Amended in Senate June 6, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 786


Introduced by Assembly Member Dickinson

February 21, 2013


An act to amend Sectionsbegin delete 2010, 2040, and 2084end deletebegin insert 2003, 2010, 2011, 2040, 2082, 2084, 2101, and 2102end insert of, and to add Sections 2154begin delete and 2155end deletebegin insert and 2174end insert to, the Financial Code, relating to money transmissions.

LEGISLATIVE COUNSEL’S DIGEST

AB 786, as amended, Dickinson. Money transmissions.

Existing law, the Money Transmission Act, provides for the regulation of money transmissions by the Department of Financial Institutions and the Commissioner of Financial Institutions. The Governor’s Reorganization Plan No. 2, as of July 1, 2013, abolishes the Department of Financial Institutions and transfers its responsibilities to the Department of Business Oversight and the Commissioner of Business Oversight.

Existing lawbegin delete, the Money Transmission Act,end delete requires a person who engages in the business of money transmission in this state to be licensed by the department. Existing law provides that only a corporation or limited liability company may be issued a license under the Money Transmission Act. Existing law exempts certain persons or entities from the application of the act, as specified.begin insert Existing law authorizes the commissioner, by regulation or order, to exempt from the act any person or transaction or class of persons or transactions, if the commissioner finds such action to be in the public interest and not necessary.end insert

This bill would further exempt from the act a person that delivers payroll money on behalf of an employer to employees by check or deposit in a checking or savings account, as specified.begin insert The bill would authorize the commissioner, by regulation or order, to exempt from all or part of the act any person or transaction or class of persons or transactions and would require the commissioner to adopt regulations to carry out and implement this section. The bill would require the commissioner to make these exemptions public on the commissioner’s Internet Web site, as specified.end insert

Existing law requires a licensee to maintain tangible shareholders’ equity, as defined, in an amount to be determined from time to time by the commissioner, but not less than $500,000.

This bill would require an applicant to possess, and a licensee to maintain at all times,begin delete a minimum net worthend deletebegin insert tangible shareholder’s equityend insert of $100,000 to $500,000, depending on estimated or actual transaction volume, as determined by the commissioner. The bill would authorize the commissioner to increase that net worth requirement to up to $2,000,000, if certain criteria are met.

begin insert

Existing law requires a licensee to at all times own eligible securities, meaning any United States currency eligible security or foreign currency eligible security, having an aggregate market value computed in accordance with United States generally accepted accounting principles, as specified.

end insert
begin insert

This bill would specify that any receivable owed by a bank and resulting from an automated clearinghouse or credit-funded transmission is a United States currency eligible security.

end insert

Existing law provides that a licensee shall be deemed to own an eligible security under specified criteria. Existing law provides that no licensee shall be deemed not to own an eligible security solely on account of certain facts, provided that, but for that fact, the licensee would be deemed to own the eligible security.

This bill would provide that no licensee shall be deemed not to own an eligible security solely on account of the fact that the licensee holds the eligible security in a custodial capacity as an agent of its customers in a pooled account in the name of the licensee, as determined by the commissionerbegin insert based on specified factorsend insert.

begin insert

Existing law requires licensee or its agent to forward all money received for transmission or give instructions committing equivalent money to the person designated by the customer within 10 days after receiving that money, unless otherwise ordered by the customer. In the case of money received for transmission, existing law requires a receipt to be provided by a licensee or its agent to all customers and requires that the receipt be made available to the customer in English and in the language principally used by that licensee or that agent to advertise at that branch office if other than English.

end insert
begin insert

This bill would provide an exception to these requirements when the money transmission is for the payment of goods or services and make a conforming change in this regard.

end insert

Existing law sets forth enforcement provisions under the Money Transmission Act. Existing law authorizes the commissioner to direct a licensee who is out of compliance with the Money Transmission Act to comply with the law or discontinue any unsafe or injurious practices.

This bill would provide that the commissioner has continuous authority to exercise the powers set forth in this act whether or not an application for a license has been filed with the commissioner, any license has been issued, or if issued, has been surrendered, suspended, or revoked.begin delete The bill would authorize the commissioner to bring an action, or request that the Attorney General bring an action, against any person who has violated or is about to violate the act, and would set forth the relief that is authorized, as specified.end delete

begin insert

This bill would authorize the commissioner to prepare written decisions, opinion letters, and other formal written guidance and would require the commissioner to make public on the commissioner’s Internet Web site all written decisions, opinion letters, and other formal written guidance.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 2003 of the end insertbegin insertFinancial Codeend insertbegin insert is amended
2to read:end insert

3

2003.  

