California Legislature—2013–14 Regular Session

Assembly BillNo. 2763


Introduced by Committee on Accountability and Administrative Review

March 26, 2014


An act to amend Sections 10176.1 and 19869 of the Business and Professions Code, to amend Sections 1936.01, 2924.12, 2924.17, 2924.19, and 2924.20 of the Civil Code, to amend Sections 580d and 684.115 of the Code of Civil Procedure, to amend Sections 163, 201, 2510, 2601, 5122, 7122, 9122, and 12302 of the Corporations Code, to amend Sections 371, 380, 1514, 2105, 5106, 14381, 14382, 14652.5, 18002.5, 18022.5, and 23001 of the Financial Code, to amend Sections 6254.5, 7465, 7474, 7480, 13975.2, 13995.40.5, 51298, 65040.9, and 66620 of, to amend the heading of Part 4.5 (commencing with Section 13975) of Division 3 of Title 2 of, to amend and renumber Sections 13975.1 and 13978.6 of, to repeal Chapter 5 (commencing with Section 13999) of Part 4.7 of Division 3 of Title 2 of, and to repeal Chapter 9.7 (commencing with Section 8790) of Division 1 of Title 2 of, the Government Code, to amend Section 44272.5 of the Health and Safety Code, to amend Sections 12414.31 and 12710 of the Insurance Code, to amend Section 2802 of the Penal Code, and to amend Section 22003 of, and to repeal Section 22553.2 of, the Public Utilities Code, relating to state government.

LEGISLATIVE COUNSEL’S DIGEST

AB 2763, as introduced, Committee on Accountability and Administrative Review. State government operations.

(1) Existing law and the Governor’s Reorganization Plan No. 2 of 2012 (GRP 2), effective on July 3, 2012, and operative on July 1, 2013, assigns and reorganizes the functions of state government among executive officers, agencies, and other state entities.

This bill would generally enact conforming changes to statutes to reflect the assignment and reorganization of the functions of state government within the newly established structure of state government. This bill would reallocate specified duties of reorganized and abolished state entities and their officers to established state entities and officers, including, but not limited to, reallocating specified duties of the abolished Business, Transportation and Housing Agency and its secretary to the Governor’s Office of Business and Economic Development, the Transportation Agency and its secretary, and the Business, Consumer Services, and Housing Agency and its secretary. This bill would further reallocate certain existing duties to the Department of Business Oversight and its commissioner and other specified duties from the California Gambling Control Commission to the Department of Justice.

(2) The Space Enterprise Development Act requires the Business, Transportation and Housing Agency, an abolished agency, to implement a space enterprise development program to foster activities that increase the competitiveness of space enterprise in California.

This bill would repeal the act.

(3) Existing law establishes the California Collider Commission composed of the Governor, the Lieutenant Governor, the Treasurer, the President of the University of California, the Director of Finance, and the Secretary of Business, Transportation and Housing, an abolished state office. Existing law creates the commission for the purpose of representing the state before various entities in federal government concerning a proposal by the United States Department of Energy to construct a particle accelerator, known as a superconducting super collider. Existing law also authorizes land acquisition, financing alternatives, including an authorization for a bond issuance, and employment training and other support programs to site and construct the federal superconducting super collider within the state.

This bill would repeal these provisions.

(4) Existing law requires, subject to a specified condition and relating in part to the Secretary of Business, Transportation and Housing, an abolished state office, the advertised rate for a rental car to include certain charges.

This bill would remove that condition.

(5) This bill would make technical, nonsubstantive, and conforming changes.

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

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

P3    1

SECTION 1.  

Section 10176.1 of the Business and Professions
2Code
is amended to read:

3

10176.1.  

(a) (1) Whenever the commissioner takes any
4enforcement or disciplinary action against a licensee, and the
5enforcement or disciplinary action is related to escrow services
6provided pursuant to paragraph (4) of subdivision (a) of Section
717006 of the Financial Code, upon the action becoming final the
8commissioner shall notify the Insurance Commissioner and the
9Commissioner of Business Oversight of the action or actions taken.
10The purpose of this notification is to alert the departments that
11enforcement or disciplinary action has been taken, if the licensee
12seeks or obtains employment with entities regulated by the
13departments.

14(2) The commissioner shall provide the Insurance Commissioner
15and the Commissioner of Business Oversight, in addition to the
16notification of the action taken, with a copy of the written
17accusation, statement of issues, or order issued or filed in the matter
18and, at the request of the Insurance Commissioner or the
19Commissioner of Business Oversight, with any underlying factual
20material relevant to the enforcement or disciplinary action. Any
21confidential information provided by the commissioner to the
22Insurance Commissioner or the Commissioner of Business
23Oversight shall not be made public pursuant to this section.
24Notwithstanding any other provision of law, the disclosure of any
25underlying factual material to the Insurance Commissioner or the
26Commissioner of Business Oversight shall not operate as a waiver
27of confidentiality or any privilege that the commissioner may
28assert.

29(b) The commissioner shall establish and maintain, on the Web
30site maintained by the Bureau of Real Estate, a database of its
31licensees, including those who have been subject to any
32 enforcement or disciplinary action that triggers the notification
33requirements of this section. The database shall also contain a
P4    1direct link to the databases, described in Section 17423.1 of the
2Financial Code and Section 12414.31 of the Insurance Code and
3required to be maintained on the Web sites of the Department of
4begin delete Corporationsend deletebegin insert Business Oversightend insert and the Department of Insurance,
5respectively, of persons who have been subject to enforcement or
6disciplinary action for malfeasance or misconduct related to the
7escrow industry by the Insurance Commissioner and the
8Commissioner of Business Oversight.

9(c) There shall be no liability on the part of, and no cause of
10action of any nature shall arise against, the State of California, the
11Bureau of Real Estate, the Real Estate Commissioner, any other
12state agency, or any officer, agent, employee, consultant, or
13contractor of the state, for the release of any false or unauthorized
14information pursuant to this section, unless the release of that
15information was done with knowledge and malice, or for the failure
16to release any information pursuant to this section.

17

SEC. 2.  

Section 19869 of the Business and Professions Code
18 is amended to read:

19

19869.  

A request for withdrawal of any application may be
20made at any time prior to final action upon the application by the
21chief by the filing of a written request to withdraw with the
22begin delete commission.end deletebegin insert department.end insert For the purposes of this section, final
23action by the department means a final determination by the chief
24regarding his or her recommendation on the application to the
25commission. The commission shall not grant the request unless
26the applicant has established that withdrawal of the application
27would be consistent with the public interest and the policies of this
28chapter. If a request for withdrawal is denied, the department may
29go forward with its investigation and make a recommendation to
30the commission upon the application, and the commission may
31act upon the application as if no request for withdrawal had been
32made. If a request for withdrawal is granted with prejudice, the
33applicant thereafter shall be ineligible to renew its application until
34the expiration of one year from the date of the withdrawal. Unless
35the commission otherwise directs, no fee or other payment relating
36to any application is refundable by reason of withdrawal of an
37application.

38

SEC. 3.  

Section 1936.01 of the Civil Code is amended to read:

39

1936.01.  

(a) For the purpose of this section, the following
40definitions shall apply:

P5    1(1) “Airport concession fee” means a charge collected by a
2rental company from a renter that is the renter’s proportionate
3share of the amount paid by the rental company to the owner or
4operator of an airport for the right or privilege of conducting a
5vehicle rental business on the airport’s premises.

6(2) “Quote” means an estimated cost of rental provided by a
7rental company or a third party to a potential customer by
8telephone, in-person, computer-transmission, or other means, that
9is based on information provided by the potential customer and
10used to generate an estimated cost of rental, including, but not
11limited to, any of the following: potential dates of rental, locations,
12or classes of car.

13(3) “Tourism commission assessment” means the charge
14collected by a rental company from a renter that has been
15established by the California Travel and Tourism Commission
16pursuant to Section 13995.65 of the Government Code.

17(b) Notwithstanding subdivision (n) of Section 1936, the
18following provisions shall apply:

19(1) A rental company shall only advertise a rental rate that
20includes the entire amount, except taxes, a customer facility charge,
21if any, and a mileage charge, if any, that a renter must pay to hire
22or lease the vehicle for the period of time to which the rental rate
23applies.

24(2) When providing a quote, or imposing charges for a rental,
25the rental company may separately state the rental rate, taxes,
26customer facility charge, if any, airport concession fee, if any,
27tourism commission assessment, if any, and a mileage charge, if
28any, that a renter must pay to hire or lease the vehicle for the period
29of time to which the rental rate applies. A rental company may not
30charge in addition to the rental rate, taxes, a customer facility
31charge, if any, airport concession fee, if any, tourism commission
32assessment, if any, and a mileage charge, if any, any fee that must
33be paid by the renter as a condition of hiring or leasing the vehicle,
34such as, but not limited to, required fuel or airport surcharges other
35than customer facility charges and airport concession fees.

36(3) If customer facility charges, airport concession fees, or
37tourism commission assessments are imposed, the rental company
38shall do each of the following:

39(A) At the time the quote is given, provide the person receiving
40the quote with a good faith estimate of the rental rate, taxes,
P6    1customer facility charge, if any, airport concession fee, if any, and
2tourism commission assessment, if any, as well as the total charges
3for the entire rental. The total charges, if provided on an Internet
4Web site, shall be displayed in a typeface at least as large as any
5rental rate disclosed on that page and shall be provided on a page
6that the person receiving the quote may reach by following links
7through no more than two Internet Web site pages, including the
8page on which the rental rate is first provided. The good faith
9estimate may exclude mileage charges and charges for optional
10items that cannot be determined prior to completing the reservation
11based upon the information provided by the person.

12(B) At the time and place the rental commences, clearly and
13conspicuously disclose in the rental contract, or that portion of the
14contract that is provided to the renter, the total of the rental rate,
15taxes, customer facility charge, if any, airport concession fee, if
16any, and tourism commission assessment, if any, for the entire
17rental, exclusive of charges that cannot be determined at the time
18the rental commences. Charges imposed pursuant to this
19subparagraph shall be no more than the amount of the quote
20provided in a confirmed reservation, unless the person changes
21the terms of the rental contract subsequent to making the
22reservation.

23(C) Provide each person, other than those persons within the
24rental company, offering quotes to actual or prospective customers
25access to information about customer facility charges, airport
26concession fees, and tourism commission assessments as well as
27access to information about when those charges apply. Any person
28providing quotes to actual or prospective customers for the hire
29or lease of a vehicle from a rental company shall provide the quotes
30in the manner described in subparagraph (A).

31(4) In addition to the rental rate, taxes, customer facility charges,
32if any, airport concession fees, if any, tourism commission
33assessments, if any, and mileage charges, if any, a rental company
34may charge for an item or service provided in connection with a
35particular rental transaction if the renter could have avoided
36incurring the charge by choosing not to obtain or utilize the
37optional item or service. Items and services for which the rental
38company may impose an additional charge, include, but are not
39limited to, optional insurance and accessories requested by the
40renter, service charges incident to the renter’s optional return of
P7    1the vehicle to a location other than the location where the vehicle
2was hired or leased, and charges for refueling the vehicle at the
3conclusion of the rental transaction in the event the renter did not
4return the vehicle with as much fuel as was in the fuel tank at the
5beginning of the rental. A rental company also may impose an
6additional charge based on reasonable age criteria established by
7the rental company.

8(5) A rental company may not charge any fee for authorized
9drivers in addition to the rental charge for an individual renter.

10(6) If a rental company states a rental rate in print advertisement
11or in a telephonic, in-person, or computer-transmitted quote, the
12rental company shall clearly disclose in that advertisement or quote
13the terms of any mileage conditions relating to the rental rate
14disclosed in the advertisement or quote, including, but not limited
15to, to the extent applicable, the amount of mileage and gas charges,
16the number of miles for which no charges will be imposed, and a
17description of geographic driving limitations within the United
18States and Canada.

19(7) (A) When a rental rate is stated in an advertisement, in
20connection with a car rental at an airport where a customer facility
21charge is imposed, the rental company shall clearly disclose the
22existence and amount of the customer facility charge. For the
23purposes of this subparagraph, advertisements include radio,
24television, other electronic media, and print advertisements. If the
25rental rate advertisement is intended to include transactions at more
26than one airport imposing a customer facility charge, a range of
27charges may be stated in the advertisement. However, all rental
28rate advertisements that include car rentals at airport destinations
29shall clearly and conspicuously include a toll-free telephone
30number whereby a customer can be told the specific amount of
31the customer facility charge to which the customer will be
32obligated.

33(B) If any person or entity other than a rental car company,
34including a passenger carrier or a seller of travel services, advertises
35a rental rate for a car rental at an airport where a customer facility
36charge is imposed, that person or entity shall, provided they are
37provided with information about the existence and amount of the
38charge, to the extent not specifically prohibited by federal law,
39clearly disclose the existence and amount of the charge. If a rental
40car company provides the person or entity with rental rate and
P8    1customer facility charge information, the rental car company is
2not responsible for the failure of that person or entity to comply
3with this subparagraph.

4(8) If a rental company delivers a vehicle to a renter at a location
5other than the location where the rental company normally carries
6on its business, the rental company may not charge the renter any
7amount for the rental for the period before the delivery of the
8vehicle. If a rental company picks up a rented vehicle from a renter
9at a location other than the location where the rental company
10normally carries on its business, the rental company may not charge
11the renter any amount for the rental for the period after the renter
12notifies the rental company to pick up the vehicle.

13(9) Except as otherwise permitted pursuant to the customer
14facility charge, a rental company may not separately charge, in
15addition to the rental rate, a fee for transporting the renter to the
16location where the rented vehicle will be delivered to the renter.

17(c) A renter may bring an action against a rental company for
18the recovery of damages and appropriate equitable relief for a
19violation of this section. The prevailing party shall be entitled to
20recover reasonable attorney’s fees and costs.

21(d) Any waiver of any of the provisions of this section shall be
22void and unenforceable as contrary to public policy.

begin delete

23(e) This section shall become operative only if the Secretary of
24Business, Transportation and Housing provides notice to the
25Legislature and the Secretary of State and posts notice on its
26Internet Web site that the conditions described in Section 13995.92
27of the Government Code have been satisfied.

end delete
28

SEC. 4.  

Section 2924.12 of the Civil Code, as added by Section
2916 of Chapter 86 of the Statutes of 2012, is amended to read:

30

2924.12.  

(a) (1) If a trustee’s deed upon sale has not been
31recorded, a borrower may bring an action for injunctive relief to
32enjoin a material violation of Section 2923.55, 2923.6, 2923.7,
332924.9, 2924.10, 2924.11, or 2924.17.

34(2) Any injunction shall remain in place and any trustee’s sale
35shall be enjoined until the court determines that the mortgage
36servicer, mortgagee, trustee, beneficiary, or authorized agent has
37corrected and remedied the violation or violations giving rise to
38the action for injunctive relief. An enjoined entity may move to
39dissolve an injunction based on a showing that the material
40violation has been corrected and remedied.

P9    1(b) After a trustee’s deed upon sale has been recorded, a
2mortgage servicer, mortgagee, trustee, beneficiary, or authorized
3agent shall be liable to a borrower for actual economic damages
4pursuant to Section 3281, resulting from a material violation of
5Section 2923.55, 2923.6, 2923.7, 2924.9, 2924.10, 2924.11, or
62924.17 by that mortgage servicer, mortgagee, trustee, beneficiary,
7or authorized agent where the violation was not corrected and
8remedied prior to the recordation of the trustee’s deed upon sale.
9If the court finds that the material violation was intentional or
10reckless, or resulted from willful misconduct by a mortgage
11servicer, mortgagee, trustee, beneficiary, or authorized agent, the
12court may award the borrower the greater of treble actual damages
13or statutory damages of fifty thousand dollars ($50,000).

14(c) A mortgage servicer, mortgagee, trustee, beneficiary, or
15authorized agent shall not be liable for any violation that it has
16corrected and remedied prior to the recordation of a trustee’s deed
17upon sale, or that has been corrected and remedied by third parties
18working on its behalf prior to the recordation of a trustee’s deed
19upon sale.

20(d) A violation of Section 2923.55, 2923.6, 2923.7, 2924.9,
212924.10, 2924.11, or 2924.17 by a person licensed by the
22Department ofbegin delete Corporations, Department of Financial Institutions,
23or Departmentend delete
begin insert Business Oversight or the Bureauend insert of Real Estate
24shall be deemed to be a violation of that person’s licensing law.

25(e) No violation of this article shall affect the validity of a sale
26in favor of a bona fide purchaser and any of its encumbrancers for
27value without notice.

28(f) A third-party encumbrancer shall not be relieved of liability
29resulting from violations of Section 2923.55, 2923.6, 2923.7,
302924.9, 2924.10, 2924.11, or 2924.17 committed by that third-party
31encumbrancer, that occurred prior to the sale of the subject property
32to the bona fide purchaser.

33(g) A signatory to a consent judgment entered in the case entitled
34United States of America et al. v. Bank of America Corporation
35et al., filed in the United States District Court for the District of
36Columbia, case number 1:12-cv-00361 RMC, that is in compliance
37with the relevant terms of the Settlement Term Sheet of that
38consent judgment with respect to the borrower who brought an
39action pursuant to this section while the consent judgment is in
P10   1effect shall have no liability for a violation of Section 2923.55,
22923.6, 2923.7, 2924.9, 2924.10, 2924.11, or 2924.17.

