BILL ANALYSIS                                                                                                                                                                                                    

                                                                    AB 2907

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          2907 (Committee on Banking and Finance)

          As Amended  June 22, 2016

          Majority vote

          |ASSEMBLY:  |76-0  |(May 2, 2016)  |SENATE: | 37-0 |(August 11,      |
          |           |      |               |        |      |2016)            |
          |           |      |               |        |      |                 |
          |           |      |               |        |      |                 |

          Original Committee Reference:  B. & F.

          SUMMARY:  Makes technical and non-substantive changes to  
          provisions of the Financial Code.  Specifically, this bill:

          1)Updates cross-references that changed due to prior  
            re-organization of the Financial Code.
          2)Modifies the definition of "telephonic seller" or "seller" to  
            remove an outdated reference.

          3)Makes a technical, nonsubstantive change to include a  
            cross-reference to a specific type of order issued by the  
            Commissioner of the Department of Business Oversight (DBO)  
            within a procedure for a person to request a hearing regarding  
            that order and updates a reference to the commissioner seeking  
            "administrative" relief to instead refer to seeking  
            "ancillary" relief.


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          4)Makes technical, nonsubstantive changes to update references  
            to the Office of Thrift Supervision (OTS) to instead refer to  
            the Office of the Comptroller of the Currency (OCC).

          5)Reinserts a provision that was mistakenly allowed to sunset,  
            which clarifies what information is sufficient on a statement  
            of account sent or made available by a bank to a customer to  
            reasonably identify items paid.  The language being  
            re-inserted clarifies that a statement of account provides  
            sufficient information if the item is described by item  
            number, amount, and date of payment.

          The Senate amendments added 5) above, and made technical  

          EXISTING LAW:  

          1)Existing law abolished the Department of Corporations, the  
            Commissioner of Corporations, the Department of Financial  
            Institutions, and the Commissioner of Financial Institutions  
            and transferred the powers, duties, responsibilities, and  
            functions of those entities and officers to the DBO and the  
            Commissioner of Business Oversight.
          2)Existing law regulates telephonic sellers, as defined, and  
            requires, among other things, a telephonic seller to, not less  
            than 10 days prior to doing business in this state, register  
            specific information with the Department of Justice.

          3)The Corporate Securities Law of 1968 authorizes the  
            Commissioner of Business Oversight to enforce its provisions,  
            including the power to issue an order for a violation of that  
            law, and, under certain conditions, make claim for ancillary  

          4)Under federal law, the OTS merged with the OCC.

          FISCAL EFFECT:  None


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          COMMENTS:  This bill is an omnibus committee bill that makes  
          technical and clarifying changes to statutes under the  
          jurisdiction of the Banking & Finance Committee.

          Analysis Prepared by:                                             
                          Mark Farouk / B. & F. / (916) 319-3081  FN: