Financial Code — Part 12 | FIN — United States — California law | Esheria

Financial Code

Part 12 of 17 · provisions 2,201–2,400

This section says the act may be cited as the Financial Code.

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The commissioner must let certain debt collectors keep operating if they applied before January 1, 2023, and may issue a conditional license while an application is pending. Local governments in this state may not require a debt collector to be licensed or to register as a debt collector. This division is named the Debt Collection Licensing Act and may be cited by that name. A person may not do debt collection business in this state without first getting a license, and the license is tied to the principal place of business and cannot be transferred or assigned. This section defines key terms used in the Debt Collection Licensing Act.

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Provisions of Financial Code

Showing 200 of 3,273

  1. 31504.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 7. Records, Reports, and Examinations [31500 - 31509] ( Chapter 7 added by Stats. 1977, Ch. 1164. )

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    Each licensee must file an audit report with the commissioner within 90 days after the close of each fiscal year, unless the commissioner sets a longer period by regulation or order.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 7. Records, Reports, and Examinations [31500 - 31509] ( Chapter 7 added by Stats. 1977, Ch. 1164. ) ## 31504. Each licensee shall, not more than 90 days after the close of each of its fiscal years or within such longer period as the commissioner may by regulation or order specify, file with the commissioner an audit report containing: (a) Financial statements (including balance sheet, statement of income or loss, statement of changes in capital accounts, and statement of changes in financial position or, in the case of a licensee which is a California nonprofit corporation, comparable financial statements) for or as of the end of such fiscal year, prepared with audit by an independent certified public accountant or an independent public accountant in accordance with generally accepted accounting principles; (b) Report, certificate, or opinion of such independent certified public accountant or independent public account, stating that such financial statements were prepared in accordance with generally accepted accounting principles; and (c) Such other information as the commissioner may by regulation or order require. (Amended by Stats. 1996, Ch. 1064, Sec. 664. Effective January 1, 1997. Operative July 1, 1997.)
  2. 31506.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 7. Records, Reports, and Examinations [31500 - 31509] ( Chapter 7 added by Stats. 1977, Ch. 1164. )

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    The listed license-related persons and entities must file reports with the commissioner when required, and each report must follow the form, content, signature, and verification requirements the commissioner sets.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 7. Records, Reports, and Examinations [31500 - 31509] ( Chapter 7 added by Stats. 1977, Ch. 1164. ) ## 31506. Each licensee, each director, officer, and employee of a licensee, and each parent and subsidiary of a licensee shall file with the commissioner such reports as and when the commissioner may by regulation or order require. In addition, each affiliate of a licensee (other than a parent or subsidiary of the licensee) shall file with the commissioner such reports regarding transactions between the affiliate and the licensee as and when the commissioner may require. Each report shall be in such form, shall contain such information, shall be signed in such manner, and shall (if the commissioner so requires by regulation or order) be verified in such manner, as the commissioner may by regulation or order require. (Amended by Stats. 1996, Ch. 1064, Sec. 665. Effective January 1, 1997. Operative July 1, 1997.)
  3. 31507.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 7. Records, Reports, and Examinations [31500 - 31509] ( Chapter 7 added by Stats. 1977, Ch. 1164. )

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    The commissioner must inspect each licensee at least once every calendar year and may inspect licensees, related affiliates, and offices at any time.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 7. Records, Reports, and Examinations [31500 - 31509] ( Chapter 7 added by Stats. 1977, Ch. 1164. ) ## 31507. (a) The commissioner shall examine each licensee not less frequently than once each calendar year. (b) (1) The commissioner may at any time examine any licensee or any parent or subsidiary of a licensee. (2) The commissioner may at any time examine any office of any licensee within or outside of this state. (3) The commissioner may at any time examine any affiliate of a licensee (other than a parent or subsidiary of the licensee) but only with respect to matters relating to transactions between the affiliate and the licensee. (c) The directors, officers, and employees of any licensee or of any affiliate of a licensee being examined by the commissioner and any other person having custody of any of the books, accounts, or records of the licensee or affiliate shall exhibit to the commissioner, on request, any or all of the books, accounts, and other records of the licensee or affiliate and shall otherwise facilitate the examination so far as it may be in their power to do so. However, in the case of an examination of an affiliate of a licensee other than a parent or subsidiary of the licensee, only books, accounts, and records of the affiliate that relate to transactions between the affiliate and the licensee shall be subject to this subdivision. (d) The commissioner may, if in his or her opinion it is necessary in the examination of any licensee or of any affiliate of a licensee, retain any certified public accountant, attorney, appraiser, or other person to assist him or her, and the licensee shall pay, within 10 days after receipt of a statement from the commissioner, the fees of that person. (Amended by Stats. 2003, Ch. 404, Sec. 20. Effective January 1, 2004.)
  4. 31508.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 7. Records, Reports, and Examinations [31500 - 31509] ( Chapter 7 added by Stats. 1977, Ch. 1164. )

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    A licensee may not let another person make or keep its books, accounts, or other records unless the commissioner has first approved it.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 7. Records, Reports, and Examinations [31500 - 31509] ( Chapter 7 added by Stats. 1977, Ch. 1164. ) ## 31508. (a) No licensee shall, except with the prior approval of the commissioner, cause or permit any other person to make or keep any of its books, accounts, or other records. (b) In case any person other than a licensee makes or keeps any of the books, accounts, or other records of such licensee, the provisions of this division and of any regulation or order issued under this division shall apply to such person with respect to the performance of such services and with respect to such books, accounts, and other records to the same extent as if such person were such licensee. (c) In case any person other than an affiliate of a licensee makes or keeps any of the books, accounts, or other records of such affiliate or, in the case of an affiliate other than a parent or subsidiary of the licensee, the books, accounts, and other records of the affiliate that relate to transactions between the affiliate and the licensee, the provisions of this division and of any regulation or order issued under this division shall apply to such person with respect to such books, accounts, and other records to the same extent as if such person were such affiliate. (Amended by Stats. 1996, Ch. 1064, Sec. 667. Effective January 1, 1997. Operative July 1, 1997.)
  5. 31509.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 7. Records, Reports, and Examinations [31500 - 31509] ( Chapter 7 added by Stats. 1977, Ch. 1164. )

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    The commissioner may publish any report filed under this division, or under a regulation or order issued under it.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 7. Records, Reports, and Examinations [31500 - 31509] ( Chapter 7 added by Stats. 1977, Ch. 1164. ) ## 31509. The commissioner may publish any report filed with him or her under this division or under any regulation or order issued under this division. (Amended by Stats. 1996, Ch. 1064, Sec. 668. Effective January 1, 1997. Operative July 1, 1997.)
  6. 31550.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 8. Acquisition of Control [31550 - 31552] ( Chapter 8 added by Stats. 1977, Ch. 1164. )

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    A person may not acquire control of a licensee unless the commissioner gives prior approval.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 8. Acquisition of Control [31550 - 31552] ( Chapter 8 added by Stats. 1977, Ch. 1164. ) ## 31550. No person shall, except with the prior approval of the commissioner, acquire control of a licensee. (Amended by Stats. 1996, Ch. 1064, Sec. 669. Effective January 1, 1997. Operative July 1, 1997.)
  7. 31551.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 8. Acquisition of Control [31550 - 31552] ( Chapter 8 added by Stats. 1977, Ch. 1164. )

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    The commissioner must approve an application to acquire control of a licensee if the stated character, financial, compliance, and safety findings are met; otherwise, after notice and a hearing, the commissioner must deny it.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 8. Acquisition of Control [31550 - 31552] ( Chapter 8 added by Stats. 1977, Ch. 1164. ) ## 31551. If the commissioner finds, with respect to an application for approval to acquire control of a licensee: (a) That the applicant and the directors and officers of the applicant are of good character and sound financial standing; (b) That it is reasonable to believe that, if the applicant acquires control of the licensee, the applicant will comply with all applicable provisions of this division and of any regulation or order issued under this division; and (c) That the applicant’s plans, if any, to make any major change in the business, corporate structure, or management of the licensee are not detrimental to the safety and soundness of the licensee or to the public convenience and advantage; The commissioner shall approve the application. If, after notice and a hearing, the commissioner finds otherwise, he or she shall deny the application. (Amended by Stats. 1996, Ch. 1064, Sec. 670. Effective January 1, 1997. Operative July 1, 1997.)
  8. 31551.5.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 8. Acquisition of Control [31550 - 31552] ( Chapter 8 added by Stats. 1977, Ch. 1164. )

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    The commissioner may treat certain fraud- or dishonesty-related convictions or pleas as grounds to find an applicant or related director/officer lacks good character, and may also find a management-change plan detrimental if it would place such a person in a director or officer role.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 8. Acquisition of Control [31550 - 31552] ( Chapter 8 added by Stats. 1977, Ch. 1164. ) ## 31551.5. (a) For purposes of Section 31551, the commissioner may find: (1) That an applicant or a director or officer of an applicant is not of good character if such person has been convicted of, or has pleaded nolo contendere to, a crime involving fraud or dishonesty. (2) That an applicant’s plan to make a major change in the management of a licensee is detrimental to the safety and soundness of the licensee and to the public convenience and advantage if the plan provides for a person who has been convicted of, or has pleaded nolo contendere to, a crime involving fraud or dishonesty to become a director or officer of the licensee. (b) Subdivision (a) shall not be deemed to be the only grounds upon which the commissioner may find, for purposes of Section 31551, that an applicant or a director or officer of an applicant is not of good character or that an applicant’s plan to make a major change in the management of a licensee is detrimental to the safety and soundness of a licensee or to the public convenience and advantage. (Amended by Stats. 1996, Ch. 1064, Sec. 671. Effective January 1, 1997. Operative July 1, 1997.)
  9. 31552.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 8. Acquisition of Control [31550 - 31552] ( Chapter 8 added by Stats. 1977, Ch. 1164. )

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    The commissioner may exempt persons or transactions from this chapter, with or without conditions, for specified periods, if the commissioner finds it is in the public interest and not necessary for the division’s purposes.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 8. Acquisition of Control [31550 - 31552] ( Chapter 8 added by Stats. 1977, Ch. 1164. ) ## 31552. The commissioner may, by such regulations or orders as he or she deems necessary and appropriate, either unconditionally or upon specified terms and conditions or for specified periods, exempt from the provisions of this chapter any person or transaction or class of persons or transactions, if he or she finds such action to be in the public interest and that the regulation of such persons or transactions is not necessary for the purposes of this division. (Amended by Stats. 1996, Ch. 1064, Sec. 672. Effective January 1, 1997. Operative July 1, 1997.)
  10. 31600.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 9. Merger and Purchase or Sale of Business [31600 - 31605] ( Chapter 9 added by Stats. 1977, Ch. 1164. )

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    This section defines “acquiring licensee,” “disappearing corporation,” and “surviving corporation” for this chapter.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 9. Merger and Purchase or Sale of Business [31600 - 31605] ( Chapter 9 added by Stats. 1977, Ch. 1164. ) ## 31600. In this chapter: (a) “Acquiring licensee” means: (1) In the case of a merger, the licensee which is the surviving corporation; (2) In the case of a purchase or sale, the licensee which is the purchaser. (b) “Disappearing corporation” has the meaning set forth in Section 165 of the Corporations Code. (c) “Surviving corporation” has the meaning set forth in Section 190 of the Corporations Code. (Added by Stats. 1977, Ch. 1164.)
  11. 31601.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 9. Merger and Purchase or Sale of Business [31600 - 31605] ( Chapter 9 added by Stats. 1977, Ch. 1164. )

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    A licensee may not merge with another corporation unless the merger is first approved by the commissioner, with extra conditions depending on whether the licensee survives or disappears in the merger.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 9. Merger and Purchase or Sale of Business [31600 - 31605] ( Chapter 9 added by Stats. 1977, Ch. 1164. ) ## 31601. No licensee shall merge with any other corporation unless: (a) In case such licensee is the surviving corporation, such merger shall have first been approved by the commissioner; (b) In case such licensee is a disappearing corporation, the surviving corporation is a licensee and such merger shall have first been approved by the commissioner. (Amended by Stats. 1996, Ch. 1064, Sec. 673. Effective January 1, 1997. Operative July 1, 1997.)
  12. 31602.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 9. Merger and Purchase or Sale of Business [31600 - 31605] ( Chapter 9 added by Stats. 1977, Ch. 1164. )

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    A licensee may not buy all or substantially all of another person's business unless the commissioner first approves the purchase.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 9. Merger and Purchase or Sale of Business [31600 - 31605] ( Chapter 9 added by Stats. 1977, Ch. 1164. ) ## 31602. No licensee shall purchase all or substantially all of the business of any other person unless such purchase shall have first been approved by the commissioner. (Amended by Stats. 1996, Ch. 1064, Sec. 674. Effective January 1, 1997. Operative July 1, 1997.)
  13. 31603.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 9. Merger and Purchase or Sale of Business [31600 - 31605] ( Chapter 9 added by Stats. 1977, Ch. 1164. )