3(h) The rights, remedies, and procedures provided by this section
4are in addition to and independent of any other rights, remedies,
5or procedures under any other law. Nothing in this section shall
6be construed to alter, limit, or negate any other rights, remedies,
7or procedures provided by law.

8(i) A court may award a prevailing borrower reasonable
9attorney’s fees and costs in an action brought pursuant to this
10section. A borrower shall be deemed to have prevailed for purposes
11of this subdivision if the borrower obtained injunctive relief or
12was awarded damages pursuant to this section.

13(j) This section shall not apply to entities described in
14subdivision (b) of Section 2924.18.

15(k)  This section shall remain in effect only until January 1,
162018, and as of that date is repealed, unless a later enacted statute,
17that is enacted before January 1, 2018, deletes or extends that date.

18

SEC. 5.  

Section 2924.12 of the Civil Code, as added by Section
1916 of Chapter 87 of the Statutes of 2012, is amended to read:

20

2924.12.  

(a) (1) If a trustee’s deed upon sale has not been
21recorded, a borrower may bring an action for injunctive relief to
22enjoin a material violation of Section 2923.55, 2923.6, 2923.7,
232924.9, 2924.10, 2924.11, or 2924.17.

24(2) Any injunction shall remain in place and any trustee’s sale
25shall be enjoined until the court determines that the mortgage
26servicer, mortgagee, trustee, beneficiary, or authorized agent has
27corrected and remedied the violation or violations giving rise to
28the action for injunctive relief. An enjoined entity may move to
29dissolve an injunction based on a showing that the material
30violation has been corrected and remedied.

31(b) After a trustee’s deed upon sale has been recorded, a
32mortgage servicer, mortgagee, trustee, beneficiary, or authorized
33agent shall be liable to a borrower for actual economic damages
34pursuant to Section 3281, resulting from a material violation of
35Section 2923.55, 2923.6, 2923.7, 2924.9, 2924.10, 2924.11, or
362924.17 by that mortgage servicer, mortgagee, trustee, beneficiary,
37or authorized agent where the violation was not corrected and
38remedied prior to the recordation of the trustee’s deed upon sale.
39If the court finds that the material violation was intentional or
40reckless, or resulted from willful misconduct by a mortgage
P11   1servicer, mortgagee, trustee, beneficiary, or authorized agent, the
2court may award the borrower the greater of treble actual damages
3or statutory damages of fifty thousand dollars ($50,000).

4(c) A mortgage servicer, mortgagee, trustee, beneficiary, or
5authorized agent shall not be liable for any violation that it has
6corrected and remedied prior to the recordation of a trustee’s deed
7upon sale, or that has been corrected and remedied by third parties
8working on its behalf prior to the recordation of a trustee’s deed
9upon sale.

10(d) A violation of Section 2923.55, 2923.6, 2923.7, 2924.9,
112924.10, 2924.11, or 2924.17 by a person licensed by the
12Department ofbegin delete Corporations, Department of Financial Institutions,
13or Departmentend delete
begin insert Business Oversight or the Bureauend insert of Real Estate
14shall be deemed to be a violation of that person’s licensing law.

15(e) No violation of this article shall affect the validity of a sale
16in favor of a bona fide purchaser and any of its encumbrancers for
17value without notice.

18(f) A third-party encumbrancer shall not be relieved of liability
19resulting from violations of Section 2923.55, 2923.6, 2923.7,
202924.9, 2924.10, 2924.11, or 2924.17 committed by that third-party
21encumbrancer, that occurred prior to the sale of the subject property
22to the bona fide purchaser.

23(g) A signatory to a consent judgment entered in the case entitled
24United States of America et al. v. Bank of America Corporation
25et al., filed in the United States District Court for the District of
26Columbia, case number 1:12-cv-00361 RMC, that is in compliance
27with the relevant terms of the Settlement Term Sheet of that
28consent judgment with respect to the borrower who brought an
29action pursuant to this section while the consent judgment is in
30effect shall have no liability for a violation of Section 2923.55,
312923.6, 2923.7, 2924.9, 2924.10, 2924.11, or 2924.17.

32(h) The rights, remedies, and procedures provided by this section
33are in addition to and independent of any other rights, remedies,
34or procedures under any other law. Nothing in this section shall
35be construed to alter, limit, or negate any other rights, remedies,
36or procedures provided by law.

37(i) A court may award a prevailing borrower reasonable
38attorney’s fees and costs in an action brought pursuant to this
39section. A borrower shall be deemed to have prevailed for purposes
P12   1of this subdivision if the borrower obtained injunctive relief or
2was awarded damages pursuant to this section.

3(j) This section shall not apply to entities described in
4subdivision (b) of Section 2924.18.

5(k)  This section shall remain in effect only until January 1,
62018, and as of that date is repealed, unless a later enacted statute,
7that is enacted before January 1, 2018, deletes or extends that date.

8

SEC. 6.  

Section 2924.12 of the Civil Code, as added by Section
917 of Chapter 86 of the Statutes of 2012, is amended to read:

10

2924.12.  

(a) (1) If a trustee’s deed upon sale has not been
11recorded, a borrower may bring an action for injunctive relief to
12enjoin a material violation of Section 2923.5, 2923.7, 2924.11, or
132924.17.

14(2) Any injunction shall remain in place and any trustee’s sale
15shall be enjoined until the court determines that the mortgage
16servicer, mortgagee, trustee, beneficiary, or authorized agent has
17corrected and remedied the violation or violations giving rise to
18the action for injunctive relief. An enjoined entity may move to
19dissolve an injunction based on a showing that the material
20violation has been corrected and remedied.

21(b) After a trustee’s deed upon sale has been recorded, a
22mortgage servicer, mortgagee, trustee, beneficiary, or authorized
23agent shall be liable to a borrower for actual economic damages
24pursuant to Section 3281, resulting from a material violation of
25Section 2923.5, 2923.7, 2924.11, or 2924.17 by that mortgage
26servicer, mortgagee, trustee, beneficiary, or authorized agent where
27the violation was not corrected and remedied prior to the
28recordation of the trustee’s deed upon sale. If the court finds that
29the material violation was intentional or reckless, or resulted from
30willful misconduct by a mortgage servicer, mortgagee, trustee,
31beneficiary, or authorized agent, the court may award the borrower
32the greater of treble actual damages or statutory damages of fifty
33thousand dollars ($50,000).

34(c) A mortgage servicer, mortgagee, trustee, beneficiary, or
35authorized agent shall not be liable for any violation that it has
36corrected and remedied prior to the recordation of the trustee’s
37deed upon sale, or that has been corrected and remedied by third
38parties working on its behalf prior to the recordation of the trustee’s
39deed upon sale.

P13   1(d) A violation of Section 2923.5, 2923.7, 2924.11, or 2924.17
2by a person licensed by the Department ofbegin delete Corporations,
3Department of Financial Institutions, or Departmentend delete
begin insert Business
4Oversight or the Bureauend insert
of Real Estate shall be deemed to be a
5violation of that person’s licensing law.

6(e) No violation of this article shall affect the validity of a sale
7in favor of a bona fide purchaser and any of its encumbrancers for
8value without notice.

9(f) A third-party encumbrancer shall not be relieved of liability
10 resulting from violations of Section 2923.5, 2923.7, 2924.11, or
112924.17 committed by that third-party encumbrancer, that occurred
12prior to the sale of the subject property to the bona fide purchaser.

13(g) The rights, remedies, and procedures provided by this section
14are in addition to and independent of any other rights, remedies,
15or procedures under any other law. Nothing in this section shall
16be construed to alter, limit, or negate any other rights, remedies,
17or procedures provided by law.

18(h) A court may award a prevailing borrower reasonable
19attorney’s fees and costs in an action brought pursuant to this
20section. A borrower shall be deemed to have prevailed for purposes
21of this subdivision if the borrower obtained injunctive relief or
22was awarded damages pursuant to this section.

23(i) This section shall become operative on January 1, 2018.

24

SEC. 7.  

Section 2924.12 of the Civil Code, as added by Section
2517 of Chapter 87 of the Statutes of 2012, is amended to read:

26

2924.12.  

(a) (1) If a trustee’s deed upon sale has not been
27recorded, a borrower may bring an action for injunctive relief to
28enjoin a material violation of Section 2923.5, 2923.7, 2924.11, or
292924.17.

30(2) Any injunction shall remain in place and any trustee’s sale
31shall be enjoined until the court determines that the mortgage
32servicer, mortgagee, trustee, beneficiary, or authorized agent has
33corrected and remedied the violation or violations giving rise to
34the action for injunctive relief. An enjoined entity may move to
35dissolve an injunction based on a showing that the material
36violation has been corrected and remedied.

37(b) After a trustee’s deed upon sale has been recorded, a
38mortgage servicer, mortgagee, trustee, beneficiary, or authorized
39agent shall be liable to a borrower for actual economic damages
40pursuant to Section 3281, resulting from a material violation of
P14   1Section 2923.5, 2923.7, 2924.11, or 2924.17 by that mortgage
2servicer, mortgagee, trustee, beneficiary, or authorized agent where
3the violation was not corrected and remedied prior to the
4recordation of the trustee’s deed upon sale. If the court finds that
5the material violation was intentional or reckless, or resulted from
6willful misconduct by a mortgage servicer, mortgagee, trustee,
7beneficiary, or authorized agent, the court may award the borrower
8the greater of treble actual damages or statutory damages of fifty
9thousand dollars ($50,000).

10(c) A mortgage servicer, mortgagee, trustee, beneficiary, or
11authorized agent shall not be liable for any violation that it has
12corrected and remedied prior to the recordation of the trustee’s
13deed upon sale, or that has been corrected and remedied by third
14parties working on its behalf prior to the recordation of the trustee’s
15deed upon sale.

16(d) A violation of Section 2923.5, 2923.7, 2924.11, or 2924.17
17by a person licensed by the Department ofbegin delete Corporations,
18Department of Financial Institutions, or Departmentend delete
begin insert Business
19Oversight or the Bureauend insert
of Real Estate shall be deemed to be a
20violation of that person’s licensing law.

21(e) No violation of this article shall affect the validity of a sale
22in favor of a bona fide purchaser and any of its encumbrancers for
23value without notice.

24(f) A third-party encumbrancer shall not be relieved of liability
25 resulting from violations of Section 2923.5, 2923.7, 2924.11, or
262924.17 committed by that third-party encumbrancer, that occurred
27prior to the sale of the subject property to the bona fide purchaser.

28(g) The rights, remedies, and procedures provided by this section
29are in addition to and independent of any other rights, remedies,
30or procedures under any other law. Nothing in this section shall
31be construed to alter, limit, or negate any other rights, remedies,
32or procedures provided by law.

33(h) A court may award a prevailing borrower reasonable
34attorney’s fees and costs in an action brought pursuant to this
35section. A borrower shall be deemed to have prevailed for purposes
36of this subdivision if the borrower obtained injunctive relief or
37was awarded damages pursuant to this section.

38(i) This section shall become operative on January 1, 2018.

39

SEC. 8.  

Section 2924.17 of the Civil Code, as added by Section
4020 of Chapter 86 of the Statutes of 2012, is amended to read:

P15   1

2924.17.  

(a) A declaration recorded pursuant to Section 2923.5
2or, until January 1, 2018, pursuant to Section 2923.55, a notice of
3default, notice of sale, assignment of a deed of trust, or substitution
4of trustee recorded by or on behalf of a mortgage servicer in
5connection with a foreclosure subject to the requirements of Section
62924, or a declaration or affidavit filed in any court relative to a
7foreclosure proceeding shall be accurate and complete and
8supported by competent and reliable evidence.

9(b) Before recording or filing any of the documents described
10in subdivision (a), a mortgage servicer shall ensure that it has
11reviewed competent and reliable evidence to substantiate the
12borrower’s default and the right to foreclose, including the
13borrower’s loan status and loan information.

14(c) Until January 1, 2018, any mortgage servicer that engages
15in multiple and repeated uncorrected violations of subdivision (b)
16in recording documents or filing documents in any court relative
17to a foreclosure proceeding shall be liable for a civil penalty of up
18to seven thousand five hundred dollars ($7,500) per mortgage or
19deed of trust in an action brought by a government entity identified
20in Section 17204 of the Business and Professions Code, or in an
21administrative proceeding brought by the Department of
22begin delete Corporations,end deletebegin insert Business Oversight orend insert thebegin delete Departmentend deletebegin insert Bureauend insert of
23Real Estate begin delete, or the Department of Financial Institutionsend delete against a
24respective licensee, in addition to any other remedies available to
25these entities. This subdivision shall be inoperative on January 1,
262018.

27

SEC. 9.  

Section 2924.17 of the Civil Code, as added by Section
2820 of Chapter 87 of the Statutes of 2012, is amended to read:

29

2924.17.  

(a) A declaration recorded pursuant to Section 2923.5
30or, until January 1, 2018, pursuant to Section 2923.55, a notice of
31default, notice of sale, assignment of a deed of trust, or substitution
32of trustee recorded by or on behalf of a mortgage servicer in
33connection with a foreclosure subject to the requirements of Section
342924, or a declaration or affidavit filed in any court relative to a
35foreclosure proceeding shall be accurate and complete and
36supported by competent and reliable evidence.

37(b) Before recording or filing any of the documents described
38in subdivision (a), a mortgage servicer shall ensure that it has
39reviewed competent and reliable evidence to substantiate the
P16   1borrower’s default and the right to foreclose, including the
2borrower’s loan status and loan information.

3(c) Until January 1, 2018, any mortgage servicer that engages
4in multiple and repeated uncorrected violations of subdivision (b)
5in recording documents or filing documents in any court relative
6to a foreclosure proceeding shall be liable for a civil penalty of up
7to seven thousand five hundred dollars ($7,500) per mortgage or
8deed of trust in an action brought by a government entity identified
9in Section 17204 of the Business and Professions Code, or in an
10administrative proceeding brought by the Department of
11begin delete Corporations,end deletebegin insert Business Oversight orend insert thebegin delete Departmentend deletebegin insert Bureauend insert of
12Real Estatebegin delete, or the Department of Financial Institutionsend delete against a
13respective licensee, in addition to any other remedies available to
14these entities. This subdivision shall be inoperative on January 1,
152018.

16

SEC. 10.  

Section 2924.19 of the Civil Code, as amended by
17Section 17 of Chapter 76 of the Statutes of 2013, is amended to
18read:

19

2924.19.  

(a) (1) If a trustee’s deed upon sale has not been
20recorded, a borrower may bring an action for injunctive relief to
21enjoin a material violation of Section 2923.5, 2924.17, or 2924.18.

22(2) An injunction shall remain in place and any trustee’s sale
23shall be enjoined until the court determines that the mortgage
24servicer, mortgagee, beneficiary, or authorized agent has corrected
25and remedied the violation or violations giving rise to the action
26for injunctive relief. An enjoined entity may move to dissolve an
27injunction based on a showing that the material violation has been
28corrected and remedied.

29(b) After a trustee’s deed upon sale has been recorded, a
30mortgage servicer, mortgagee, beneficiary, or authorized agent
31shall be liable to a borrower for actual economic damages pursuant
32to Section 3281, resulting from a material violation of Section
332923.5, 2924.17, or 2924.18 by that mortgage servicer, mortgagee,
34beneficiary, or authorized agent where the violation was not
35corrected and remedied prior to the recordation of the trustee’s
36deed upon sale. If the court finds that the material violation was
37intentional or reckless, or resulted from willful misconduct by a
38mortgage servicer, mortgagee, beneficiary, or authorized agent,
39the court may award the borrower the greater of treble actual
40damages or statutory damages of fifty thousand dollars ($50,000).

P17   1(c) A mortgage servicer, mortgagee, beneficiary, or authorized
2agent shall not be liable for any violation that it has corrected and
3remedied prior to the recordation of the trustee’s deed upon sale,
4or that has been corrected and remedied by third parties working
5 on its behalf prior to the recordation of the trustee’s deed upon
6sale.

7(d) A violation of Section 2923.5, 2924.17, or 2924.18 by a
8person licensed by the Department ofbegin delete Corporations, the Department
9of Financial Institutions, or the Departmentend delete
begin insert Business Oversight or
10the Bureauend insert
of Real Estate shall be deemed to be a violation of that
11person’s licensing law.

12(e) A violation of this article shall not affect the validity of a
13sale in favor of a bona fide purchaser and any of its encumbrancers
14for value without notice.

15(f) A third-party encumbrancer shall not be relieved of liability
16resulting from violations of Section 2923.5, 2924.17, or 2924.18,
17committed by that third-party encumbrancer, that occurred prior
18to the sale of the subject property to the bona fide purchaser.

19(g) The rights, remedies, and procedures provided by this section
20are in addition to and independent of any other rights, remedies,
21or procedures under any other law. Nothing in this section shall
22be construed to alter, limit, or negate any other rights, remedies,
23or procedures provided by law.

24(h) A court may award a prevailing borrower reasonable
25attorney’s fees and costs in an action brought pursuant to this
26section. A borrower shall be deemed to have prevailed for purposes
27of this subdivision if the borrower obtained injunctive relief or
28damages pursuant to this section.

29(i) This section shall apply only to entities described in
30subdivision (b) of Section 2924.18.

