BILL NUMBER: SB 1290	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 28, 2016

INTRODUCED BY   Senator Mendoza

                        FEBRUARY 19, 2016

    An act to amend Section 22701 of the Financial Code,
relating to finance lenders.   An act to add Sections
22701.5 and 23046.5 to the Financial Code, relating to the
Commissioner of Business Oversight. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1290, as amended, Mendoza.  Commissioner of Business
Oversight:  California Finance Lenders Law: 
Commissioner of Business Oversight: duties.   California
Deferred Deposit Transaction Law.  
   Existing law, the California Finance Lenders Law, provides for the
licensure and regulation of finance lenders and brokers by the
Commissioner of Business Oversight. Existing law, the California
Deferred Deposit Transaction Law, provides for the licensure and
regulation by the commissioner of persons engaged in the business of
making or arranging deferred deposit transactions.  
   For the purpose of discovering violations of the law or for
enforcement purposes, the commissioner is authorized to investigate
the business of these licensees, and examine the books, accounts,
records, and files used in the business, of every person engaged in
those business activities, whether the person acts or claims to act
as principal or agent, or under or without the authority of those
laws. For the purpose of examination, the commissioner is required to
have free access to the offices and places of business, books,
accounts, papers, records, files, safes, and vaults of all these
persons.  
   When conducting an examination or investigation of a licensee that
is under common ownership with one or more other persons licensed
under the law, the bill would require the commissioner to conduct a
single consolidated examination that includes all licensees that
share the same common ownership, as defined. The bill would authorize
all books, accounts, papers, records, and files required by the
commissioner in connection with a consolidated examination to be
provided in electronic format.  
   The California Finance Lenders Law generally provides for the
licensure and regulation of finance lenders and brokers by the
Commissioner of Business Oversight. The law authorizes the
commissioner, for the purpose of discovering violations of the law or
securing information required by him or her in the administration
and enforcement of the law, to investigate the loans and business,
and examine the books, accounts, records, and files used in the
business of every person engaged in the business of a finance lender
or broker.  
   This bill would require the commissioner to establish protocols
that allow a licensee under this law to comply with the commissioner'
s investigations by using an electronic filing program. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 22701.5 is added to the 
 Financial Code   , to read:  
   22701.5.  (a) When conducting an examination of a finance lender
or broker that is under common ownership with one or more other
persons licensed under this division, the commissioner shall conduct
a single consolidated examination that includes all persons licensed
under this division that share the same common ownership. For
purposes of this section, "common ownership" means two or more
licensees that are wholly owned by the same person.
   (b) All books, accounts, papers, records, and files required by
the commissioner in connection with a consolidated examination may be
provided to the commissioner in electronic format.
   (c) Notwithstanding subdivisions (a) and (b), the commissioner
shall retain the right to conduct periodic onsite investigations and
examinations of a licensee's physical location for business to ensure
compliance with this division. 
   SEC. 2.    Section 23046.5 is added to the  
Financial Code   , to read:  
   23046.5.  (a) When conducting an investigation of a licensee that
is under common ownership with one or more other persons licensed
under this division, the commissioner shall conduct a single
consolidated examination that includes all persons licensed under
this division that share the same common ownership. For purposes of
this section, "common ownership" means two or more licensees that are
wholly owned by the same person.
   (b) All books, accounts, papers, records, and files required by
the commissioner in connection with a consolidated examination may be
provided to the commissioner in electronic format.
   (c) Notwithstanding subdivisions (a) and (b), the commissioner
shall retain the right to conduct periodic onsite investigations and
examinations of a licensee's physical location for business to ensure
compliance with this division.  
  SECTION 1.    Section 22701 of the Financial Code
is amended to read:
   22701.  (a) For the purpose of discovering violations of this
division or securing information required by him or her in the
administration and enforcement of this division, the commissioner may
at any time investigate the loans and business, and examine the
books, accounts, records, and files used in the business, of every
person engaged in the business of a finance lender or broker, whether
the person acts or claims to act as principal or agent, or under or
without the authority of this division. For the purpose of
examination, the commissioner and his or her representatives shall
have free access to the offices and places of business, books,
accounts, papers, records, files, safes, and vaults of all these
persons.
   (b) The commissioner shall establish protocols that allow a
licensee to comply with the commissioner's investigations pursuant to
subdivision (a) by using an electronic filing program.