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    A licensee may not sell all or substantially all of its business unless the buyer is also a licensee and the commissioner has first approved the sale.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 9. Merger and Purchase or Sale of Business [31600 - 31605] ( Chapter 9 added by Stats. 1977, Ch. 1164. ) ## 31603. No licensee shall sell all or substantially all of its business to any other person unless such other person is a licensee and such sale shall have first been approved by the commissioner. (Amended by Stats. 1996, Ch. 1064, Sec. 675. Effective January 1, 1997. Operative July 1, 1997.)
  14. 31604.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 9. Merger and Purchase or Sale of Business [31600 - 31605] ( Chapter 9 added by Stats. 1977, Ch. 1164. )

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    The commissioner must approve a merger, purchase, or sale application if the stated safety, compliance, and public-interest findings are met; otherwise, after notice and a hearing, the commissioner must deny it.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 9. Merger and Purchase or Sale of Business [31600 - 31605] ( Chapter 9 added by Stats. 1977, Ch. 1164. ) ## 31604. If the commissioner finds, with respect to an application for approval of a merger, purchase, or sale: (a) That the merger, purchase, or sale will be safe and sound with respect to the acquiring licensee; (b) That it is reasonable to believe that, upon consummation of the merger, purchase, or sale, the acquiring licensee will comply with all applicable provisions of this division and of any regulation or order issued under this division; and (c) That the merger, purchase, or sale will not be detrimental to the public convenience and advantage, or, if the merger, purchase, or sale would be detrimental to the public convenience and advantage, that it is necessary in the interests of the safety and soundness of any of the parties to it; The commissioner shall approve the application. If, after notice and a hearing, the commissioner finds otherwise, he or she shall deny the application. (Amended by Stats. 1996, Ch. 1064, Sec. 676. Effective January 1, 1997. Operative July 1, 1997.)
  15. 31605.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 9. Merger and Purchase or Sale of Business [31600 - 31605] ( Chapter 9 added by Stats. 1977, Ch. 1164. )

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    The commissioner may exempt persons or transactions from this chapter, with or without conditions, for set periods, if doing so is in the public interest and regulation is not necessary.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 9. Merger and Purchase or Sale of Business [31600 - 31605] ( Chapter 9 added by Stats. 1977, Ch. 1164. ) ## 31605. The commissioner may, by such regulations or orders as he or she deems necessary and appropriate, either unconditionally or upon specified terms and conditions or for specified periods, exempt from the provisions of this chapter any person or transaction or class of persons or transactions, if he or she finds such action to be in the public interest and that the regulation of such persons or transactions is not necessary for the purposes of this division. (Amended by Stats. 1996, Ch. 1064, Sec. 677. Effective January 1, 1997. Operative July 1, 1997.)
  16. 31650.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 10. Voluntary Surrender of License [31650 - 31651] ( Chapter 10 added by Stats. 1977, Ch. 1164. )

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    A licensee may surrender its license by filing the license and a report with the commissioner.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 10. Voluntary Surrender of License [31650 - 31651] ( Chapter 10 added by Stats. 1977, Ch. 1164. ) ## 31650. Any licensee may surrender its license by filing with the commissioner such license and a report which shall be in such form, shall contain such information, shall be signed in such manner, and shall (if the commissioner so requires by regulation or order) be verified in such manner, as the commissioner may by regulation or order require. (Amended by Stats. 1996, Ch. 1064, Sec. 678. Effective January 1, 1997. Operative July 1, 1997.)
  17. 31651.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 10. Voluntary Surrender of License [31650 - 31651] ( Chapter 10 added by Stats. 1977, Ch. 1164. )

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    A voluntary surrender of a license is effective 30 days after the license and required report are filed, unless subdivision (b) applies or the commissioner sets an earlier time by order.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 10. Voluntary Surrender of License [31650 - 31651] ( Chapter 10 added by Stats. 1977, Ch. 1164. ) ## 31651. (a) Except as otherwise provided in subdivision (b), a voluntary surrender of a license shall be effective on the 30th day after such license and the report called for in Section 31650 are filed with the commissioner or on such earlier date as the commissioner may by order specify. (b) If a proceeding to revoke or suspend a license is pending at the time when such license and the report called for in Section 31650 are filed with the commissioner or if a proceeding to revoke or suspend a license or to impose conditions upon the surrender of a license is instituted before the 30th day after such license and the report called for in Section 31650 are filed with the commissioner, the voluntary surrender of such license shall become effective at such time and upon such conditions as the commissioner may by order specify. (Amended by Stats. 1996, Ch. 1064, Sec. 679. Effective January 1, 1997. Operative July 1, 1997.)
  18. 31820.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. )

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    This section defines several terms used in the article, including adviser, associate, close relative, closing services, and short-term financing assistance.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. ) ## 31820. In this article, unless the context otherwise requires: (a) “Adviser,” when used with respect to a licensee, means any person who regularly provides legal, accounting, or management services or advice to such licensee. (b) “Associate,” when used with respect to a licensee, means: (1) Any principal shareholder, director, officer, manager, agent, or adviser of such licensee; (2) Any director, officer, partner, general manager, agent, employer, or employee of any person referred to in paragraph (1) of this subdivision; (3) Any person who controls, is controlled by, or is under common control with, any person referred to in paragraph (1) of this subdivision, directly or indirectly through one or more intermediaries; (4) Any close relative of any person referred to in paragraph (1) of this subdivision; (5) Any person of which any person referred to in paragraphs (1) to (4), inclusive, of this subdivision is a director or officer; or (6) Any person in which any person referred to in paragraphs (1) to (4), inclusive, of this subdivision or any combination of such persons acting in concert owns or controls, directly or indirectly, a 10 percent or greater equity interest. (7) For purposes of this subdivision, any person who is in any of the relationships referred to in paragraphs (1) to (6), inclusive, of this subdivision within six months before or after a licensee provides financing assistance shall be deemed to be in such relationship as of the date when such licensee provides such financing assistance. (8) For purposes of this subdivision, in case a licensee, in order to protect its interests, designates any person to serve as a director of, officer of, or in any capacity in the management of, a business firm to which such licensee provides financing assistance, such person shall not, on that account, be deemed to have any relationship with such business firm; provided, however, that this paragraph shall not apply in any case where the person has, directly or indirectly, any other financial interest in the business firm or where the person, at any time before the licensee provides the financing assistance, served as a director of, officer of, or in any other capacity in the management of, the business firm for a period of 30 days or more. (c) “Close relative” means ancestor, lineal descendant, brother or sister and lineal descendants of either, spouse, father-in-law, mother-in-law, son-in-law, brother-in-law, daughter-in-law, or sister-in-law. (d) “Closing services” means services performed in connection with the providing of financing assistance. “Closing services” includes (but is not limited to) appraising property and preparing credit reports. “Closing services” does not include any services performed after the providing of financing assistance. (e) “Short-term financing assistance” means any financing assistance with a term of not more than five years. (Added by Stats. 1977, Ch. 1164.)
  19. 31821.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. )

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    The commissioner may exempt persons or transactions from this article, and must consider applicable federal conflict-of-interest rules when doing so.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. ) ## 31821. (a) The commissioner may, by such regulations or orders as he or she deems necessary and appropriate, either unconditionally or upon specified terms and conditions and for specified periods, exempt from the provisions of this article any person or transaction or class of persons or transactions, if the commissioner finds such action to be in the public interest and that the regulation of such persons or transactions is not necessary for the purposes of this division. (b) In exempting from the provisions of this article any person or transaction or class of persons or transactions, the commissioner shall give due consideration to any conflict of interest provision of federal law or regulation applicable to such person or transaction governing participants in federal financing programs. (Amended by Stats. 1996, Ch. 1064, Sec. 697. Effective January 1, 1997. Operative July 1, 1997.)
  20. 31822.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. )

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    A licensee must not directly or indirectly provide financing assistance to its associates.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. ) ## 31822. It shall be unlawful for any licensee, directly or indirectly, to provide financing assistance to any of its associates. (Added by Stats. 1977, Ch. 1164.)
  21. 31823.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. )

    Verify source ↗

    A licensee must not provide financing assistance to an associate of another licensee when certain related financing assistance arrangements exist.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. ) ## 31823. (a) It shall be unlawful for any licensee, directly or indirectly, to provide financing assistance to any associate of another licensee if any associate of the first licensee receives, has received, or is about to receive, directly or indirectly, financing assistance or a commitment for financing assistance from such other licensee. (b) It shall be unlawful for any licensee, directly or indirectly, to provide financing assistance to any associate of another licensee if any associate of the first licensee receives, has received, or is about to receive, directly or indirectly financing assistance or a commitment for financing assistance from a third licensee pursuant to any contract, understanding, or arrangement among such licensees. (Added by Stats. 1977, Ch. 1164.)
  22. 31824.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. )

    Verify source ↗

    Licensees and their associates must not, directly or indirectly, borrow money from specified related persons.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. ) ## 31824. It shall be unlawful for any licensee or for any associate of a licensee, directly or indirectly, to borrow money from: (a) Any person to which such licensee has provided, or has committed to provide, financing assistance; (b) Any director of, officer of, or person who owns a 10 percent or greater equity interest in, any person referred to in subdivision (a); or (c) Any close relative of any person referred to in subdivision (b). (Added by Stats. 1977, Ch. 1164.)
  23. 31825.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. )

    Verify source ↗

    A licensee must not, directly or indirectly, provide financing assistance to help pay an obligation owed to an associate, except for certain ordinary-course transactions involving a line of credit or short-term financing assistance.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. ) ## 31825. It shall be unlawful for any licensee, directly or indirectly, to provide financing assistance to discharge, or to free other funds for use in discharging, in whole or in part, an obligation to any associate of such licensee; provided, however, that this section shall not apply to any transaction effected by an associate of a licensee in the normal course of such associate’s business involving a line of credit or short-term financing assistance. (Added by Stats. 1977, Ch. 1164.)
  24. 31826.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. )

    Verify source ↗

    A licensee must not directly or indirectly provide financing assistance to buy property from the licensee’s associate.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. ) ## 31826. It shall be unlawful for any licensee, directly or indirectly, to provide financing assistance for the purchase of property from any associate of such licensee. (Added by Stats. 1977, Ch. 1164.)
  25. 31827.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. )

    Verify source ↗

    A licensee may not give financing assistance to someone if the licensee’s associate also gives financing assistance to that person, when the licensee’s terms are less favorable, subject to a normal-course line-of-credit or short-term financing exception.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. ) ## 31827. It shall be unlawful for any licensee, directly or indirectly, to provide financing assistance to any person to whom any associate of such licensee provides financing assistance, either contemporaneously with, or within one year before or after, the providing of financing assistance by the licensee, if the terms on which the licensee provides financing assistance are less favorable to the licensee than the terms on which the associate provides financing assistance to the associate. In any case where the financing assistance provided by the associate of the licensee is of a different kind from the financing assistance provided by the licensee, the burden shall be on the licensee to prove that the terms on which it provided financing assistance were at least as favorable to it as the terms on which the associate provided financing assistance to the associate. This section shall not apply to any transaction effected by an associate of a licensee in the normal course of such associate’s business involving a line of credit or short-term financing assistance. (Added by Stats. 1977, Ch. 1164.)
  26. 31828.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. )

    Verify source ↗

    An associate of a licensee may not receive compensation or anything of value from a person who gets financing assistance, if it is for influencing the licensee’s action.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. ) ## 31828. It shall be unlawful for any associate of a licensee, directly or indirectly, to receive from any person to whom such licensee provides financing assistance, any compensation in connection with the providing of such financing assistance or anything of value for procuring, influencing, or attempting to procure or influence, the licensee’s action with respect to the providing of the financing assistance. This section shall not apply to the receipt by an associate of a licensee of fees for bona fide closing services performed by such associate; provided, however, that the associate is, with the consent and knowledge of the person to whom the financing assistance is provided, designated by the licensee to perform such services, that the services are appropriate and necessary in the circumstances, that the fees for the services are approved as reasonable by the licensee, and that the fees for the services are collected by the licensee on behalf of the associate. (Added by Stats. 1977, Ch. 1164.)
  27. 31829.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. )

    Verify source ↗

    A licensee must not, directly or indirectly, sell or transfer its assets to its associates.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 2. Conflicts of Interest [31820 - 31829] ( Article 2 added by Stats. 1977, Ch. 1164. ) ## 31829. It shall be unlawful for any licensee, directly or indirectly, to sell or otherwise transfer any of its assets to any of its associates. (Added by Stats. 1977, Ch. 1164.)
  28. 31880.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 3. Criminal Penalties [31880 - 31881] ( Article 3 added by Stats. 1977, Ch. 1164. )

    Verify source ↗

    A person who violates this chapter can be fined, jailed, or both if convicted.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 3. Criminal Penalties [31880 - 31881] ( Article 3 added by Stats. 1977, Ch. 1164. ) ## 31880. Any person who violates any provision of this chapter shall upon conviction be fined not more than ten thousand dollars ($10,000) or be imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or in a county jail for not more than one year, or be punished by both that fine and imprisonment. (Amended by Stats. 2011, Ch. 15, Sec. 114. (AB 109) Effective April 4, 2011. Operative October 1, 2011, by Sec. 636 of Ch. 15, as amended by Stats. 2011, Ch. 39, Sec. 68.)
  29. 31881.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 3. Criminal Penalties [31880 - 31881] ( Article 3 added by Stats. 1977, Ch. 1164. )

