Bill Text: CA AB2289 | 2013-2014 | Regular Session | Chaptered
Bill Title: Business filings.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-09-29 - Chaptered by Secretary of State - Chapter 782, Statutes of 2014. [AB2289 Detail]
Download: California-2013-AB2289-Chaptered.html
BILL NUMBER: AB 2289 CHAPTERED
BILL TEXT
CHAPTER 782
FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2014
APPROVED BY GOVERNOR SEPTEMBER 29, 2014
PASSED THE SENATE AUGUST 14, 2014
PASSED THE ASSEMBLY AUGUST 19, 2014
AMENDED IN SENATE AUGUST 4, 2014
AMENDED IN SENATE JUNE 9, 2014
INTRODUCED BY Assembly Member Daly
FEBRUARY 21, 2014
An act to amend Sections 25620, 31116, and 31121 of, and to add
Section 31158 to, the Corporations Code, and to amend Sections 12201,
17201, 22101, and 23005 of the Financial Code, relating to business.
LEGISLATIVE COUNSEL'S DIGEST
AB 2289, Daly. Business filings.
(1) The Corporate Securities Law of 1968 authorizes the
Commissioner of Business Oversight to prescribe circumstances under
which to accept electronic records or electronic signatures, as
defined.
This bill would provide additional examples of what meets the
definition of an "electronic record."
(2) The Franchise Investment Law generally provides for the
regulation of the offer and sale of franchises by the Commissioner of
Business Oversight. The law specifically provides that the
registration of the offer of franchises automatically becomes
effective at noon on the 15th business day after the filing of the
application for registration or the last amendment, except as
specified.
This bill would instead provide that the offer automatically
becomes effective on the 30th day after the filing of a complete
application, similarly extend the time for a renewal of an offer, as
specified, and define terms for these purposes. This bill would
authorize the commissioner to prescribe circumstances under which to
accept electronic records or electronic signatures, as defined.
(3) The Check Sellers, Bill Payers and Proraters Law generally
requires the Commissioner of Business Oversight to, among other
things, proscribe the form of the application for a license to engage
in business under its provisions.
This bill would authorize the commissioner to prescribe
circumstances under which to accept electronic records or electronic
signatures, as defined.
(4) The Escrow Law generally requires the Commissioner of Business
Oversight to, among other things, proscribe the form of the
application for a license as an escrow agent under its provisions.
This bill would authorize the commissioner to prescribe
circumstances under which to accept electronic records or electronic
signatures, as defined.
(5) The California Finance Lenders Law generally requires the
Commissioner of Business Oversight to, among other things, proscribe
the form of the application for a license as a finance lender or
broker under its provisions.
This bill would authorize the commissioner to prescribe
circumstances under which to accept electronic records or electronic
signatures, as defined.
(6) The California Deferred Deposit Transaction Law generally
requires the Commissioner of Business Oversight to, among other
things, proscribe the form of the application for a license to engage
in the businesses of offering, making, or arranging a deferred
deposit transaction, as specified.
This bill would authorize the commissioner to prescribe
circumstances under which to accept electronic records or electronic
signatures, as defined.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25620 of the Corporations Code is amended to
read:
25620. (a) Notwithstanding any other law, the commissioner may by
rule or order prescribe circumstances under which to accept
electronic records or electronic signatures. This section shall not
require the commissioner to accept electronic records or electronic
signatures.
(b) For purposes of this section, the following terms have the
following meanings:
(1) "Electronic record" means a record created, generated, sent,
communicated, received, or stored by electronic means. "Electronic
record" also includes, but is not limited to, all of the following:
(A) An application, amendment, supplement, and exhibit, filed for
any qualification, registration, order, permit, certificate, license,
consent, or other authority.
(B) A financial statement, reports, or advertising.
(C) An order, permit, certificate, license, consent, or other
authority.
(D) A notice of public hearing, accusation, and statement of
issues in connection with any application, qualification,
registration, order, permit, certificate, license, consent, or other
authority.
(E) A proposed decision of a hearing officer and a decision of the
commissioner.
(F) The transcripts of a hearing.
(G) A release, newsletter, interpretive opinion, determination, or
specific ruling.
(H) Correspondence between a party and the commissioner directly
relating to any document listed in subparagraphs (A) to (G),
inclusive.
(2) "Electronic signature" means an electronic sound, symbol, or
process attached to or logically associated with an electronic record
and executed or adopted by a person with the intent to sign the
electronic record.
(c) The Legislature finds and declares that the Department of
Business Oversight has continuously implemented methods to accept
records filed electronically, including broker-dealer and investment
adviser applications, and is encouraged to continue to expand its use
of electronic filings to the extent feasible, as budget, resources,
and equipment are made available to accomplish that goal.
SEC. 2. Section 31116 of the Corporations Code is amended to read:
31116. (a) Except as provided in subdivision (b), if no stop
order under Section 31115 is in effect under this law, registration
of the offer of franchises automatically becomes effective at 12 o'
clock noon, California time, of the 30th business day after the
filing of a complete application for registration or the last
preeffective amendment thereto, or at such earlier time as the
commissioner determines.
(b) With respect to any application for registration or the last
amendment thereto filed between January 1, 1971, and March 15, 1971,
if no stop order under Section 31115 is in effect under this law,
registration becomes effective on April 15, 1971; with respect to any
application filed after March 15, 1971 and before May 10, 1971, if
no stop order under Section 31115 is in effect under this law,
registration becomes effective on June 1, 1971, or the 15th business
day after the filing, whichever is the later, or at such earlier time
as the commissioner determines.
(c) For purposes of this section, "complete application" means an
application that contains the appropriate filing fee, Uniform
Franchise Disclosure Document, and all additional exhibits, including
financial statements in conformity with regulations of the
commissioner. "Preeffective amendment" means an amendment to an
application that is filed before the effective date of the
registration of the sale of franchises.
SEC. 3. Section 31121 of the Corporations Code is amended to read:
31121. (a) The registration may be renewed for additional periods
of one year each, unless the commissioner by rule or order specifies
a different period, by submitting to the commissioner a renewal
application before the expiration of the registration. If no stop
order or other order under Section 31115 is in effect under this law,
registration of the offer of the franchises automatically becomes
renewed effective at 12 o'clock noon, California time, of the 30th
business day after the filing of a complete application for
registration or the last preeffective amendment or at such earlier
time as the commissioner determines.
(b) For purposes of this section, "complete application" means an
application that contains the appropriate filing fee, Uniform
Franchise Disclosure Document, and all additional exhibits, including
financial statements in conformity with regulations of the
commissioner. "Preeffective amendment" means an amendment to an
application that is filed before the effective date of the
registration of the sale of franchises.
SEC. 4. Section 31158 is added to the Corporations Code, to read:
31158. (a) Notwithstanding any other law, the commissioner may by
rule or order prescribe circumstances under which to accept
electronic records or electronic signatures. This section shall not
require the commissioner to accept electronic records or electronic
signatures.
(b) For purposes of this section, the following terms have the
following meanings:
(1) "Electronic record" means an initial registration application,
registration renewal statement, preeffective amendment,
posteffective amendment, or material modification and any other
record created, generated, sent, communicated, received, or stored by
electronic means. "Electronic record" also includes, but is not
limited to, all of the following:
(A) An application, amendment, supplement, and exhibit, filed for
any registration, order, license, consent, or other authority.
(B) A financial statement, reports, or advertising.
(C) An order, license, consent, or other authority.
(D) A notice of public hearing, accusation, and statement of
issues in connection with any application, registration, order,
license, consent, or other authority.
(E) A proposed decision of a hearing officer and a decision of the
commissioner.
(F) The transcripts of a hearing.
(G) A release, newsletter, interpretive opinion, determination, or
specific ruling.
(H) Correspondence between a party and the commissioner directly
relating to any document listed in subparagraphs (A) to (G),
inclusive.
(2) "Electronic signature" means an electronic sound, symbol, or
process attached to or logically associated with an electronic record
and executed or adopted by a person with the intent to sign the
electronic record.
(c) The Legislature finds and declares that the Department of
Business Oversight has continuously implemented methods to accept
records filed electronically, including broker-dealer and investment
adviser applications, and is encouraged to continue to expand its use
of electronic filings to the extent feasible, as budget, resources,
and equipment are made available to accomplish that goal.
SEC. 5. Section 12201 of the Financial Code is amended to read:
12201. (a) An application for a license shall be in writing,
under oath, and in a form prescribed by the commissioner and shall
contain the name, and the address both of the residence and place of
business, of the applicant and if the applicant is a partnership or
association, of every member thereof, and if a corporation, of every
officer and director thereof.