For purposes of this division, the following definitions
4shall apply:

5(a) “Affiliate,” when used with respect to a specified person,
6means any person controlling, controlled by, or under common
7control with, that specified person, directly or indirectly through
8one or more intermediaries. For purposes of subdivisions (q) and
9(v), a specified person is affiliated with another person if that
10person controls, is controlled by, or under common control through
11the ownership directly or indirectly of shares or equity securities
P4    1possessing more than 50 percent of the voting power of that
2specified person.

3(b) “Agent” means a person thatbegin insert is not itself licensed as a money
4transmitter in California andend insert
provides money transmission in
5California on behalf of the licensee, provided that the licensee
6becomes liable for the money transmission from the time money
7or monetary value is received by that person. However, “agent”
8does not include any officer or employee of the licensee when
9acting as such at an office of a licensee.

10(c) “Applicant” means a person that files an application for a
11license or for acquisition of control of a licensee under this division.

12(d) “Average daily outstanding” means the amount of
13outstanding money transmission obligations in California at the
14end of each day in a given period of time, added together, and
15divided by the total number of days in that period of time.

16(e)  “Branch office” means any office in this state of a licensee
17or agent at which the licensee receives money or monetary value
18to provide money transmission, either directly or through an agent.

19(f) “Business day” means one of the following:

20(1) When used with respect to any act to be performed in this
21state, any day other than Saturday, Sunday, or any other day that
22is provided for as a holiday in the Government Code.

23(2) When used with respect to any act to be performed in any
24jurisdiction other than this state, any day other than a day that is
25a legal holiday under the laws of that jurisdiction.

26(g) “Commissioner” means the Commissioner of Financial
27Institutions.

28(h) “Control” has the meaning set forth in Section 1250.

29(i) “Day” means calendar day.

30(j) “In California” or “in this state” means physically located
31in California, or with, to, or from persons located in California.

32(k) “Issue” and “issuer” mean, with regard to a payment
33instrument, the entity that is the maker or drawer of the instrument
34in accordance with the California Commercial Code and is liable
35for payment. With regard to stored value, “issue” and “issuer”
36mean the entity that is liable to the holder of stored value and has
37undertaken or is obligated to pay the stored value. Only a licensee
38may issue stored value or payment instruments.

39(l) “Licensee” means a corporation or limited liability company
40licensed under this division.

P5    1(m) “Monetary value” means a medium of exchange, whether
2or not redeemable in money.

3(n) “Money” means a medium of exchange that is authorized
4or adopted by the United States or a foreign government. The term
5includes a monetary unit of account established by an
6intergovernmental organization or by agreement between two or
7more governments.

8(o) “Money transmission” means any of the following:

9(1) Selling or issuing payment instruments.

10(2) Selling or issuing stored value.

11(3) Receiving money for transmission.

12(p) “Outstanding,” with respect to payment instruments and
13stored value, means issued or sold by the licensee in the United
14States and not yet paid or refunded by the licensee, or issued or
15sold on behalf of the licensee in the United States by its agent and
16reported as sold, but not yet paid or refunded by the licensee.
17“Outstanding,” with respect to receiving money for transmission
18means all money or monetary value received in the United States
19for transmission by the licensee or its agents but not yet paid to
20the beneficiaries or refunded to the person from whom the money
21or monetary value was received. All outstanding money
22transmission of a licensee is and shall remain a liability of the
23licensee until it is no longer outstanding.

24(q) “Payment instrument” means a check, draft, money order,
25traveler’s check, or other instrument for the transmission or
26payment of money or monetary value, whether or not negotiable.
27The term does not include a credit card voucher, letter of credit,
28or any instrument that is redeemable by the issuer for goods or
29services provided by the issuer or its affiliate.

30(r) “Person” means an individual, corporation, business trust,
31estate, trust, partnership, proprietorship, syndicate, limited liability
32company, association, joint venture, government, governmental
33subdivision, agency or instrumentality, public corporation or joint
34stock company, or any other organization or legal or commercial
35entity, provided, however, that “person,” when used with respect
36to acquiring control of or controlling a specified person, includes
37any combination of two or more persons acting in concert.