    Verify source ↗

    This section says the division does not restrict the state’s power to punish conduct that is a crime under any statute.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 12. Crimes and Criminal Penalties [31800 - 31881] ( Chapter 12 added by Stats. 1977, Ch. 1164. ) ## ARTICLE 3. Criminal Penalties [31880 - 31881] ( Article 3 added by Stats. 1977, Ch. 1164. ) ## 31881. Nothing in this division limits the power of the state to punish any person for any act which constitutes a crime under any statute. (Added by Stats. 1977, Ch. 1164.)
  30. 31900.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 13. Civil Penalties [31900 - 31901] ( Chapter 13 added by Stats. 1977, Ch. 1164. )

    Verify source ↗

    After notice and a hearing, the commissioner may order a person who violated this division or related regulations or orders to pay a civil penalty, capped at $1,000 per violation or $1,000 per day for a continuing violation.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 13. Civil Penalties [31900 - 31901] ( Chapter 13 added by Stats. 1977, Ch. 1164. ) ## 31900. If, after notice and a hearing, the commissioner finds that any person has violated any provision of this division or of any regulation or order issued under this division, the commissioner may order such person to pay to the commissioner a civil penalty in such amount as the commissioner may specify; provided, however, that the amount of such civil penalty shall not exceed one thousand dollars ($1,000) for each violation, or in the case of a continuing violation, one thousand dollars ($1,000) for each day for which such violation continues. (Amended by Stats. 1996, Ch. 1064, Sec. 698. Effective January 1, 1997. Operative July 1, 1997.)
  31. 31901.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 13. Civil Penalties [31900 - 31901] ( Chapter 13 added by Stats. 1977, Ch. 1164. )

    Verify source ↗

    Section 31901 says Section 31900 penalties are in addition to other commissioner enforcement powers, but it blocks double liability in two cases.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 13. Civil Penalties [31900 - 31901] ( Chapter 13 added by Stats. 1977, Ch. 1164. ) ## 31901. The provisions of Section 31900 are additional to, and not alternative to, other provisions of this division which authorize the commissioner to issue orders or to take other action on account of a violation of any provision of this division or of any regulation or order issued under this division; provided, however, that no person who has been finally convicted under Chapter 12 (commencing with Section 31800) of this division on account of a violation of any provision of Chapter 12 shall be liable to pay a civil penalty under Section 31900 on account of such violation, nor shall any person who has paid a civil penalty under Section 31900 on account of a violation of any provision of Chapter 12 be liable to criminal prosecution under Chapter 12 on account of such violation. (Amended by Stats. 1996, Ch. 1064, Sec. 699. Effective January 1, 1997. Operative July 1, 1997.)
  32. 31950.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 14. Transition Provisions [31950 - 31952] ( Chapter 14 added by Stats. 1977, Ch. 1164. )

    Verify source ↗

    This section defines “Member,” “Old corporation,” and “Old law” for this chapter.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 14. Transition Provisions [31950 - 31952] ( Chapter 14 added by Stats. 1977, Ch. 1164. ) ## 31950. In this chapter: (a) “Member” has the meaning set forth in the old law. (b) “Old corporation” means a corporation organized under the old law. (c) “Old law” means Part 6 (commencing with Section 14200), Division 3, Title 1 of the Corporations Code, as added by Chapter 985 of the Statutes of 1975. (Added by Stats. 1977, Ch. 1164.)
  33. 31951.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 14. Transition Provisions [31950 - 31952] ( Chapter 14 added by Stats. 1977, Ch. 1164. )

    Verify source ↗

    This section makes the General Corporation Law apply to each old corporation after the division’s effective date, except as provided in Sections 31004 and 31952.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 14. Transition Provisions [31950 - 31952] ( Chapter 14 added by Stats. 1977, Ch. 1164. ) ## 31951. Except as otherwise provided in Sections 31004 and 31952, the provisions of the General Corporation Law (Division 1 (commencing with Section 100), Title 1 of the Corporations Code) shall, on and after the effective date of this division, apply to each old corporation; provided, however, that, for purposes of the provisions of Chapter 23 (commencing with Section 2300) of the General Corporation Law, with respect to each old corporation: (a) The term “effective date” shall mean the effective date of this division. (b) The term “prior law” shall mean the old law. (c) Each old corporation shall be deemed to be a corporation referred to in Section 162 of the Corporations Code. (Amended by Stats. 1978, Ch. 965.)
  34. 31952.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 14. Transition Provisions [31950 - 31952] ( Chapter 14 added by Stats. 1977, Ch. 1164. )

    Verify source ↗

    Old-law membership rules keep applying for existing members, but no new member may join after the division’s effective date. Existing members may withdraw by giving written notice at least 10 days before the intended withdrawal date.

    ## Financial Code - FIN ## DIVISION 15. BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS [31000 - 31952] ( Division 15 added by Stats. 1977, Ch. 1164. ) ## CHAPTER 14. Transition Provisions [31950 - 31952] ( Chapter 14 added by Stats. 1977, Ch. 1164. ) ## 31952. In case any old corporation has, on the effective date of this division, any members: (a) The old law shall continue to apply with respect to matters relating to the rights and obligations of such members with respect to such old corporation and to matters relating to the rights and obligations of such old corporation with respect to such members, so long as any of such members continues to be a member of such old corporation; provided, however, that, notwithstanding any provision of the old law to the contrary, any member of an old corporation may withdraw from membership in such old corporation by giving to such old corporation written notice of its intent to withdraw from membership in such old corporation not less than 10 days before the date on which it intends to withdraw from membership in such old corporation, which date shall be specified in such notice, and the withdrawal of such member from membership in such old corporation shall be effective on such date. (b) No person shall, on or after the effective date of this division, become a member of such old corporation. (Added by Stats. 1977, Ch. 1164.)
  35. 320.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

    Verify source ↗

    The Commissioner of Financial Protection and Innovation is the department head and must hire legal counsel and stenographic reporters for specified proceedings and hearings.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 320. (a) The chief officer of the Department of Financial Protection and Innovation is the Commissioner of Financial Protection and Innovation. The Commissioner of Financial Protection and Innovation is the head of the department with the authority and responsibility over all officers, employees, and activities in the department and, except as otherwise provided in this code and the Corporations Code, is subject to the provisions of the Government Code relating to department heads. (b) The Commissioner of Financial Protection and Innovation shall employ legal counsel to act as the attorney for the commissioner in actions or proceedings brought by or against the commissioner under or pursuant to any law under the jurisdiction of the Department of Financial Protection and Innovation, or in which the commissioner joins or intervenes as to a matter within the jurisdiction of the Department of Financial Protection and Innovation, as a friend of the court or otherwise. (c) The Commissioner of Financial Protection and Innovation shall employ stenographic reporters to take and transcribe the testimony in any formal hearing or investigation before the commissioner or before a person authorized by the commissioner. (d) Sections 11040 and 11042 of the Government Code do not apply to the Department of Financial Protection and Innovation. (Amended by Stats. 2020, Ch. 157, Sec. 2. (AB 1864) Effective January 1, 2021.)
  36. 32000.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Short Title, Construction and Severability [32000 - 32002] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    This division is called the “State Assistance Fund for Enterprise Act of 1989.”

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Short Title, Construction and Severability [32000 - 32002] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32000. This division shall be known and may be cited as the “State Assistance Fund for Enterprise Act of 1989.” (Amended by Stats. 1989, Ch. 1040, Sec. 2.)
  37. 32001.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Short Title, Construction and Severability [32000 - 32002] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    This section explains how references in the division should be read.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Short Title, Construction and Severability [32000 - 32002] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32001. In this division, unless the context otherwise requires: (a) A reference to a statute or to a regulation includes such statute or regulation as amended, whether before or after the effective date of this division, as well as any new statute or regulation substituted for such statute or regulation after the effective date of this division. (b) A reference to a governmental agency or to a public officer includes any governmental agency or public officer which succeeds after the effective date of this division to substantially the same functions as those performed by such governmental agency or public officer on the effective date of this division. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  38. 32002.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Short Title, Construction and Severability [32000 - 32002] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    If part of the division is invalid, illegal, or unenforceable, the rest still remains in effect.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Short Title, Construction and Severability [32000 - 32002] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32002. If any provision of this division or the application thereof to any person or circumstances is held invalid, illegal, or unenforceable, such invalidity, illegality, or enforceability shall not affect other provisions or applications of this division which can be given effect without the invalid, illegal, or unenforceable provision or application, and to this end, the provisions of this division are declared to be severable. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  39. 3201.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. )

    Verify source ↗

    A person may not do digital financial asset business activity, or present itself as able to do so, for or with a resident on or after July 1, 2026 unless licensed, awaiting a timely application decision, or exempt.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3201. On or after July 1, 2026, a person shall not engage in digital financial asset business activity, or hold itself out as being able to engage in digital financial asset business activity, with or on behalf of a resident unless any of the following is true: (a) The person is licensed in this state by the department under Section 3203. (b) The person submits a completed application on or before July 1, 2026, and is awaiting approval or denial of that application. (c) The person is exempt from licensure under this division pursuant to Section 3103. (Amended by Stats. 2026, Ch. 52, Sec. 3. (SB 97) Effective June 30, 2026.)
  40. 3203.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. )

    Verify source ↗

    Applicants for a license must submit a complete application with required information, pay the required fees, and respond to any conditional approval within 31 days.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3203. (a) An application for a license under this division shall meet all of the following requirements: (1) The application shall be in a form and medium prescribed by the department. (2) Except as otherwise provided in subdivision (b), the application shall provide all of the following information relevant to the applicant’s proposed digital financial asset business activity: (A) The legal name of the applicant, any current or proposed business United States Postal Service mailing address of the applicant, and any fictitious or trade name the applicant uses or plans to use in conducting the applicant’s digital financial asset business activity with or on behalf of a resident. (B) The legal name, any former or fictitious name, and the residential and business United States Postal Service mailing address of any executive officer and responsible individual of the applicant and any person that has control of the applicant. (C) A description of the current and former business of the applicant for the five years before the application is submitted, or, if the business has operated for less than five years, for the time the business has operated, including its products and services, associated internet website addresses and social media pages, principal place of business, projected user base, and specific marketing targets. (D) A list of all of the following: (i) Any financial regulatory license the applicant holds in another state. (ii) The date the license described in clause (i) expires. (iii) Any license revocation, license suspension, or other disciplinary action taken against the licensee in any state and any license applications rejected by any state. (E) A list of any criminal conviction, deferred prosecution agreement, and pending criminal proceeding in any jurisdiction against all of the following: (i) The applicant. (ii) Any executive officer of the applicant. (iii) Any responsible individual of the applicant. (iv) Any person that has control over the applicant. (v) Any person over which the applicant has control. (F) A list of any litigation, arbitration, or administrative proceeding in any jurisdiction in which the applicant or an executive officer or a responsible individual of the applicant has been a party for the 10 years before the application is submitted determined to be material in accordance with generally accepted accounting principles and, to the extent the applicant would be required to disclose the litigation, arbitration, or administrative proceeding in the applicant’s audited financial statements, reports to equity owners and similar statements or reports. (G) A list of any bankruptcy or receivership proceeding in any jurisdiction for the 10 years before the application is submitted in which any of the following was a debtor: (i) The applicant. (ii) An executive officer of the applicant. (iii) A responsible individual of the applicant. (iv) A person that has control over the applicant. (v) A person over which the applicant has control. (H) The name and United States Postal Service mailing address of any bank in which the applicant plans to deposit funds obtained by its digital financial asset business activity. (I) The source of funds and credit to be used by the applicant to conduct digital financial asset business activity with, or on behalf of, a resident. (J) Documentation demonstrating that the applicant has the capital and liquidity required by Section 3207. Documentation shall include, but is not limited to, both of the following: (i) A copy of the applicant’s audited financial statements for the most recent fiscal year and for the two-year period next preceding the submission of the application, if available. (ii) A copy of the applicant’s unconsolidated financial statements for the current fiscal year, whether audited or not, and, if available, for the two-year period next preceding the submission of the application. (K) The United States Postal Service mailing address and email address to which communications from the department can be sent. (L) The name, United States Postal Service mailing address, and email address of the registered agent of the applicant in this state. (M) A copy of the certificate, or a detailed summary acceptable to the department, of coverage for any liability, casualty, business interruption, or cybersecurity insurance policy maintained by the applicant for itself, an executive officer, a responsible individual, or the applicant’s users. (N) If applicable, the date on which and the state in which the applicant is formed and a copy of a current certificate of good standing issued by that state. (O) If a person has control of the applicant and the person’s equity interests are publicly traded in the United States, a copy of the audited financial statement of the person for the most recent fiscal year or most recent report of the person filed under Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. Sec. 78m). (P) If a person has control of the applicant and the person’s equity interests are publicly traded outside the United States, a copy of the audited financial statement of the person for the most recent fiscal year of the person or a copy of the most recent documentation similar to that required in subparagraph (N) filed with the foreign regulator in the domicile of the person. (Q) If the applicant is a partnership or a member-managed limited liability company, the names and United States Postal Service mailing addresses of any general partner or member. (R) If the applicant is required to register with the Financial Crimes Enforcement Network of the United States Department of the Treasury as a money service business, evidence of the registration. (S) A set of fingerprints for each executive officer and responsible individual of the applicant. (T) If available, for any executive officer and responsible individual of the applicant, for the 10 years before the application is submitted, employment history and history of any investigation of the individual or legal proceeding to which the individual was a party. (U) The plans through which the applicant will meet its obligations under Chapter 7 (commencing with Section 3701). (V) The number of residents with whom, or on behalf of, the applicant engaged in digital financial asset business activity in the month preceding the month in which the applicant submits an application for a license under this division to the department. (W) An estimate of the anticipated number of residents with whom, or on behalf of, the applicant will engage in digital financial asset business activity by October 1 of the year following the year in which the applicant submits an application for a license under this division to the department. (X) Any other information the department reasonably requires by rule. (3) The application shall be accompanied by a nonrefundable fee in the amount determined by the department to cover the reasonable costs of application review. (b) (1) On receipt of a completed application, the department shall investigate whether each of the following criterion is satisfied: (A) The applicant has the sound financial condition, competence, and responsibility to engage in digital financial business activity. (B) The applicant has relevant financial and business experience, good character, and general fitness. (C) Each executive officer, responsible individual, and person that has control of the applicant has competence, experience, good character, and general fitness. (D) The applicant has complied with Chapter 5 (commencing with Section 3501) and Chapter 6 (commencing with Section 3601). (E) The applicant has a reasonable promise of success in engaging in digital financial business activity. (F) It is reasonable to believe that the applicant, if licensed, will engage in digital financial business activity in compliance with all applicable provisions of this division and any regulation or order issued pursuant to this division. (2) On receipt of a completed application, the department may investigate the business premises of an applicant. (c) After completing the investigation required by subdivision (b), the department shall send the applicant notice of its decision to approve, conditionally approve, or deny the application. If the department does not receive written notice from the applicant that the applicant accepts conditions specified by the department within 31 days following the department’s notice of the conditions, or if the applicant does not request a hearing on the conditions specified by the department within 31 days after the department’s notice of the conditions, the application shall be deemed withdrawn. (d) A license issued pursuant to this division shall take effect on the later of the following: (1) The date the department issues the license. (2) The date the licensee provides the security required by Section 3207. (e) In addition to the fee required by paragraph (3) of subdivision (a), an applicant shall pay the reasonable costs of the department’s investigation under subdivision (b). (f) Information provided pursuant to this section is covered by subdivision (a) of Section 7929.000 of the Government Code. (g) For purposes of this section, “completed application” means an application that contains the nonrefundable fee required by paragraph (3) of subdivision (a), the information specified in paragraph (2) of subdivision (a), and any additional information required by any regulations of the commissioner. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  41. 3205.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. )