(b) Notwithstanding any other law, the commissioner may by rule or
order prescribe circumstances under which to accept electronic
records or electronic signatures. This section shall not require the
commissioner to accept electronic records or electronic signatures.
(c) For purposes of this section, the following terms have the
following meanings:
(1) "Electronic record" means an initial license application, or
material modification of that license application, and any other
record created, generated, sent, communicated, received, or stored by
electronic means. "Electronic record" also includes, but is not
limited to, all of the following:
(A) An application, amendment, supplement, and exhibit, filed for
any license, consent, or other authority.
(B) A financial statement, reports, or advertising.
(C) An order, license, consent, or other authority.
(D) A notice of public hearing, accusation, and statement of
issues in connection with any application, license, consent, or other
authority.
(E) A proposed decision of a hearing officer and a decision of the
commissioner.
(F) The transcripts of a hearing.
(G) A release, newsletter, interpretive opinion, determination, or
specific ruling.
(H) Correspondence between a party and the commissioner directly
relating to any document listed in subparagraphs (A) to (G),
inclusive.
(2) "Electronic signature" means an electronic sound, symbol, or
process attached to or logically associated with an electronic record
and executed or adopted by a person with the intent to sign the
electronic record.
(d) The Legislature finds and declares that the Department of
Business Oversight has continuously implemented methods to accept
records filed electronically, and is encouraged to continue to expand
its use of electronic filings to the extent feasible, as budget,
resources, and equipment are made available to accomplish that goal.
SEC. 6. Section 17201 of the Financial Code is amended to read:
17201. (a) An application for a license as an escrow agent shall
be in writing and in such form as is prescribed by the commissioner.
The application shall be verified by the oath of the applicant.
(b) Notwithstanding any other law, the commissioner may by rule or
order prescribe circumstances under which to accept electronic
records or electronic signatures. This section shall not require the
commissioner to accept electronic records or electronic signatures.
(c) For purposes of this section, the following terms have the
following meanings:
(1) "Electronic record" means an initial license application, or
material modification of that license application, and any other
record created, generated, sent, communicated, received, or stored by
electronic means. "Electronic records" also includes, but is not
limited to, all of the following:
(A) An application, amendment, supplement, and exhibit, filed for
any order, license, consent, or other authority.
(B) A financial statement, reports, or advertising.
(C) An order, license, consent, or other authority.
(D) A notice of public hearing, accusation, and statement of
issues in connection with any application, registration, order,
license, consent, or other authority.
(E) A proposed decision of a hearing officer and a decision of the
commissioner.
(F) The transcripts of a hearing and correspondence between a
party and the commissioner directly relating to the record.
(G) A release, newsletter, interpretive opinion, determination, or
specific ruling.
(H) Correspondence between a party and the commissioner directly
relating to any document listed in subparagraphs (A) to (G),
inclusive.
(2) "Electronic signature" means an electronic sound, symbol, or
process attached to or logically associated with an electronic record
and executed or adopted by a person with the intent to sign the
electronic record.
(d) The Legislature finds and declares that the Department of
Business Oversight has continuously implemented methods to accept
records filed electronically, and is encouraged to continue to expand
its use of electronic filings to the extent feasible, as budget,
resources, and equipment are made available to accomplish that goal.
SEC. 7. Section 22101 of the Financial Code is amended to read:
22101. (a) An application for a license as a finance lender or
broker under this division shall be in the form and contain the
information that the commissioner may by rule or order require and
shall be filed upon payment of the fee specified in Section 22103.
(b) Notwithstanding any other law, an applicant who does not
currently hold a license as a finance lender or broker under this
division shall furnish, with his or her application, a full set of
fingerprints and related information for purposes of the commissioner
conducting a criminal history record check. The commissioner shall
obtain and receive criminal history information from the Department
of Justice and the Federal Bureau of Investigation pursuant to
Section 22101.5.
(c) This section shall not be construed to prevent a licensee from
engaging in the business of a finance lender through a subsidiary
corporation if the subsidiary corporation is licensed pursuant to
this division.
(d) For purposes of this section, "subsidiary corporation" means a
corporation that is wholly owned by a licensee.