31(j)  This section shall remain in effect only until January 1, 2018,
32and as of that date is repealed, unless a later enacted statute, that
33is enacted before January 1, 2018, deletes or extends that date.

34

SEC. 11.  

Section 2924.19 of the Civil Code, as amended by
35Section 18 of Chapter 76 of the Statutes of 2013, is amended to
36read:

37

2924.19.  

(a) (1) If a trustee’s deed upon sale has not been
38recorded, a borrower may bring an action for injunctive relief to
39enjoin a material violation of Section 2923.5, 2924.17, or 2924.18.

P18   1(2) An injunction shall remain in place and any trustee’s sale
2shall be enjoined until the court determines that the mortgage
3servicer, mortgagee, beneficiary, or authorized agent has corrected
4and remedied the violation or violations giving rise to the action
5for injunctive relief. An enjoined entity may move to dissolve an
6injunction based on a showing that the material violation has been
7corrected and remedied.

8(b) After a trustee’s deed upon sale has been recorded, a
9mortgage servicer, mortgagee, beneficiary, or authorized agent
10shall be liable to a borrower for actual economic damages pursuant
11to Section 3281, resulting from a material violation of Section
122923.5, 2924.17, or 2924.18 by that mortgage servicer, mortgagee,
13beneficiary, or authorized agent where the violation was not
14corrected and remedied prior to the recordation of the trustee’s
15deed upon sale. If the court finds that the material violation was
16intentional or reckless, or resulted from willful misconduct by a
17mortgage servicer, mortgagee, beneficiary, or authorized agent,
18the court may award the borrower the greater of treble actual
19damages or statutory damages of fifty thousand dollars ($50,000).

20(c) A mortgage servicer, mortgagee, beneficiary, or authorized
21agent shall not be liable for any violation that it has corrected and
22remedied prior to the recordation of the trustee’s deed upon sale,
23or that has been corrected and remedied by third parties working
24 on its behalf prior to the recordation of the trustee’s deed upon
25sale.

26(d) A violation of Section 2923.5, 2924.17, or 2924.18 by a
27person licensed by the Department ofbegin delete Corporations, the Department
28of Financial Institutions, or the Departmentend delete
begin insert Business Oversight or
29the Bureauend insert
of Real Estate shall be deemed to be a violation of that
30person’s licensing law.

31(e) A violation of this article shall not affect the validity of a
32sale in favor of a bona fide purchaser and any of its encumbrancers
33for value without notice.

34(f) A third-party encumbrancer shall not be relieved of liability
35resulting from violations of Section 2923.5, 2924.17, or 2924.18,
36committed by that third-party encumbrancer, that occurred prior
37to the sale of the subject property to the bona fide purchaser.

38(g) The rights, remedies, and procedures provided by this section
39are in addition to and independent of any other rights, remedies,
40or procedures under any other law. Nothing in this section shall
P19   1be construed to alter, limit, or negate any other rights, remedies,
2or procedures provided by law.

3(h) A court may award a prevailing borrower reasonable
4attorney’s fees and costs in an action brought pursuant to this
5section. A borrower shall be deemed to have prevailed for purposes
6of this subdivision if the borrower obtained injunctive relief or
7damages pursuant to this section.

8(i) This section shall apply only to entities described in
9subdivision (b) of Section 2924.18.

10(j)  This section shall remain in effect only until January 1, 2018,
11and as of that date is repealed, unless a later enacted statute, that
12is enacted before January 1, 2018, deletes or extends that date.

13

SEC. 12.  

Section 2924.20 of the Civil Code, as added by
14Section 23 of Chapter 86 of the Statutes of 2012, is amended to
15read:

16

2924.20.  

Consistent with their general regulatory authority,
17and notwithstanding subdivisions (b) and (c) of Section 2924.18,
18the Department ofbegin delete Corporations, the Department of Financial
19Institutions, and the Departmentend delete
begin insert Business Oversight and the Bureauend insert
20 of Real Estate may adopt regulations applicable to any entity or
21person under their respective jurisdictions that are necessary to
22carry out the purposes of the act that added this section. A violation
23of the regulations adopted pursuant to this section shall only be
24enforceable by the regulatory agency.

25

SEC. 13.  

Section 2924.20 of the Civil Code, as added by
26Section 23 of Chapter 87 of the Statutes of 2012, is amended to
27read:

28

2924.20.  

Consistent with their general regulatory authority,
29and notwithstanding subdivisions (b) and (c) of Section 2924.18,
30the Department ofbegin delete Corporations, the Department of Financial
31Institutions, and the Departmentend delete
begin insert Business Oversight and the Bureauend insert
32 of Real Estate may adopt regulations applicable to any entity or
33person under their respective jurisdictions that are necessary to
34carry out the purposes of the act that added this section. A violation
35of the regulations adopted pursuant to this section shall only be
36enforceable by the regulatory agency.

37

SEC. 14.  

Section 580d of the Code of Civil Procedure is
38amended to read:

39

580d.  

(a) Except as provided in subdivision (b), no deficiency
40shall be owed or collected, and no deficiency judgment shall be
P20   1rendered for a deficiency on a note secured by a deed of trust or
2mortgage on real property or an estate for years therein executed
3in any case in which the real property or estate for years therein
4has been sold by the mortgagee or trustee under power of sale
5contained in the mortgage or deed of trust.

6(b) The fact that no deficiency shall be owed or collected under
7the circumstances set forth in subdivision (a) does not affect the
8liability that a guarantor, pledgor or other surety might otherwise
9have with respect to the deficiency, or that might otherwise be
10satisfied in whole or in part from other collateral pledged to secure
11the obligation that is the subject of the deficiency.

12(c) This section does not apply to a deed of trust, mortgage, or
13other lien given to secure the payment of bonds or other evidences
14of indebtedness authorized or permitted to be issued by the
15Commissioner ofbegin delete Corporations,end deletebegin insert Business Oversightend insert or which is
16made by a public utility subject to the Public Utilities Act (Part 1
17(commencing with Section 201) of Division 1 of the Public Utilities
18Code).

19

SEC. 15.  

Section 684.115 of the Code of Civil Procedure is
20amended to read:

21

684.115.  

(a) A financial institution may, and if it has more
22than nine branches or offices at which it conducts its business
23within this state shall, designate one or more central locations for
24service of legal process within this state. Each designated location
25shall be referred to as a “central location.” If a financial institution
26elects or is required to designate a central location for service of
27legal process, the financial institution shall file a notice of its
28designation with the Department ofbegin delete Financial Institutions,end deletebegin insert Business
29Oversightend insert
which filing shall be effective upon filing and shall
30contain all of the following:

31(1) The physical address of the central location.

32(2) The days and hours during which service will be accepted
33at the central location.

34(3) If the central location will not accept service of legal process
35directed at deposit accounts maintained or property held at all of
36the financial institution’s branches or offices within this state, or
37if the service accepted at the central location will not apply to
38safe-deposit boxes or other property of the judgment debtor held
39by or for the judgment debtor, the filing shall also contain sufficient
40information to permit a determination of the limitation or
P21   1limitations, including, in the case of a limitation applicable to
2certain branches or offices, an identification of the branches or
3offices as to which service at the central location will not apply
4and the nature of the limitation applicable to those branches or
5offices. If the limitation will apply to all branches or offices of the
6financial institution within this state, the filing may indicate the
7nature of the limitation and that it applies to all branches or offices,
8in lieu of an identification of branches or offices as to which the
9limitation applies. To the extent that a financial institution’s
10designation of a central location for service of legal process covers
11the process directed at deposit accounts, safe-deposit boxes, or
12other property of the judgment debtor held by or for the judgment
13debtor at a particular branch or office located within this state, the
14branch or office shall be a branch or office covered by central
15process.

16(b) Should a financial institution required to designate a central
17location fail to do so, each branch of that institution located in this
18state shall be deemed to be a central location at which service of
19legal process may be made, and all of the institution’s branches
20or offices located within this state shall be deemed to be a branch
21or office covered by central process.

22(c) Subject to any limitation noted pursuant to paragraph (3) of
23subdivision (a), service of legal process at a central location of a
24financial institution shall be effective against all deposit accounts
25and all property held for safekeeping, as collateral for an obligation
26owed to the financial institution or in a safe-deposit box if the same
27is described in the legal process and held by the financial institution
28at any branch or office covered by central process and located
29within this state. However, while service of legal process at the
30central location will establish a lien on all property, if any property
31other than deposit accounts is physically held by the financial
32institution in a county other than that in which the designated
33central location is located, the financial institution shall include in
34its garnishee’s memorandum the location or locations of the
35property, and the judgment creditor shall obtain a writ of execution
36covering the property and directed to the levying officer in that
37county to accomplish the turnover of the property and shall forward
38the writ and related required documentation to the levying officer
39in the county in which the property is held.

P22   1(d) A financial institution may modify or revoke any designation
2made pursuant to subdivision (a) by filing the modification or
3revocation with the Department ofbegin delete Financial Institutions.end deletebegin insert Business
4Oversight.end insert
The modification or revocation shall be effective when
5the Department ofbegin delete Financial Institutions’end deletebegin insert Business Oversight’send insert
6 records have been updated to reflect the modification or revocation,
7provided that the judgment creditor may rely upon the superseded
8designation during the 30-day period following the effective date
9of the revocation or modification.

10(e) (1) The Department ofbegin delete Financial Institutionsend deletebegin insert Business
11Oversightend insert
shall update its online records to reflect a filing by a
12financial institution pursuant to subdivision (a) or a modification
13or revocation filed by a financial institution pursuant to subdivision
14(d) within 10 business days following the filing by the financial
15institution. The Department ofbegin delete Financial Institutions’end deletebegin insert Business
16Oversight’send insert
Internet Web site shall reflect the date its online records
17for each financial institution have most recently been updated.

18(2) The Department ofbegin delete Financial Institutionsend deletebegin insert Business Oversightend insert
19 shall provide any person requesting it with a copy of each current
20filing made by a financial institution pursuant to subdivision (a).
21The Department ofbegin delete Financial Institutionsend deletebegin insert Business Oversightend insert may
22satisfy its obligation under this subdivision by posting all current
23designations of a financial institution, or the pertinent information
24therein, on an Internet Web site available to the public without
25charge, and if that information is made available, the Department
26ofbegin delete Financial Institutionsend deletebegin insert Business Oversightend insert may impose a
27reasonable fee for furnishing that information in any other manner.

28(f) As to deposit accounts maintained or property held for
29safekeeping, as collateral for an obligation owed to the financial
30institution or in a safe-deposit box at a branch or office covered
31by central process, service of legal process at a location other than
32a central location designated by the financial institution shall not
33be effective unless the financial institution, in its absolute
34discretion, elects to act upon the process at that location as if it
35were effective. In the absence of an election, the financial
36institution may respond to the legal process by mailing or delivery
37of the garnishee’s memorandum to the levying officer within the
38time otherwise provided therefor, with a statement on the
39garnishee’s memorandum that the legal process was not properly
40served at the financial institution’s designated location for receiving
P23   1legal process, and, therefore, was not processed, and the address
2at which the financial institution is to receive legal process.

3(g) If any legal process is served at a central location of a
4financial institution pursuant to this section, all related papers to
5be served on the financial institution shall be served at that location,
6unless agreed to the contrary between the serving party and the
7financial institution.

8(h) This subdivision shall apply whenever a financial institution
9operates within this state at least one branch or office in addition
10to its head office or main office, as applicable, or a financial
11institution headquartered in another state operates more than one
12branch or office within this state, and no central location has been
13designated or deemed to have been designated by the institution
14for service of legal process relating to deposit accounts maintained
15at the financial institution’s head office or main office, as
16applicable, and branches located within this state. If a judgment
17creditor reasonably believes that, pursuant to Section 700.140 and,
18if applicable, Section 700.160, any act of enforcement would be
19effective against a specific deposit account maintained at a financial
20institution described in this subdivision, the judgment creditor may
21file with the financial institution a written request that the financial
22institution identify the branch or office within this state at which
23a specified account might be maintained by the financial institution.
24The written request shall contain the following statements or
25information:

26(1) The name of the person reasonably believed by the judgment
27creditor to be a person in whose name the specified deposit account
28stands.

29(2) If the name of the person reasonably believed by the
30judgment creditor to be a person in whose name the specified
31deposit account stands is not a judgment debtor identified in the
32writ of execution, a statement that a person reasonably believed
33by the judgment creditor to be a person in whose name the specified
34deposit account stands will be appropriately identified in the legal
35process to be served pursuant to Section 700.160, including any
36supplementary papers, such as a court order or affidavit if the same
37will be required by Section 700.160.

38(3) The specific identifying number of the account reasonably
39believed to be maintained with the financial institution and standing
40in the name of the judgment debtor or other person.

P24   1(4) The address of the requesting party.

2(5) An affidavit by the judgment creditor or the judgment
3creditor’s counsel stating substantially the following:

4

5I hereby declare that this deposit account location request
6complies with Section 684.115 of the Code of Civil Procedure,
7that the account or accounts of the judgment debtor or other person
8or persons appropriately identified in the legal process and
9specified herein are subject to a valid writ of execution, or court
10order, that I have a reasonable belief, formed after an inquiry
11reasonable under the circumstances, that the financial institution
12receiving this deposit account location request has an account
13standing in the name of the judgment debtor or other person or
14persons appropriately identified in the legal process, and that
15information pertaining to the location of the account will assist the
16judgment creditor in enforcing the judgment.

17

18(i) The affidavit contemplated by subdivision (h) shall be signed
19by the judgment creditor or the judgment creditor’s counsel and
20filed at the financial institution’s head office located within this
21state or, if the financial institution’s head office is in another state,
22at one of its branches or offices within this state. Failure to comply
23with the requirements of subdivision (h) and this subdivision shall
24be sufficient basis for the financial institution to refuse to produce
25the information that would otherwise be required by subdivision
26(j).

27(j) Within 10 banking days following receipt by a financial
28institution at the applicable location specified in subdivision (i) of
29a request contemplated by subdivision (h), as to each specific
30deposit account identified in the request contemplated by
31subdivision (h), the financial institution shall respond by mailing,
32by first-class mail with postage prepaid, to the requester’s address
33as specified in the request a response indicating the branch or office
34location of the financial institution at which the specified deposit
35account might be maintained, or, if the specified deposit account,
36if it exists, would not be maintained at a specific location, at least
37one place within this state at which legal process relating to the
38deposit account should or may be served. The response to be
39furnished pursuant to this subdivision shall not require the financial
40institution to determine whether an account exists or, if an account
P25   1does exist, whether it would be reached by the legal process, rather,
2the branch or office location shall be determined and reported by
3the financial institution based solely upon its determination that
4an account with the identifying number provided by the requester
5would be maintained at that branch if an account did exist, and the
6response shall not contain any information about the name in which
7the account stands or any other information concerning the account,
8if it exists. If more than one account number is specified in the
9request, the financial institution’s responses as to some or all of
10those account numbers may be combined in a single writing.

11(k) A response furnished in good faith by the financial institution
12pursuant to subdivision (j) shall not be deemed to violate the
13privacy of any person in whose name the specified deposit account
14stands nor the privacy of any other person, and shall not require
15the consent of the person in whose name the account stands nor
16that of any other person.

17(l) A financial institution shall not notify the person in whose
18name the specified deposit account stands or any other person
19related to the specified account of the receipt of any request made
20pursuant to subdivision (h) and affecting that person’s or persons’
21accounts at the financial institution, provided that the financial
22institution shall have no liability for its failure to comply with the
23provisions of this subdivision.

24

SEC. 16.  

Section 163 of the Corporations Code is amended to
25read:

26

163.  

“Corporation subject to the Banking Law” (Divisionbegin delete 1end delete
27begin insert 1.1end insert (commencing with Sectionbegin delete 99)end deletebegin insert 1000)end insert of the Financial Code)
28means:

29(a) Any corporation which, with the approval of the
30Commissioner ofbegin delete Financial Institutions,end deletebegin insert Business Oversight,end insert is
31incorporated for the purpose of engaging in, or which is authorized
32by the Commissioner ofbegin delete Financial Institutionsend deletebegin insert Business Oversightend insert
33 to engage in, the commercial banking business under Divisionbegin delete 1end delete
34begin insert 1.1end insert (commencing with Sectionbegin delete 99)end deletebegin insert 1000)end insert of the Financial Code.

35(b) Any corporation which, with the approval of the
36 Commissioner ofbegin delete Financial Institutions,end deletebegin insert Business Oversight,end insert is
37incorporated for the purpose of engaging in, or which is authorized
38by the Commissioner ofbegin delete Financial Institutionsend deletebegin insert Business Oversightend insert
39 to engage in, the industrial banking business under Divisionbegin delete 1end deletebegin insert 1.1end insert
40 (commencing with Sectionbegin delete 99)end deletebegin insert 1000)end insert of the Financial Code.

P26   1(c) Any corporation (other than a corporation described in
2 subdivision (d)) which, with the approval of the Commissioner of
3begin delete Financial Institutions,end deletebegin insert Business Oversight,end insert is incorporated for the
4purpose of engaging in, or which is authorized by the
5Commissioner ofbegin delete Financial Institutionsend deletebegin insert end insertbegin insertBusiness Oversightend insert to
6engage in, the trust business under Divisionbegin delete 1end deletebegin insert 1.1end insert (commencing
7with Sectionbegin delete 99)end deletebegin insert 1000)end insert of the Financial Code.

