BILL NUMBER: AB 2289	INTRODUCED
	BILL TEXT


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, as introduced, Daly. Electronic records and signatures.
   (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, and defines the term "complete application" for this
purpose. This bill would similarly extend the time for a renewal of
an offer, as specified. 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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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  provision of
 law, the commissioner may by rule or order prescribe
circumstances under which to accept electronic records or electronic
signatures.  However, nothing in this   This
 section  requires   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, and includes a
record transmitted by means of facsimile machine or other telephone
transceiving equipment.  "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,
including, but not limited to, correspondence between the parties and
the   commissioner directly relating to the record. 
    (B)     A financial statement, reports,
advertising, and correspondence between a party and the commissioner
directly relating to the record. 
    (C)     An order, permit, certificate,
license, consent, or other authority. 
    (D)     A notice of public hearing, acc
  usation, 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 and
correspondence between a party and the commissioner directly relating
to the record. 
    (G)    A release, newsletter, interpretive
opinion, determination, specific ruling, and the correspondence
relating to the record. 
   (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  hereby  finds and declares
that the Department of  Corporations   Business
Oversight  has continuously implemented methods to file records
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  15th   30th
 business day after the filing of  the   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 regulation of the
commissioner. 
  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  registration renewal statement no later than
15 business days prior to   renewal application before
 the expiration of the registration  unless such period
is waived by order of the commissioner  . 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 date on which the prior registration is due to expire, 
 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 regulation of the
commissioner. 
  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, and includes a record transmitted by means of
facsimile machine or other telephone transceiving equipment.
"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, including, but not limited to,
correspondence between the parties and the commissioner directly
relating to the record.
   (B) A financial statement, reports, advertising, and
correspondence between a party and the commissioner directly relating
to the record.
   (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 and correspondence between a
party and the commissioner directly relating to the record.
   (G) A release, newsletter, interpretive opinion, determination,
specific ruling, and correspondence relating to the record.
   (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 file
records 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 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, and includes a record transmitted by means of
facsimile machine or other telephone transceiving equipment.
"Electronic record" also includes, but 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, including, but not limited to,
correspondence between the parties and the commissioner directly
relating to the record.  
   (B) A financial statement, reports, advertising, and
correspondence between a party and the commissioner directly relating
to the record.  
   (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 and correspondence between a
party and the commissioner directly relating to the record. 

   (G) A release, newsletter, interpretive opinion, determination,
specific ruling, and correspondence relating to the record. 

   (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 file
records 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. 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 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, and includes a record transmitted by means of
facsimile machine or other telephone transceiving equipment.
"Electronic records" also includes, but 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, including, but not limited to,
correspondence between the parties and the commissioner directly
relating to the record.  
   (B) A financial statement, reports, advertising, and
correspondence between a party and the commissioner directly relating
to the record.  
   (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 and correspondence between a
party and the commissioner directly relating to the record. 

   (G) A release, newsletter, interpretive opinion, determination,
specific ruling, and the correspondence relating to the record. 

   (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 file
records 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. 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  provision of  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)  Nothing in this   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 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, and includes a record transmitted by means of
facsimile machine or other telephone transceiving equipment.
"Electronic records" also includes, but 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, including, but not limited to,
correspondence between the parties and the commissioner directly
relating to the record.  
   (B) A financial statement, reports, advertising, and
correspondence between a party and the commissioner directly relating
to the record.  
   (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 and correspondence between a
party and the commissioner directly relating to the record. 

   (G) A release, newsletter, interpretive opinion, determination,
specific ruling, and the correspondence relating to the record. 

   (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 file
records 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. 8.  Section 23005 of the Financial Code is amended to read:
   23005.  (a)  No   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.  Nothing in this   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 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, and includes a record transmitted by means of
facsimile machine or other telephone transceiving equipment.
"Electronic records" also includes, but 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, including, but not limited to,
correspondence between the parties and the commissioner directly
relating to the record.  
   (B) A financial statement, reports, advertising, and
correspondence between a party and the commissioner directly relating
to the record.  
   (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 and correspondence between a
party and the commissioner directly relating to the record. 

   (G) A release, newsletter, interpretive opinion, determination,
specific ruling, and the correspondence relating to the record. 

   (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 file
records 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.