(e) A new application shall not be required for a change in the
address of an existing location previously licensed under this
division. However, the licensee shall comply with the requirements of
Section 22153.
(f) Notwithstanding subdivisions (a) to (e), inclusive, the
commissioner may by rule require an application to be made through
the Nationwide Mortgage Licensing System and Registry, and may
require fees, fingerprints, financial statements, supporting
documents, changes of address, and any other information, and
amendments or modifications thereto, to be submitted in the same
manner.
(g) Notwithstanding any other law, the commissioner may by rule or
order prescribe circumstances under which to accept electronic
records or electronic signatures. This section shall not require the
commissioner to accept electronic records or electronic signatures.
(h) For purposes of this section, the following terms have the
following meanings:
(1) "Electronic record" means an initial license application, or
material modification of that license application, and any other
record created, generated, sent, communicated, received, or stored by
electronic means. "Electronic records" also includes, but is not
limited to, all of the following:
(A) An application, amendment, supplement, and exhibit, filed for
any license, consent, or other authority.
(B) A financial statement, reports, or advertising.
(C) An order, license, consent, or other authority.
(D) A notice of public hearing, accusation, and statement of
issues in connection with any application, license, consent, or other
authority.
(E) A proposed decision of a hearing officer and a decision of the
commissioner.
(F) The transcripts of a hearing and correspondence between a
party and the commissioner directly relating to the record.
(G) A release, newsletter, interpretive opinion, determination, or
specific ruling.
(H) Correspondence between a party and the commissioner directly
relating to any document listed in subparagraphs (A) to (G),
inclusive.
(2) "Electronic signature" means an electronic sound, symbol, or
process attached to or logically associated with an electronic record
and executed or adopted by a person with the intent to sign the
electronic record.
(i) The Legislature finds and declares that the Department of
Business Oversight has continuously implemented methods to accept
records filed electronically, and is encouraged to continue to expand
its use of electronic filings to the extent feasible, as budget,
resources, and equipment are made available to accomplish that goal.
SEC. 8. Section 23005 of the Financial Code is amended to read:
23005. (a) A person shall not offer, originate, or make a
deferred deposit transaction, arrange a deferred deposit transaction
for a deferred deposit originator, act as an agent for a deferred
deposit originator, or assist a deferred deposit originator in the
origination of a deferred deposit transaction without first obtaining
a license from the commissioner and complying with the provisions of
this division. The requirements of this subdivision shall not apply
to persons or entities that are excluded from the definition of
"licensee" as set forth in Section 23001. This division shall not be
construed to require the commissioner to create separate classes of
licenses.
(b) An application for a license under this division shall be in
the form and contain the information that the commissioner may by
rule require and shall be filed upon payment of the fee specified in
Section 23006.
(c) A licensee with one or more licensed locations seeking an
additional location license may file a short form license application
as may be established by the commissioner pursuant to subdivision
(b) of this section.
(d) Notwithstanding any other law, the commissioner may by rule or
order prescribe circumstances under which to accept electronic
records or electronic signatures. This section shall not require the
commissioner to accept electronic records or electronic signatures.
(e) For purposes of this section, the following terms have the
following meanings:
(1) "Electronic record" means an initial license application, or
material modification of that license application, and any other
record created, generated, sent, communicated, received, or stored by
electronic means. "Electronic records" also includes, but is not
limited to, all of the following:
(A) An application, amendment, supplement, and exhibit, filed for
any license, consent, or other authority.
(B) A financial statement, reports, or advertising.
(C) An order, license, consent, or other authority.
(D) A notice of public hearing, accusation, and statement of
issues in connection with any application, license, consent, or other
authority.
(E) A proposed decision of a hearing officer and a decision of the
commissioner.
(F) The transcripts of a hearing.
(G) A release, newsletter, interpretive opinion, determination, or
specific ruling.
(H) Correspondence between a party and the commissioner directly
relating to any document listed in subparagraphs (A) to (G),
inclusive.
(2) "Electronic signature" means an electronic sound, symbol, or
process attached to or logically associated with an electronic record
and executed or adopted by a person with the intent to sign the
electronic record.
(f) The Legislature finds and declares that the Department of
Business Oversight has continuously implemented methods to accept
records filed electronically, and is encouraged to continue to expand
its use of electronic filings to the extent feasible, as budget,
resources, and equipment are made available to accomplish that goal.
