Bill Text: CA SB1290 | 2015-2016 | Regular Session | Amended

---

Bill Title: Commissioner of Business Oversight: California Finance

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2016-11-30 - From committee without further action. [SB1290 Detail]

Download: California-2015-SB1290-Amended.html

---

BILL NUMBER: SB 1290	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 11, 2016
	AMENDED IN SENATE  MARCH 28, 2016

INTRODUCED BY   Senator Mendoza

                        FEBRUARY 19, 2016

   An act to add  and repeal  Sections 22701.5 and 23046.5
to the Financial Code, relating to the Commissioner of Business
Oversight.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1290, as amended, Mendoza. Commissioner of Business Oversight:
California Finance Lenders Law: California Deferred Deposit
Transaction Law.
   Existing law, the California Finance Lenders Law, provides for the
licensure and regulation of finance lenders and brokers by the
Commissioner of Business Oversight. Existing law, the California
Deferred Deposit Transaction Law, provides for the licensure and
regulation by the commissioner of persons engaged in the business of
making or arranging deferred deposit transactions.
   For the purpose of discovering violations of the law or for
enforcement purposes, the commissioner is authorized to investigate
the business of these licensees, and examine the books, accounts,
records, and files used in the business, of every person engaged in
those business activities, whether the person acts or claims to act
as principal or agent, or under or without the authority of those
laws. For the purpose of examination, the commissioner is required to
have free access to the offices and places of business, books,
accounts, papers, records, files, safes, and vaults of all these
persons.
   When conducting an examination or investigation of a licensee that
is under common ownership with one or more other persons licensed
under the law,  the   this  bill would
require the commissioner to conduct a single consolidated examination
that includes all licensees that share the same common ownership, as
defined. The bill would authorize all books, accounts, papers,
records, and files required by the commissioner in connection with a
consolidated examination to be provided in electronic format. 
Not later than January 1, 2020, the bill would require the
commissioner to   submit a report to the Legislature
regarding the impacts of the consolidated examination  
procedure on consumers and licensees. The bill would repeal these
provisions on January 1, 2021. 
   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 22701.5 is added to the Financial Code, to
read:
   22701.5.  (a) When conducting an examination of a finance lender
or broker that is under common ownership with one or more other
persons licensed under this division, the commissioner shall conduct
a single consolidated examination that includes all persons licensed
under this division that share the same common ownership. For
purposes of this section, "common ownership" means two or more
licensees that are wholly owned by the same person.
   (b) All books, accounts, papers, records, and files required by
the commissioner in connection with a consolidated examination may be
provided to the commissioner in electronic format.
   (c) Notwithstanding subdivisions (a) and (b), the commissioner
shall retain the right to conduct periodic onsite investigations and
examinations of a licensee's physical location for business to ensure
compliance with this division. 
   (d) Not later than January 1, 2020, the commissioner shall submit
a report to the Legislature regarding the impacts of the consolidated
examination procedure on consumers and licensees. This report shall
be submitted in compliance with Section 9795 of the Government Code.
 
   (e) This section shall be repealed on January 1, 2021. 
  SEC. 2.  Section 23046.5 is added to the Financial Code, to read:
   23046.5.  (a) When conducting an investigation of a licensee that
is under common ownership with one or more other persons licensed
under this division, the commissioner shall conduct a single
consolidated examination that includes all persons licensed under
this division that share the same common ownership. For purposes of
this section, "common ownership" means two or more licensees that are
wholly owned by the same person.
   (b) All books, accounts, papers, records, and files required by
the commissioner in connection with a consolidated examination may be
provided to the commissioner in electronic format.
   (c) Notwithstanding subdivisions (a) and (b), the commissioner
shall retain the right to conduct periodic onsite investigations and
examinations of a licensee's physical location for business to ensure
compliance with this division. 
   (d) Not later than January 1, 2020, the commissioner shall submit
a report to the Legislature regarding the impacts of the consolidated
examination procedure on consumers and licensees. This report shall
be submitted in compliance with Section 9795 of the Government Code.
 
   (e) This section shall be repealed on January 1, 2021.