or other unit responsible for
management control over the administrative, fiscal, and program
performance of his or her department, office, or other unit. The
secretary shall review the operations and evaluate the performance at
appropriate intervals of each department, office, or other unit, and
shall seek continually to improve the organization structure, the
operating policies, and the management information systems of each
department, office, or other unit.
(b) There is in the Business, Transportation, and Housing Agency a
Department of Corporations, which has the responsibility for
administering various laws. In order to effectively support the
Department of Corporations in the administration of these laws, there
is hereby established the State Corporations Fund. All expenses and
salaries of the Department of Corporations shall be paid out of the
State Corporations Fund. Therefore, notwithstanding any provision of
any law administered by the Department of Corporations declaring that
fees, reimbursements, assessments, or other money or amounts charged
and collected by the Department of Corporations under these laws are
to be delivered or transmitted to the Treasurer and deposited to the
credit of the General Fund, on and after July 1, 1992, all fees,
reimbursements, assessments, and other money or amounts charged and
collected under these laws and attributable to the 1992-93 fiscal
year and subsequent fiscal years shall be delivered or transmitted to
the Treasurer and deposited to the credit of the State Corporations
Fund.
(c) Funds appropriated from the State Corporations Fund and made
available for expenditure for any law or program of the Department 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.
(d) This section shall become inoperative on July 1, 2011, and, as
of January 1, 2012, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2012, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 53. Section 13978.6 is added to the Government Code, to read:
13978.6. (a) The Secretary of the Business, Transportation and
Housing Agency shall be generally responsible for the sound fiscal
management of each department, office, or other unit within the
agency. The secretary shall review and approve the proposed budget of
each department, office, or other unit. The secretary shall hold the
head of each department, office, or other unit responsible for
management control over the administrative, fiscal, and program
performance of his or her department, office, or other unit. The
secretary shall review the operations and evaluate the performance at
appropriate intervals of each department, office, or other unit, and
shall seek continually to improve the organization structure, the
operating policies, and the management information systems of each
department, office, or other unit.
(b) There is in the Business, Transportation and Housing Agency a
Department of Financial Services, which has the responsibility for
administering various laws. In order to effectively support the
Department of Financial Services in the administration of these laws,
there is hereby continued in existence the State Corporations Fund.
All expenses and salaries of the Department of Financial Services
shall be paid out of the State Corporations Fund. Therefore,
notwithstanding any provision of any law administered by the
Department of Financial Services declaring that fees, reimbursements,
assessments, or other money or amounts charged and collected by the
Department of Financial Services under these laws are to be delivered
or transmitted to the Treasurer and deposited to the credit of the
General Fund, on and after July 1, 1992, all fees, reimbursements,
assessments, and other money or amounts charged and collected under
these laws and attributable to the 1992-93 fiscal year and subsequent
fiscal years shall be delivered or transmitted to the Treasurer and
deposited to the credit of the State Corporations Fund.
(c) Funds appropriated from the State Corporations Fund and made
available for expenditure for any law or program of the Department of
Financial Services 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.
(d) This section shall become operative on July 1, 2011.
