BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 537
                                                                  Page  1

          Date of Hearing:   July 3, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

            SB 537 (Committee on Banking and Financial Institutions) - As  
                               Amended:  May 16, 2013 

          Policy Committee:                             Banking and  
          Finance      Vote:                            11-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill makes technical and clarifying changes to the  
          Financial Code administered by the Department of Financial  
          Institutions (DFI) and to provisions of the Franchise Investment  
          Law administered by the Department of Corporations (DOC).   
          Specifically, this bill:   

          1)Within the Franchise Investment Law, standardizes the period  
            of time in which franchisors must deliver disclosure documents  
            to prospective franchisees at 14 calendar days, and updates  
            state law references to the document used by franchisors to  
            provide specified information to prospective franchisees, by  
            referring to this document as a "franchise disclosure  
            document" rather than an "offering circular."

          2)Within the Financial Code, corrects a heading reference,  
            updates state law to reflect changes in minimum levels of  
            federal deposit insurance limits, deletes references to  
            obsolete code sections, corrects incorrect code section  
            references, restores code section references that were  
            inadvertently deleted, and adds clarifying language and  
            definitions.  

           FISCAL EFFECT  

          Negligible fiscal impact.

           COMMENTS 

           1)Purpose.   According to the author, SB 537 is intended to enact  








                                                                  SB 537
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            technical clean-up to various sections of law administered by  
            DFI and DOC.  These changes will not interfere with the  
            upcoming reorganization of these departments into divisions of  
            the new Department of Business Oversight.

           2)Background  .  Last year the Legislature acted on the Governor's  
            Reorganization Plan No. 2, which assigns and reorganizes the  
            functions of state government among executive offices and  
            agencies.  Among the many changes was the reorganization of  
            DOC and DFI into a new department.

           3)There is no registered opposition to this bill.
                                    

           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081