AB 2289, as amended, Daly. Business filings.
(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, similarly extend the time for a renewal of an offer, as specified, and define terms for these purposes. 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 other law, the commissioner
4may by rule or order prescribe circumstances under which to accept
5electronic records or electronic signatures. This section shall not
P3 1require the commissioner to accept electronic records or electronic
2signatures.
3(b) For purposes of this section, the following terms have the
4following meanings:
5(1) “Electronic record” means a record created, generated, sent,
6communicated, received, or stored by electronic
means. “Electronic
7record” also includes, but is not limited to, all of the following:
8(A) An application, amendment, supplement, and exhibit, filed
9for any qualification, registration, order, permit, certificate, license,
10consent, or other authority.
11(B) A financial statement, reports, or advertising.
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.
21(G) A release, newsletter, interpretive opinion, determination,
22
or specific ruling.
23(H) Correspondence between a party and the commissioner
24directly relating to any document listed in subparagraphs (A) to
25(G), inclusive.
26(2) “Electronic signature” means an electronic sound, symbol,
27or process attached to or logically associated with an electronic
28record and executed or adopted by a person with the intent to sign
29the electronic record.
30(c) The Legislature finds and declares that the Department of
31Business Oversight has continuously implemented methods to
32
accept records filed electronically, including broker-dealer and
33investment adviser applications, and is encouraged to continue to
34expand its use of electronic filings to the extent feasible, as budget,
35resources, and equipment are made available to accomplish that
36goal.
Section 31116 of the Corporations Code is amended
38to read:
(a) Except as provided in subdivision (b), if no stop
40order under Section 31115 is in effect under this law, registration
P4 1of the offer of franchises automatically becomes effective at 12
2o’clock noon, California time, of the 30th business day after the
3filing of a complete application for registration or the last
4
preeffective amendment thereto, or at such earlier time as the
5commissioner determines.
6(b) With respect to any application for registration or the last
7amendment thereto filed between January 1, 1971, and March 15,
81971, if no stop order under Section 31115 is in effect under this
9law, registration becomes effective on April 15, 1971; with respect
10to any application filed after March 15, 1971 and before May 10,
111971, if no stop order under Section 31115 is in effect under this
12law, registration becomes effective on June 1, 1971, or the 15th
13business day after the filing, whichever is the later, or at such
14earlier time as the commissioner determines.
15(c) For purposes of this section, “complete application” means
16an application that contains the appropriate filing fee,
Uniform
17Franchise Disclosure Document, and all additional exhibits,
18including financial statements in conformity with regulations of
19the commissioner. “Preeffective amendment” means an amendment
20to an application that is filed before the effective date of the
21registration of the sale of franchises.
Section 31121 of the Corporations Code is amended
23to read:
(a) 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
27renewal application before the expiration of the registration. If no
28stop order or other order under Section 31115 is in effect under
29this law, registration of the offer of the franchises automatically
30becomes renewed effective at 12 o'clock noon, California time, of
31the 30th business day after the filing of a complete application for
32registration or the last preeffective amendment or at such earlier
33time as the commissioner determines.
34(b) For purposes of this
section, “complete application” means
35an application that contains the appropriate filing fee, Uniform
36Franchise Disclosure Document, and all additional exhibits,
37including financial statements in conformity with regulations of
38the commissioner. “Preeffective amendment” means an amendment
39to an application that is filed before the effective date of the
40registration of the sale of franchises.
Section 31158 is added to the Corporations Code, to
2read:
(a) Notwithstanding any other law, the commissioner
4may by rule or order prescribe circumstances under which to accept
5electronic records or electronic signatures. This section shall not
6require the commissioner to accept electronic records or electronic
7signatures.
8(b) For purposes of this section, the following terms have the
9following meanings:
10(1) “Electronic record” means an initial registration application,
11registration renewal statement, preeffective amendment,
12posteffective amendment, or material modification and any other
13record created, generated, sent, communicated, received, or stored
14by
electronic means. “Electronic record” also includes, but is not
15limited to, all of the following:
16(A) An application, amendment, supplement, and exhibit, filed
17for any registration, order, license, consent, or other authority.
18(B) A financial statement, reports, or advertising.
19(C) An order, license, consent, or other authority.
20(D) A notice of public hearing, accusation, and statement of
21issues in connection with any application, registration, order,
22license, consent, or other authority.
23(E) A proposed decision of a hearing officer and a decision of
24the
commissioner.
25(F) The transcripts of a hearing.
26(G) A release, newsletter, interpretive opinion, determination,
27
or specific ruling.
28(H) Correspondence between a party and the commissioner
29directly relating to any document listed in subparagraphs (A) to
30(G), inclusive.
