SB 1290, as amended, Mendoza. Commissioner of Business Oversight: California Finance Lenders Law: 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,begin delete theend deletebegin insert thisend insert 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.begin insert Not later than January 1, 2020, the bill would require the commissioner to
submit a report to the Legislature regarding the impacts of the consolidated examination procedure on consumers and licensees. The bill would repeal these provisions on January 1, 2021.end insert
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 22701.5 is added to the Financial Code,
2to read:
(a) When conducting an examination of a finance
4lender or broker that is under common ownership with one or more
5other persons licensed under this division, the commissioner shall
6conduct a single consolidated examination that includes all persons
7licensed under this division that share the same common ownership.
8For purposes of this section, “common ownership” means two or
9more licensees that are wholly owned by the same person.
10(b) All books, accounts, papers, records, and files required by
11the commissioner in connection with a consolidated examination
12may be provided to the commissioner in electronic format.
13(c) Notwithstanding subdivisions (a) and (b), the commissioner
14
shall retain the right to conduct periodic onsite investigations and
15examinations of a licensee’s physical location for business to
16ensure compliance with this division.
17
(d) Not later than January 1, 2020, the commissioner shall
18submit a report to the Legislature regarding the impacts of the
19consolidated examination procedure on consumers and licensees.
20This report shall be submitted in compliance with Section 9795 of
21the Government Code.
22
(e) This section shall be repealed on January 1, 2021.
Section 23046.5 is added to the Financial Code, to
24read:
(a) When conducting an investigation of a licensee
26that is under common ownership with one or more other persons
P3 1licensed under this division, the commissioner shall conduct a
2single consolidated examination that includes all persons licensed
3under this division that share the same common ownership. For
4purposes of this section, “common ownership” means two or more
5licensees that are wholly owned by the same person.
6(b) All books, accounts, papers, records, and files required by
7the commissioner in connection with a consolidated examination
8may be provided to the commissioner in electronic format.
9(c) Notwithstanding subdivisions (a) and (b), the commissioner
10shall retain the right to conduct periodic onsite investigations and
11examinations of a licensee’s physical location for business to
12ensure compliance with this division.
13
(d) Not later than January 1, 2020, the commissioner shall
14submit a report to the Legislature regarding the impacts of the
15consolidated examination procedure on consumers and licensees.
16This report shall be submitted in compliance with Section 9795 of
17the Government Code.
18
(e) This section shall be repealed on January 1, 2021.
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