38(s) “Receiving money for transmission” or “money received for
39transmission” means receiving money or monetary value in the
40United States for transmission within or outside the United States
P6    1by electronic or other means. The term does not include sale or
2issuance of payment instruments and stored value.

3(t) “Record” means information that is inscribed on a tangible
4medium or that is stored in an electronic or other medium and is
5retrievable in perceivable form.

6(u) “State” means a state of the United States, the District of
7Columbia, Puerto Rico, the United States Virgin Islands, or any
8territory or insular possession subject to the jurisdiction of the
9United States.

10(v) “Stored value” means monetary value representing a claim
11against the issuer that is stored on an electronic or digital medium
12and evidenced by an electronic or digital record, and that is
13intended and accepted for use as a means of redemption for money
14or monetary value or payment for goods or services. The term does
15not include a credit card voucher, letter of credit, or any stored
16value that is only redeemable by the issuer for goods or services
17 provided by the issuer or its affiliate, except to the extent required
18by applicable law to be redeemable in cash for its cash value.

19(w) “Traveler’s check” means an instrument that meets all of
20the following:

21(1) Is designated on its face by the term “traveler’s check” or
22by any substantially similar term or is commonly known and
23marketed as a traveler’s check.

24(2) Contains a provision for a specimen signature of the
25purchaser to be completed at the time of purchase.

26(3) Contains a provision for a countersignature of the purchaser
27to be completed at the time of negotiation.

28

begin deleteSECTION 1.end delete
29begin insertSEC. 2.end insert  

Section 2010 of the Financial Code is amended to read:

30

2010.  

This division does not apply to the following:

31(a) The United States or a department, agency, or instrumentality
32thereof, including any federal reserve bank and any federal home
33loan bank.

34(b) Money transmission by the United States Postal Service or
35by a contractor on behalf of the United States Postal Service.

36(c) A state, county, city, or any other governmental agency or
37governmental subdivision of a state.

38(d) A commercial bank or industrial bank, the deposits of which
39are insured by the Federal Deposit Insurance Corporation or its
40successor, or any foreign (other nation) bank that is licensed under
P7    1Article 3 (commencing with Section 1800) of Chapter 20 or that
2is authorized under federal law to maintain a federal agency or
3federal branch office in this state; a trust company licensed pursuant
4to Section 1042 or a national association authorized under federal
5law to engage in a trust banking business; an association or federal
6association, as defined in Section 5102 the deposits of which are
7insured by the Federal Deposit Insurance Corporation or its
8successor; and any federally or state chartered credit union the
9member accounts of which are insured or guaranteed as provided
10in Section 14858.

11(e) Electronic funds transfer of governmental benefits for a
12federal, state, county, or local governmental agency by a contractor
13on behalf of the United States or a department, agency, or
14instrumentality thereof, or a state or governmental subdivision,
15agency, or instrumentality thereof.

16(f) A board of trade designated as a contract market under the
17federal Commodity Exchange Act (7 U.S.C. Secs.begin delete 1-25,end deletebegin insert 1-25,end insert
18 incl.) or a person that, in the ordinary course of business, provides
19clearance and settlement services for a board of trade to the extent
20of its operation as or for such a board.

21(g) A person that provides clearance or settlement services
22pursuant to a registration as a clearing agency or an exemption
23from registration granted under the federal securities laws to the
24extent of its operation as such a provider.

25(h) An operator of a payment system to the extent that it provides
26processing, clearing, or settlement services, between or among
27persons excluded by this section, in connection with wire transfers,
28credit card transactions, debit card transactions, stored value
29transactions, automated clearing house transfers, or similar funds
30transfers, to the extent of its operation as such a provider.

31(i) A person registered as a securities broker-dealer under federal
32or state securities laws to the extent of its operation as such a
33broker-dealer.

34(j) A person that delivers payroll money on behalf of an
35employer to employees by check or deposit into a checking or
36savings account at a bank, savings bank, savings and loan
37association, savings association, or credit union, if that delivery is
38the only money transmission activity of which the person engages.

39(k) A person listed under subdivision (d) is exempted from all
40the provisions of this division, except Sections 2062 and 2063.

