AB 2289, as introduced, Daly. Electronic records and signatures.
(1) The Corporate Securities Law of 1968 authorizes the Commissioner of Business Oversight to prescribe circumstances under which to accept electronic records or electronic signatures, as defined.
This bill would provide additional examples of what meets the definition of an “electronic record.”
(2) The Franchise Investment Law generally provides for the regulation of the offer and sale of franchises by the Commissioner of Business Oversight. The law specifically provides that the registration of the offer of franchises automatically becomes effective at noon on the 15th business day after the filing of the application for registration or the last amendment, except as specified.
This bill would instead provide that the offer automatically becomes effective on the 30th day after the filing of a complete application, and defines the term “complete application” for this purpose. This bill would similarly extend the time for a renewal of an offer, as specified. This bill would authorize the commissioner to prescribe circumstances under which to accept electronic records or electronic signatures, as defined.
(3) The Check Sellers, Bill Payers and Proraters Law generally requires the Commissioner of Business Oversight to, among other things, proscribe the form of the application for a license to engage in business under its provisions.
This bill would authorize the commissioner to prescribe circumstances under which to accept electronic records or electronic signatures, as defined.
(4) The Escrow Law generally requires the Commissioner of Business Oversight to, among other things, proscribe the form of the application for a license as an escrow agent under its provisions.
This bill would authorize the commissioner to prescribe circumstances under which to accept electronic records or electronic signatures, as defined.
(5) The California Finance Lenders Law generally requires the Commissioner of Business Oversight to, among other things, proscribe the form of the application for a license as a finance lender or broker under its provisions.
This bill would authorize the commissioner to prescribe circumstances under which to accept electronic records or electronic signatures, as defined.
(6) The California Deferred Deposit Transaction Law generally requires the Commissioner of Business Oversight to, among other things, proscribe the form of the application for a license to engage in the businesses of offering, making, or arranging a deferred deposit transaction, as specified.
This bill would authorize the commissioner to prescribe circumstances under which to accept electronic records or electronic signatures, as defined.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 25620 of the Corporations Code is
2amended to read:
(a) Notwithstanding any otherbegin delete provision ofend delete law, the
4commissioner may by rule or order prescribe circumstances under
5which to accept electronic records or electronic signatures.
6begin delete However, nothing in thisend deletebegin insert Thisend insert sectionbegin delete requiresend deletebegin insert shall not requireend insert
7 the commissioner to accept electronic records or electronic
8signatures.
P3 1(b) For purposes of this section, the following terms have the
2following meanings:
3(1) “Electronic record” means a record created, generated, sent,
4communicated, received, or stored by electronic means, and
5includes a record transmitted by means of facsimile machine or
6other telephone transceiving equipment.begin insert “Electronic record” also
7includes, but is not limited to, all of the following:end insert
8begin insert(A)end insertbegin insert end insertbegin insertAn application, amendment, supplement, and exhibit, filed
9for any qualification, registration, order, permit, certificate,
10license, consent, or other authority, including, but not limited to,
11correspondence between the parties and the
commissioner directly
12relating to the record.end insert
13begin insert(B)end insertbegin insert end insertbegin insertA financial statement, reports, advertising, and
14correspondence between a party and the commissioner directly
15relating to the record.end insert
16begin insert(C)end insertbegin insert end insertbegin insertAn order, permit, certificate, license, consent, or other
17authority.end insert
18begin insert(D)end insertbegin insert end insertbegin insertA notice of public hearing, accusation, and statement of
19issues in connection with any application, qualification,
20registration, order, permit, certificate, license, consent, or other
21authority.end insert
22begin insert(E)end insertbegin insert end insertbegin insertA proposed decision of a hearing officer and a decision of
23the commissioner.end insert
24begin insert(F)end insertbegin insert end insertbegin insertThe transcripts of a hearing and correspondence between
25a party and the commissioner directly relating to the record.end insert
26begin insert(G)end insertbegin insert end insertbegin insertA release, newsletter, interpretive opinion, determination,
27specific ruling, and the correspondence relating to the record.end insert
28(2) “Electronic signature” means an electronic sound, symbol,
29or process attached to or logically associated
with an electronic
30record and executed or adopted by a person with the intent to sign
31the electronic record.