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    The commissioner may issue a conditional license to certain applicants if specified eligibility and compliance conditions are met. The license ends when the listed terminating event happens first.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3205. (a) The commissioner may issue a conditional license to an applicant who holds or maintains a license to conduct virtual currency business activity in the State of New York pursuant to Part 200 of Title 23 of the New York Code of Rules and Regulations or a charter as a New York State limited purpose trust company with approval to conduct a virtual currency business under New York law, provided the license was issued or approved no later than January 1, 2025, and the applicant pays all appropriate fees and complies with the requirements of this division. (b) The commissioner may issue a conditional license to an applicant pending compliance with the requirements of Section 3219 if all of the following conditions are met: (1) The applicant has supplied all fingerprints required under Section 3219. (2) The applicant meets all other requirements for licensure. (3) Notwithstanding the commissioner’s reasonable efforts, the commissioner has been unable to complete the criminal history investigations required by Section 3219 with reasonable speed. (c) A conditional license issued pursuant to this section shall expire at the earliest of the following: (1) Upon issuance of an unconditional license. (2) Upon denial of a license application. (3) Upon revocation of a license issued pursuant to Part 200 of Title 23 of the New York Code of Rules and Regulations or disapproval or revocation of a charter as a New York State limited purpose trust company with approval to conduct a virtual currency business under New York law. (Amended by Stats. 2026, Ch. 52, Sec. 4. (SB 97) Effective June 30, 2026.)
  42. 3207.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. )

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    A licensee must keep a department-approved surety bond or trust account, and also maintain required capital and liquidity levels, with any required increases due within 30 days of notice.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3207. (a) (1) (A) A licensee shall maintain a surety bond or trust account in United States dollars in a form and amount as determined by the department for the protection of residents that engage in digital financial asset business activity with the licensee. (B) If a licensee maintains a trust account pursuant to this section, that trust account shall be maintained with a bank, trust company, credit union, or federal credit union in the state, subject to the prior approval of the department. (2) Security deposited under this section shall be payable to this state for the benefit of a claim against the licensee on account of the licensee’s digital financial asset business activity with, or on behalf of, a resident. (3) Security deposited under this section shall cover claims for a period determined by the department for the protection of residents with whom a licensee engages in digital financial business activity, including for an additional period the department specifies after the licensee ceases to engage in digital financial asset business activity with or on behalf of a resident. (4) The department may require the licensee to increase the amount of security deposited under this section, and the licensee shall deposit the additional security not later than 30 days after the licensee receives notice in a record of the required increase. (5) The department may permit a licensee to substitute or deposit an alternate form of security satisfactory to the department if the licensee at all times complies with this section. (6) A claimant does not have a direct right to recover against security deposited under this section. (7) Only the department may recover against the security, and the department may retain the recovery for no longer than five years and may process claims and distribute recoveries to claimants in accordance with rules adopted by the commissioner. (b) In addition to the security required under subdivision (a), a licensee shall maintain at all times capital and liquidity in an amount and form as the department determines is sufficient to ensure the financial integrity of the licensee and its ongoing operations based on an assessment of the specific risks applicable to the licensee. In determining the minimum amount of capital and liquidity that shall be maintained by a licensee, the department may consider factors, including, but not limited to, all of the following: (1) The composition of the licensee’s total assets, including the position, size, quality, liquidity, risk exposure, and price volatility of each type of asset. (2) The composition of the licensee’s total liabilities, including the size and repayment timing of each type of liability. (3) The actual and expected volume of the licensee’s digital financial asset business activity. (4) The amount of leverage employed by the licensee. (5) The liquidity position of the licensee. (6) The financial protection that the licensee provides pursuant to subdivision (a). (7) The types of entities to be serviced by the licensee. (8) The types of products or services to be offered by the licensee. (9) Arrangements adopted by the licensee for the protection of its customers in the event of the licensee’s insolvency. (c) A licensee shall hold liquid assets required to be maintained in accordance with this section in the form of cash, digital financial assets other than digital financial assets over which it has control for a resident entitled to the protections of Section 3503, or high-quality, liquid assets as defined in subdivision (a) of Section 249.20 of Title 12 of the Code of Federal Regulations in proportions determined by the department. (d) The department may require a licensee to increase the capital or liquidity required under this section. A licensee shall submit evidence satisfactory to the department that the licensee has additional capital or liquidity required pursuant to this subdivision not later than 30 days after the licensee receives notice in a record of the required increase. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  43. 3209.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. )

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    The department must issue a license if the listed conditions are met. An applicant may appeal a denial, but must do so within 30 days after notice of denial or deemed denial.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3209. (a) The department shall issue a license to an applicant if all of the following conditions are satisfied: (1) The commissioner finds that all of the criteria described in paragraph (1) of subdivision (b) of Section 3203 are satisfied. (2) The applicant has complied with this chapter. (3) The applicant has paid the costs of the investigation under subdivision (e) of Section 3203. (4) The applicant has paid the initial license fee under paragraph (3) of subdivision (a) of Section 3203. (b) An applicant may appeal a denial of its application under Section 3203 pursuant to the Administrative Procedure Act, as described in Section 11370 of the Government Code, not later than 30 days after the department notifies the applicant that the application at an address specified under subparagraph (K) of paragraph (2) of subdivision (a) of Section 3203 has been denied or deemed denied. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  44. 321.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

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    This section defines “order” and provides that the Department of Business Oversight and the Commissioner of Business Oversight are renamed, while their powers, duties, rights, and existing actions continue under the new names.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 321. (a) In this section, “order” means any approval, consent, authorization, exemption, denial, prohibition, requirement, or other administrative action, applicable to a specific case. (b) Upon the operative date of this section, as amended during the 2019–20 legislative session, the office of the Commissioner of Business Oversight and the Department of Business Oversight shall be renamed the office of the Commissioner of Financial Protection and Innovation and the Department of Financial Protection and Innovation. All powers, duties, responsibilities, and functions of the Commissioner of Business Oversight and the Department of Business Oversight shall be the powers, duties, responsibilities, and functions of the Commissioner of Financial Protection and Innovation and the Department of Financial Protection and Innovation, respectively. The Commissioner of Financial Protection and Innovation and the Department of Financial Protection and Innovation shall retain all of the rights, property, debts, and liability of the Commissioner of Business Oversight and the Department of Business Oversight, respectively. The change of name shall not affect the validity of any action or proceeding by or against the Commissioner of Business Oversight or the Department of Business Oversight, or a predecessor commissioner or department, nor the validity of any permit, certificate, license, or any other action taken under the name of the Commissioner of Business Oversight or the Department of Business Oversight, or a predecessor commissioner or department. All agreements entered into with, and orders and regulations issued by, the Commissioner of Business Oversight or the Department of Business Oversight, or a predecessor commissioner or department, shall continue in effect as agreements, orders, and regulations of the Commissioner of Financial Protection and Innovation or the Department of Financial Protection and Innovation. References in the California Constitution or in any statute or regulation to the Superintendent of Banks or the Commissioner of Financial Institutions or the Commissioner of Corporations or the Commissioner of Business Oversight or to the State Banking Department or the Department of Financial Institutions or the Department of Corporations or the Department of Business Oversight mean the Commissioner of Financial Protection and Innovation or the Department of Financial Protection and Innovation, respectively. (c) (1) The name change of the Department of Business Oversight to the Department of Financial Protection and Innovation shall not result in any change to the status or authority of the department. (2) (A) All appointments by the Governor to the Department of Business Oversight shall continue as appointments to the Department of Financial Protection and Innovation. (B) The confirmation by the Senate of the Commissioner and Senior Deputy Commissioner of Business Oversight for the Division of Corporations shall remain in effect as confirmation by the Senate of the Commissioner and Senior Deputy Commissioner of Corporations and Financial Institutions to the renamed Department of Financial Protection and Innovation. (Amended by Stats. 2020, Ch. 157, Sec. 3. (AB 1864) Effective January 1, 2021.)
  45. 32101.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 2. Legislative Purposes [32101- 32101.] ( Heading of Article 2 amended by Stats. 1989, Ch. 1040, Sec. 3. )

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    This section states the purposes of the division: to improve financial assistance for small businesses, make state assistance more efficient, maximize use of federal programs, reduce duplication, coordinate state programs, leverage limited state resources, and strengthen competitiveness and job creation.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 2. Legislative Purposes [32101- 32101.] ( Heading of Article 2 amended by Stats. 1989, Ch. 1040, Sec. 3. ) ## 32101. The purposes of this division are the following: (a) To enhance the availability of financial assistance for small business in California. (b) To increase the cost effectiveness and efficiency of financial assistance to small businesses provided by the state. (c) To provide maximum utilization of available federal assistance programs, including, but not limited to, the Small Business Administration’s loan guarantee program. (d) To reduce duplication and overlap in the provisions of financing assistance to small businesses through increased coordination and direction of state assistance programs. (e) To provide the maximum degree of leverage of the limited state resources available to assist small business, consistent with sound business practices and fiduciary responsibility. (f) To increase the competitiveness of California’s small businesses in the world economy and the creation of jobs. (Repealed and added by Stats. 1989, Ch. 1040, Sec. 5.)
  46. 3211.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. )