8(d) Any corporation which is authorized by the Commissioner
9ofbegin delete Financial Institutionsend deletebegin insert end insertbegin insertBusiness Oversightend insert and the Commissioner
10of Insurance to maintain a title insurance department to engage in
11title insurance business and a trust department to engage in trust
12business; or

13(e) Any corporation which, with the approval of the
14Commissioner ofbegin delete Financial Institutions,end deletebegin insert Business Oversight,end insert is
15incorporated for the purpose of engaging in, or which is authorized
16by the Commissioner ofbegin delete Financial Institutionsend deletebegin insert end insertbegin insertBusiness Oversightend insert
17 to engage in, business under Article 1 (commencing with Section
18begin delete 3500),end deletebegin insert 1850),end insert Chapterbegin delete 19,end deletebegin insert 21,end insert Divisionbegin delete 1end deletebegin insert 1.1end insert of the Financial Code.

19

SEC. 17.  

Section 201 of the Corporations Code is amended to
20read:

21

201.  

(a) The Secretary of State shall not file articles setting
22forth a name in which “bank,” “ trust,” “trustee” or related words
23appear, unless the certificate of approval of the Commissioner of
24begin delete Financial Institutionsend deletebegin insert end insertbegin insertBusiness Oversightend insert is attached thereto. This
25subdivision does not apply to the articles of any corporation subject
26to the Banking Law on which is endorsed the approval of the
27Commissioner ofbegin delete Financial Institutions.end deletebegin insert Business Oversight.end insert

28(b) The Secretary of State shall not file articles which set forth
29a name which is likely to mislead the public or which is the same
30as, or resembles so closely as to tend to deceive, the name of a
31domestic corporation, the name of a foreign corporation which is
32authorized to transact intrastate business or has registered its name
33pursuant to Section 2101, a name which a foreign corporation has
34assumed under subdivision (b) of Section 2106, a name which will
35become the record name of a domestic or foreign corporation upon
36the effective date of a filed corporate instrument where there is a
37delayed effective date pursuant to subdivision (c) of Section 110
38or subdivision (c) of Section 5008, or a name which is under
39reservation for another corporation pursuant to this title, except
40that a corporation may adopt a name that is substantially the same
P27   1as an existing domestic corporation or foreign corporation which
2is authorized to transact intrastate business or has registered its
3name pursuant to Section 2101, upon proof of consent by such
4domestic or foreign corporation and a finding by the Secretary of
5State that under the circumstances the public is not likely to be
6misled.

7The use by a corporation of a name in violation of this section
8may be enjoined notwithstanding the filing of its articles by the
9Secretary of State.

10(c) Any applicant may, upon payment of the fee prescribed
11therefor in the Government Code, obtain from the Secretary of
12State a certificate of reservation of any name not prohibited by
13subdivision (b), and upon the issuance of the certificate the name
14stated therein shall be reserved for a period of 60 days. The
15Secretary of State shall not, however, issue certificates reserving
16the same name for two or more consecutive 60-day periods to the
17same applicant or for the use or benefit of the same person,
18partnership, firm or corporation; nor shall consecutive reservations
19be made by or for the use or benefit of the same person, partnership,
20firm or corporation of names so similar as to fall within the
21prohibitions of subdivision (b).

22

SEC. 18.  

Section 2510 of the Corporations Code is amended
23to read:

24

2510.  

“Flexible purpose corporation subject to the Banking
25Law” means any of the following:

26(a) A flexible purpose corporation that, with the approval of the
27Commissioner ofbegin delete Financial Institutions,end deletebegin insert Business Oversight,end insert is
28incorporated for the purpose of engaging in, or that is authorized
29by the Commissioner ofbegin delete Financial Institutionsend deletebegin insert end insertbegin insertBusiness Oversightend insert
30 to engage in, the commercial banking business under the Banking
31Law (Divisionbegin delete 1end deletebegin insert 1.1end insert (commencing with Sectionbegin delete 99)end deletebegin insert 1000)end insert of the
32Financial Code).

33(b) Any flexible purpose corporation that, with the approval of
34the Commissioner ofbegin delete Financial Institutions,end deletebegin insert Business Oversight,end insert
35 is incorporated for the purpose of engaging in, or that is authorized
36by the Commissioner ofbegin delete Financial Institutionsend deletebegin insert Business Oversightend insert
37 to engage in, the industrial banking business under the Banking
38Law (Divisionbegin delete 1end deletebegin insert 1.1end insert (commencing with Sectionbegin delete 99end deletebegin insert 1000end insert) of the
39Financial Code).

P28   1(c) Any flexible purpose corporation, other than a flexible
2purpose corporation described in subdivision (d), that, with the
3approval of the Commissioner ofbegin delete Financial Institutions,end deletebegin insert Business
4Oversight,end insert
is incorporated for the purpose of engaging in, or that
5is authorized by the Commissioner ofbegin delete Financial Institutionsend deletebegin insert end insert
6begin insertBusiness Oversightend insert to engage in, the trust business under the
7Banking Law (Divisionbegin delete 1end deletebegin insert 1.1end insert (commencing with Sectionbegin delete 99)end deletebegin insert 1000)end insert
8 of the Financial Code).

9(d) Any flexible purpose corporation that is authorized by the
10Commissioner ofbegin delete Financial Institutionsend deletebegin insert end insertbegin insertBusiness Oversightend insert and
11the Commissioner of Insurance to maintain a title insurance
12department to engage in title insurance business and a trust
13department to engage in trust business.

14(e) Any flexible purpose corporation that, with the approval of
15the Commissioner ofbegin delete Financial Institutions,end deletebegin insert Business Oversight,end insert
16 is incorporated for the purpose of engaging in, or that is authorized
17by the Commissioner ofbegin delete Financial Institutionsend deletebegin insert end insertbegin insertBusiness Oversightend insert
18 to engage in, business under Article 1 (commencing with Section
19begin delete 3500)end deletebegin insert 1850)end insert of Chapterbegin delete 19end deletebegin insert 21end insert of Divisionbegin delete 1end deletebegin insert 1.1end insert of the Financial
20Code.

21

SEC. 19.  

Section 2601 of the Corporations Code is amended
22to read:

23

2601.  

(a) The Secretary of State shall not file articles setting
24forth a name in which “bank,” “trust,” “trustee” or related words
25appear, unless the certificate of approval of the Commissioner of
26begin delete Financial Institutionsend deletebegin insert end insertbegin insertBusiness Oversightend insert is attached to the articles.
27This subdivision does not apply to the articles of any flexible
28purpose corporation subject to the Banking Law on which is
29endorsed the approval of the Commissioner ofbegin delete Financial
30Institutions.end delete
begin insert Business Oversight.end insert

31(b) The Secretary of State shall not file articles that set forth a
32name that is likely to mislead the public or that is the same as, or
33resembles so closely as to tend to deceive, the name of a domestic
34corporation, the name of a domestic flexible purpose corporation,
35or the name of a foreign corporation that is authorized to transact
36intrastate business or has registered its name pursuant to Section
372101, a name that a foreign corporation has assumed under
38subdivision (b) of Section 2106, a name that will become the record
39name of a corporation or flexible purpose corporation or a foreign
40corporation upon the effective date of a filed corporate instrument
P29   1where there is a delayed effective date pursuant to subdivision (c)
2of Section 110 or subdivision (c) of Section 5008, or a name that
3is under reservation for another corporation or flexible purpose
4corporation pursuant to this title, except that a flexible purpose
5corporation may adopt a name that is substantially the same as an
6existing corporation or flexible purpose corporation, foreign or
7domestic, which is authorized to transact intrastate business or has
8registered its name pursuant to Section 2101, upon proof of consent
9by the domestic or foreign corporation or flexible purpose
10corporation and a finding by the Secretary of State that under the
11circumstances the public is not likely to be misled. The use by a
12flexible purpose corporation of a name in violation of this section
13may be enjoined notwithstanding the filing of its articles by the
14Secretary of State.

15(c) Any applicant may, upon payment of the fee prescribed in
16the Government Code, obtain from the Secretary of State a
17certificate of reservation of any name not prohibited by subdivision
18(b), and upon the issuance of the certificate the name stated in the
19certificate shall be reserved for a period of 60 days. The Secretary
20of State shall not, however, issue certificates reserving the same
21name for two or more consecutive 60-day periods to the same
22applicant or for the use or benefit of the same person, partnership,
23firm, corporation, or flexible purpose corporation. No consecutive
24reservations shall be made by or for the use or benefit of the same
25person, partnership, firm, corporation or flexible purpose
26corporation of names so similar as to fall within the prohibitions
27of subdivision (b).

28

SEC. 20.  

Section 5122 of the Corporations Code is amended
29to read:

30

5122.  

(a) The Secretary of State shall not file articles setting
31forth a name in which “bank,” “trust,” “trustee” or related words
32appear, unless the certificate of approval of the Commissioner of
33begin delete Financial Institutionsend deletebegin insert end insertbegin insertBusiness Oversightend insert is attached thereto.

34(b) The Secretary of State shall not file articles which set forth
35a name which is likely to mislead the public or which is the same
36as, or resembles so closely as to tend to deceive, the name of a
37domestic corporation, the name of a foreign corporation which is
38authorized to transact intrastate business or has registered its name
39pursuant to Section 2101, a name which a foreign corporation has
40assumed under subdivision (b) of Section 2106 or a name which
P30   1will become the record name of a domestic or foreign corporation
2upon the effective date of a filed corporate instrument where there
3is a delayed effective date pursuant to subdivision (c) of Section
4110, or subdivision (c) of Section 5008, or a name which is under
5reservation pursuant to this title, except that a corporation may
6adopt a name that is substantially the same as an existing domestic
7or foreign corporation which is authorized to transact intrastate
8business or has registered its name pursuant to Section 2101, upon
9proof of consent by such corporation and a finding by the Secretary
10of State that under the circumstances the public is not likely to be
11misled.

12The use by a corporation of a name in violation of this section
13 may be enjoined notwithstanding the filing of its articles by the
14Secretary of State.

15(c) Any applicant may, upon payment of the fee prescribed
16therefor in the Government Code, obtain from the Secretary of
17State a certificate of reservation of any name not prohibited by
18subdivision (b), and upon the issuance of the certificate the name
19stated therein shall be reserved for a period of 60 days. The
20Secretary of State shall not, however, issue certificates reserving
21the same name for two or more consecutive 60-day periods to the
22same applicant or for the use or benefit of the same person; nor
23shall consecutive reservations be made by or for the use or benefit
24of the same person of names so similar as to fall within the
25prohibitions of subdivision (b).

26

SEC. 21.  

Section 7122 of the Corporations Code is amended
27to read:

28

7122.  

(a) The Secretary of State shall not file articles setting
29forth a name in which “bank,” “trust,” “trustee” or related words
30appear, unless the certificate of approval of the Commissioner of
31begin delete Financial Institutionsend deletebegin insert end insertbegin insertBusiness Oversightend insert is attached thereto.

32(b) The Secretary of State shall not file articles pursuant to this
33part setting forth a name which may create the impression that the
34purpose of the corporation is public, charitable or religious or that
35it is a charitable foundation.

36(c) The Secretary of State shall not file articles which set forth
37a name which is likely to mislead the public or which is the same
38as, or resembles so closely as to tend to deceive, the name of a
39domestic corporation, the name of a foreign corporation which is
40authorized to transact intrastate business or has registered its name
P31   1pursuant to Section 2101, a name which a foreign corporation has
2assumed under subdivision (b) of Section 2106, a name which will
3become the record name of a domestic or foreign corporation upon
4the effective date of a filed corporate instrument where there is a
5delayed effective date pursuant to subdivision (c) of Section 110,
6or subdivision (c) of Section 5008, or a name which is under
7reservation pursuant to this title, except that a corporation may
8adopt a name that is substantially the same as an existing domestic
9or foreign corporation which is authorized to transact intrastate
10business or has registered its name pursuant to Section 2101, upon
11proof of consent by such corporation and a finding by the Secretary
12of State that under the circumstances the public is not likely to be
13misled.

14The use by a corporation of a name in violation of this section
15may be enjoined notwithstanding the filing of its articles by the
16Secretary of State.

17(d) Any applicant may, upon payment of the fee prescribed
18therefor in the Government Code, obtain from the Secretary of
19State a certificate of reservation of any name not prohibited by
20subdivision (c), and upon the issuance of the certificate the name
21stated therein shall be reserved for a period of 60 days. The
22Secretary of State shall not, however, issue certificates reserving
23the same name for two or more consecutive 60-day periods to the
24same applicant or for the use or benefit of the same person; nor
25shall consecutive reservations be made by or for the use or benefit
26of the same person of names so similar as to fall within the
27prohibitions of subdivision (c).

28

SEC. 22.  

Section 9122 of the Corporations Code is amended
29to read:

30

9122.  

(a) The Secretary of State shall not file articles setting
31forth a name in which “bank,” “trust,” “trustee” or related words
32appear, unless the certificate of approval of the Commissioner of
33begin delete Financial Institutionsend deletebegin insert end insertbegin insertBusiness Oversightend insert is attached thereto.

34(b) The Secretary of State shall not file articles which set forth
35a name which is likely to mislead the public or which is the same
36as, or resembles so closely as to tend to deceive, the name of a
37domestic corporation, the name of a foreign corporation which is
38authorized to transact intrastate business or has registered its name
39pursuant to Section 2101, a name which a foreign corporation has
40assumed under subdivision (b) of Section 2106 or a name which
P32   1will become the record name of a domestic or foreign corporation
2upon the effective date of a filed corporate instrument where there
3is a delayed effective date pursuant to subdivision (c) of Section
4110 or subdivision (c) of Section 5008, or a name which is under
5reservation pursuant to this title, except that a corporation may
6adopt a name that is substantially the same as an existing domestic
7or foreign corporation which is authorized to transact intrastate
8business or has registered its name pursuant to Section 2101, upon
9proof of consent by such corporation and a finding by the Secretary
10of State that under the circumstances the public is not likely to be
11misled.

12The use by a corporation of a name in violation of this section
13may be enjoined notwithstanding the filing of its articles by the
14Secretary of State.

15(c) Any applicant may, upon payment of the fee prescribed
16therefor in the Government Code, obtain from the Secretary of
17State a certificate of reservation of any name not prohibited by
18subdivision (b), and upon the issuance of the certificate the name
19stated therein shall be reserved for a period of 60 days. The
20Secretary of State shall not, however, issue certificates reserving
21the same name for two or more consecutive 60-day periods to the
22same applicant or for the use or benefit of the same person; nor
23shall consecutive reservations be made by or for the use or benefit
24of the same person of names so similar as to fall within the
25prohibitions of subdivision (b).

26

SEC. 23.  

Section 12302 of the Corporations Code is amended
27to read:

28

12302.  

(a) The Secretary of State shall not file articles setting
29forth a name in which “bank,” “trust,” “trustee” or related words
30appear, unless the certificate of approval of the Commissioner of
31begin delete Financial Institutionsend deletebegin insert Business Oversightend insert is attached thereto.

32(b) The Secretary of State shall not file articles which set forth
33a name which is likely to mislead the public or which is the same
34as, or resembles so closely as to tend to deceive, the name of a
35domestic corporation, the name of a foreign corporation which is
36authorized to transact intrastate business or has registered its name
37pursuant to Section 2101, a name which a foreign corporation has
38assumed under subdivision (b) of Section 2106, a name which will
39become the record name of a domestic or foreign corporation upon
40the effective date of a filed corporate instrument where there is a
P33   1delayed effective date pursuant to this title, or a name which is
2under reservation pursuant to this title, except that a corporation
3may adopt a name that is substantially the same as an existing
4domestic or foreign corporation which is authorized to transact
5intrastate business or has registered its name pursuant to Section
62101, upon proof of consent by such corporation and a finding by
7the Secretary of State that under the circumstances the public is
8not likely to be misled.

9(c) The use by a corporation of a name in violation of this
10section may be enjoined notwithstanding the filing of its articles
11by the Secretary of State.

12(d) Any applicant may, upon payment of the fee prescribed
13therefor in the Government Code, obtain from the Secretary of
14State a certificate of reservation of any name not prohibited by
15subdivision (c), and upon the issuance of the certificate the name
16stated therein shall be reserved for a period of 60 days. The
17Secretary of State shall not, however, issue certificates reserving
18the same name for two or more consecutive 60-day periods to the
19same applicant or for the use or benefit of the same person; nor
20shall consecutive reservations be made by or for the use or benefit
21of the same person of names so similar as to fall within the
22prohibitions of subdivision (c).

23

SEC. 24.  

Section 371 of the Financial Code is amended to read:

24

371.  

(a) There is in the Department of Business Oversight, the
25Division of Corporations, under the direction of the Senior Deputy
26Commissioner of Business Oversight for the Division of
27Corporations. The senior deputy commissioner has charge of the
28execution of the laws of the state that were, prior to July 1, 2013,
29under the charge of the Department of Corporations.

30(b) There is in the Department of Business Oversight, thebegin delete Senior
31Deputy Commissioner of the Department of Business Oversight
32for theend delete
Division of Financialbegin delete Institutions. Underend deletebegin insert Institutions underend insert
33 the direction of thebegin delete senior deputy commissioner,end deletebegin insert Senior Deputy
34Commissioner forend insert
the Division of Financial Institutionsbegin insert. The senior
35deputy commissionerend insert
has charge of the execution of the laws of
36the state that were, prior to July 1, 2013, under the charge of the
37Department of Financial Institutions.

