BILL NUMBER: SB 1265 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 28, 2012
INTRODUCED BY Senator Vargas
FEBRUARY 23, 2012
An act to amend Section 1810 38092
of the Insurance Education Code,
relating to bail agent licenses school
districts .
LEGISLATIVE COUNSEL'S DIGEST
SB 1265, as amended, Vargas. Bail agent licenses:
qualifications. School districts: cafeteria fund.
Existing law authorizes the governing board of any school district
with an average daily attendance of over 100,000 to allow, as an
expenditure from the cafeteria fund or cafeteria revolving account, a
share of money agreed upon pursuant to a contract generated from the
joint sale of items between the cafeteria and an associated student
body student store, as specified.
This bill would instead authorize the governing board of a school
district with an average daily attendance of over 20,000 to allow, as
an expenditure from the cafeteria fund or cafeteria revolving
account, a share of money agreed upon pursuant to a contract that is
generated from the joint sale of items between the cafeteria and an
associated student body student store, as specified, and would make
nonsubstantive changes to these provisions.
Existing law requires a license from the Insurance Commissioner
for advertising or holding oneself out as engaging in the business of
executing, delivering, or furnishing bail bonds or undertakings of
bail whether or not for consideration. A license may be held by a
corporation if certain requirements are met, including, but not
limited to, that 100% of the shares of the corporation are held by
licensed bail agents, and all shareholders, officers, and directors
of the corporation are licensed bail agents. A violation of any of
these provisions is a crime.
This bill would authorize a limited liability company (LLC) to be
a licensee subject to the same requirements as corporations. The bill
would also exempt a corporation or an LLC from the requirements that
100% of the shares of the corporation or membership interest in the
LLC be held by licensed bail agents, and all shareholders, officers,
and directors of the corporation or members of the LLC be licensed
bail agents, if the corporation or LLC is an admitted surety insurer
or a subsidiary of an admitted surety insurer. Because a violation of
the bill's provisions by an LLC would be a crime, the bill would
impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes
no . State-mandated local program: yes
no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 38092 of the
Education Code is amended to read:
38092. The governing board of any a
school district with an average daily attendance of over
100,000 20,000 may allow , as an
expenditure from the cafeteria fund or cafeteria revolving
account , a share of money agreed upon pursuant to a
contract , which that is generated from
the joint sale of items between the cafeteria and an associated
student body student store. The expenditure must result from an
agreement entered into by the cafeteria and the associated student
body in which pupils will participate in the
operation of the store.
SECTION 1. Section 1810 of the Insurance Code
is amended to read:
1810. (a) Natural persons may be licensed under this chapter.
(b) A license may be held by a corporation or a limited liability
company (LLC), in which case all of the following requirements shall
be met:
(1) The application shall set forth the names of all officers and
employees of the licensee who will be authorized to exercise the
powers of the licensee under this chapter. Each of those persons
shall be required to meet the requirements for licensure under this
chapter, and disciplinary action may be taken against any of those
persons, and the licensee, if any of those persons does any act that
would be grounds for disciplinary action against a licensee.
(2) The corporation or LLC may solicit or negotiate the execution
or delivery of bail on behalf of surety insurers only through natural
persons who hold individual licenses as bail agents.
(3) One hundred percent of the shares of the corporation or
membership interest in the LLC shall be held by licensed bail agents,
unless the corporation or LLC is an admitted surety insurer or is a
subsidiary of an admitted surety insurer.
(4) All shareholders, officers, and directors of the corporation
or members of the LLC shall be licensed bail agents, and shall be
disclosed to the department, unless the corporation or LLC is an
admitted surety insurer or is a subsidiary of an admitted surety
insurer.
(5) Any sale or transfer of stock or other interest in the
corporation or sale or transfer of any membership or other interest
in the LLC shall require the prior approval of the department. The
department shall approve or disapprove a request for approval within
60 days of receiving the completed request.
SEC. 2. No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.