Bill Text: CA SB819 | 2019-2020 | Regular Session | Amended
Bill Title: Financial institutions: regulation: Department of Financial Protection and Innovation.
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2020-08-31 - Assembly Rule 63 suspended. [SB819 Detail]
Download: California-2019-SB819-Amended.html
Amended
IN
Assembly
August 25, 2020 |
Amended
IN
Assembly
August 17, 2020 |
Introduced by Committee on Budget and Fiscal Review |
January 10, 2020 |
LEGISLATIVE COUNSEL'S DIGEST
(3)Existing law creates, in the Department of Business Oversight, the Division of Corporations and also establishes the State Corporations Fund for purposes of supporting the Division of Corporations.
This bill would abolish the Division of Corporations within the Department of Business Oversight, which would be replaced by the Department of Financial Protection and Innovation, as described above. The bill would abolish the State Corporations Fund and the Financial Institutions Fund and replace these funds with the Financial Protection Fund, with expenses and salaries of the department paid out of this new fund. The bill would require that all duties and responsibilities and remaining balances of the State Corporations Fund and Financial Institutions Fund, upon
appropriation by the Legislature, be transferred to the Financial Protection Fund as the successor fund. The bill would require funds from the Financial Protection Fund, upon appropriation by the Legislature, to be made available for expenditure for laws or programs of the department from fees and amounts charged pursuant to specified provisions of the Corporations Code.
(4)
(5)
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 300 of the Financial Code is amended to read:300.
(a) In this section:SEC. 2.
Section 320 of the Financial Code is amended to read:320.
(a) The chief officer of the Department of Financial Protection and Innovation is the Commissioner of Financial Protection and Innovation. The Commissioner of Financial Protection and Innovation is the head of the department with the authority and responsibility over all officers, employees, and activities in the department and, except as otherwise provided in this code and the Corporations Code, is subject to the provisions of the Government Code relating to department heads.SEC. 3.
Section 321 of the Financial Code is amended to read:321.
(a) In this section, “order” means any approval, consent, authorization, exemption, denial, prohibition, requirement, or other administrative action, applicable to a specific case.SEC. 4.
Section 326 of the Financial Code is amended to read:326.
(a) The Commissioner of Financial Protection and Innovation is responsible for the performance of all duties, the exercise of all powers and jurisdiction, and the assumption and discharge of all responsibilities vested by law in the department and the divisions thereunder. The commissioner has and may exercise all the powers necessary or convenient for the administration and enforcement of, among other laws, the laws described in Section 300. The commissioner may issue rules and regulations consistent with law as the commissioner may deem necessary or advisable in executing the powers, duties, and responsibilities of the department.(b)In addition to the authority under subdivision (a), the commissioner may bring a civil action or other appropriate proceeding, including an administrative proceeding, pursuant to Section 5552 of Title 12 of the United States Code to enforce the provisions of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481 et seq), or regulations issued by the Consumer Financial Protection Bureau thereunder, with respect to any entity that is licensed, registered, or subject to oversight by the commissioner or otherwise offering or providing a consumer financial product or
service subject to oversight by the commissioner, and to secure remedies under provisions of the Consumer Financial Protection Act of 2010.
SEC. 5.
Section 351 of the Financial Code is amended to read:351.
(a) The chief officer of the Division of Corporations and Financial Institutions is the Senior Deputy Commissioner of Financial Protection and Innovation for the Division of Corporations and Financial Institutions. The Senior Deputy Commissioner of Financial Protection and Innovation for the Division of Corporations and Financial Institutions shall be appointed by the Governor, subject to Senate confirmation, and shall hold office at the pleasure of the Governor. The Senior Deputy Commissioner of Financial Protection and Innovation for the Division of Corporations and Financial Institutions shall receive an annual salary as fixed by the Governor.SEC. 6.
Section 371 of the Financial Code is repealed.SEC. 7.
Division 24 (commencing with Section 90000) is added to the Financial Code, to read:DIVISION 24. California Consumer Financial Protection Law
CHAPTER 1. Findings and Purpose
90000.
(a) The Legislature finds and declares all of the following:CHAPTER 2. Short Title
CHAPTER 2.
90001.
This division shall be known, and may be cited, as the “California Consumer Financial Protection Law.”CHAPTER 3. Exemptions
90002.
(a) This division shall not apply to a licensee, or an employee of a licensee, of any state agency other than the Department of Financial Protection and Innovation to the extent that licensee or employee is acting under the authority of the other state agency’s license.CHAPTER 4. Prohibited Acts
90003.