31(2) “Electronic signature” means an electronic sound, symbol,
32or process attached to or logically associated with an electronic
33record and executed or adopted by a person with the intent to sign
34the electronic record.
35(c) The Legislature finds and declares that the Department of
36Business Oversight has continuously implemented methods to
37
accept records filed electronically, including broker-dealer and
38investment adviser applications, and is encouraged to continue to
39expand its use of electronic filings to the extent feasible, as budget,
P6 1resources, and equipment are made available to accomplish that
2goal.
Section 12201 of the Financial Code is amended to
4read:
(a) An application for a license shall be in writing,
6under oath, and in a form prescribed by the commissioner and shall
7contain the name, and the address both of the residence and place
8of business, of the applicant and if the applicant is a partnership
9or association, of every member thereof, and if a corporation, of
10every officer and director thereof.
11(b) Notwithstanding any other law, the commissioner may by
12rule or order prescribe circumstances under which to accept
13electronic records or electronic signatures. This section shall not
14require the commissioner to accept electronic records or electronic
15signatures.
16(c) For purposes of this section, the following terms have the
17following meanings:
18(1) “Electronic record” means an initial license application, or
19material modification of that license application, and any other
20record created, generated, sent, communicated, received, or stored
21by electronic
means. “Electronic record” also includes, but is not
22limited to, all of the following:
23(A) An application, amendment, supplement, and exhibit, filed
24for any license, consent, or other authority.
25(B) A financial statement, reports, or advertising.
26(C) An order, license, consent, or other authority.
27(D) A notice of public hearing, accusation, and statement of
28issues in connection with any application, license, consent, or other
29authority.
30(E) A proposed decision of a hearing officer and a decision of
31the commissioner.
32(F) The transcripts of a hearing.
33(G) A release, newsletter, interpretive opinion, determination,
34or specific ruling.
35(H) Correspondence between a party and the commissioner
36directly relating to any document listed in subparagraphs (A) to
37(G), inclusive.
38(2) “Electronic signature” means an electronic sound, symbol,
39or process attached to or logically associated with an electronic
P7 1record and executed or adopted by a person with the intent to sign
2the electronic record.
3(d) The Legislature finds and declares that the Department of
4Business Oversight has continuously implemented methods to
5accept records filed electronically, and is encouraged
to continue
6to expand its use of electronic filings to the extent feasible, as
7budget, resources, and equipment are made available to accomplish
8that goal.
Section 17201 of the Financial Code is amended to
10read:
(a) An application for a license as an escrow agent
12shall be in writing and in such form as is prescribed by the
13commissioner. The application shall be verified by the oath of the
14applicant.
15(b) 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
18require the commissioner to accept electronic records or electronic
19signatures.
20(c) For purposes of this section, the following terms have the
21following meanings:
22(1) “Electronic record” means an initial license application, or
23material modification of that license application, and any other
24record created, generated, sent, communicated, received, or stored
25by electronic
means. “Electronic records” also includes, but is not
26limited to, all of the following:
27(A) An application, amendment, supplement, and exhibit, filed
28for any order, license, consent, or other
authority.
29(B) A financial statement, reports, or advertising.
30(C) An order, license, consent, or other authority.
31(D) A notice of public hearing, accusation, and statement of
32issues in connection with any application, registration, order,
33license, consent, or other authority.
34(E) A proposed decision of a hearing officerbegin insert and a decision of
35the commissionerend insert.
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,
39
or specific ruling.
P8 1(H) Correspondence between a party and the commissioner
2directly relating to any document listed in subparagraphs (A) to
3(G), inclusive.
4(2) “Electronic signature” means an electronic sound, symbol,
5or process attached to or logically associated with an electronic
6record and executed or adopted by a person with the intent to sign
7the electronic record.
8(d) The Legislature finds and declares that the Department of
9Business Oversight has continuously implemented methods to
10
accept records filed electronically, and is encouraged to continue
11to expand its use of electronic filings to the extent feasible, as
12budget, resources, and equipment are made available to accomplish
13that goal.
Section 22101 of the Financial Code is amended to
15read:
(a) An application for a license as a finance lender or
17broker under this division shall be in the form and contain the
18information that the commissioner may by rule or order require
19and shall be filed upon payment of the fee specified in Section
2022103.
21(b) Notwithstanding any other law, an applicant who does not
22currently hold a license as a finance lender or broker under this
23division shall furnish, with his or her application, a full set of
24fingerprints and related information for purposes of the
25commissioner conducting a criminal history record check. The
26
commissioner shall obtain and receive criminal history information
27from the Department of Justice and the Federal Bureau of
28Investigation pursuant to Section 22101.5.
29(c) This section shall not be construed to prevent a licensee from
30engaging in the business of a finance lender through a subsidiary
31corporation if the subsidiary corporation is licensed pursuant to
32this division.