38

SEC. 25.  

Section 380 of the Financial Code is amended to read:

39

380.  

(a) The commissioner shall informbegin delete the Commissioner of
40Corporations and otherend delete
appropriate state and federal officials
P34   1charged with the regulation of financial institutions or securities
2transactions of any enforcement actions, including, but not limited
3to, civil or criminal actions, cease and desist orders, license or
4authorization suspensions or revocations, or an open investigation.

5(b) The commissioner shall informbegin delete the Commissioner of
6Corporations and otherend delete
appropriate state and federal officials
7charged with the regulation of financial institutions or securities
8transactions if it appears that any bank, bank holding company,
9savings association, savings and loan holding company, credit
10union, industrial loan company, industrial loan holding company,
11or other licensee of the department is conducting its business in a
12fraudulent, unsafe, unsound, or injurious manner, or has suffered
13or will suffer substantial financial loss or damage, and it appears
14to the commissioner that the information is relevant to the
15regulatory activities of the other agency.

16

SEC. 26.  

Section 1514 of the Financial Code is amended to
17read:

18

1514.  

A commercial bank may organize, sponsor, operate,
19control, or render investment advice to, an investment company,
20or underwrite, distribute, or sell securities of any investment
21company which has qualified to sell its securities in this state
22pursuant to Part 2 (commencing with Section 25100) of Division
231 of Title 4 of the Corporations Code, if the officers and employees
24of the bank who sell these securities meet such standards with
25respect to training, experience, and sales practices as established
26by the Secretary ofbegin delete the Business, Transportation and Housing
27Agencyend delete
begin insert Business, Consumer Services, and Housingend insert or the
28secretary’s designee. For the purpose of this section, “investment
29company” means an investment company as defined in the
30Investment Company Act of 1940 (15 U.S.C., Sec. 80a-1 et seq.).

31

SEC. 27.  

Section 2105 of the Financial Code is amended to
32read:

33

2105.  

(a) Each licensee or agent shall prominently post on the
34premises of each branch office that conducts money transmission
35a notice stating that:
36

 

“If you have complaints with respect to any aspect of the money transmission activities conducted at this location, you may contact thebegin delete California Department of Financial Institutions at its toll-free telephone number, 1-800-622-0620, by e-mail at consumer.complaint@dfi.ca.gov, or by mail at Department of Financial Institutions, Consumer Services, 1810 13th Street, Sacramento, CA 95811.”end deletebegin insert Department of Business Oversight at its toll-free telephone number 1-800-275-2677, its Internet Web site at www.dbo.ca.gov/Consumer/consumer_services.asp, or by mail at Department of Business Oversight, Consumer Services, 1515 K Street, Suite 200, Sacramento, CA 95814.”end insert

P35   7

 

8(b) The commissioner may by order or regulation modify the
9content of the notice required by this section. This notice shall be
10printed in English and in the same language principally used by
11the licensee or any agent of the licensee to advertise, solicit, or
12negotiate either orally or in writing, with respect to money
13transmission at that branch office. The information required in this
14notice shall be clear, legible, and in letters not less than one-half
15inch in height. The notice shall be posted in a conspicuous location
16in the unobstructed view of the public within the premises. The
17licensee shall provide to each of its agents the notice required by
18this section. In those locations operated by an agent, the agent, and
19not the licensee, shall be responsible for the failure to properly
20post the required notice.

21

SEC. 28.  

Section 5106 of the Financial Code is amended to
22read:

23

5106.  

“Department” meansbegin delete the Division of Financial
24Institutions inend delete
the Department of Business Oversight.

25

SEC. 29.  

Section 14381 of the Financial Code is amended to
26read:

27

14381.  

The Credit Union Advisory Committee shall advise the
28commissioner and the Deputy Commissioner ofbegin delete Financial
29Institutionsend delete
begin insert end insertbegin insertBusiness Oversightend insert for thebegin delete Divisionend deletebegin insert Officeend insert of Credit
30Unions on matters relating to credit unions or the credit union
31business.

32

SEC. 30.  

Section 14382 of the Financial Code is amended to
33read:

34

14382.  

(a) The Credit Union Advisory Committee consists of
35seven members.

36(b) The members of the Credit Union Advisory Committee shall
37be appointed by the Secretary ofbegin delete the Business, Transportation and
38Housing Agency.end delete
begin insert Business, Consumer Services, and Housing.end insert

39(c) The term of a member of the Credit Union Advisory
40Committee is two years. However, a member may be reappointed.

P36   1(d) Membership in the Credit Union Advisory Committee is
2voluntary. No person is required to accept an appointment to the
3Credit Union Advisory Committee, and any member may resign
4by filing a resignation with the commissioner.

5(e) No member of the Credit Union Advisory Committee shall
6receive any compensation, reimbursement for expenses, or other
7payment from the state in connection with service on the Credit
8Union Advisory Committee.

9

SEC. 31.  

Section 14652.5 of the Financial Code is amended
10to read:

11

14652.5.  

A credit union may organize, sponsor, operate,
12control, or render investment advice to, an investment company,
13or underwrite, distribute, or sell securities of any investment
14company which has qualified to sell its securities in this state
15pursuant to Part 2 (commencing with Section 25100) of Division
161 of Title 4 of the Corporations Code, if the officers and employees
17of the credit union who sell these securities meet such standards
18with respect to training, experience, and sales practices as
19established by the Secretary ofbegin delete the Business, Transportation and
20Housing Agencyend delete
begin insert Business, Consumer Services, and Housingend insert or
21the secretary’s designee. For the purpose of this section,
22“investment company” means an investment company as defined
23in the Investment Company Act of 1940 (15 U.S.C., Sec. 80a-1 et
24seq.).

25

SEC. 32.  

Section 18002.5 of the Financial Code is amended
26to read:

27

18002.5.  

“Department” meansbegin delete the Division of Financial
28Institutions inend delete
the Department of Business Oversight.

29

SEC. 33.  

Section 18022.5 of the Financial Code is amended
30to read:

31

18022.5.  

An industrial loan company may organize, sponsor,
32operate, control, or render investment advice to, an investment
33company, or underwrite, distribute, or sell securities of any
34investment company which has qualified to sell its securities in
35this state pursuant to Part 2 (commencing with Section 25100) of
36Division 1, Title 4 of the Corporations Code, if the officers and
37employees of the industrial loan company who sell these securities
38meet such standards with respect to training experience, and sales
39practices as established by the Secretary ofbegin delete the Business,
40Transportation and Housing Agencyend delete
begin insert Business, Consumer Services,
P37   1and Housingend insert
or the secretary’s designee. For the purpose of this
2section, “investment company” means an investment company as
3defined in the Investment Company Act of 1940 (15 U.S.C., Sec.
480a-1 et seq.).

5

SEC. 34.  

Section 23001 of the Financial Code is amended to
6read:

7

23001.  

As used in this division, the following terms have the
8following meanings:

9(a) “Deferred deposit transaction” means a transaction whereby
10a person defers depositing a customer’s personal check until a
11specific date, pursuant to a written agreement for a fee or other
12charge, as provided in Section 23035.

13(b) “Commissioner” means the Commissioner of Business
14Oversight.

15(c) “Department” meansbegin delete the Division of Corporations withinend delete
16 the Department of Business Oversight.

17(d) “Licensee” means any person who offers, originates, or
18makes a deferred deposit transaction, who arranges a deferred
19deposit transaction for a deferred deposit originator, who acts as
20an agent for a deferred deposit originator, or who assists a deferred
21deposit originator in the origination of a deferred deposit
22transaction. However, “licensee” does not include a state or
23federally chartered bank, thrift, savings association, industrial loan
24company, or credit union. “Licensee” also does not include a retail
25seller engaged primarily in the business of selling consumer goods,
26including consumables, to retail buyers that cashes checks or issues
27money orders for a minimum fee not exceeding two dollars ($2)
28as a service to its customers that is incidental to its main purpose
29or business. “Licensee” also does not include an employee regularly
30employed by a licensee at the licensee’s place of business. An
31employee, when acting under the scope of the employee’s
32employment, shall be exempt from any other law from which the
33employee’s employer is exempt.

34(e) “Person” means an individual, a corporation, a partnership,
35a limited liability company, a joint venture, an association, a joint
36stock company, a trust, an unincorporated organization, a
37government entity, or a political subdivision of a government
38entity.

39(f) “Deferred deposit originator” means a person who offers,
40originates, or makes a deferred deposit transaction.

P38   1

SEC. 35.  

Section 6254.5 of the Government Code is amended
2to read:

3

6254.5.  

Notwithstanding any other provisions of the law,
4whenever a state or local agency discloses a public record which
5is otherwise exempt from this chapter, to any member of the public,
6this disclosure shall constitute a waiver of the exemptions specified
7in Sections 6254, 6254.7, or other similar provisions of law. For
8purposes of this section, “agency” includes a member, agent,
9officer, or employee of the agency acting within the scope of his
10or her membership, agency, office, or employment.

11This section, however, shall not apply to disclosures:

12(a) Made pursuant to the Information Practices Act (commencing
13with Section 1798 of the Civil Code) or discovery proceedings.

14(b) Made through other legal proceedings or as otherwise
15required by law.

16(c) Within the scope of disclosure of a statute which limits
17disclosure of specified writings to certain purposes.

18(d) Not required by law, and prohibited by formal action of an
19elected legislative body of the local agency which retains the
20writings.

21(e) Made to any governmental agency which agrees to treat the
22disclosed material as confidential. Only persons authorized in
23writing by the person in charge of the agency shall be permitted
24to obtain the information. Any information obtained by the agency
25shall only be used for purposes which are consistent with existing
26law.

27(f) Of records relating to a financial institution or an affiliate
28thereof, if the disclosures are made to the financial institution or
29affiliate by a state agency responsible for the regulation or
30supervision of the financial institution or affiliate.

31(g) Of records relating to any person that is subject to the
32jurisdiction of the Department ofbegin delete Corporations,end deletebegin insert Business Oversight,end insert
33 if the disclosures are made to the person that is the subject of the
34records for the purpose of corrective action by that person, or if a
35corporation, to an officer, director, or other key personnel of the
36corporation for the purpose of corrective action, or to any other
37person to the extent necessary to obtain information from that
38person for the purpose of an investigation by the Department of
39Corporations.

P39   1(h) Made by the Commissioner ofbegin delete Financial Institutionsend deletebegin insert Business
2Oversightend insert
under Sectionbegin delete 280, 282,end deletebegin insert 450, 452,end insert 8009, or 18396 of the
3Financial Code.

4(i) Of records relating to any person that is subject to the
5jurisdiction of the Department of Managed Health Care, if the
6disclosures are made to the person that is the subject of the records
7for the purpose of corrective action by that person, or if a
8corporation, to an officer, director, or other key personnel of the
9corporation for the purpose of corrective action, or to any other
10person to the extent necessary to obtain information from that
11person for the purpose of an investigation by the Department of
12Managed Health Care.

13

SEC. 36.  

Section 7465 of the Government Code is amended
14to read:

15

7465.  

For the purposes of this chapter:

16(a) The term “financial institution” includes state and national
17banks, state and federal savings associations, trust companies,
18industrial loan companies, and state and federal credit unions. Such
19term shall not include a title insurer while engaging in the conduct
20of the “business of title insurance” as defined by Section 12340.3
21of the Insurance Code, an underwritten title company, or an escrow
22company.

23(b) The term “financial records” means any original or any copy
24of any record or document held by a financial institution pertaining
25to a customer of the financial institution.

26(c) The term “person” means an individual, partnership,
27corporation, limited liability company, association, trust or any
28other legal entity.

29(d) The term “customer” means any person who has transacted
30business with or has used the services of a financial institution or
31for whom a financial institution has acted as a fiduciary.

32(e) The term “state agency” means every state office, officer,
33department, division, bureau, board, and commission or other state
34agency, including the Legislature.

35(f) The term “local agency” includes a county; city, whether
36general law or chartered; city and county; school district; municipal
37corporation; district; political subdivision; or any board,
38commission or agency thereof; or other local public agency.

39(g) The term “supervisory agency” means any of the following:

P40   1(1) The Department ofbegin delete Financial Institutions.end deletebegin insert Business
2Oversight.end insert

3(2) The Controller.

4(3) The Administrator of Local Agency Security.

5(4) The Bureau of Real Estate.

6(5) The Department of Insurance.

7(h) The term “investigation” includes, but is not limited to, any
8inquiry by a peace officer, sheriff, or district attorney, or any
9inquiry made for the purpose of determining whether there has
10been a violation of any law enforceable by imprisonment, fine, or
11monetary liability.

12(i) The term “subpoena” includes subpoena duces tecum.

13

SEC. 37.  

Section 7474 of the Government Code is amended
14to read:

15

7474.  

(a) An officer, employee, or agent of a state or local
16agency or department thereof, may obtain financial records under
17paragraph (2) of subdivision (a) of Section 7470 pursuant to an
18administrative subpoena or summons otherwise authorized by law
19and served upon the financial institution only if:

20(1) The person issuing such administrative summons or
21subpoena has served a copy of the subpoena or summons on the
22customer pursuant to Chapter 4 (commencing with Section 413.10)
23of Title 5 of Part 2 of the Code of Civil Procedure, which copy
24may be served by an employee of the state or local agency or
25department thereof; and

26(2) The subpoena or summons includes the name of the agency
27or department in whose name the subpoena or summons is issued
28and the statutory purpose for which the information is to be
29obtained; and

30(3) Ten days after service pass without the customer giving
31notice to the financial institution that the customer has moved to
32quash the subpoena.

33(b) (1) In issuing an administrative subpoena or summons
34pursuant to subdivision (a), the Attorney General or the
35Commissioner ofbegin delete Corporationsend deletebegin insert Business Oversightend insert pursuant to the
36enforcement of statutes within hisbegin insert or herend insert jurisdiction, or the district
37attorney of any county in connection with investigations of
38violations of antitrust law as authorized by Section 16759 of the
39Business and Professions Code, may petition a court of competent
40jurisdiction in the county in which the records are located, and the
P41   1court, upon a showing of a reasonable inference that a law subject
2to the jurisdiction of the petitioning agency has been or is about
3to be violated, may order that service upon the customer pursuant
4to paragraph (1) of subdivision (a) and the 10-day period provided
5for in paragraph (3) of subdivision (a) be waived or shortened. For
6the purpose of this subdivision, an “inference” is a deduction that
7may reasonably be drawn by the Attorney General, the
8Commissioner ofbegin delete Corporations,end deletebegin insert Business Oversight,end insert or the district
9attorney from facts relevant to the investigation.

10(2) Such petition may be presented to the court in person or by
11telephoned oral statement which shall be recorded and transcribed.
12In the case of telephonic petition, the recording of the sworn oral
13statement and the transcribed statement shall be certified by the
14magistrate receiving it and shall be filed with the clerk of the court.

15(3) Where the court grants such petition, the court shall order
16the petitioning agency to notify the customer in writing of the
17examination of records within a period to be determined by the
18court but not to exceed 60 days of the agency’s receipt of any of
19the customer’s financial records. The notice shall specify the
20information otherwise required by paragraph (2) of subdivision
21(a), and shall also specify the financial records which were
22examined pursuant to the administrative subpoena or summons.
23Upon renewed petition, the time of notification may be extended
24for an additional 30-day period upon good cause to believe that
25such notification would impede the investigation. Thereafter, by
26application to a court upon a showing of extreme necessity for
27continued withholding of notification, such notification
28requirements may be extended for three additional 30-day periods.

29(4) The Attorney General shall not provide financial records
30obtained pursuant to the procedure authorized in this subdivision
31to a local law enforcement agency unless (i) that agency has
32independently obtained authorization to receive such financial
33records pursuant to the provisions of this chapter, or (ii) hebegin insert or sheend insert
34 obtains such records in an investigation conducted wholly
35independently of the local agency and not at its instigation or
36request.

37(c) Except as provided in this subdivision, nothing in this chapter
38shall preclude a financial institution from notifying a customer of
39the receipt of an administrative summons or subpoena. A court
40may order a financial institution to withhold notification to a
P42   1customer of the receipt of an administrative summons or subpoena
2when the court issues an order pursuant to subdivision (b) and
3makes a finding that notice to the customer by the financial
4institution would impede the investigation.

5(d) If a customer files a motion to quash an administrative
6subpoena or summons issued pursuant to subdivision (a), such
7proceedings shall be afforded priority on the court calendar and
8the matter shall be heard within 10 days from the filing of the
9motion to quash.

10

SEC. 38.  

Section 7480 of the Government Code is amended
11to read:

12

7480.  

Nothing in this chapter shall prohibit any of the
13following:

14(a) The dissemination of any financial information that is not
15identified with, or identifiable as being derived from, the financial
16records of a particular customer.