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    Licensees must file an annual report each year, pay an annual pro rata cost share, and comply with department reporting requirements; noncompliance can lead to suspension or revocation.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3211. (a) Subject to subdivision (h), between October 1 and November 1 of each year, a licensee shall submit to the department an annual report under subdivision (b). (b) The annual report required by subdivision (a) shall be submitted in a form and medium prescribed by the department. The report shall contain all of the following: (1) Either a copy of the licensee’s most recent reviewed annual financial statement, if the gross revenue generated by the licensee’s digital financial asset business activity in this state was not more than two million dollars ($2,000,000) for the fiscal year ending before the anniversary date of issuance of its license under this division, or a copy of the licensee’s most recent audited annual financial statement, if the licensee’s digital financial asset business activity in this state amounted to more than two million dollars ($2,000,000), for the fiscal year ending before the anniversary date. (2) If a person other than an individual has control of the licensee, a copy of either of the following: (A) The person’s most recent reviewed annual financial statement, if the person’s gross revenue was not more than two million dollars ($2,000,000) in the previous fiscal year measured as of the anniversary date of issuance of its license under this division. (B) The person’s most recent audited consolidated annual financial statement, if the person’s gross revenue was more than two million dollars ($2,000,000) in the previous fiscal year measured as of the anniversary date of issuance of its license under this division. (3) A description of any of the following: (A) Any material change in the financial condition of the licensee. (B) Any material litigation related to the licensee’s digital financial asset business activity and involving the licensee or an executive officer or responsible individual of the licensee. (C) Any international, federal, state, or local investigation of the licensee, where permitted by applicable law. (D) (i) Any material data security breach or cybersecurity event of the licensee. (ii) A description of a data security breach pursuant to this subparagraph does not constitute disclosure or notification of a security breach for purposes of Section 1798.82 of the Civil Code. (4) Information or records required by Section 3307 that the licensee has not reported to the department. (5) The number of digital financial asset business activity transactions with, or on behalf of, residents for the period since, subject to subdivision (h), the later of the date the license was issued or the date the last annual report was submitted. (6) (A) The amount of United States dollar equivalent of digital financial asset in the control of the licensee at, subject to subdivision (h), the end of the last month that ends not later than 30 days before the date of the annual report. (B) The total number of residents for whom the licensee had control of United States dollar equivalent of digital financial assets on that date. (7) Evidence that the licensee is in compliance with Section 3503. (8) Evidence that the licensee is in compliance with Section 3205. (9) A list of all locations where the licensee engages in its digital financial asset business activity. (10) The number of residents with whom, or on behalf of, the licensee engaged in digital financial asset business activity between September 30 of the preceding year and October 1 of the year in which the licensee is submitting the annual report. (11) Any other information the department requires by rule. (c) (1) On or before February 28 of each year, a licensee and an applicant operating under this division without a license pursuant to subdivision (b) of Section 3201 shall pay its pro rata cost share of all costs and expenses reasonably incurred in the administration of this division, as estimated by the commissioner, for the ensuing year and any deficit actually incurred or anticipated in the administration of the program in both the year in which the assessment is made and the preceding year. (2) The pro rata cost share described in paragraph (1) shall be the proportion of residents with whom, or on behalf of, a licensee or an applicant operating under this division without a license pursuant to subdivision (b) of Section 3201 engages in digital financial asset business activity bears to the aggregate residents with whom, or on behalf of, all licensees and applicants operating under this division without a license pursuant to subdivision (b) of Section 3201 engage in digital financial asset business activity, as determined by the commissioner, for the costs and expenses reasonably incurred in the administration of this division, not including any costs covered by the fees or cost recoveries under Section 3203 or cost recoveries under Section 3301. (3) On or before January 31 of each year, the commissioner shall notify each licensee and applicant operating under this division without a license pursuant to subdivision (b) of Section 3201 of the amount assessed and levied against it. (4) The commissioner may use funds obtained by the commissioner through the enforcement of this division, including, but not limited to, moneys received through fines, penalties, settlements, or judgements, for the administration of this division, which shall offset amounts assessed and levied against pursuant to this subdivision. (5) The department may adopt rules that change the calculation of the pro rata cost share and the dates on which assessment notifications and payments are due pursuant to this subdivision, except that the amount of the pro rata cost share shall not exceed the costs and expenses reasonably incurred in the administration of this division. (d) (1) Following at least five business days’ notice to the licensee, the commissioner may by order summarily suspend or revoke the license of any licensee that fails to comply with subdivisions (a) to (c), inclusive, by March 31 of the year in which an assessment is made pursuant to subdivision (c). (2) The licensee may request a hearing on the order within 30 days of receipt of the notice. (3) If the licensee timely requests a hearing on the order and a hearing is not held within 60 days of that request, the order shall be deemed rescinded as of the effective date of the order. (e) If the department suspends or revokes a license under this division for noncompliance with subdivisions (a) to (c), inclusive, the department may end the suspension or rescind the revocation and notify the licensee of the action if, subject to subdivision (h), not later than 20 days after the license was suspended or revoked, the licensee files an annual report required by subdivision (a), a pro rata cost share required by subdivision (c), and pays any penalty assessed under Section 3407. (f) The department shall give prompt notice to a licensee of the lifting of a suspension or rescission of a revocation after the licensee complies with subdivision (e). (g) Suspension or revocation of a license under this section does not invalidate a transfer or exchange of digital financial assets for, or on behalf of, a resident made during the suspension or revocation and does not insulate the licensee from liability under this division. (h) The department may extend a period under this section. (Amended by Stats. 2026, Ch. 52, Sec. 5. (SB 97) Effective June 30, 2026.)
  47. 3213.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. )

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    A license under this division cannot be transferred or assigned.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3213. A license under this division is not transferable or assignable. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  48. 3215.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. )

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    The department may adopt rules for this division, and the commissioner must provide requested licensing information and publish written guidance. The commissioner may also prepare guidance and redact confidential information in it.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3215. (a) The department may adopt rules necessary to implement this division and may offer informal guidance to any prospective applicant for a license under this division regarding the conditions of licensure that may be applied to that person. The commissioner shall inform any applicant that requests that guidance of the minimum capital and liquidity, and other licensing requirements, that will be required of that applicant, based on the information provided by the applicant concerning the applicant’s plan to conduct business under this division, and the factors used to make that determination as described in Section 3203. (b) (1) The commissioner may prepare written decisions, opinion letters, and other formal written guidance to be issued to persons seeking clarification regarding the requirements of this division. (2) The commissioner shall make public on the commissioner’s internet website all written decisions, opinion letters, and other formal written guidance issued to persons seeking clarification regarding the requirements of this division. The commissioner may, at their discretion or upon request by an applicant or licensee, redact proprietary or other confidential information regarding an applicant or licensee from any decision, letter, or other written guidance issued in connection with an applicant or licensee. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  49. 3217.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. )

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    The commissioner may work with the licensing registry, change some division requirements to participate in it, use it to exchange information, and must create a way for applicants and licensees to challenge registry information.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3217. (a) The commissioner may establish relationships or contracts with the Nationwide Multistate Licensing System and Registry or other entities designated by the Nationwide Multistate Licensing System and Registry to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this division. (b) For the purpose of participating in the Nationwide Multistate Licensing System and Registry, the commissioner may waive or modify, in whole or in part, by rule, regulation, or order, any or all of the requirements of this division and establish new requirements as reasonably necessary to participate in the Nationwide Multistate Licensing System and Registry. (c) Notwithstanding any other provision of law, the commissioner may use the Nationwide Multistate Licensing System and Registry as a channeling agent between the United States Department of Justice and the commissioner for requesting information from, and distributing information to, the Department of Justice and the United States Department of Justice, including the Federal Bureau of Investigation pursuant to Section 5110 of the SAFE Act, any other governmental agency, or any other source, as directed by the commissioner. (d) The commissioner shall establish a process through which applicants and licensees may challenge information entered into the Nationwide Multistate Licensing System and Registry by the commissioner. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  50. 3219.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. )

    Verify source ↗

    The commissioner must require fingerprints and criminal history checks for certain license applicants and related control persons, and may use the Nationwide Mortgage Licensing System and Registry to obtain those checks.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3219. (a) (1) The commissioner shall require the submission of fingerprints for each applicant if the applicant is a natural person, and of each executive officer and responsible individual associated with the applicant, for the purpose of conducting a criminal history search by means of a Federal Bureau of Investigation criminal history record check. (2) The commissioner shall require the submission of fingerprints for any natural person that has control of the applicant for the purpose of conducting a criminal history search by means of a Federal Bureau of Investigation criminal history record check. (3) If a person that has control of the applicant is not a natural person, the commissioner shall require a Federal Bureau of Investigation criminal history record check, including the submission of fingerprints, for each executive officer and responsible person associated with that person that has control of the applicant for the purpose of conducting a criminal history search by means of a Federal Bureau of Investigation criminal history record check. (b) Section 461 of the Business and Professions Code shall not be applicable to the Department of Financial Protection and Innovation when using a national uniform application adopted or approved for use by the Nationwide Mortgage Licensing System and Registry in connection with this division. (c) Notwithstanding any other provision of law, in connection with an application for a license under this division, the commissioner may require every applicant, at a minimum, to furnish to the Nationwide Mortgage Licensing System and Registry information described under subdivision (a) of this section. (d) Notwithstanding any other provision of law, the commissioner may ask the Nationwide Mortgage Licensing System and Registry to obtain Federal Bureau of Investigation criminal history record check on individuals described in subdivision (a), pursuant to Section 5110 of the SAFE Act. For the purposes of this section, a Federal Bureau of Investigation criminal history record check shall include forwarding the individual’s fingerprints to the Federal Bureau of Investigation. (e) Notwithstanding any other provision of law, the commissioner may ask the Nationwide Mortgage Licensing System and Registry to obtain state criminal history background check information on applicants described in subdivision (a) using the procedures set forth in subdivisions (f) and (h). (f) If the Nationwide Mortgage Licensing System and Registry electronically submits fingerprint images and related information, as required by the Department of Justice, for an applicant under this division for the purposes of obtaining information as to the existence and content of a record of state convictions and state arrests and to the existence and content of a record of state arrests for which the Department of Justice establishes that the person is free on bail or on their recognizance pending trial or appeal, the Department of Justice shall provide an electronic response to the Nationwide Mortgage Licensing System and Registry pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code, and shall provide the same electronic response to the commissioner. (g) The Nationwide Mortgage Licensing System and Registry may request from the Department of Justice subsequent arrest notification service, as provided pursuant to Section 11105.2 of the Penal Code, for all individuals described in subdivision (a) of this section. The Department of Justice shall provide the same electronic response to the commissioner. (h) The Department of Justice shall charge a fee sufficient to cover the reasonable costs of processing the requests described in this section. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  51. 322.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

    Verify source ↗

    The commissioner is appointed by the Governor and must be confirmed by the Senate.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 322. The commissioner is appointed by the Governor, and holds office at the pleasure of the Governor. The appointment of the commissioner is subject to confirmation by the Senate. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  52. 32200.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    This section says the definitions in this article apply throughout the division, unless the context requires otherwise, and subject to additional definitions that apply to specific provisions.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32200. Subject to additional definitions contained in Division 15 (commencing with Section 31000) and this division which are applicable to specific provisions of these divisions and unless the context otherwise requires, the definitions in this article apply throughout this division. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  53. 32201.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    This section defines “alternative energy system” as a device or combination of devices that conserves or produces specified forms of energy and does not use conventional energy fuels, except for backup or incidental use with the system.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32201. “Alternative energy system” means any device or combination of devices which conserves or produces heat, process heat, space heating, water heating, steam, space cooling, refrigeration, mechanical energy, electricity, or energy in any form convertible to these uses, which does not expend or use conventional energy fuels, except when such conventional energy fuels are used as a back up energy system for such alternative energy system or in conjunction with an alternative energy system. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  54. 32202.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    “Conventional energy fuel” is defined as fuel derived from petroleum deposits, including listed fuels and nuclear fissionable materials, and it also includes energy produced from those fuels.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32202. “Conventional energy fuel” means any fuel derived from petroleum deposits, including but not limited to oil, heating oil, gasoline, fuel oil, or natural gas, including liquified natural gas, or nuclear fissionable materials. “Conventional energy fuel” includes energy produced by the use of such fuels. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  55. 32203.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    “Small business” is defined as a business that qualifies as an eligible small business under the cited federal regulation.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32203. “Small business” means a business defined as an eligible small business as set forth in Section 121.3-10 of Part 121, Chapter 1, Title 13 of the Code of Federal Regulations. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  56. 32204.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    “State Controller” includes the State Controller and any person the State Controller delegates to act in a particular matter.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32204. “State Controller” means the State Controller or any person to whom the State Controller delegates the authority to act for him or her in the particular matter. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  57. 32205.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    This section defines “Rules Committee” as the State Senate rules committee, including anyone it delegates to act in a particular matter.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32205. “Rules Committee” means the rules committee of the State Senate or any person to whom the rules committee of the State Senate delegates to act for it in the particular matter. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  58. 32206.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    “Speaker” is defined as the Speaker of the State Assembly or a person the Speaker delegates for the particular matter.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32206. “Speaker” means the Speaker of the State Assembly or any person to whom the Speaker of the Assembly delegates the authority to act for him in the particular matter. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  59. 32207.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    This section defines “Corporation” as the State Assistance Fund for Enterprise Business and Industrial Development Corporation.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32207. “Corporation” means the State Assistance Fund for Enterprise Business and Industrial Development Corporation. (Amended by Stats. 2004, Ch. 25, Sec. 1. Effective March 17, 2004.)
  60. 32208.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    “Energy Commission” means the State Energy Resources Conservation and Development Commission.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32208. “Energy Commission” means the State Energy Resources Conservation and Development Commission. (Amended by Stats. 2015, Ch. 303, Sec. 161. (AB 731) Effective January 1, 2016.)
  61. 32209.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    This section defines “alternative energy business firm” as a small business primarily engaged in specified alternative-energy design, production, distribution, sale, transport, or installation activities, or in producing, transmitting, or selling energy from an eligible alternative energy system.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32209. “ Alternative energy business firm” means any small business engaged primarily in the business of the design, manufacture, production, assembly, distribution, marketing, sale, transportation, or installation of an alternative energy system, or, any small business engaged primarily in the business of producing, transmitting, or selling energy produced by an eligible alternative energy system. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  62. 3221.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. )