33(d) For purposes of this section, “subsidiary corporation” means
34a corporation that is wholly owned by a licensee.
35(e) A new application shall not be required for a change in the
36address of an existing location previously licensed under this
37division. However, the licensee shall comply with the requirements
38of Section
22153.
39(f) Notwithstanding subdivisions (a) to (e), inclusive, the
40commissioner may by rule require an application to be made
P9 1through the Nationwide Mortgage Licensing System and Registry,
2and may require fees, fingerprints, financial statements, supporting
3documents, changes of address, and any other information, and
4amendments or modifications thereto, to be submitted in the same
5manner.
6(g) Notwithstanding any other law, the commissioner may by
7rule or order prescribe circumstances under which to accept
8electronic records or electronic signatures. This section shall not
9require the commissioner to accept electronic records or electronic
10signatures.
11(h) For purposes of this section, the following terms have the
12following
meanings:
13(1) “Electronic record” means an initial license application, or
14material modification of that license application, and any other
15record created, generated, sent, communicated, received, or stored
16by electronic
means. “Electronic records” also includes, but is not
17limited to, all of the following:
18(A) An application, amendment, supplement, and exhibit, filed
19for any license, consent, or other authority.
20(B) A financial statement, reports, or advertising.
21(C) An order, license, consent, or other authority.
22(D) A notice of public hearing, accusation, and statement of
23issues in connection with any application, license, consent, or other
24authority.
25(E) A proposed decision of a hearing officer and a decision of
26the commissioner.
27(F) The transcripts of a hearing and correspondence between a
28party and the commissioner directly relating to the record.
29(G) A release, newsletter, interpretive opinion, determination,
30
or specific ruling.
31(H) Correspondence between a party and the commissioner
32directly relating to any document listed in subparagraphs (A) to
33(G), inclusive.
34(2) “Electronic signature” means an electronic sound, symbol,
35or process attached to or logically associated with an electronic
36record and executed or adopted by a person with the intent to sign
37the electronic record.
38(i) The Legislature finds and declares that the Department of
39Business Oversight has continuously implemented methods to
40
accept records filed electronically, and is encouraged to continue
P10 1to expand its use of electronic filings to the extent feasible, as
2budget, resources, and equipment are made available to accomplish
3that goal.
Section 23005 of the Financial Code is amended to
5read:
(a) A person shall not offer, originate, or make a
7deferred deposit transaction, arrange a deferred deposit transaction
8for a deferred deposit originator, act as an agent for a deferred
9deposit originator, or assist a deferred deposit originator in the
10origination of a deferred deposit transaction without first obtaining
11a license from the commissioner and complying with the provisions
12of this division. The requirements of this subdivision shall not
13apply to persons or entities that are excluded from the definition
14of “licensee” as set forth in Section 23001. This division shall not
15be construed to require the commissioner to create separate classes
16of licenses.
17(b) An application for a license under this division shall be in
18the form and contain the information that the commissioner may
19by rule require and shall be filed upon payment of the fee specified
20in Section 23006.
21(c) A licensee with one or more licensed locations seeking an
22additional location license may file a short form license application
23as may be established by the commissioner pursuant to subdivision
24(b) of this section.
25(d) Notwithstanding any other law, the commissioner may by
26rule or order prescribe circumstances under which to accept
27electronic records or electronic signatures. This section shall not
28
require the commissioner to accept electronic records or electronic
29signatures.
30(e) For purposes of this section, the following terms have the
31following meanings:
32(1) “Electronic record” means an initial license application, or
33material modification of that license application, and any other
34record created, generated, sent, communicated, received, or stored
35by electronic means. “Electronic records” also includes, but is not
36limited to, all of the following:
37(A) An application, amendment, supplement, and exhibit, filed
38for any license, consent, or other authority.
39(B) A financial statement, reports, or advertising.
40(C) An order, license, consent, or other authority.
P11 1(D) A notice of public hearing, accusation, and statement of
2issues in connection with any application, license, consent, or other
3authority.
4(E) A proposed decision of a hearing officer and a decision of
5the commissioner.
6(F) The transcripts of a hearing.
7(G) A release, newsletter, interpretive opinion, determination,
8or specific ruling.
9(H) Correspondence between a party and the commissioner
10directly relating to any document listed in subparagraphs (A) to
11(G), inclusive.
12(2) “Electronic signature” means an electronic sound, symbol,
13or process attached to or logically associated with an electronic
14record and executed or adopted by a person with the intent to sign
15the electronic record.
16(f) The Legislature finds and declares that the Department of
17Business Oversight has continuously implemented methods to
18accept records filed electronically, and is encouraged to
continue
19to expand its use of electronic filings to the extent feasible, as
20budget, resources, and equipment are made available to accomplish
21that goal.
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