17(b) When any police or sheriff’s department or district attorney
18in this state certifies to a bank, credit union, or savings association
19in writing that a crime report has been filed that involves the
20alleged fraudulent use of drafts, checks, access cards, or other
21orders drawn upon any bank, credit union, or savings association
22in this state, the police or sheriff’s department or district attorney,
23a county adult protective services office when investigating the
24financial abuse of an elder or dependent adult, or a long-term care
25ombudsman when investigating the financial abuse of an elder or
26dependent adult, may request a bank, credit union, or savings
27association to furnish, and a bank, credit union, or savings
28association shall furnish, a statement setting forth the following
29information with respect to a customer account specified by the
30requesting party for a period 30 days prior to, and up to 30 days
31following, the date of occurrence of the alleged illegal act involving
32the account:

33(1) The number of items dishonored.

34(2) The number of items paid that created overdrafts.

35(3) The dollar volume of the dishonored items and items paid
36which created overdrafts and a statement explaining any credit
37arrangement between the bank, credit union, or savings association
38and customer to pay overdrafts.

39(4) The dates and amounts of deposits and debits and the account
40balance on these dates.

P43   1(5) A copy of the signature card, including the signature and
2any addresses appearing on a customer’s signature card.

3(6) The date the account opened and, if applicable, the date the
4account closed.

5(7) Surveillance photographs and video recordings of persons
6accessing the crime victim’s financial account via an automated
7teller machine (ATM) or from within the financial institution for
8dates on which illegal acts involving the account were alleged to
9have occurred. Nothing in this paragraph does any of the following:

10(A) Requires a financial institution to produce a photograph or
11video recording if it does not possess the photograph or video
12recording.

13(B) Affects any existing civil immunities as provided in Section
1447 of the Civil Code or any other provision of law.

15(8) A bank, credit union, or savings association that provides
16the requesting party with copies of one or more complete account
17statements prepared in the regular course of business shall be
18deemed to be in compliance with paragraphs (1), (2), (3), and (4).

19(c) When any police or sheriff’s department or district attorney
20in this state certifies to a bank, credit union, or savings association
21in writing that a crime report has been filed that involves the
22alleged fraudulent use of drafts, checks, access cards, or other
23orders drawn upon any bank, credit union, or savings association
24doing business in this state, the police or sheriff’s department or
25 district attorney, a county adult protective services office when
26investigating the financial abuse of an elder or dependent adult,
27or a long-term care ombudsman when investigating the financial
28abuse of an elder or dependent adult, may request, with the consent
29of the accountholder, the bank, credit union, or savings association
30to furnish, and the bank, credit union, or savings association shall
31furnish, a statement setting forth the following information with
32respect to a customer account specified by the requesting party for
33a period 30 days prior to, and up to 30 days following, the date of
34occurrence of the alleged illegal act involving the account:

35(1) The number of items dishonored.

36(2) The number of items paid that created overdrafts.

37(3) The dollar volume of the dishonored items and items paid
38which created overdrafts and a statement explaining any credit
39arrangement between the bank, credit union, or savings association
40and customer to pay overdrafts.

P44   1(4) The dates and amounts of deposits and debits and the account
2balance on these dates.

3(5) A copy of the signature card, including the signature and
4any addresses appearing on a customer’s signature card.

5(6) The date the account opened and, if applicable, the date the
6account closed.

7(7) Surveillance photographs and video recordings of persons
8accessing the crime victim’s financial account via an automated
9teller machine (ATM) or from within the financial institution for
10dates on which illegal acts involving this account were alleged to
11have occurred. Nothing in this paragraph does any of the following:

12(A) Requires a financial institution to produce a photograph or
13video recording if it does not possess the photograph or video
14recording.

15(B) Affects any existing civil immunities as provided in Section
1647 of the Civil Code or any other provision of law.

17(8) A bank, credit union, or savings association doing business
18in this state that provides the requesting party with copies of one
19or more complete account statements prepared in the regular course
20of business shall be deemed to be in compliance with paragraphs
21(1), (2), (3), and (4).

22(d) For purposes of subdivision (c), consent of the accountholder
23shall be satisfied if an accountholder provides to the financial
24institution and the person or entity seeking disclosure, a signed
25and dated statement containing all of the following:

26(1) Authorization of the disclosure for the period specified in
27subdivision (c).

28(2) The name of the agency or department to which disclosure
29is authorized and, if applicable, the statutory purpose for which
30the information is to be obtained.

31(3) A description of the financial records that are authorized to
32be disclosed.

33(e) (1) The Attorney General, a supervisory agency, the
34Franchise Tax Board, the State Board of Equalization, the
35Employment Development Department, the Controller or an
36inheritance tax referee when administering the Prohibition of Gift
37and Death Taxes (Part 8 (commencing with Section 13301) of
38Division 2 of the Revenue and Taxation Code), a police or sheriff’s
39department or district attorney, a county adult protective services
40office when investigating the financial abuse of an elder or
P45   1dependent adult, a long-term care ombudsman when investigating
2the financial abuse of an elder or dependent adult, a county welfare
3department when investigating welfare fraud, a county
4auditor-controller or director of finance when investigating fraud
5against the county, or the Department ofbegin delete Corporationsend deletebegin insert Business
6Oversightend insert
when conducting investigations in connection with the
7enforcement of laws administered by the Commissioner of
8begin delete Corporations,end deletebegin insert Business Oversightend insert from requesting of an office or
9branch of a financial institution, and the office or branch from
10responding to a request, as to whether a person has an account or
11accounts at that office or branch and, if so, any identifying numbers
12of the account or accounts.

13(2) No additional information beyond that specified in this
14section shall be released to a county welfare department without
15either the accountholder’s written consent or a judicial writ, search
16warrant, subpoena, or other judicial order.

17(3) A county auditor-controller or director of finance who
18unlawfully discloses information he or she is authorized to request
19under this subdivision is guilty of the unlawful disclosure of
20confidential data, a misdemeanor, which shall be punishable as
21set forth in Section 7485.

22(f) The examination by, or disclosure to, any supervisory agency
23of financial records that relate solely to the exercise of its
24supervisory function. The scope of an agency’s supervisory
25function shall be determined by reference to statutes that grant
26authority to examine, audit, or require reports of financial records
27or financial institutions as follows:

28(1) With respect to the Commissioner ofbegin delete Financial Institutionsend delete
29begin insert Business Oversightend insert by reference to Division 1 (commencing with
30Section 99),begin delete Division 1.5end deletebegin insert Division 1.1 (commencing with Section
311000), Division 1.2 (commencing with Section 2000), Division 1.6end insert

32 (commencing with Section 4800), Division 2 (commencing with
33Section 5000), Division 5 (commencing with Section 14000),
34Division 7 (commencing with Section 18000), Division 15
35(commencing with Section 31000), and Division 16 (commencing
36with Section 33000), of the Financial Code.

37(2) With respect to the Controller by reference to Title 10
38(commencing with Section 1300) of Part 3 of the Code of Civil
39Procedure.

P46   1(3) With respect to the Administrator of Local Agency Security
2by reference to Article 2 (commencing with Section 53630) of
3Chapter 4 of Part 1 of Division 2 of Title 5 of the Government
4Code.

5(g) The disclosure to the Franchise Tax Board of (1) the amount
6of any security interest that a financial institution has in a specified
7asset of a customer or (2) financial records in connection with the
8filing or audit of a tax return or tax information return that are
9required to be filed by the financial institution pursuant to Part 10
10(commencing with Section 17001), Part 11 (commencing with
11Section 23001), or Part 18 (commencing with Section 38001), of
12the Revenue and Taxation Code.

13(h) The disclosure to the State Board of Equalization of any of
14the following:

15(1) The information required by Sections 6702, 6703, 8954,
168957, 30313, 30315, 32383, 32387, 38502, 38503, 40153, 40155,
1741122, 41123.5, 43443, 43444.2, 44144, 45603, 45605, 46404,
1846406, 50134, 50136, 55203, 55205, 60404, and 60407 of the
19Revenue and Taxation Code.

20(2) The financial records in connection with the filing or audit
21of a tax return required to be filed by the financial institution
22pursuant to Part 1 (commencing with Section 6001), Part 2
23(commencing with Section 7301), Part 3 (commencing with Section
248601), Part 13 (commencing with Section 30001), Part 14
25(commencing with Section 32001), and Part 17 (commencing with
26Section 37001), of Division 2 of the Revenue and Taxation Code.

27(3) The amount of any security interest a financial institution
28has in a specified asset of a customer, if the inquiry is directed to
29the branch or office where the interest is held.

30(i) The disclosure to the Controller of the information required
31by Section 7853 of the Revenue and Taxation Code.

32(j) The disclosure to the Employment Development Department
33of the amount of any security interest a financial institution has in
34a specified asset of a customer, if the inquiry is directed to the
35branch or office where the interest is held.

36(k) The disclosure by a construction lender, as defined in Section
378006 of the Civil Code, to the Registrar of Contractors, of
38information concerning the making of progress payments to a
39prime contractor requested by the registrar in connection with an
P47   1investigation under Section 7108.5 of the Business and Professions
2Code.

3(l) Upon receipt of a written request from a local child support
4agency referring to a support order pursuant to Section 17400 of
5the Family Code, a financial institution shall disclose the following
6 information concerning the account or the person named in the
7request, whom the local child support agency shall identify,
8whenever possible, by social security number:

9(1) If the request states the identifying number of an account at
10a financial institution, the name of each owner of the account.

11(2) Each account maintained by the person at the branch to
12which the request is delivered, and, if the branch is able to make
13a computerized search, each account maintained by the person at
14any other branch of the financial institution located in this state.

15(3) For each account disclosed pursuant to paragraphs (1) and
16(2), the account number, current balance, street address of the
17branch where the account is maintained, and, to the extent available
18through the branch’s computerized search, the name and address
19of any other person listed as an owner.

20(4) Whenever the request prohibits the disclosure, a financial
21institution shall not disclose either the request or its response, to
22an owner of the account or to any other person, except the officers
23and employees of the financial institution who are involved in
24responding to the request and to attorneys, employees of the local
25child support agencies, auditors, and regulatory authorities who
26have a need to know in order to perform their duties, and except
27as disclosure may be required by legal process.

28(5) No financial institution, or any officer, employee, or agent
29thereof, shall be liable to any person for (A) disclosing information
30in response to a request pursuant to this subdivision, (B) failing to
31notify the owner of an account, or complying with a request under
32this paragraph not to disclose to the owner, the request or disclosure
33under this subdivision, or (C) failing to discover any account owned
34by the person named in the request pursuant to a computerized
35search of the records of the financial institution.

36(6) The local child support agency may request information
37pursuant to this subdivision only when the local child support
38agency has received at least one of the following types of physical
39evidence:

40(A) Any of the following, dated within the last three years:

P48   1(i) Form 599.

2(ii) Form 1099.

3(iii) A bank statement.

4(iv) A check.

5(v) A bank passbook.

6(vi) A deposit slip.

7(vii) A copy of a federal or state income tax return.

8(viii) A debit or credit advice.

9(ix) Correspondence that identifies the child support obligor by
10name, the bank, and the account number.

11(x) Correspondence that identifies the child support obligor by
12name, the bank, and the banking services related to the account of
13the obligor.

14(xi) An asset identification report from a federal agency.

15(B) A sworn declaration of the custodial parent during the 12
16months immediately preceding the request that the person named
17in the request has had or may have had an account at an office or
18branch of the financial institution to which the request is made.

19(7) Information obtained by a local child support agency
20pursuant to this subdivision shall be used only for purposes that
21are directly connected with the administration of the duties of the
22local child support agency pursuant to Section 17400 of the Family
23Code.

24(m) (1) As provided in paragraph (1) of subdivision (c) of
25Section 666 of Title 42 of the United States Code, upon receipt of
26an administrative subpoena on the current federally approved
27interstate child support enforcement form, as approved by the
28federal Office of Management and Budget, a financial institution
29shall provide the information or documents requested by the
30administrative subpoena.

31(2) The administrative subpoena shall refer to the current federal
32Office of Management and Budget control number and be signed
33by a person who states that he or she is an authorized agent of a
34state or county agency responsible for implementing the child
35support enforcement program set forth in Part D (commencing
36with Section 651) of Subchapter IV of Chapter 7 of Title 42 of the
37United States Code. A financial institution may rely on the
38statements made in the subpoena and has no duty to inquire into
39the truth of any statement in the subpoena.

P49   1(3) If the person who signs the administrative subpoena directs
2a financial institution in writing not to disclose either the subpoena
3or its response to any owner of an account covered by the subpoena,
4the financial institution shall not disclose the subpoena or its
5response to the owner.

6(4) No financial institution, or any officer, employee, or agent
7thereof, shall be liable to any person for (A) disclosing information
8or providing documents in response to a subpoena pursuant to this
9subdivision, (B) failing to notify any owner of an account covered
10by the subpoena or complying with a request not to disclose to the
11owner, the subpoena or disclosure under this subdivision, or (C)
12failing to discover any account owned by the person named in the
13subpoena pursuant to a computerized search of the records of the
14financial institution.

15(n) The dissemination of financial information and records
16pursuant to any of the following:

17(1) Compliance by a financial institution with the requirements
18of Section 2892 of the Probate Code.

19(2) Compliance by a financial institution with the requirements
20of Section 2893 of the Probate Code.

21(3) An order by a judge upon a written ex parte application by
22a peace officer showing specific and articulable facts that there
23are reasonable grounds to believe that the records or information
24sought are relevant and material to an ongoing investigation of a
25felony violation of Section 186.10 or of any felony subject to the
26enhancement set forth in Section 186.11.

27(A) The ex parte application shall specify with particularity the
28records to be produced, which shall be only those of the individual
29or individuals who are the subject of the criminal investigation.

30(B) The ex parte application and any subsequent judicial order
31shall be open to the public as a judicial record unless ordered sealed
32by the court, for a period of 60 days. The sealing of these records
33may be extended for 60-day periods upon a showing to the court
34that it is necessary for the continuance of the investigation.
35Sixty-day extensions may continue for up to one year or until
36termination of the investigation of the individual or individuals,
37whichever is sooner.

38(C) The records ordered to be produced shall be returned to the
39peace officer applicant or his or her designee within a reasonable
40time period after service of the order upon the financial institution.

P50   1(D) Nothing in this subdivision shall preclude the financial
2institution from notifying a customer of the receipt of the order
3for production of records unless a court orders the financial
4institution to withhold notification to the customer upon a finding
5that the notice would impede the investigation.

6(E) Where a court has made an order pursuant to this paragraph
7to withhold notification to the customer under this paragraph, the
8peace officer or law enforcement agency who obtained the financial
9information shall notify the customer by delivering a copy of the
10ex parte order to the customer within 10 days of the termination
11of the investigation.

12(4) An order by a judge issued pursuant to subdivision (c) of
13Section 532f of the Penal Code.

14(5) No financial institution, or any officer, employee, or agent
15thereof, shall be liable to any person for any of the following:

16(A) Disclosing information to a probate court pursuant to
17Sections 2892 and 2893.

18(B) Disclosing information in response to a court order pursuant
19to paragraph (3).

20(C) Complying with a court order under this subdivision not to
21disclose to the customer, the order, or the dissemination of
22information pursuant to the court order.

23(o) Disclosure by a financial institution to a peace officer, as
24defined in Section 830.1 of the Penal Code, pursuant to the
25following:

26(1) Paragraph (1) of subdivision (a) of Section 1748.95 of the
27Civil Code, provided that the financial institution has first complied
28with the requirements of paragraph (2) of subdivision (a) and
29subdivision (b) of Section 1748.95 of the Civil Code.

30(2) Paragraph (1) of subdivision (a) of Section 4002 of the
31Financial Code, provided that the financial institution has first
32complied with the requirements of paragraph (2) of subdivision
33(a) and subdivision (b) of Section 4002 of the Financial Code.

34(3) Paragraph (1) of subdivision (a) of Section 22470 of the
35 Financial Code, provided that any financial institution that is a
36finance lender has first complied with the requirements of
37paragraph (2) of subdivision (a) and subdivision (b) of Section
3822470 of the Financial Code.

39(p) When the governing board of the Public Employees’
40Retirement System or the State Teachers’ Retirement System
P51   1certifies in writing to a financial institution that a benefit recipient
2has died and that transfers to the benefit recipient’s account at the
3financial institution from the retirement system occurred after the
4benefit recipient’s date of death, the financial institution shall
5furnish the retirement system with the name and address of any
6coowner, cosigner, or any other person who had access to the funds
7in the account following the date of the benefit recipient’s death,
8or if the account has been closed, the name and address of the
9person who closed the account.

10(q) When the retirement board of a retirement system established
11under the County Employees Retirement Law of 1937 certifies in
12writing to a financial institution that a retired member or the
13beneficiary of a retired member has died and that transfers to the
14account of the retired member or beneficiary of a retired member
15at the financial institution from the retirement system occurred
16after the date of death of the retired member or beneficiary of a
17retired member, the financial institution shall furnish the retirement
18system with the name and address of any coowner, cosigner, or
19any other person who had access to the funds in the account
20following the date of death of the retired member or beneficiary
21of a retired member, or if the account has been closed, the name
22and address of the person who closed the account.

23(r) When the Franchise Tax Board certifies in writing to a
24financial institution that (1) a taxpayer filed a tax return that
25authorized a direct deposit refund with an incorrect financial
26institution account or routing number that resulted in all or a
27portion of the refund not being received, directly or indirectly, by
28the taxpayer; (2) the direct deposit refund was not returned to the
29Franchise Tax Board; and (3) the refund was deposited directly
30on a specified date into the account of an accountholder of the
31financial institution who was not entitled to receive the refund,
32then the financial institution shall furnish to the Franchise Tax
33Board the name and address of any coowner, cosigner, or any other
34person who had access to the funds in the account following the
35date of direct deposit refund, or if the account has been closed, the
36name and address of the person who closed the account.