    Verify source ↗

    An applicant cannot be denied a license for certain convictions, dismissed convictions, or arrests that did not lead to a conviction; if denied based on conviction history, the applicant must get written notice and may appeal.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3221. (a) An applicant shall not be denied a license on the basis of a criminal conviction, or on the basis of acts underlying a criminal conviction, if the convicted person has obtained a certificate of rehabilitation under Chapter 3.5 (commencing with Section 4852.01) of Title 6 of Part 3 of the Penal Code or has been granted clemency or a pardon by a state or federal executive. (b) An applicant shall not be denied a license on the basis of a conviction that has been dismissed pursuant to Section 1203.4, 1203.4a, 1203.41, or 1203.425 of the Penal Code. An applicant who has a conviction that has been dismissed pursuant to Section 1203.4, 1203.4a, 1203.41, or 1203.425 of the Penal Code shall provide the commissioner with proof of the dismissal if it is not reflected in the applicant’s criminal history record report. (c) An applicant shall not be denied a license on the basis of an arrest that resulted in a disposition other than a conviction, including an arrest that resulted in an infraction, citation, or juvenile adjudication. (d) If an applicant is denied a license based solely or in part on conviction history, the applicant shall be notified in writing of all of the following: (1) The denial or disqualification of licensure. (2) The procedure for the applicant to challenge the decision or to request reconsideration. (3) That the applicant has the right to appeal the decision. (4) The processes to request a copy of the applicant’s complete conviction history and to question the accuracy or completeness of the record. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  63. 32210.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    “Board” means the corporation’s board of directors.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32210. “Board” means the board of directors of the corporation. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  64. 32211.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    This section defines “President” as the president of the corporation.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32211. “President” means the president of the corporation. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  65. 32212.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    “Finance officer” means the director of the finance division of the corporation.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32212. “Finance officer” means the director of the finance division of the corporation. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  66. 32215.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    “Governor” means the Governor of California, or someone the Governor delegates to act in the particular matter.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32215. “Governor” means the Governor of the State of California or any person to whom the Governor of the State of California delegates the authority to act for him in the particular matter. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  67. 32216.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    This section defines “savings-investment ratio” as a calculation comparing energy cost savings and other net benefits and costs against initial investment costs.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32216. “Savings-investment ratio” means an analysis of the proposed system in which energy cost savings are added to other net benefits and costs from operation, maintenance, replacements, depreciation, tax credits and financing costs, and divided by initial investment costs. All benefits and costs are to be evaluated in present or constant dollars. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  68. 32217.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    This section defines “life cycle cost analysis” as an analysis of a proposed system that evaluates all costs and benefits over the system’s expected life.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32217. “Life cycle cost analysis” means an analysis of a proposed system in which all costs and benefits are evaluated over the expected life of the system. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  69. 32218.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    This section defines “minimum economic feasibility” as a situation where an investment’s net savings or benefits are greater than its net costs.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32218. “Minimum economic feasibility” means that the net savings or benefits of an investment exceed the net costs. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  70. 32219.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    “Special projects” means financing assistance or other programs undertaken by the corporation under the specified article.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 1. General Provisions [32000 - 32219] ( Chapter 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Definitions [32200 - 32219] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32219. “Special projects” means any financing assistance or other program undertaken by the corporation pursuant to Article 3 (commencing with Section 32720) of Chapter 6. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  71. 3223.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. )

    Verify source ↗

    Certain licensing information stays confidential after being disclosed to the Nationwide Multistate Licensing System and Registry, may be shared with regulators, and is generally shielded from public disclosure and civil discovery unless the relevant person waives the privilege.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3223. (a) Except as otherwise provided in Section 5111 of the SAFE Act, the requirements under any federal law or the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code) regarding the privacy or confidentiality of any information or material provided to the Nationwide Multistate Licensing System and Registry, and any privilege arising under federal or state law, including the rules of any state court, with respect to that information or material, shall continue to apply to the information or material after the information or material has been disclosed to the Nationwide Multistate Licensing System and Registry. The information and material may be shared with all state and federal regulatory officials with industry oversight authority without the loss of privilege or the loss of confidentiality protections provided by federal law or the Information Practices Act of 1977. (b) Information or material that is subject to a privilege or confidentiality under subdivision (a) shall not be subject to either of the following: (1) Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or an agency of the federal government or the state. (2) Subpoena or discovery, or admission into evidence, in any private civil action or administrative process, unless with respect to any privilege held by the Nationwide Multistate Licensing System and Registry with respect to the information or material, the person to whom the information or material pertains waives, in whole or in part, in the discretion of that person, that privilege. (c) This section shall not apply with respect to the information or material relating to the employment history of, and publicly adjudicated disciplinary and enforcement actions included in, the Nationwide Multistate Licensing System and Registry for access by the public. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  72. 3225.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. )

    Verify source ↗

    The commissioner must regularly report certain violations, enforcement actions, and other relevant information to the Nationwide Multistate Licensing System and Registry, but only if the information is publicly available.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 2. Licensure [3201 - 3225] ( Chapter 2 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3225. The commissioner shall regularly report violations of this division, enforcement actions under this division, and other relevant information to the Nationwide Multistate Licensing System and Registry, but only to the extent that the information is publicly available. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  73. 323.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

    Verify source ↗

    The commissioner must be a U.S. citizen and a state resident for at least three years before appointment.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 323. The commissioner shall be a citizen of the United States and a resident of the state for at least three years prior to his or her appointment. The commissioner shall be chosen solely for his or her qualifications and fitness to perform the duties of his or her office. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  74. 32300.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Creation of the Corporation [32300 - 32301] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The Legislature authorizes the creation of a nonprofit corporation under the Nonprofit Corporation Law, effective January 1, 1981.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Creation of the Corporation [32300 - 32301] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32300. The Legislature hereby authorizes the creation of a nonprofit corporation pursuant to the provisions of the Nonprofit Corporation Law (Part 1 (commencing with Section 9000), Division 2, Title 1 of the Corporations Code) on January 1, 1981. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  75. 32301.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Creation of the Corporation [32300 - 32301] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    This section says the corporation is generally governed by several corporation laws, but if they conflict with this division, this division controls. It also says SAFE-BIDCO qualifies as a community development financial institution for certain eligibility purposes.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Creation of the Corporation [32300 - 32301] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32301. Except as otherwise provided in this division: (a) The Nonprofit Corporation Law shall apply to the corporation. However, whenever any provision of the Nonprofit Corporation Law conflicts with any provision of this division, the provision of the Nonprofit Corporation Law shall not apply and the provision of this division shall apply. (b) The Business and Industrial Development Corporation Law (Division 15 (commencing with Section 31000)) shall apply to this corporation. However, whenever any provision of the Business and Industrial Development Corporation Law conflicts with any provision of this division, the provision of the Business and Industrial Development Corporation Law shall not apply and the provision of this division shall apply. (c) The Small Business Development Corporation Law (Chapter 1 (commencing with Section 14000) of Part 5 of Division 3 of Title 1 of the Corporations Code) shall apply to the corporation, except that, to the extent of any conflict between those provisions and this division, the provisions of this division shall prevail. (d) Whenever a conflict exists between any of the following acts, the conflict shall be resolved by applying the conflicting provision contained in the act in order of preference as listed in this subdivision, and the applicable provision shall prevail over the other conflicting provisions: (1) The Business and Industrial Development Corporations Law (Division 15 (commencing with Section 31000)). (2) The Small Business Development Corporation Law (Ch. 1 (commencing with Section 14000), Pt. 5, Div. 3, Corp. C.). (3) The Nonprofit Corporation Law (Div. 2 (commencing with Section 5000) Pt. 1, Corp. C.). (e) The State Assistance Fund for Enterprise, Business, and Industrial Development Corporation (SAFE-BIDCO), which was established by this division, meets the definition of a community development financial institution for purposes of eligibility consistent with Sections 12209, 17053.57, and 23657 of the Revenue and Taxation Code. (Amended by Stats. 2002, Ch. 939, Sec. 1. Effective September 27, 2002.)
  76. 32310.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 2. Corporate Name [32310- 32310.] ( Article 2 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    This section states the corporation’s official name.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 2. Corporate Name [32310- 32310.] ( Article 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32310. The name of this corporation shall be: State Assistance Fund for Enterprise, Business and Industrial Development Corporation. (Amended by Stats. 1989, Ch. 1040, Sec. 6.5.)
  77. 32320.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Board of Directors [32320 - 32326] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The corporation’s board must have six members: two official directors and four public directors, unless Sections 32325 and 32352.5 provide otherwise.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Board of Directors [32320 - 32326] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32320. Except as provided in Sections 32325 and 32352.5, the board of directors of the corporation shall consist of six members, two official and four public directors. (Amended by Stats. 2004, Ch. 25, Sec. 4. Effective March 17, 2004.)
  78. 32321.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Board of Directors [32320 - 32326] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The section says who must make up the board’s official and public members.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Board of Directors [32320 - 32326] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32321. (a) The official members of the board shall be: (1) A member of the Governor’s cabinet, or his or her designee. (2) One member of the Energy Commission, selected and appointed by the members of the Energy Commission. (b) The public members of the board shall be: (1) One member selected and appointed by the Senate Rules Committee. (2) One member selected and appointed by the Speaker of the Assembly. (3) Two members selected and appointed by the Governor as follows: (A) One member with a minimum three years’ experience as an owner, partner, officer, or employee of a California-based small business. (B) One member with a minimum three years’ experience as an officer or employee of a financial institution. (Amended by Stats. 2004, Ch. 25, Sec. 5. Effective March 17, 2004.)
  79. 32322.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Board of Directors [32320 - 32326] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    This section sets board-member term lengths, appointment methods, vacancy filling, and reappointment rules.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Board of Directors [32320 - 32326] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32322. (a) The terms of official members of the board shall coincide with their official terms of office, except in the case of the member selected and appointed by the members of the Energy Commission, who shall serve on the board until he or she is no longer a member of the Energy Commission or until he or she is replaced by a vote of the Energy Commission. (b) The public members of the board shall be appointed by the Rules Committee, Speaker, and Governor in such a manner that they shall hold office for overlapping terms. At the time of the appointment of first directors, the first term of the directors appointed by the Rules Committee and Speaker shall be approximately two years. At the time of the appointment of first directors, the first term of the directors appointed by the Governor shall be approximately one year for one director and approximately three years for two directors. Thereafter, the terms of all public directors shall be three years. Directors shall be eligible for reappointment for an unlimited number of terms. (c) A public director’s tenure shall continue until his successor has been appointed and has taken his position on the board. (d) In the case of public members, vacancies shall be filled by appointment of the respective appointing authority for the unexpired remainder of the term. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  80. 32323.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Board of Directors [32320 - 32326] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    Certain directors must meet the requirements of Section 31152(d), and they stay in office until the corporation’s directors take office.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Board of Directors [32320 - 32326] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32323. (a) The directors selected and appointed by the Governor, Rules Committee, and Speaker shall meet the requirements of subdivision (d) of Section 31152. (b) The directors shall hold office until the directors of the State Assistance Fund for Enterprise, Business and Industrial Development Corporation take office. (Amended by Stats. 1989, Ch. 1040, Sec. 8.)
  81. 32324.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Board of Directors [32320 - 32326] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

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    Official directors serve without compensation, with limited reimbursement and possible board-approved per diem; other directors may receive a board-approved stipend, subject to caps.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Board of Directors [32320 - 32326] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32324. (a) The official directors shall serve without compensation, except that they shall be reimbursed for their actual and necessary expenses incurred in the performance of their duties, or at the discretion of the board, may receive a reasonable per diem payment and mileage charge as reimbursement for living and traveling expenses incurred in the performance of duties away from their principal areas of residence. The amount of such per diem payment shall not exceed the rate established by the state for any calendar day. No director shall receive per diem both in the course of his official duties and from the corporation for the same calendar day. (b) All other directors may, at the discretion of the board, be paid a stipend in addition to reimbursement for their actual and necessary expenses incurred in the performance of their duties or reasonable per diem payment and mileage charge. The amount of any per diem payment shall not exceed the rate established by the state for any calendar day. The board shall determine the amount of the stipend received by public directors, provided, however, that such stipend shall not exceed one hundred dollars ($100) for any calendar day. Additionally, public directors may not receive stipends for more than 25 days in any calendar year. (Amended by Stats. 2004, Ch. 25, Sec. 6. Effective March 17, 2004.)
  82. 32325.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Board of Directors [32320 - 32326] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