32(c) The Legislaturebegin delete herebyend delete finds and declares that the
33Department ofbegin delete Corporationsend deletebegin insert Business Oversightend insert has continuously
34implemented methods to file records electronically, including
35broker-dealer and investment adviser applications, and is
36encouraged to continue to expand its use of electronic filings to
37the extent feasible, as budget, resources, and equipment are made
38available to accomplish that goal.
Section 31116 of the Corporations Code is amended
40to read:
(a) Except as provided in subdivision (b), if no stop
2order under Section 31115 is in effect under this law, registration
3of the offer of franchises automatically becomes effective at 12
4o’clock noon, California time, of thebegin delete 15thend deletebegin insert 30thend insert business day after
5the filing ofbegin delete theend deletebegin insert a completeend insert application for registration or the last
6begin insert
preeffectiveend insert
amendment thereto, or at such earlier time as the
7commissioner determines.
8(b) With respect to any application for registration or the last
9amendment thereto filed between January 1, 1971, and March 15,
101971, if no stop order under Section 31115 is in effect under this
11law, registration becomes effective on April 15, 1971; with respect
12to any application filed after March 15, 1971 and before May 10,
131971, if no stop order under Section 31115 is in effect under this
14law, registration becomes effective on June 1, 1971, or the 15th
15business day after the filing, whichever is the later, or at such
16earlier time as the commissioner determines.
17(c) For purposes of this section, “complete application” means
18an application that contains the appropriate filing fee, Uniform
19Franchise Disclosure
Document, and all additional exhibits,
20including financial statements in conformity with regulation of the
21commissioner.
Section 31121 of the Corporations Code is amended
23to read:
begin insert(a)end insertbegin insert end insert The registration may be renewed for additional
25periods of one year each, unless the commissioner by rule or order
26specifies a different period, by submitting to the commissioner a
27begin delete registration renewal statement no later than 15 business days prior begin insert renewal application beforeend insert the expiration of the registration
28toend delete
29begin delete unless such period is waived by order of the commissionerend delete.
If no
30stop order or other order under Section 31115 is in effect under
31this law, registration of the offer of the franchises automatically
32becomes renewed effective at 12 o'clock noon, California time,begin delete of begin insert of the 30th
33the date on which the prior registration is due to expire,end delete
34business day after the filing of a complete application for
35registration or the last preeffective amendmentend insert or at such earlier
36time as the commissioner determines.
37(b) For purposes of this section, “complete application” means
38an application that contains the appropriate filing fee, Uniform
39Franchise Disclosure Document, and all additional exhibits,
P5 1including financial statements in conformity with
regulation of the
2commissioner.
Section 31158 is added to the Corporations Code, to
4read:
(a) Notwithstanding any other law, the commissioner
6may by rule or order prescribe circumstances under which to accept
7electronic records or electronic signatures. This section shall not
8require the commissioner to accept electronic records or electronic
9signatures.
10(b) For purposes of this section, the following terms have the
11following meanings:
12(1) “Electronic record” means an initial registration application,
13registration renewal statement, preeffective amendment,
14posteffective amendment, or material modification and any other
15record created, generated, sent, communicated, received, or stored
16by electronic means, and includes a record transmitted by means
17of facsimile machine or
other telephone transceiving equipment.
18“Electronic record” also includes, but is not limited to, all of the
19following:
20(A) An application, amendment, supplement, and exhibit, filed
21for any qualification, registration, order, permit, certificate, license,
22consent, or other authority, including, but not limited to,
23correspondence between the parties and the commissioner directly
24relating to the record.
25(B) A financial statement, reports, advertising, and
26correspondence between a party and the commissioner directly
27relating to the record.
28(C) An order, permit, certificate, license, consent, or other
29authority.