37

SEC. 39.  

Chapter 9.7 (commencing with Section 8790) of
38Division 1 of Title 2 of the Government Code is repealed.

P52   1

SEC. 40.  

The heading of Part 4.5 (commencing with Section
213975) of Division 3 of Title 2 of the Government Code is amended
3to read:

4 

5PART 4.5.  begin deleteBUSINESS, end deleteTRANSPORTATIONbegin delete AND HOUSINGend delete
6 AGENCY

7

 

8

SEC. 41.  

Section 13975.1 of the Government Code is amended
9and renumbered to read:

10

begin delete13975.1.end delete
11begin insert12896.end insert  

(a) This section applies to every action brought in the
12name of the people of the State of California by the Commissioner
13of Business Oversight before, on, or after the effective date of this
14section, when enforcing provisions of those laws administered by
15the Commissioner of Business Oversight which authorize the
16Commissioner of Business Oversight to seek a permanent or
17preliminary injunction, restraining order, or writ of mandate, or
18the appointment of a receiver, monitor, conservator, or other
19designated fiduciary or officer of the court, except actions brought
20against any of the licensees specified in subparagraphs (1) through
21 (8), inclusive, of subdivision (b) of Section 300 of the Financial
22Code that are governed by other law. Upon a proper showing, a
23permanent or preliminary injunction, restraining order, or writ of
24mandate shall be granted and a receiver, monitor, conservator, or
25other designated fiduciary or officer of the court may be appointed
26for the defendant or the defendant’s assets, or any other ancillary
27relief may be granted as appropriate. The court may order that the
28expenses and fees of the receiver, monitor, conservator, or other
29designated fiduciary or officer of the court, be paid from the
30property held by the receiver, monitor, conservator, or other court
31designated fiduciary or officer, but neither the state, the Business,
32Consumer Servicesbegin insert,end insert and Housing Agency, nor the Department of
33Business Oversight shall be liable for any of those expenses and
34fees, unless expressly provided for by written contract.

35(b) The receiver, monitor, conservator, or other designated
36fiduciary or officer of the court may do any of the following subject
37to the direction of the court:

38(1) Sue for, collect, receive, and take into possession all the real
39and personal property derived by any unlawful means, including
40property with which that property or the proceeds thereof has been
P53   1commingled if that property or the proceeds thereof cannot be
2identified in kind because of the commingling.

3(2) Take possession of all books, records, and documents
4relating to any unlawfully obtained property and the proceeds
5thereof. In addition, they shall have the same right as a defendant
6to request, obtain, inspect, copy, and obtain copies of books,
7records, and documents maintained by third parties that relate to
8unlawfully obtained property and the proceeds thereof.

9(3) Transfer, encumber, manage, control, and hold all property
10subject to the receivership, including the proceeds thereof, in the
11manner directed or ratified by the court.

12(4) Avoid a transfer of any interest in any unlawfully obtained
13property including the proceeds thereof to any person who
14committed, aided or abetted, or participated in the commission of
15unlawful acts or who had knowledge that the property had been
16unlawfully obtained.

17(5) Avoid a transfer of any interest in any unlawfully obtained
18property including the proceeds thereof made with the intent to
19hinder or delay the recovery of that property or any interest in it
20by the receiver or any person from whom the property was
21unlawfully obtained.

22(6) Avoid a transfer of any interest in any unlawfully obtained
23property including the proceeds thereof that was made within one
24year before the date of the entry of the receivership order if less
25than a reasonably equivalent value was given in exchange for the
26transfer, except that a bona fide transferee for value and without
27notice that the property had been unlawfully obtained may retain
28the interest transferred until the value given in exchange for the
29transfer is returned to the transferee.

30(7) Avoid a transfer of any interest in any unlawfully obtained
31property including the proceeds thereof made within 90 days before
32the date of the entry of the receivership order to a transferee from
33whom the defendant unlawfully obtained some property if (A) the
34receiver establishes that the avoidance of the transfer will promote
35a fair pro rata distribution of restitution among all people from
36whom defendants unlawfully obtained property and (B) the
37transferee cannot establish that the specific property transferred
38was the same property which had been unlawfully obtained from
39the transferee.

P54   1(8) Exercise any power authorized by statute or ordered by the
2court.

3(c) No person with actual or constructive notice of the
4receivership shall interfere with the discharge of the receiver’s
5duties.

6(d) No person may file any action or enforce or create any lien,
7or cause to be issued, served, or levied any summons, subpoena,
8attachment, or writ of execution against the receiver or any property
9subject to the receivership without first obtaining prior court
10approval upon motion with notice to the receiver and the
11Commissioner of Business Oversight. Any legal procedure
12described in this subdivision commenced without prior court
13approval is void except as to a bona fide purchaser or encumbrancer
14for value and without notice of the receivership. No person without
15notice of the receivership shall incur any liability for commencing
16or maintaining any legal procedure described by this subdivision.

17(e) The court has jurisdiction of all questions arising in the
18receivership proceedings and may make any orders and judgments
19as may be required, including orders after noticed motion by the
20receiver to avoid transfers as provided in paragraphs (4), (5), (6),
21and (7) of subdivision (b).

22(f) This section is cumulative to all other provisions of law.

23(g) If any provision of this section or the application thereof to
24any person or circumstances is held invalid, that invalidity shall
25not affect other provisions or applications of this section which
26can be given effect without the invalid provision or application,
27and to this end the provisions of this section are severable.

28(h) The recordation of a copy of the receivership order imparts
29constructive notice of the receivership in connection with any
30matter involving real property located in the county in which the
31receivership order is recorded.

32

SEC. 42.  

Section 13975.2 of the Government Code is amended
33to read:

34

13975.2.  

(a) This section applies to every action brought in
35the name of the people of the State of California by the Director
36of the Department of Managed Health Care before, on, or after the
37effective date of this section, when enforcing provisions of those
38laws administered by the Director of the Department of Managed
39Health Care which authorize the Director of Managed Health Care
40to seek a permanent or preliminary injunction, restraining order,
P55   1or writ of mandate, or the appointment of a receiver, monitor,
2conservator, or other designated fiduciary or officer of the court.
3Upon a proper showing, a permanent or preliminary injunction,
4restraining order, or writ of mandate shall be granted and a receiver,
5monitor, conservator, or other designated fiduciary or officer of
6the court may be appointed for the defendant or the defendant’s
7assets, or any other ancillary relief may be granted as appropriate.
8The court may order that the expenses and fees of the receiver,
9monitor, conservator, or other designated fiduciary or officer of
10the court, be paid from the property held by the receiver, monitor,
11conservator, or other court designated fiduciary or officer, but
12neither the state, thebegin delete Business, Transportation and Housing Agency,end delete
13begin insert Health and Human Services Agency,end insert nor the Department of
14Managed Health Care shall be liable for any of those expenses and
15fees, unless expressly provided for by written contract.

16(b) The receiver, monitor, conservator, or other designated
17fiduciary or officer of the court may do any of the following subject
18to the direction of the court:

19(1) Sue for, collect, receive, and take into possession all the real
20and personal property derived by any unlawful means, including
21property with which that property or the proceeds thereof has been
22commingled if that property or the proceeds thereof cannot be
23identified in kind because of the commingling.

24(2) Take possession of all books, records, and documents
25relating to any unlawfully obtained property and the proceeds
26thereof. In addition, they shall have the same right as a defendant
27to request, obtain, inspect, copy, and obtain copies of books,
28records, and documents maintained by third parties that relate to
29unlawfully obtained property and the proceeds thereof.

30(3) Transfer, encumber, manage, control, and hold all property
31subject to the receivership, including the proceeds thereof, in the
32manner directed or ratified by the court.

33(4) Avoid a transfer of any interest in any unlawfully obtained
34property including the proceeds thereof to any person who
35committed, aided or abetted, or participated in the commission of
36unlawful acts or who had knowledge that the property had been
37unlawfully obtained.

38(5) Avoid a transfer of any interest in any unlawfully obtained
39property including the proceeds thereof made with the intent to
40hinder or delay the recovery of that property or any interest in it
P56   1by the receiver or any person from whom the property was
2unlawfully obtained.

3(6) Avoid a transfer of any interest in any unlawfully obtained
4property including the proceeds thereof that was made within one
5year before the date of the entry of the receivership order if less
6than a reasonably equivalent value was given in exchange for the
7transfer, except that a bona fide transferee for value and without
8notice that the property had been unlawfully obtained may retain
9the interest transferred until the value given in exchange for the
10transfer is returned to the transferee.

11(7) Avoid a transfer of any interest in any unlawfully obtained
12property including the proceeds thereof made within 90 days before
13the date of the entry of the receivership order to a transferee from
14whom the defendant unlawfully obtained some property if (A) the
15receiver establishes that the avoidance of the transfer will promote
16a fair pro rata distribution of restitution among all people from
17whom defendants unlawfully obtained property and (B) the
18transferee cannot establish that the specific property transferred
19was the same property that had been unlawfully obtained from the
20transferee.

21(8) Exercise any power authorized by statute or ordered by the
22court.

23(c) No person with actual or constructive notice of the
24receivership shall interfere with the discharge of the receiver’s
25duties.

26(d) No person may file any action or enforce or create any lien,
27or cause to be issued, served, or levied any summons, subpoena,
28attachment, or writ of execution against the receiver or any property
29subject to the receivership without first obtaining prior court
30approval upon motion with notice to the receiver and the Director
31of the Department of Managed Health Care. Any legal procedure
32described in this subdivision commenced without prior court
33approval is void except as to a bona fide purchaser or encumbrancer
34for value and without notice of the receivership. No person without
35notice of the receivership shall incur any liability for commencing
36or maintaining any legal procedure described by this subdivision.

37(e) The court shall have jurisdiction of all questions arising in
38the receivership proceedings and may make any orders and
39judgments as may be required, including orders after noticed
P57   1motion by the receiver to avoid transfers as provided in paragraphs
2(4), (5), (6), and (7) of subdivision (b).

3(f) This section is cumulative to all other provisions of law.

4(g) If any provision of this section or the application thereof to
5any person or circumstances is held invalid, that invalidity shall
6not affect other provisions or applications of this section that can
7be given effect without the invalid provision or application, and
8to this end the provisions of this section are severable.

9(h) The recordation of a copy of the receivership order imparts
10 constructive notice of the receivership in connection with any
11matter involving real property located in the county in which the
12receivership order is recorded.

13

SEC. 43.  

Section 13978.6 of the Government Code is amended
14and renumbered to read:

15

begin delete13978.6.end delete
16begin insert12895.end insert  

(a) There is in the Business, Consumer Services, and
17Housing Agency a Department of Business Oversight containing
18the Division of Corporations, which has the responsibility for
19administering various laws. In order to effectively support the
20Division of Corporations in the administration of these laws, there
21is hereby established the State Corporations Fund. All expenses
22and salaries of the Division of Corporations shall be paid out of
23the State Corporations Fund. Therefore, notwithstanding any
24provision of any law administered by the Division of Corporations
25declaring that fees, reimbursements, assessments, or other money
26or amounts charged and collected by the Division of Corporations
27under these laws are to be delivered or transmitted to the Treasurer
28and deposited to the credit of the General Fund, all fees,
29reimbursements, assessments, and other money or amounts charged
30and collected under these laws shall be delivered or transmitted to
31the Treasurer and deposited to the credit of the State Corporations
32Fund.

33(b) Funds appropriated from the State Corporations Fund and
34made available for expenditure for any law or program of the
35Division of Corporations may come from the following:

36(1) Fees and any other amounts charged and collected pursuant
37to Section 25608 of the Corporations Code, except for fees and
38other amounts charged and collected pursuant to subdivisions (o)
39to (r), inclusive, of Section 25608 of the Corporations Code.

P58   1(2) Fees collected pursuant to subdivisions (a), (b), (c), and (d)
2of Section 25608.1 of the Corporations Code.

3

SEC. 44.  

Section 13995.40.5 of the Government Code is
4amended to read:

5

13995.40.5.  

begin delete(a)end delete Notwithstanding subdivision (d) of Section
613995.40, the number of commissioners elected from each industry
7category shall be determined by the weighted percentage of
8assessments from that category, except that no more than six
9commissioners shall be elected from the passenger car rental
10category.

begin delete

11(b) This section shall become operative only if the Secretary of
12Business, Transportation and Housing provides notice to the
13Legislature and the Secretary of State and posts notice on its
14Internet Web site that the conditions described in Section 13995.92
15have been satisfied.

end delete
16

SEC. 45.  

Chapter 5 (commencing with Section 13999) of Part
174.7 of Division 3 of Title 2 of the Government Code is repealed.

18

SEC. 46.  

Section 51298 of the Government Code is amended
19to read:

20

51298.  

It is the intent of the Legislature in enacting this chapter
21to provide local governments with opportunities to attract large
22manufacturing facilities to invest in their communities and to
23encourage industries, such as high technology, aerospace,
24automotive, biotechnology, software, environmental sources, and
25others, to locate and invest in those facilities in California.

26(a) Commencing in the 1998-99 fiscal year, the governing body
27of a county, city and county, or city, may, by means of an ordinance
28or resolution approved by a majority of its entire membership,
29elect to establish a capital investment incentive program. In any
30county, city and county, or city in which the governing body has
31so elected, the county, city and county, or city shall, upon the
32approval by a majority of the entire membership of its governing
33body of a written request therefor, pay a capital investment
34incentive amount to the proponent of a qualified manufacturing
35facility for up to 15 consecutive fiscal years. A request for the
36payment of capital investment incentive amounts shall be filed by
37a proponent in writing with the governing body of an electing
38county, city and county, or city in the time and manner specified
39in procedures adopted by that governing body. In the case in which
40the governing body of an electing county, city and county, or city
P59   1approves a request for the payment of capital investment incentive
2amounts, both of the following conditions shall apply:

3(1) The consecutive fiscal years during which a capital
4investment incentive amount is to be paid shall commence with
5the first fiscal year commencing after the date upon which the
6qualified manufacturing facility is certified for occupancy or, if
7no certification is issued, the first fiscal year commencing after
8the date upon which the qualified manufacturing facility
9commences operation.

10(2) In accordance with paragraph (4) of subdivision (d), the
11annual payment to a proponent of each capital investment incentive
12amount shall be contingent upon the proponent’s payment of a
13community services fee.

14(b) For purposes of this section:

15(1) “Qualified manufacturing facility” means a proposed
16manufacturing facility that meets all of the following criteria:

17(A) The proponent’s initial investment in that facility, in real
18and personal property, necessary for the full and normal operation
19of that facility, made pursuant to the capital investment incentive
20program, that comprises any portion of that facility or has its situs
21at that facility, exceeds one hundred fifty million dollars
22($150,000,000). Compliance with this subparagraph shall be
23certified by thebegin delete Business, Transportation and Housing Agencyend delete
24begin insert Governor’s Office of Business and Economic Developmentend insert upon
25the agency’s approval of a proponent’s application for certification
26of a qualified manufacturing facility. An application for
27certification shall be submitted by a proponent to the agency in
28writing in the time and manner as specified by the agency.

29(B) The facility is to be located within the jurisdiction of the
30electing county, city and county, or city to which the request is
31made for payment of capital investment incentive amounts.

32(C) The facility is operated by any of the following:

33(i) A business described in Codes 3500 to 3899, inclusive, of
34the Standard Industrial Classification (SIC) Manual published by
35the United States Office of Management and Budget, 1987 edition,
36except that “January 1, 1997,” shall be substituted for “January 1,
371994,” in each place in which it appears.

38(ii) A business engaged in the recovery of minerals from
39geothermal resources, including the proportional amount of a
P60   1geothermal electric generating plant that is integral to the recovery
2process by providing electricity for it.

3(iii) A business engaged in the manufacturing of parts or
4components related to the production of electricity using solar,
5wind, biomass, hydropower, or geothermal resources on or after
6July 1, 2010.

7(D) The proponent is either currently engaged in commercial
8production or engaged in the perfection of the manufacturing
9process, or the perfection of a product intended to be manufactured.

10(2) “Proponent” means a party or parties that meet all of the
11following criteria:

12(A) The party is named in the application to the county, city
13and county, or city within which the qualified manufacturing
14facility would be located for a permit to construct a qualified
15manufacturing facility.

16(B) The party will be the fee owner of the qualified
17manufacturing facility upon the completion of that facility.
18Notwithstanding the previous sentence, the party may enter into
19a sale-leaseback transaction and nevertheless be considered the
20proponent.

21(C) If a proponent that is receiving capital investment incentive
22amounts subsequently leases the subject qualified manufacturing
23facility to another party, the lease may provide for the payment to
24that lessee of any portion of a capital investment incentive amount.
25Any lessee receiving any portion of a capital investment incentive
26amount shall also be considered a proponent for the purposes of
27subdivision (d).

28(3) “Capital investment incentive amount” means, with respect
29to a qualified manufacturing facility for a relevant fiscal year, an
30amount up to or equal to the amount of ad valorem property tax
31revenue derived by the participating local agency from the taxation
32of that portion of the total assessed value of that real and personal
33property described in subparagraph (A) of paragraph (1) that is in
34excess of one hundred fifty million dollars ($150,000,000).