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    If the corporation becomes a federal CDFI, the board may appoint up to three private directors; those directors serve adviso­rily and voluntarily, must know the CDFI target market, and may receive compensation if the board allows it and Section 32324(b) limits are met.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Board of Directors [32320 - 32326] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32325. If the corporation becomes a federal Community Development Financial Institution (CDFI), in addition to the official and public directors provided for in Section 32321, the board may select not more than three private directors to assist the board in managing the corporation, subject to the following: (a) Private directors shall serve on the board in an advisory and voluntary capacity. (b) Each private director shall be knowledgeable about the CDFI target market. (c) At the discretion of the board, private directors shall be eligible to receive compensation, subject to the limitations contained in subdivision (b) of Section 32324. (Amended by Stats. 2004, Ch. 25, Sec. 7. Effective March 17, 2004.)
  83. 32326.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Board of Directors [32320 - 32326] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The board of directors must create a loan committee, and that committee must review, rank, and decide loan applications under this division using board-adopted procedures and criteria.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Board of Directors [32320 - 32326] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32326. The board of directors of the corporation shall establish a loan committee, which shall review, rank, and approve or disapprove applications for loans under this division in accordance with procedures and criteria adopted by the board of directors. The loan committee shall consist of persons appointed by, and who shall serve at the pleasure of, the board of directors of the corporation. (Repealed and added by Stats. 1989, Ch. 1040, Sec. 9.5.)
  84. 32330.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 4. Management of the Corporation [32330 - 32332] ( Article 4 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The board of directors manages the corporation and must meet three limits: board action needs majority approval at a quorum meeting or unanimous written consent, revised articles of incorporation must be filed with the Secretary of State by January 30, 1990, and a revised license must be applied for by March 1, 1990.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 4. Management of the Corporation [32330 - 32332] ( Article 4 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32330. The management of the corporation shall be conducted by the board of directors, subject to the following limitations: (a) All action taken by the board of directors shall require the approval of a majority of the board present at a meeting at which there is a quorum or by unanimous written consent of all directors. (b) The board of directors shall file revised articles of incorporation with the Secretary of State no later than January 30, 1990. (c) The board of directors shall apply for a revised license as a California Business and Industrial Development Corporation by March 1, 1990. (Amended by Stats. 1989, Ch. 1040, Sec. 10.)
  85. 32331.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 4. Management of the Corporation [32330 - 32332] ( Article 4 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The corporation’s president directs the corporation’s operations, and the board selects and appoints that president.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 4. Management of the Corporation [32330 - 32332] ( Article 4 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32331. The operations of the corporation shall be directed by the president of the corporation, who shall be selected and appointed by the board. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  86. 32332.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 4. Management of the Corporation [32330 - 32332] ( Article 4 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The corporation must adopt bylaws covering officers, committees, loan application rules, government guaranteed securities, and loan loss reserves.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 4. Management of the Corporation [32330 - 32332] ( Article 4 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32332. The corporation shall adopt bylaws, which shall include provisions governing the election of officers; the establishment and functions of committees; eligibility criteria for loan applications and application procedures; procedures for the deposit and sale of government guaranteed securities; and the establishment of loan loss reserves. (Added by Stats. 1989, Ch. 1040, Sec. 10.2.)
  87. 32350.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 6. Powers, Exclusions and Prohibitions [32350 - 32352.5] ( Article 6 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The corporation may hire agents and employees, set their terms and compensation, and hire legal counsel. It must also adopt personnel rules and regulations for its employees.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 6. Powers, Exclusions and Prohibitions [32350 - 32352.5] ( Article 6 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32350. (a) The corporation may appoint such agents and employees as it requires, and determine their qualifications, duties, terms of employment, and compensation. The corporation shall adopt personnel rules and regulations applicable to its employees. (b) The corporation may contract for such legal counsel as in its judgment is necessary or advisable to enable it to carry out its purposes. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  88. 32351.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 6. Powers, Exclusions and Prohibitions [32350 - 32352.5] ( Article 6 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The corporation must not provide financing assistance to a business firm unless the firm meets the required financial and eligibility criteria.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 6. Powers, Exclusions and Prohibitions [32350 - 32352.5] ( Article 6 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32351. The corporation shall not provide financing assistance to any business firm in this state unless such business firm meets the financial and eligibility criteria for the specific type of financial assistance to be provided by the corporation, including, where appropriate, prior application to a bank or other financial institution for a loan or other financial assistance. (Amended by Stats. 1986, Ch. 1338, Sec. 6.)
  89. 32352.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 6. Powers, Exclusions and Prohibitions [32350 - 32352.5] ( Article 6 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The corporation may carry out business and industrial development corporation activities, and it may also do small business development corporation activities if the Small Business Development Board approves.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 6. Powers, Exclusions and Prohibitions [32350 - 32352.5] ( Article 6 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32352. The corporation shall (a) be empowered to do and perform all acts contemplated for a business and industrial development corporation, and (b) upon approval of the Small Business Development Board, perform acts contemplated for a small business development corporation, pursuant to Part 5 (commencing with Section 14000) of the Corporations Code. Notwithstanding any other provision of law, upon approval by the Small Business Development Board of the corporation’s application to become a small business development corporation pursuant to this section, the sum of seven hundred fifty thousand dollars ($750,000) shall be transferred from the State Enterprise Loan Fund for deposit in the Small Business Expansion Fund created pursuant to Section 14029 of the Corporations Code for immediate transfer to a loan fund established pursuant to Section 14045 of the Corporations Code. Upon suspension of the corporation as a small business development corporation, the funds shall be transferred to the Small Business Expansion Fund pursuant to Section 14025 of the Corporations Code. (Amended by Stats. 1989, Ch. 1040, Sec. 12.)
  90. 32352.5.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 6. Powers, Exclusions and Prohibitions [32350 - 32352.5] ( Article 6 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    If the corporation becomes a small business development corporation, the official and public board members must appoint three additional directors within 30 days.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 2. Corporate Matters [32300 - 32352.5] ( Chapter 2 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 6. Powers, Exclusions and Prohibitions [32350 - 32352.5] ( Article 6 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32352.5. (a) If the corporation becomes a small business development corporation pursuant to Section 32352, the official and public members of the board of directors shall, within 30 days thereafter, appoint three additional directors to the board, who shall be residents of the region to be served by the corporation when acting as a small business development corporation. (b) For purposes of this section, the three regional directors appointed pursuant to subdivision (a) shall be appointed by the official and public members of the board as full voting members of the board. (Amended by Stats. 2004, Ch. 25, Sec. 8. Effective March 17, 2004.)
  91. 324.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

    Verify source ↗

    The commissioner’s annual salary is set by another law in the Government Code.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 324. The annual salary of the commissioner is provided for by Chapter 6 (commencing with Section 11550) of Part 1 of Division 3 of Title 2 of the Government Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  92. 32400.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Corporate Accounts [32400 - 32404] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The finance officer must keep the corporation’s financial accounts and records, following policies and rules adopted by the board.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Corporate Accounts [32400 - 32404] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32400. The financial accounts and records of the corporation shall be kept by the finance officer according to policies and rules which the board shall adopt. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  93. 32401.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Corporate Accounts [32400 - 32404] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The corporation must use a fiscal year running from July 1 through June 30.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Corporate Accounts [32400 - 32404] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32401. The corporation shall adopt as its fiscal year the period from July 1st to and including the following June 30th. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  94. 32402.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Corporate Accounts [32400 - 32404] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The corporation’s financial accounts must include four specified accounts, and the board may establish other accounts.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Corporate Accounts [32400 - 32404] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32402. In addition to other accounts the board may establish, the financial accounts of the corporation shall include: (a) A general operating account. (b) A general reserve account. (c) An enterprise loan fund. (d) A government guaranteed securities trust fund. (Amended by Stats. 1989, Ch. 1040, Sec. 15.)
  95. 32403.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Corporate Accounts [32400 - 32404] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The corporation must deposit all funds it receives into its general operating account, unless another rule in this division says otherwise.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Corporate Accounts [32400 - 32404] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32403. Except as otherwise provided for in this division, all funds received by the corporation shall be deposited in the general operating account of the corporation. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  96. 32404.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Corporate Accounts [32400 - 32404] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The board may not adopt a corporation budget if projected total operating expenditures are greater than the expected balance of the general operating account.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 1. Corporate Accounts [32400 - 32404] ( Article 1 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32404. Beginning with the fiscal year which begins July 1, 1982, and each fiscal year thereafter, the board shall not adopt any budget for the corporation in which the projected total operating expenditures exceed the expected balance of the general operating account. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  97. 32420.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Government Guaranteed Securities Trust Fund [32420 - 32423] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    This section defines “trust fund” as the government guaranteed securities trust fund of the corporation.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Government Guaranteed Securities Trust Fund [32420 - 32423] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32420. In this article “trust fund” means the government guaranteed securities trust fund of the corporation. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  98. 32421.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Government Guaranteed Securities Trust Fund [32420 - 32423] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The finance officer must put certain guaranteed securities into the trust fund.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Government Guaranteed Securities Trust Fund [32420 - 32423] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32421. The finance officer shall place into the trust fund all securities held by the corporation which carry a guarantee of repayment issued by the Small Business Administration or guarantee of repayment issued by any other governmental authority. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  99. 32422.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Government Guaranteed Securities Trust Fund [32420 - 32423] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The board must adopt policies and regulations, and the finance officer must use best efforts to sell the guaranteed portion of the securities in the trust fund to private investors or the state.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Government Guaranteed Securities Trust Fund [32420 - 32423] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32422. According to policies and regulations which the board shall adopt, the finance officer shall use his or her best efforts to sell the guaranteed portion of the securities held in the trust fund to private investors or the state. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  100. 32423.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Government Guaranteed Securities Trust Fund [32420 - 32423] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    Proceeds from the sale of government guaranteed securities must be allocated between two corporation accounts in specified proportions.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 3. Corporate Finances [32400 - 32423] ( Chapter 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Government Guaranteed Securities Trust Fund [32420 - 32423] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32423. The proceeds of the sale of government guaranteed securities shall be allocated to the accounts of the corporation in the following manner: (a) That portion of the proceeds of the sale of government guaranteed securities which represents the purchase of the principal amount of the securities shall be credited to the enterprise loan fund of the corporation; and (b) That portion of the proceeds of the sale of government guaranteed securities which represents the purchase of the future interest earnings of the securities shall be credited to the general operating account of the corporation. (Amended by Stats. 2004, Ch. 25, Sec. 9. Effective March 17, 2004.)
  101. 325.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

    Verify source ↗

    The commissioner must take and sign the constitutional oath of office and file it with the Secretary of State before starting office duties.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 325. Before entering upon the duties of his or her office, the commissioner shall take and subscribe to the constitutional oath of office and file the same with the Secretary of State. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  102. 326.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

    Verify source ↗

    The commissioner has broad authority to administer and enforce the department’s laws, issue consistent rules and regulations, and bring civil actions or other proceedings in certain consumer-finance matters.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 326. (a) The Commissioner of Financial Protection and Innovation is responsible for the performance of all duties, the exercise of all powers and jurisdiction, and the assumption and discharge of all responsibilities vested by law in the department and the divisions thereunder. The commissioner has and may exercise all the powers necessary or convenient for the administration and enforcement of, among other laws, the laws described in Section 300. The commissioner may issue rules and regulations consistent with law as the commissioner may deem necessary or advisable in executing the powers, duties, and responsibilities of the department. (b) In addition to the authority under subdivision (a), the commissioner may bring a civil action or other appropriate proceeding, pursuant to Section 5552 of Title 12 of the United States Code, to enforce the provisions of the Consumer Financial Protection Act of 2010 (12 U.S.C. Sec. 5481 et seq.), or regulations issued by the federal Consumer Financial Protection Bureau thereunder, with respect to an entity that is licensed, registered, or subject to oversight by the commissioner, and to secure remedies under provisions of the Consumer Financial Protection Act of 2010. (c) Nothing in this section shall be construed to expand upon or limit the authority granted by Section 5552 of Title 12 of the United States Code (Section 1042 of Subtitle D of Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act). (Amended by Stats. 2020, Ch. 157, Sec. 4. (AB 1864) Effective January 1, 2021.)
  103. 32600.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 5. Loan Operations [32600 - 32601] ( Chapter 5 repealed and added by Stats. 1989, Ch. 1040, Sec. 18.5. )