30(D) A notice of public hearing, accusation, and statement of
31issues in connection with any application, qualification,
32registration, order, permit,
certificate, license, consent, or other
33authority.
34(E) A proposed decision of a hearing officer and a decision of
35the commissioner.
36(F) The transcripts of a hearing and correspondence between a
37party and the commissioner directly relating to the record.
38(G) A release, newsletter, interpretive opinion, determination,
39specific ruling, and correspondence relating to the record.
P6 1(2) “Electronic signature” means an electronic sound, symbol,
2or process attached to or logically associated with an electronic
3record and executed or adopted by a person with the intent to sign
4the electronic record.
5(c) The Legislature finds and declares that the Department of
6Business Oversight has continuously
implemented methods to file
7records electronically, including broker-dealer and investment
8adviser applications, and is encouraged to continue to expand its
9use of electronic filings to the extent feasible, as budget, resources,
10and equipment are made available to accomplish that goal.
Section 12201 of the Financial Code is amended to
12read:
begin insert(a)end insertbegin insert end insert An application for a license shall be in writing,
14under oath, and in a form prescribed by the commissioner and shall
15contain the name, and the address both of the residence and place
16of business, of the applicant and if the applicant is a partnership
17or association, of every member thereof, and if a corporation, of
18every officer and director thereof.
19(b) Notwithstanding any other law, the commissioner may by
20rule or order
prescribe circumstances under which to accept
21electronic records or electronic signatures. This section shall not
22require the commissioner to accept electronic records or electronic
23signatures.
24(c) For purposes of this section, the following terms have the
25following meanings:
26(1) “Electronic record” means an initial registration
27application, registration renewal statement, preeffective
28amendment, posteffective amendment, or material modification
29and any other record created, generated, sent, communicated,
30received, or stored by electronic means, and includes a record
31transmitted by means of facsimile machine or other telephone
32transceiving equipment. “Electronic record” also includes, but
33not limited to, all of the following:
34(A) An application, amendment, supplement, and exhibit, filed
35for any qualification, registration, order, permit, certificate,
36license, consent, or other authority, including, but not limited to,
37correspondence between the parties and the commissioner directly
38relating to the record.
P7 1(B) A financial statement, reports, advertising, and
2correspondence between a party and the commissioner directly
3relating to the record.
4(C) An order, permit, certificate, license, consent, or other
5authority.
6(D) A notice of public hearing, accusation, and statement of
7issues in connection with any application, qualification,
8registration, order, permit, certificate, license, consent, or other
9authority.
10(E) A
proposed decision of a hearing officer and a decision of
11the commissioner.
12(F) The transcripts of a hearing and correspondence between
13a party and the commissioner directly relating to the record.
14(G) A release, newsletter, interpretive opinion, determination,
15specific ruling, and correspondence relating to the record.
16(2) “Electronic signature” means an electronic sound, symbol,
17or process attached to or logically associated with an electronic
18record and executed or adopted by a person with the intent to sign
19the electronic record.
20(d) The Legislature finds and declares that the Department of
21Business Oversight has continuously implemented methods to file
22records electronically, including broker-dealer and investment
23adviser applications, and is
encouraged to continue to expand its
24use of electronic filings to the extent feasible, as budget, resources,
25and equipment are made available to accomplish that goal.
Section 17201 of the Financial Code is amended to
27read:
begin insert(a)end insertbegin insert end insert An application for a license as an escrow agent
29shall be in writing and in such form as is prescribed by the
30commissioner. The application shall be verified by the oath of the
31applicant.
32(b) Notwithstanding any other law, the commissioner may by
33rule or order prescribe circumstances under which to accept
34electronic records or electronic signatures. This section shall not
35require the commissioner to accept electronic records or
electronic
36signatures.
37(c) For purposes of this section, the following terms have the
38following meanings:
39(1) “Electronic record” means an initial registration
40application, registration renewal statement, preeffective
P8 1amendment, posteffective amendment, or material modification
2and any other record created, generated, sent, communicated,
3received, or stored by electronic means, and includes a record
4transmitted by means of facsimile machine or other telephone
5transceiving equipment. “Electronic records” also includes, but
6not limited to, all of the following:
7(A) An application, amendment, supplement, and exhibit, filed
8for any qualification, registration, order, permit, certificate,
9license, consent, or other
authority, including, but not limited to,
10correspondence between the parties and the commissioner directly
11relating to the record.
12(B) A financial statement, reports, advertising, and
13correspondence between a party and the commissioner directly
14relating to the record.
15(C) An order, permit, certificate, license, consent, or other
16authority.
17(D) A notice of public hearing, accusation, and statement of
18issues in connection with any application, qualification,
19registration, order, permit, certificate, license, consent, or other
20authority.
21(E) A proposed decision of a hearing officer and a decision of
22the commissioner.
23(F) The transcripts of a hearing and correspondence between
24a party and the
commissioner directly relating to the record.
25(G) A release, newsletter, interpretive opinion, determination,
26specific ruling, and the correspondence relating to the record.
27(2) “Electronic signature” means an electronic sound, symbol,
28or process attached to or logically associated with an electronic
29record and executed or adopted by a person with the intent to sign
30the electronic record.
31(d) The Legislature finds and declares that the Department of
32Business Oversight has continuously implemented methods to file
33records electronically, including broker-dealer and investment
34adviser applications, and is encouraged to continue to expand its
35use of electronic filings to the extent feasible, as budget, resources,
36and equipment are made available to accomplish that goal.
Section 22101 of the Financial Code is amended to
38read:
(a) An application for a license as a finance lender or
40broker under this division shall be in the form and contain the
P9 1information that the commissioner may by rulebegin insert or orderend insert require
2and shall be filed upon payment of the fee specified in Section
322103.
4(b) Notwithstanding any otherbegin delete provision ofend delete law, an applicant
5who does not currently hold a license as a finance lender or broker
6under this division shall furnish with his or her application, a full
7set of fingerprints and related information for purposes of the
8commissioner conducting a criminal history record check. The
9
commissioner shall obtain and receive criminal history information
10from the Department of Justice and the Federal Bureau of
11Investigation pursuant to Section 22101.5.
12(c) begin deleteNothing in this end deletebegin insertThis end insertsection shallbegin insert notend insert be construed to prevent
13a licensee from engaging in the business of a finance lender through
14a subsidiary corporation if the subsidiary corporation is licensed
15pursuant to this division.
16(d) For purposes of this section, “subsidiary corporation” means
17a corporation that is wholly owned by a licensee.
18(e) A new
application shall not be required for a change in the
19address of an existing location previously licensed under this
20division. However, the licensee shall comply with the requirements
21of Section 22153.
22(f) Notwithstanding subdivisions (a) to (e), inclusive, the
23commissioner may by rule require an application to be made
24through the Nationwide Mortgage Licensing System and Registry,
25and may require fees, fingerprints, financial statements, supporting
26documents, changes of address, and any other information, and
27amendments or modifications thereto, to be submitted in the same
28manner.
29(g) Notwithstanding any other law, the commissioner may by
30rule or order prescribe circumstances under which to accept
31electronic records or electronic signatures. This section shall not
32require the commissioner to accept
electronic records or electronic
33signatures.
34(h) For purposes of this section, the following terms have the
35following meanings:
36(1) “Electronic record” means an initial registration
37application, registration renewal statement, preeffective
38amendment, posteffective amendment, or material modification
39and any other record created, generated, sent, communicated,
40received, or stored by electronic means, and includes a record
P10 1transmitted by means of facsimile machine or other telephone
2transceiving equipment. “Electronic records” also includes, but
3not limited to, all of the following:
4(A) An application, amendment, supplement, and exhibit, filed
5for any qualification, registration, order, permit, certificate,
6
license, consent, or other authority, including, but not limited to,
7correspondence between the parties and the commissioner directly
8relating to the record.
9(B) A financial statement, reports, advertising, and
10correspondence between a party and the commissioner directly
11relating to the record.
12(C) An order, permit, certificate, license, consent, or other
13authority.
14(D) A notice of public hearing, accusation, and statement of
15issues in connection with any application, qualification,
16registration, order, permit, certificate, license, consent, or other
17authority.
18(E) A proposed decision of a hearing officer and a decision of
19the commissioner.
20(F) The transcripts of a hearing and
correspondence between
21a party and the commissioner directly relating to the record.
22(G) A release, newsletter, interpretive opinion, determination,
23specific ruling, and the correspondence relating to the record.
24(2) “Electronic signature” means an electronic sound, symbol,
25or process attached to or logically associated with an electronic
26record and executed or adopted by a person with the intent to sign
27the electronic record.
28(i) The Legislature finds and declares that the Department of
29Business Oversight has continuously implemented methods to file
30records electronically, including broker-dealer and investment
31adviser applications, and is encouraged to continue to expand its
32use of electronic filings to the extent feasible, as budget, resources,
33and equipment are made available to accomplish that goal.
Section 23005 of the Financial Code is amended to
35read:
(a) begin deleteNo end deletebegin insertA end insertperson shallbegin insert notend insert offer, originate, or make a
37deferred deposit transaction, arrange a deferred deposit transaction
38for a deferred deposit originator, act as an agent for a deferred
39deposit originator, or assist a deferred deposit originator in the
40origination of a deferred deposit transaction without first obtaining
P11 1a license from the commissioner and complying with the provisions
2of this division. The requirements of this subdivision shall not
3apply to persons or entities that are
excluded from the definition
4of “licensee” as set forth in Section 23001.begin delete Nothing in thisend deletebegin insert Thisend insert
5 division shallbegin insert
notend insert be construed to require the commissioner to
6create separate classes of licenses.
7(b) An application for a license under this division shall be in
8the form and contain the information that the commissioner may
9by rule require and shall be filed upon payment of the fee specified
10in Section 23006.
11(c) A licensee with one or more licensed locations seeking an
12additional location license may file a short form license application
13as may be established by the commissioner pursuant to subdivision
14(b) of this section.
15(d) Notwithstanding any other law, the commissioner may by
16rule or order prescribe circumstances under which to accept
17electronic records or electronic signatures. This section shall not
18
require the commissioner to accept electronic records or electronic
19signatures.
20(e) For purposes of this section, the following terms have the
21following meanings:
22(1) “Electronic record” means an initial registration
23application, registration renewal statement, preeffective
24amendment, posteffective amendment, or material modification
25and any other record created, generated, sent, communicated,
26received, or stored by electronic means, and includes a record
27transmitted by means of facsimile machine or other telephone
28transceiving equipment. “Electronic records” also includes, but
29not limited to, all of the following:
30(A) An application, amendment, supplement, and exhibit, filed
31for any qualification,
registration, order, permit, certificate,
32license, consent, or other authority, including, but not limited to,
33correspondence between the parties and the commissioner directly
34relating to the record.
35(B) A financial statement, reports, advertising, and
36correspondence between a party and the commissioner directly
37relating to the record.
38(C) An order, permit, certificate, license, consent, or other
39authority.
P12 1(D) A notice of public hearing, accusation, and statement of
2issues in connection with any application, qualification,
3registration, order, permit, certificate, license, consent, or other
4authority.
5(E) A proposed decision of a hearing officer and a decision of
6the commissioner.
7(F) The
transcripts of a hearing and correspondence between
8a party and the commissioner directly relating to the record.
9(G) A release, newsletter, interpretive opinion, determination,
10specific ruling, and the correspondence relating to the record.
11(2) “Electronic signature” means an electronic sound, symbol,
12or process attached to or logically associated with an electronic
13record and executed or adopted by a person with the intent to sign
14the electronic record.
15(f) The Legislature finds and declares that the Department of
16Business Oversight has continuously implemented methods to file
17records electronically, including broker-dealer and investment
18adviser applications, and is encouraged to continue to expand its
19use of electronic filings to the extent feasible, as budget, resources,
20and equipment are made available to
accomplish that goal.
O
99