(a) It is unlawful for a covered person or service provider, as defined in subdivision (f) of Section 90005, to do any of the following:90004.
(a) In addition to the prohibitions contained in Section 1102.5 of the Labor Code, a covered person or service provider shall not terminate or in any other way discriminate against, or cause to be terminated or discriminated against, any covered employee or any authorized representative of covered employees by reason of the fact that the employee or representative, whether at the initiative of the employee or in the ordinary course of the duties of the employee, or any person acting pursuant to a request of the employee, has either:CHAPTER 5. Definitions
90005.
The definitions in this section apply throughout this division, except as otherwise provided in this division or if the context clearly indicates otherwise:CHAPTER 6. Administration
90006.
(a) The department shall regulate the offering and provision of consumer financial products or services under California consumer financial laws and shall exercise nonexclusive oversight and enforcement authority under California consumer financial laws. To the extent permissible under the federal consumer financial laws, the department shall exercise nonexclusive oversight and enforcement under the federal consumer financial laws.(d)(1)
(2)
(3)
90007.
With respect to funds under this division:90008.
(a) The department(c)
90009.
(a) (1) The department may prescribe rules regarding registration requirements applicable to a covered90009.5.
(a) Notwithstanding paragraph (1) of subdivision (a) of Section 90009, the department shall promulgate rules regarding registration requirements applicable to a covered person no later than three years following the initiation of its second action to enforce a violation of this division by persons providing the same or substantially similar consumer financial product or service as the covered person.CHAPTER 7. Oversight
90010.
(a) This section shall apply to any covered person who meets any of the following conditions:CHAPTER 8. Enforcement Powers and Duties
90011.
The commissioner and the department shall have all the investigatory and subpoena powers set forth in Sections 11180 to90012.
With respect to the enforcement powers of the commissioner and the department under this division, all of the following apply:90013.
The department may bring a civil action in accordance with the following:90014.
The following limitations apply to actions brought under this division:90015.
(a) The department may conduct hearings and adjudication proceedings with respect to any person in order to ensure or enforce compliance with both of the following:90016.
The commissioner shall not outsource or delegate enforcement authority under this division to a private attorney.90017.
In regard to cooperation with the Attorney General, the following provisions apply:CHAPTER 9. Annual Report
90018.
(a) The commissioner shall prepare and publish on the department’s internet website an annual report detailing actions taken during the prior year under this law.CHAPTER 10. Miscellaneous
90019.
(a) The provisions of this division shall be liberally construed to effectuate its purposes.SEC. 8.
Section 11041 of the Government Code is amended to read:11041.
(a) Section 11042 does not apply to the Regents of the University of California, the Trustees of the California State University, Legal Division of the Department of Transportation, Division of Labor Standards Enforcement of the Department of Industrial Relations, Workers’ Compensation Appeals Board, Public Utilities Commission, State Compensation Insurance Fund, Legislative Counsel Bureau, Inheritance Tax Department, Secretary of State, State Lands Commission, Alcoholic Beverage Control Appeals Board (except when the board affirms the decision of the Department of Alcoholic Beverage Control), State Department of Education, Department of Financial Protection and Innovation, and Treasurer with respect to bonds, nor to any other state agency which, by law enacted after Chapter 213 of the Statutes of 1933, is authorized to employ legal counsel.(a)There is in the Business, Consumer Services, and Housing Agency a Department of Financial Protection and Innovation, which has the responsibility for administering various laws. In order to effectively support the Department of Financial Protection and Innovation in the administration of these laws, there is hereby established the Financial Protection Fund, as described further in Section 90007 of the Financial Code. All expenses and salaries of the Department of Financial Protection and Innovation shall be paid out of the Financial Protection Fund, upon appropriation by the Legislature for these purposes.
(b)All the duties and
responsibilities to be transferred and any remaining balances of the State Corporations Fund and Financial Institutions Fund, upon appropriation by the Legislature, shall be transferred to the Financial Protection Fund, which is hereby created and designated the successor fund. The State Corporations Fund and Financial Institutions Fund are abolished.
(c)Funds appropriated from the Financial Protection Fund and made available for expenditure for any law or program of the Department of Financial Protection and Innovation 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 not apply to moneys collected or received by the commissioner under Division 5 (commencing with Section 14000) of the Financial Code.
(e)On and after the operative date of this subdivision, any reference in any law to the Financial Institutions Fund shall be deemed a reference to the Financial Protection Fund, and any reference in any law to the State Corporations Fund shall be deemed a reference to the Financial Protection Fund.