    Verify source ↗

    A finance officer must not execute a loan unless it meets one of the listed guarantee or financing conditions.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 5. Loan Operations [32600 - 32601] ( Chapter 5 repealed and added by Stats. 1989, Ch. 1040, Sec. 18.5. ) ## 32600. (a) The finance officer shall not execute any loan that is not: (1) Approved for guarantee by the Small Business Administration, under that agency’s prevailing standards for loans of similar type, purpose, amount, and duration that are in effect at the time the guarantee is approved by the agency. (2) Approved for guarantee by another governmental loan guarantee authority, and the minimum amount of the guarantee is not less than 50 percent of the principal amount of the loan. (3) Made pursuant to the corporation’s participation with the Small Business Administration as a small business investment company or local development company. (4) Less than 16 percent of the total financing package arranged between the corporation and another lender or lenders on behalf of the applicant. (b) This section does not apply to loans made pursuant to Section 32724. (Amended by Stats. 1994, Ch. 929, Sec. 1. Effective January 1, 1995.)
  104. 32601.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 5. Loan Operations [32600 - 32601] ( Chapter 5 repealed and added by Stats. 1989, Ch. 1040, Sec. 18.5. )

    Verify source ↗

    The corporation must not provide financing assistance for an application unless it is a special project application that has not been reviewed in the manner specified by the board.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 5. Loan Operations [32600 - 32601] ( Chapter 5 repealed and added by Stats. 1989, Ch. 1040, Sec. 18.5. ) ## 32601. The corporation shall not provide financing assistance on any application, except for any application submitted for review as a special project, which has not been reviewed in the manner specified by the board. (Repealed and added by Stats. 1989, Ch. 1040, Sec. 18.5.)
  105. 327.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

    Verify source ↗

    The commissioner must apply specified mortgage guidance to state-regulated financial institutions, and those institutions must follow policies and procedures aimed at the guidance’s objectives.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 327. (a) The commissioner shall apply the Interagency Guidance on Nontraditional Mortgage Product Risks issued in September 2006 and the Statement on Subprime Mortgage Lending issued in June 2007 by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, and the National Credit Union Administration to state-regulated financial institutions, including, but not limited to, privately insured, state-chartered credit unions. (b) The commissioner may issue emergency and final regulations to clarify the application of this section as soon as possible. (c) A bank or credit union to which the commissioner applies the documents described in subdivision (a) shall adopt and adhere to policies and procedures that are reasonably intended to achieve the objectives set forth in those documents. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  106. 32720.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 6. Miscellaneous [32720 - 32724] ( Chapter 6 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Special Projects [32720 - 32724] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The corporation may accept public or private financial grants to support the division’s purposes.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 6. Miscellaneous [32720 - 32724] ( Chapter 6 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Special Projects [32720 - 32724] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32720. The corporation is authorized to accept any public or private financial grant in furtherance of the purposes of this division, including, but not limited to, grants for alternative energy research or demonstration projects, manpower training, or economic development. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  107. 32721.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 6. Miscellaneous [32720 - 32724] ( Chapter 6 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Special Projects [32720 - 32724] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The board may adopt rules for accepting and disbursing grants, and grant administration costs may not exceed 5% of the corporation’s operating budget in any calendar year after accounting for administration payments from the granting authority.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 6. Miscellaneous [32720 - 32724] ( Chapter 6 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Special Projects [32720 - 32724] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32721. The board may consider and adopt rules for the acceptance and disbursement of grants, provided, however, that the cost of administering any grant, less any payment for grant administration made to the corporation by the granting authority, shall in no case exceed 5 percent of the operating budget of the corporation in any calendar year. (Amended by Stats. 2004, Ch. 25, Sec. 16. Effective March 17, 2004.)
  108. 32722.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 6. Miscellaneous [32720 - 32724] ( Chapter 6 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Special Projects [32720 - 32724] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The corporation may participate in eligible programs with federal or state government bodies.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 6. Miscellaneous [32720 - 32724] ( Chapter 6 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Special Projects [32720 - 32724] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32722. The corporation may participate with any federal or state governmental agency, department, board, bureau, or office in any program which is intended to assist the development of the alternative energy industry or to encourage economic development. (Amended by Stats. 2004, Ch. 25, Sec. 17. Effective March 17, 2004.)
  109. 32723.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 6. Miscellaneous [32720 - 32724] ( Chapter 6 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Special Projects [32720 - 32724] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The corporation may create and run a program to help private financial institutions, evaluate alternative energy investments, and connect small business borrowers with private funding sources.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 6. Miscellaneous [32720 - 32724] ( Chapter 6 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Special Projects [32720 - 32724] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32723. The corporation may develop and implement a program to assist private financial institutions, to evaluate investment opportunities in alternative energy systems, and to help potential small business borrowers make contact with appropriate private sources of funds for alternative energy investments. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  110. 32724.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 6. Miscellaneous [32720 - 32724] ( Chapter 6 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Special Projects [32720 - 32724] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The corporation must fund certain minority-enterprise and export-financing loans from the enterprise loan fund or other accounts it creates, and the board must set separate loan review procedures and criteria.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 6. Miscellaneous [32720 - 32724] ( Chapter 6 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Special Projects [32720 - 32724] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32724. Notwithstanding any other provision of this division, loans or other financing programs undertaken by the corporation in furtherance of minority enterprises and export financing shall be funded from the enterprise loan fund, or other accounts which the corporation may establish. The board shall promulgate separate loan review procedures and criteria which shall be applicable to loans and other financing programs implemented by the corporation pursuant to this section. (Amended by Stats. 1989, Ch. 1040, Sec. 18.7.)
  111. 328.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

    Verify source ↗

    The commissioner may make agreements the commissioner considers necessary or appropriate when exercising official powers.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 328. (a) The commissioner may make the agreements that he or she deems necessary or appropriate in exercising his or her powers. (b) (1) The agreements authorized under subdivision (a) may include, but are not limited to, agreements with agencies of this state, of other states of the United States, of the United States, or of foreign nations that regulate financial institutions, relating to examinations of banks, savings associations, credit unions, industrial loan companies, and other matters. (2) Any agreement with a government agency that regulates financial institutions is exempt from the advertising and competitive bidding requirements of the Public Contract Code. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  112. 32810.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 2. State Enterprise Loan Fund [32810 - 32814] ( Heading of Article 2 amended by Stats. 1989, Ch. 1040, Sec. 19. )

    Verify source ↗

    The Controller must establish, maintain, and administer a separate account in the State’s General Fund.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 2. State Enterprise Loan Fund [32810 - 32814] ( Heading of Article 2 amended by Stats. 1989, Ch. 1040, Sec. 19. ) ## 32810. The Controller shall establish, maintain, and administer a separate account within the General Fund of the State of California to effect the provisions of this chapter. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  113. 32811.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 2. State Enterprise Loan Fund [32810 - 32814] ( Heading of Article 2 amended by Stats. 1989, Ch. 1040, Sec. 19. )

    Verify source ↗

    This section names the account the “State Enterprise Loan Fund” and says the fund is continuously appropriated for this division’s purposes.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 2. State Enterprise Loan Fund [32810 - 32814] ( Heading of Article 2 amended by Stats. 1989, Ch. 1040, Sec. 19. ) ## 32811. The name of this account shall be the “State Enterprise Loan Fund,” which fund shall be continuously appropriated for the purposes of this division. (Amended by Stats. 1989, Ch. 1040, Sec. 20.)
  114. 32812.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 2. State Enterprise Loan Fund [32810 - 32814] ( Heading of Article 2 amended by Stats. 1989, Ch. 1040, Sec. 19. )

    Verify source ↗

    The Controller must transfer specified money into the fund for the corporation’s loan requests, but only within stated caps and after the required corporate certifications for the Energy Resources Program Account money.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 2. State Enterprise Loan Fund [32810 - 32814] ( Heading of Article 2 amended by Stats. 1989, Ch. 1040, Sec. 19. ) ## 32812. The Controller shall transfer into the fund from the General Fund and from the Energy Resources Program Account in the General Fund all moneys required to meet the loan requests of the corporation, subject to the following terms and conditions: (a) The amount transferred to the fund from the General Fund shall not exceed one million five hundred thousand dollars ($1,500,000). (b) The amount transferred to the fund from the Energy Resources Programs Account in the General Fund shall not exceed one million dollars ($1,000,000) and the Controller shall not transfer any money from the account to the fund unless and until both of the following occur: (1) The corporation certifies to the Controller that it has approved not less than a total of five million dollars ($5,000,000) in loans to eligible small businesses in this state. (2) The corporation certifies to the Controller that it will use the additional money transferred to the fund only to make new loans to eligible small businesses in this state. (Amended by Stats. 1983, Ch. 323, Sec. 31. Effective July 1, 1983.)
  115. 32813.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 2. State Enterprise Loan Fund [32810 - 32814] ( Heading of Article 2 amended by Stats. 1989, Ch. 1040, Sec. 19. )

    Verify source ↗

    The Controller must disburse money from the fund to the corporation, subject to this chapter.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 2. State Enterprise Loan Fund [32810 - 32814] ( Heading of Article 2 amended by Stats. 1989, Ch. 1040, Sec. 19. ) ## 32813. The Controller shall disburse moneys from the fund to the corporation subject to the provisions of this chapter. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  116. 32814.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 2. State Enterprise Loan Fund [32810 - 32814] ( Heading of Article 2 amended by Stats. 1989, Ch. 1040, Sec. 19. )

    Verify source ↗

    The Controller must deposit into the fund all money received from the corporation as repayment of loan principal and interest.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 2. State Enterprise Loan Fund [32810 - 32814] ( Heading of Article 2 amended by Stats. 1989, Ch. 1040, Sec. 19. ) ## 32814. The Controller shall deposit in the fund all moneys received from the corporation in repayment of the principal and interest of loans made to the corporation. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  117. 32820.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Borrowing from the Fund [32820 - 32823] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The corporation may borrow money from the fund, but the loans must have a 6% annual interest rate and a maximum term of 20 years.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Borrowing from the Fund [32820 - 32823] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32820. The corporation is authorized to borrow money from the fund, subject to the following terms and conditions: (a) The interest rate on loans from the fund to the corporation shall be six percent per annum; (b) The maximum term of the loans to the corporation shall be for 20 years; (Added by Stats. 1980, Ch. 819, Sec. 1.)
  118. 32820.5.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Borrowing from the Fund [32820 - 32823] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    If the corporation is approved to exercise small business development corporation powers, it is no longer liable to pay interest on loans from the fund under this article.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Borrowing from the Fund [32820 - 32823] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32820.5. Upon approval of the corporation to exercise the powers of a small business development corporation pursuant to Section 32352, the corporation shall cease to be liable for payment of interest on loans made or to be made from the fund pursuant to this article. (Added by Stats. 1989, Ch. 1040, Sec. 21.)
  119. 32821.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Borrowing from the Fund [32820 - 32823] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The corporation must apply in writing to the Controller for loans from the fund.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Borrowing from the Fund [32820 - 32823] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32821. The corporation shall make application in writing to the Controller for loans from the fund. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  120. 32822.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Borrowing from the Fund [32820 - 32823] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    The Controller must disburse loan proceeds to the corporation within five working days after receiving its application, unless one of two stated exceptions applies.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Borrowing from the Fund [32820 - 32823] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32822. Within five working days after receipt of an application from the corporation for a loan from the fund, the Controller shall disburse the proceeds of the loan to the corporation, unless: (a) The corporation is in default on any previous loan from the fund; or (b) In order to lend the amount requested by the corporation, the Controller would be required to transfer to the fund amounts which cumulatively would exceed the maximum amount specified in Section 32812. (Amended by Stats. 1983, Ch. 323, Sec. 31.5. Effective July 1, 1983.)
  121. 32823.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Borrowing from the Fund [32820 - 32823] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. )

    Verify source ↗

    If the Controller finds either condition in Section 32822(a) or (b), the Controller must deny the corporation’s loan application.

    ## Financial Code - FIN ## DIVISION 15.5. STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION [32000 - 32823] ( Heading of Division 15.5 amended by Stats. 1989, Ch. 1040, Sec. 1. ) ## CHAPTER 7. Borrowing From the State [32810 - 32823] ( Chapter 7 added by Stats. 1980, Ch. 819, Sec. 1. ) ## ARTICLE 3. Borrowing from the Fund [32820 - 32823] ( Article 3 added by Stats. 1980, Ch. 819, Sec. 1. ) ## 32823. If the Controller finds either subdivision (a) or (b) of Section 32822 to be the case, the Controller shall deny the loan application of the corporation. (Added by Stats. 1980, Ch. 819, Sec. 1.)
  122. 329.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

    Verify source ↗

    The commissioner may impose civil penalties on a licensee or its subsidiary for violating applicable law, commissioner orders, written agreements, or approval conditions.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 329. (a) For purposes of this section, the following definitions apply: (1) “Applicable law” means: (A) With respect to any bank, Division 1.6 (commencing with Section 4800), and any of the following provisions: (i) Article 6 (commencing with Section 405) of Chapter 3. (ii) Article 3 (commencing with Section 1130) of Chapter 5 of Division 1.1. (iii) Chapter 6 (commencing with Section 1200) of Division 1.1. (iv) Chapter 10 (commencing with Section 1320) of Division 1.1. (v) Chapter 14 (commencing with Section 1460) of Division 1.1. (vi) Article 1 (commencing with Section 1530) of Chapter 15 of Division 1.1. (vii) Chapter 16 (commencing with Section 1550) of Division 1.1. (viii) Chapter 20 (commencing with Section 1750) of Division 1.1. (ix) