BILL NUMBER: SB 1363	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 2, 2010
	AMENDED IN SENATE  APRIL 26, 2010
	AMENDED IN SENATE  APRIL 12, 2010

INTRODUCED BY   Senator Runner

                        FEBRUARY 19, 2010

   An act to add Section 17405.5 to the Financial Code, relating to
escrow agents.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1363, as amended, Runner. Escrow agents.
   Existing law, the Escrow Law, provides for the licensure and
regulation of escrow agents by the Commissioner of Corporations. Each
person licensed under that law is required to participate as a
member of Fidelity Corporation, a nonprofit mutual benefit
corporation, established to indemnify its members against loss.
Existing law requires a shareholder, officer, director, trustee,
manager, or employee of an escrow agent to obtain a Fidelity
Corporation Certificate as a condition of employment.
   This bill would require an officer, director, trustee, or 
employee   escrow manager  of a licensee who has
access to money or negotiable securities of the licensee, and certain
other persons  ,  to complete a course in escrow management
conducted by the commissioner, within 12 months following their
receipt of a Fidelity Corporation Certificate, as specified.
   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 17405.5 is added to the Financial Code, to
read:
   17405.5.  (a) The following persons shall complete a course in
escrow management conducted by the commissioner within 12 months of
their receipt of a Fidelity Corporation Certificate:
   (1) Any officer, director, trustee, or  employee 
 escrow manager  of an escrow agent, whether or not
compensated, who has access to money or negotiable securities
belonging to the escrow agent in the regular discharge of his or her
duties.
   (2) Any person who may draw checks upon the escrow agent or upon
the trust funds of the escrow agent in the regular discharge of his
or her duties. 
   (3) Any other person, as determined by the commissioner. 
   (b) The commissioner may charge persons required to comply with
this section a reasonable fee, as determined by the commissioner, to
cover the costs to administer this section.
   (c) This section shall apply to all licensees that become newly
licensed or  who   that  undergo a change
in ownership on or after January 1, 2011, and to all persons
described in subdivision (a) who are hired on or after January 1,
2011, by licensees that were in existence prior to that date.
   (d) For purposes of this section, a "change in ownership" shall be
deemed to have occurred when a licensee is required to file a new
application for licensure pursuant to the requirements of Section
17213, and that license application is approved by the commissioner.