35(4) “Manufacturing” means the activity of converting or
36conditioning property by changing the form, composition, quality,
37or character of the property for ultimate sale at retail or use in the
38manufacturing of a product to be ultimately sold at retail.
39Manufacturing includes any improvements to tangible personal
P61   1property that result in a greater service life or greater functionality
2than that of the original property.

3(c) A city or special district may, upon the approval by a
4majority of the entire membership of its governing body, pay to
5the county, city and county, or city an amount equal to the amount
6of ad valorem property tax revenue allocated to that city or special
7district, but not the actual allocation, derived from the taxation of
8that portion of the total assessed value of that real and personal
9property described in subparagraph (A) of paragraph (1) of
10subdivision (b) that is in excess of one hundred fifty million dollars
11($150,000,000).

12(d) A proponent whose request for the payment of capital
13investment incentive amounts is approved by an electing county,
14city and county, or city shall enter into a community services
15agreement with that county, city and county, or city that includes,
16but is not limited to, all of the following provisions:

17(1) A provision requiring that a community services fee be
18remitted by the proponent to the county, city and county, or city,
19in each fiscal year subject to the agreement, in an amount that is
20equal to 25 percent of the capital investment incentive amount
21calculated for that proponent for that fiscal year, except that in no
22fiscal year shall the amount of the community services fee exceed
23two million dollars ($2,000,000).

24(2) A provision specifying the dates in each relevant fiscal year
25upon which payment of the community services fee is due and
26delinquent, and the rate of interest to be charged to a proponent
27for any delinquent portion of the community services fee amount.

28(3) A provision specifying the procedures and rules for the
29determination of underpayments or overpayments of a community
30services fee, for the appeal of determinations of any underpayment,
31and for the refunding or crediting of any overpayment.

32(4) A provision specifying that a proponent is ineligible to
33receive a capital investment incentive amount if that proponent is
34currently delinquent in the payment of any portion of a community
35services fee amount, if the qualified manufacturing facility is
36constructed in a manner materially different from the facility as
37described in building permit application materials, or if the facility
38is no longer operated as a qualified manufacturing facility meeting
39the requirements of paragraph (1) of subdivision (b). If a proponent
40becomes ineligible to receive a capital investment incentive amount
P62   1as a result of an agreement provision included pursuant to this
2subparagraph, the running of the number of consecutive fiscal
3years specified in an agreement made pursuant to subdivision (a)
4is not tolled during the period in which the proponent is ineligible.

5(5) A provision that sets forth a job creation plan with respect
6to the relevant qualified manufacturing facility. The plan shall
7specify the number of jobs to be created by that facility, and the
8types of jobs and compensation ranges to be created thereby. The
9plan shall also specify that for the entire term of the community
10services agreement, both of the following shall apply:

11(A) All of the employees working at the qualified manufacturing
12facility shall be covered by an employer-sponsored health benefits
13plan.

14(B) The average weekly wage, exclusive of overtime, paid to
15all of the employees working at the qualified manufacturing
16facility, who are not management or supervisory employees, shall
17be not less than the state average weekly wage.

18For the purpose of this subdivision, “state average weekly wage”
19means the average weekly wage paid by employers to employees
20covered by unemployment insurance, as reported to the
21Employment Development Department for the four calendar
22quarters ending June 30 of the preceding calendar year.

23(6) (A)   In the case in which the proponent fails to operate the
24qualified manufacturing facility as required by the community
25services agreement, a provision that requires the recapture of any
26portion of any capital investment incentive amounts previously
27paid to the proponent equal to the lesser of the following:

28(i) All of the capital investment incentive amounts paid to the
29proponent, less all of the community services fees received from
30the proponent, and less any capital investment incentive amounts
31previously recaptured.

32(ii) The last capital investment incentive amount paid to the
33proponent, less the last community services fee received from the
34proponent, multiplied by 40 percent of the number of years
35remaining in the community services agreement, but not to exceed
3610 years, and less any capital investment incentive amounts
37previously recaptured.

38(B) If the proponent fails to operate the qualified manufacturing
39facility as required by the community services agreement, the
40county, city and county, or city may, upon a finding that good
P63   1cause exists, waive any portion of the recapture of any capital
2investment incentive amount due under this subdivision. For the
3purpose of this subdivision, good cause includes, but is not limited
4to, the following:

5(i) The proponent has sold or leased the property to a person
6who has entered into an agreement with the county, city and
7county, or city to assume all of the responsibilities of the proponent
8under the community services agreement.

9(ii) The qualified manufacturing facility has been rendered
10inoperable and beyond repair as a result of an act of God.

11(C) For purposes of this subdivision, failure to operate a
12qualified manufacturing facility as required by the community
13services agreement includes, but is not limited to, failure to
14establish the number of jobs specified in the jobs creation plan
15created pursuant to paragraph (5).

16(e) (1)   Each county, city and county, or city that elects to
17establish a capital investment incentive program shall notify the
18begin delete Business, Transportation and Housing Agencyend deletebegin insert end insertbegin insertGovernor’s Office
19of Business and Economic Developmentend insert
of its election to do so no
20later than June 30th of the fiscal year in which the election was
21made.

22(2) In addition to the information required to be reported
23pursuant to paragraph (1), each county, city and county, or city
24that has elected to establish a capital investment incentive program
25shall notify thebegin delete Business, Transportation and Housing Agencyend deletebegin insert end insert
26begin insertGovernor’s Office of Business and Economic Developmentend insert each
27fiscal year no later than June 30th of the amount of any capital
28investment incentive payments made and the proponent of the
29qualified manufacturing facility to whom the payments were made
30during that fiscal year.

31(3) Thebegin delete Business, Transportation and Housing Agencyend deletebegin insert end insert
32begin insertGovernor’s Office of Business and Economic Developmentend insert shall
33compile the information submitted by each county, city and county,
34and city pursuant to paragraphs (1) and (2) and submit a report to
35the Legislature containing this information no later than October
361, every two years commencing October 1, 2000.

begin delete

37(f) This section shall become operative on July 1, 2013.

end delete
38

SEC. 47.  

Section 65040.9 of the Government Code is amended
39to read:

P64   1

65040.9.  

(a) On or before January 1, 2004, the Office of
2Planning and Research shall, if sufficient federal funds become
3available for this purpose, prepare and publish an advisory planning
4handbook for use by local officials, planners, and builders that
5explains how to reduce land use conflicts between the effects of
6civilian development and military readiness activities carried out
7on military installations, military operating areas, military training
8areas, military training routes, and military airspace, and other
9territory adjacent to those installations and areas.

10(b) At a minimum, the advisory planning handbook shall include
11advice regarding all of the following:

12(1) The collection and preparation of data and analysis.

13(2) The preparation and adoption of goals, policies, and
14standards.

15(3) The adoption and monitoring of feasible implementation
16measures.

17(4) Methods to resolve conflicts between civilian and military
18land uses and activities.

19(5) Recommendations for cities and counties to provide drafts
20of general plan and zoning changes that may directly impact
21military facilities, and opportunities to consult with the military
22base personnel prior to approving development adjacent to military
23facilities.

24(c) In preparing the advisory planning handbook, the office shall
25begin delete collaborate with the Office of Military Base Retention and Reuse
26and the Business, Transportation and Housing Agency. The office
27shallend delete
consult with persons and organizations with knowledge and
28experience in land use issues affecting military installations and
29activities.

30(d) The office may accept and expend any grants and gifts from
31any source, public or private, for the purposes of this section.

32

SEC. 48.  

Section 66620 of the Government Code is amended
33to read:

34

66620.  

The San Francisco Bay Conservation and Development
35Commission is hereby created. The commission shall consist of
3627 members, as follows:

37(a) One member appointed by the Division Engineer, United
38States Army Engineers, South Pacific Division, from his or her
39staff.

P65   1(b) One member appointed by the Administrator of the United
2States Environmental Protection Agency, from his or her staff.

3(c) One member appointed by the Secretary ofbegin delete Business and
4Transportation,end delete
begin insert Transportationend insert from his or her staff.

5(d) One member appointed by the Director of Finance, from his
6or her staff.

7(e) One member appointed by the Secretary of Resources, from
8his or her staff.

9(f) One member appointed by the State Lands Commission,
10who shall be a member of that commission or from its staff.

11(g) One member appointed by the San Francisco Bay Regional
12Water Quality Control Board, who shall be a member of that board.

13(h) Nine county representatives consisting of one member of
14the board of supervisors representative of each of the nine San
15Francisco Bay area counties, appointed by the board of supervisors
16in each county. Each county representative shall be a supervisor
17representing a supervisorial district which includes within its
18boundaries lands lying within San Francisco Bay.

19(i) Four city representatives appointed by the Association of
20Bay Area Governments from among the residents of the bayside
21cities in each of the following areas:


22(1) North Bay--Marin, Sonoma, Napa, and Solano Counties;


23(2) East Bay--Contra Costa County (west of Pittsburg) and
24Alameda County north of the southern boundary of Hayward;


25(3) South Bay--Alameda County south of the southern
26boundary of Hayward, Santa Clara County, and San Mateo
27County south of the northern boundary of Redwood City;


28(4) West Bay--San Mateo County north of the northern
29boundary of Redwood City, and the City and County of San
30Francisco.

31Each city representative shall be an elected city official.

32(j) Seven representatives of the public, who shall be residents
33of the San Francisco Bay area. Five of the representatives shall be
34appointed by the Governor and their appointments shall be subject
35to confirmation by the Senate. One of the representatives shall be
36appointed by the Committee on Rules of the Senate, and one by
37the Speaker of the Assembly.

38

SEC. 49.  

Section 44272.5 of the Health and Safety Code is
39amended to read:

P66   1

44272.5.  

(a) The commission shall develop and adopt an
2investment plan to determine priorities and opportunities for the
3Alternative and Renewable Fuel and Vehicle Technology Program
4created pursuant to this chapter. The investment plan shall establish
5priorities for investment of funds and technologies to achieve the
6goals of this chapter and describe how funding will complement
7existing public and private investments, including existing state
8programs that further the goals of this chapter. The commission
9shall create and consult with an advisory body as it develops the
10investment plan. The advisory body is subject to the Bagley-Keene
11Open Meeting Act (Article 9 (commencing with Section 11120)
12of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
13Code). The commission shall, at a minimum, hold one public
14hearing on the advisory body’s recommendations prior to approving
15the investment plan.

16(b) Membership of the advisory body created pursuant to
17subdivision (a) shall include, but is not limited to, representatives
18of fuel and vehicle technology entities, labor organizations,
19environmental organizations, community-based justice and public
20health organizations, recreational boaters, consumer advocates,
21academic institutions, workforce training groups, and private
22industry. The advisory body shall also include representatives from
23the Resources Agency, thebegin delete Business, Transportation and Housing
24Agency,end delete
begin insert Transportation Agency,end insert the Labor and Workforce
25Development Agency, and the California Environmental Protection
26Agency.

27(c) The commission shall hold at least three public workshops
28in different regions of the state and one public hearing prior to
29approving the investment plan. The commission shall annually
30update and approve the plan. The commission shall reconvene and
31consult with the advisory body created pursuant to subdivision (a)
32prior to annually updating and approving the plan.

33

SEC. 50.  

Section 12414.31 of the Insurance Code is amended
34to read:

35

12414.31.  

(a) (1) Whenever the commissioner takes any
36formal enforcement or disciplinary action directly against an
37employee of a title insurer, underwritten title company, or
38controlled escrow company, for malfeasance or misconduct
39committed by the employee in his or her performance of escrow
40related services, upon the action becoming final the commissioner
P67   1shall notify the Real Estate Commissioner and the Commissioner
2ofbegin delete Corporationsend deletebegin insert end insertbegin insertBusiness Oversightend insert of the action or actions taken.
3The purpose of this notification is to alert the departments that
4enforcement or disciplinary action has been taken, if the employee
5seeks or obtains employment with entities regulated by the
6departments.

7(2) The commissioner shall provide the Real Estate
8Commissioner and the Commissioner ofbegin delete Corporations,end deletebegin insert Business
9Oversight,end insert
in addition to the notification of the action taken, with
10a copy of the written accusation, statement of issues, or order issued
11or filed in the matter and, at the request of the Real Estate
12Commissioner or Commissioner ofbegin delete Corporations,end deletebegin insert Business
13Oversight,end insert
with any underlying factual material relevant to the
14enforcement or disciplinary action. Any confidential information
15provided by the commissioner to the Commissioner ofbegin delete Corporationsend deletebegin insert end insert
16begin insertBusiness Oversightend insert or the Real Estate Commissioner shall not be
17made public pursuant to this section. Notwithstanding any other
18begin delete provision ofend delete law, the disclosure of any underlying factual material
19to the Commissioner ofbegin delete Corporationsend deletebegin insert end insertbegin insertBusiness Oversightend insert or the
20Real Estate Commissioner shall not operate as a waiver of
21confidentiality or any privilege that the commissioner may assert.

22(b) The commissioner shall establish and maintain, on the Web
23site maintained by the Department of Insurance, a separate and
24readily identifiable database of all persons who have been subject
25to any enforcement or disciplinary action that triggers the
26notification requirements of this section. The database shall also
27contain a direct link to the databases, described in Section 10176.1
28of the Business and Professions Code and Section 17423.1 of the
29Financial Code and required to be maintained on the Web sites of
30the Bureau of Real Estate and the Department ofbegin delete Corporations,end delete
31begin insert Business Oversight,end insert respectively, of persons who have been subject
32to enforcement or disciplinary action for malfeasance or
33misconduct related to the escrow industry by the Commissioner
34ofbegin delete Corporationsend deletebegin insert end insertbegin insertBusiness Oversightend insert and the Real Estate
35Commissioner.

36(c) There shall be no liability on the part of, and no cause of
37action of any nature shall arise against, the State of California, the
38Department of Insurance, the Insurance Commissioner, any other
39state agency, or any officer, agent, employee, consultant, or
40contractor of the state, for the release of any false or unauthorized
P68   1information pursuant to this section, unless the release of that
2information was done with knowledge and malice, or for the failure
3to release any information pursuant to this section.

4

SEC. 51.  

Section 12710 of the Insurance Code is amended to
5read:

6

12710.  

The California Major Risk Medical Insurance Program
7is hereby created in the Health and Welfare Agency. The program
8shall be managed by the Major Risk Medical Insurance Board.
9The board shall consist of seven members, five of whom shall be
10appointed as follows:

11The Governor shall appoint three members, subject to
12confirmation by the Senate, and shall designate one of these
13appointees as chair of the board. The Senate Committee on Rules
14shall appoint one member. The Speaker of the Assembly shall
15appoint one member. The terms of appointment shall be four years.

16Thebegin delete Secretary of Business, Transportation and Housing, or his
17or her designee, and theend delete
Secretary ofbegin insert Californiaend insert Health andbegin delete Welfareend delete
18begin insert Human Servicesend insert, or his or her designee, shall serve on the board
19as ex officio, nonvoting members.

20The board shall appoint an executive director for the board, who
21shall serve at the pleasure of the board. The executive director
22shall receive the salary established by the Department of Human
23Resources for exempt officials. The executive director shall
24administer the affairs of the board as directed by the board, and
25shall direct the staff of the board. The executive director may
26appoint, with the approval of the board, staff necessary to carry
27out the provisions of this part.

28

SEC. 52.  

Section 2802 of the Penal Code is amended to read:

29

2802.  

Commencing July 1, 2005, there is hereby continued in
30existence within the Department of Corrections and Rehabilitation
31a Prison Industry Board. The board shall consist of the following
3211 members:

33(a) The Secretary of the Department of Corrections and
34Rehabilitation, or his or her designee.

35(b) The Director of the Department of General Services, or his
36or her designee.

37(c) The Secretary ofbegin delete Business, Transportation and Housing,end delete
38begin insert Transportation,end insert or his or her designee.

39(d) The Speaker of the Assembly shall appoint two members
40to represent the general public.

P69   1(e) The Senate Committee on Rules shall appoint two members
2to represent the general public.

3(f) The Governor shall appoint four members. Of these, two
4shall be representatives of organized labor, and two shall be
5representatives of industry. The initial term of one of the members
6appointed by the Speaker of the Assembly shall be two years, and
7the initial term of the other shall be three years. The initial term
8of one of the members appointed by the Senate Committee on
9Rules shall be two years, and the initial term of the other shall be
10three years. The initial terms of the four members appointed by
11the Governor shall be four years. All subsequent terms of all
12members shall be for four years. Each member’s term shall
13continue until the appointment and qualification of his or her
14successor.

15

SEC. 53.  

Section 22003 of the Public Utilities Code is amended
16to read:

17

22003.  

begin delete(a)end deletebegin deleteend deleteUnless the context otherwise requires, the
18definitions and general provisions contained in this chapter govern
19the construction of this part.

begin delete

20(b) “Spaceport” and associated terms contained in this part shall
21be defined pursuant to Section 13999.1 of the Government Code.

end delete
22

SEC. 54.  

Section 22553.2 of the Public Utilities Code is
23repealed.

begin delete
24

22553.2.  

No district may exercise any of the authority granted
25under this part for the development of spaceports unless it has been
26designated as a spaceport pursuant to Section 13999.3 of the
27Government Code.

end delete


O

    99