BILL NUMBER: AB 2890	CHAPTERED  09/05/06

	CHAPTER  201
	FILED WITH SECRETARY OF STATE  SEPTEMBER 5, 2006
	APPROVED BY GOVERNOR  SEPTEMBER 5, 2006
	PASSED THE ASSEMBLY  AUGUST 21, 2006
	PASSED THE SENATE  AUGUST 16, 2006
	AMENDED IN SENATE  JUNE 29, 2006

INTRODUCED BY   Assembly Member Ridley-Thomas

                        FEBRUARY 24, 2006

   An act to add Sections 22168 and 50511 to the Financial Code,
relating to lenders.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2890, Ridley-Thomas  Lenders: employees.
   The California Finance Lenders Law provides for the regulation and
licensure of finance lenders and brokers by the Commissioner of
Corporations. The California Residential Mortgage Lending Act
provides for the regulation and licensure by the commissioner of
persons engaging in the business of making residential mortgage loans
or servicing residential mortgage loans.
   This bill would authorize the commissioner to suspend or bar a
person from being employed by a licensee under the California Finance
Lenders Law or the California Residential Mortgage Lending Act if
the commissioner finds that the person has committed certain acts for
the purpose of misleading the public regarding his or her
qualifications or experience.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 22168 is added to the Financial Code, to read:

   22168.  The commissioner may, after appropriate notice and
opportunity for hearing, suspend for a period not to exceed 12 months
or bar a person from any position of employment with a licensee if
the commissioner finds that the person has willfully used or claimed
without authority a designation or certification of special
education, practice, or skill that the person has not attained, or
willfully held out to the public a confusingly similar designation or
certification for the purpose of misleading the public regarding his
or her qualifications or
    experience.
   (b) Within 15 days from the date of a notice of intention to issue
an order pursuant to subdivision (a), the person may request a
hearing under the Administrative Procedure Act (Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code). Upon receiving a request, the matter shall be set
for hearing to commence within 30 days after receipt unless the
person subject to this division consents to a later date. If no
hearing is requested within 15 days after the mailing or service of
the notice and none is ordered by the commissioner, the failure to
request a hearing shall constitute a waiver of the right to a
hearing.
   (c) Upon receipt of a notice of intention to issue an order
pursuant to subdivision (a), the person who is the subject of the
proposed order is immediately prohibited from engaging in any
activities subject to licensure under this division.
   (d) Persons suspended or barred under this section are prohibited
from participating in any business activity of a licensed finance
lender and from engaging in any business activity on the premises
where a licensed finance lender is conducting its business. This
subdivision shall not be construed to prohibit suspended or barred
persons from having their personal transactions processed by a
licensed finance lender.
  SEC. 2.  Section 50511 is added to the Financial Code, to read:
   50511.  The commissioner may, subject to the requirements of
subdivisions (b), (c), and (d) of Section 50318, suspend for a period
not to exceed 12 months or bar a person from any position of
employment with a licensee if the commissioner finds that the person
has willfully used or claimed without authority a designation or
certification of special education, practice, or skill that the
person has not attained, or willfully held out to the public a
confusingly similar designation or certification for the purpose of
misleading the public regarding his or her qualifications or
experience.