P8    1begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 2011 of the end insertbegin insertFinancial Codeend insertbegin insert is amended to
2read:end insert

3

2011.  

begin insert(a)end insertbegin insertend insertThe commissioner may, by regulation or order, either
4unconditionally or upon specified terms and conditions or for
5specified periods, exempt frombegin insert all or part ofend insert this division any
6person or transaction or class of persons or transactions, if the
7commissioner finds such action to be in the public interest and that
8the regulation of such persons or transactions is not necessary for
9the purposes of this division.begin insert The commissioner shall post on the
10commissioner’s Internet Web site a list of all persons, transactions,
11or classes of person or transactions exempt pursuant to this section,
12and the part or parts of this division from which they are exempt.end insert

begin insert

13(b) The commissioner shall adopt regulations to carry out and
14implement this section.

end insert
15

begin deleteSEC. 2.end delete
16begin insertSEC. 4.end insert  

Section 2040 of the Financial Code is amended to read:

17

2040.  

(a) An applicant shall possess, and a licensee shall
18maintain at all times,begin delete a minimum net worth computed in accordance
19with generally accepted accounting principlesend delete
begin insert tangible
20shareholder’s equityend insert
of one hundred thousand dollars ($100,000)
21to five hundred thousand dollars ($500,000), depending on
22estimated or actual transaction volume, as determined by the
23commissioner.

24(b) The commissioner may increase the amount of net worth
25required of an applicant or licensee, up to a maximum of two
26million dollars ($2,000,000), if the commissioner determines, with
27respect to the applicant or licensee, that a higher net worth is
28necessary to achieve the purposes of this division based on the
29followingbegin insert factorsend insert:

30(1) The nature and volume of the projected or established
31business.

32(2) The number of locations at or through which money
33transmission is or will be conducted.

34(3) The amount, nature, quality, and liquidity of its assets.

35(4) The amount and nature of its liabilities.

36(5) The history of its operations and prospects for earning and
37retaining income.

38(6) The quality of its operations.

39(7) The quality of its management.

40(8) The nature and quality of its principals.

P9    1(9) The nature and quality of the persons in control.

2(10) The history of its compliance with applicable state and
3federal law.

4(11) Any other factor the commissioner considers relevant.

5(c) The commissioner at any time may require a licensee to
6write down any asset held by it to a valuation that will represent
7its then fair market value. Any receivable or debt due to a licensee
8that is past due and unpaid for the period of one year shall be
9charged off, unless it is well secured or is in process of collection.

10(d) The aggregate value of a licensee’s accounts receivable,
11excluding money transmission receivables, loans or extensions of
12credit to any one person, or that person’s affiliates, cannot exceed
1350 percent of the licensee’s tangible shareholders’ equity without
14the advanced written approval of the commissioner. Whenever
15such amount equals or exceeds 20 percent of the licensee’s tangible
16shareholders’ equity, the licensee shall maintain records evidencing
17such amount and any security or other source of payment for the
18amount owed, and such other records as the commissioner may
19require by order or regulation.

begin insert

20(e) The commissioner shall adopt regulations to carry out and
21implement the factors described in subdivision (b).

end insert
22begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 2082 of the end insertbegin insertFinancial Codeend insertbegin insert is amended to
23read:end insert

24

2082.  

(a) “Eligible security” means any United States currency
25eligible security or foreign currency eligible security.

26(b) For the purposes of this division, the following are United
27States currency eligible securities:

28(1) Cash.

29(2) Any deposit in an insured bank or an insured savings and
30loan association or insured credit union.

31(3) Any bond, note, or other obligation that is issued or is
32guaranteed by the United States or any agency of the United States.

33(4) Any bond, note, or other obligation that is issued or
34guaranteed by any state of the United States or by any
35governmental agency of or within any state of the United States
36and that is assigned an eligible rating by an eligible securities rating
37service.

38(5) Any bankers acceptance that is eligible for discount by a
39federal reserve bank.

P10   1(6) Any commercial paper that is assigned an eligible rating by
2an eligible rating securities service.

3(7) Any bond, note, or other obligation that is assigned an
4eligible rating by an eligible securities rating service.

5(8) Any share of an investment company that is an open-end
6management company, that is registered under the Investment
7Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.), that holds
8itself out to investors as a money market fund, and that operates
9in accordance with all provisions of the Investment Company Act
10of 1940, and the regulations of the Securities and Exchange
11Commission applicable to money market funds, including Section
12270.2a-7 of the regulations of the Securities and Exchange
13Commission (17 C.F.R. 270.2a-7).

