BILL NUMBER: AB 33	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Nava

                        DECEMBER 1, 2008

   An act relating to financial transactions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 33, as introduced, Nava. Financial transactions.
   Existing law provides for the licensing and regulation of banks,
credit unions, and other financial institutions by the Commissioner
of Financial Institutions. Existing law provides for the licensing
and regulation of residential mortgage lenders and finance lenders by
the Commissioner of Corporations. Existing law provides for the
licensing and regulation of real estate brokers by the Real Estate
Commissioner.
   This bill would require the Secretary of Business, Transportation
and Housing, in conjunction with the Commissioner of Financial
Institutions, the Commissioner of Corporations, and the Real Estate
Commissioner, to develop a plan to consolidate the operations and
licensing frameworks of the 3 departments into a single department by
January 1, 2015. The plan would be submitted to the Legislature by
January 1, 2012. The bill would make legislative findings and
declarations in that regard.
   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.  The Legislature finds and declares all of the
following:
   (a) The regulation and oversight of financial services in
California are divided among three regulators, the Department of
Financial Institutions, the Department of Real Estate, and the
Department of Corporations.
   (b) California is one of only a few states that separates the
regulation of financial services among different licensing agencies.
   (c) This division of oversight is most apparent in the regulation
of home mortgage lending that is split among several licensing
schemes, including the California Finance Lenders Law, the California
Residential Mortgage Lending Act, the Real Estate Law, and laws
governing the operation of state and federally chartered banks or
credit unions.
   (d) This partition of regulation dilutes consumer protection and
creates confusion and unnecessary administrative difficulties for
financial services entities.
   (e) The current regulatory system creates licensing arbitrage,
with entities seeking out licenses from various regulators in order
to obtain an advantage.
  SEC. 2.  The Secretary of Business, Transportation and Housing, in
consultation with the Commissioner of Financial Institutions, the
Real Estate Commissioner, and the Commissioner of Corporations, shall
design and develop a consolidation plan to be submitted to the
Legislature on or before January 1, 2012, that does both of the
following:
   (a) Consolidates the operations and licensing frameworks of the
Department of Financial Institutions, the Department of Real Estate,
and the Department of Corporations into a single department.
   (b) Identifies necessary statutory changes required to achieve
that consolidation by January 1, 2015.