14For purposes of this paragraph and paragraph (9), “investment
15company,” “management company,” and “open-end” have the
16meanings set forth in Sections 3, 4, and 5, respectively, of the
17Investment Company Act of 1940 (15 U.S.C. Secs. 80a-4 and
1880a-5, respectively).

19(9) Any share of an investment company that is an open-end
20management company, that is registered under the Investment
21Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.), and that
22invests exclusively in securities that constitute eligible securities
23that comply with valuation requirements of this division.

24(10) Any account due to any licensee from any agent in the
25United States on account of the receipt of money on behalf of the
26licensee for money transmission by the agent, if the account is
27current and not past due or otherwise doubtful of collection.

28(11) Any other security or class of securities that the
29commissioner has by regulation or order declared to be eligible
30securities.

begin insert

31(12) Any receivable owed by a bank and resulting from an
32automated clearinghouse or credit-funded transmission.

end insert

33(c) “Foreign currency eligible security” means any of the
34following that is denominated in a foreign currency:

35(1) Cash.

36(2) Any deposit in an office of a bank acceptable to the
37commissioner that is located in a foreign country.

38(3) Any other security or class of securities that the
39commissioner has by regulation or order declared to be eligible
40securities pursuant to Section 2086.

P11   1(d) For the purposes of this division, “value” means the
2following:

3(1) When used with respect to an eligible security owned by a
4licensee of the type described in paragraph (10) of subdivision (b),
5net carrying value as determined in conformity with United States
6generally accepted accounting principles. However, in computing
7the value of the account, any amount that consists of money that
8has not been remitted to the licensee or refunded within 45 business
9days of receipt by the agent shall be excluded from the value of
10the account and shall be excluded from the calculation of eligible
11securities.

12(2) Market value when used with respect to any other eligible
13security owned by a licensee.

14

begin deleteSEC. 3.end delete
15begin insertSEC. 6.end insert  

Section 2084 of the Financial Code is amended to read:

16

2084.  

(a) A licensee shall be deemed to own an eligible
17security only if the following apply:

18(1) The licensee owns the eligible security solely and exclusively
19in its own right, both of record and beneficially.

20(2) The eligible security is not subject to any pledge, lien, or
21security interest.

22(3) The licensee can freely negotiate, assign, or otherwise
23transfer the eligible security.

24(b) Notwithstanding subdivision (a), no licensee shall be deemed
25not to own an eligible security solely on account of any of the
26following facts, provided that, but for that fact, the licensee would
27 be deemed to own the eligible security under the provisions of
28subdivision (a):

29(1) The fact that the eligible security is owned of record by a
30documented nominee of the licensee or by a securities depository.

31(2) The fact that the licensee has pledged the eligible security
32with the United States or any state of the United States to secure
33payment by the licensee of transmission money.

34(3) The fact that the licensee holds the eligible security in a
35custodial capacity as an agent of its customers in a pooled account
36titled in the name of the licensee for the benefit of its customers.

37(c) The commissioner shall make a determination of the
38application of paragraph (3) of subdivision (b)begin delete on a case-by-case
39basis.end delete
begin insert based on the following:end insert

begin insert

P12   1(1) The amount, nature, quality, and liquidity of the licensee’s
2assets.

end insert
begin insert

3(2) The amount and nature of the licensee’s liabilities.

end insert
begin insert

4(3) The history of the licensee’s compliance with applicable
5state and federal law.

end insert
6begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 2101 of the end insertbegin insertFinancial Codeend insertbegin insert is amended to
7read:end insert

8

2101.  

Every licensee or its agent shall forward all money
9received for transmission or give instructions committing
10equivalent money to the person designated by the customer within
1110 days after receiving that money, unless otherwise ordered by
12his or her customerbegin insert or when the transmission is for the payment
13of goods or servicesend insert
.

14begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 2102 of the end insertbegin insertFinancial Codeend insertbegin insert is amended to
15read:end insert

16

2102.  

(a) Every licensee or its agent shall refund to the
17customer within 10 days of receipt of the customer’s written request
18for a refund any and all money received for transmission unless
19any of the following occurs:

20(1) The money has been forwarded within 10 days of the date
21of receipt.

22(2) Instructions have been given committing an equivalent
23amount of money to the person designated by the customer within
2410 days of the date of the receipt of the money from the customer.

25(3) The customer instructs the licensee to transmit the money
26at a time beyond 10 days. If the customer gives instructions as to
27when the money shall be forwarded or transmitted and the moneys
28have not yet been forwarded or transmitted, the licensee or its
29agent shall refund the customer’s money within 10 days of receipt
30of the customer’s written request for a refund.

31(4) Refund would violate law.

32(b) In the case of money received for transmission,begin insert except for
33money transmission for the payment of goods or services,end insert
a receipt
34shall be provided by a licensee or its agent to all customers which
35shall be made available to the customer in English and in the
36language principally used by that licensee or that agent to advertise,
37solicit, or negotiate, either orally or in writing, at that branch office
38if other than English. The receipt shall either include or have
39attached a conspicuous statement in English and in the language
40principally used by the licensee or that agent to advertise, solicit,
P13   1or negotiate, either orally or in writing at that branch office if other
2than English in a size equal to at least 10 point bold type, as
3follows:

 

RIGHT TO REFUND

 

“You, the customer, are entitled to a refund of the money to be transmitted as the result of this agreement if _____ (name of licensee) does not forward the money received from you within 10 days of the date of its receipt, or does not give instructions committing an equivalent amount of money to the person designated by you within 10 days of the date of the receipt of the funds from you unless otherwise instructed by youbegin insert or when the transmission is for the payment of goods or servicesend insert.

 

If your instructions as to when the moneys shall be forwarded or transmitted are not complied with and the money has not yet been forwarded or transmitted, you have a right to a refund of your money.

 

If you want a refund, you must mail or deliver your written request to _____ (name of licensee) at _____ (mailing address of licensee). If you do not receive your refund, you may be entitled to your money back plus a penalty of up to $1,000 and attorney’s fees pursuant to Section 2102 of the California Financial Code.”

 

25(c) A cause of action under this section may be brought in small
26claims court if it does not exceed the jurisdiction of that court, or
27in any other appropriate court. The customer shall be entitled to
28recover each of the following:

29(1) Any and all money received for transmission, plus any fees
30and charges paid by the customer.

31(2) A penalty in an amount not to exceed one thousand dollars
32($1,000). The court shall award the prevailing party costs and
33attorney’s fees.

34

begin deleteSEC. 4.end delete
35begin insertSEC. 9.end insert  

Section 2154 is added to the Financial Code, to read:

36

2154.  

Whenever the commissioner deems it necessary for the
37general welfare of the public, he or she has continuous authority
38to exercise the powers set forth in this division whether or not an
39application for a license has been filed with the commissioner, any
P14   1license has been issued, or if issued, has been surrendered,
2suspended, or revoked.

begin delete3

SEC. 5.  

Section 2155 is added to the Financial Code, to read:

4

2155.  

(a) Whenever the commissioner believes from evidence
5satisfactory to the commissioner that any person has violated or
6is about to violate a provision of this division, or a provision of
7any order, license, decision, demand, requirement, or any regulation
8adopted pursuant to this division, the commissioner may, in the
9commissioner’s discretion, bring an action, or the commissioner
10may request the Attorney General to bring an action in the name
11of the people of the State of California, against that person to enjoin
12that person from continuing that violation or doing any act in
13furtherance of the violation. Upon a proper showing, a permanent
14or preliminary injunction, restraining order, or writ of mandate
15shall be granted and other ancillary relief may be granted, as
16appropriate.

17(b) If the commissioner determines that it is in the public
18interest, the commissioner may include in any action authorized
19by subdivision (a), a claim for ancillary relief, including, but not
20limited to, a claim for restitution, disgorgement, or damages on
21behalf of the persons injured by the act or practice constituting the
22subject matter of the action. The court shall have jurisdiction to
23award additional relief.

end delete
24begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 2174 is added to the end insertbegin insertFinancial Codeend insertbegin insert, to read:end insert

begin insert
25

begin insert2174.end insert  

(a) The commissioner may prepare written decisions,
26opinion letters, and other formal written guidance to be issued to
27persons seeking clarification regarding the requirements of this
28division.

29(b) The commissioner shall make public on the commissioner’s
30Internet Web site all written decisions, opinion letters, and other
31formal written guidance issued to persons seeking clarification
32regarding the requirements of this division.

end insert


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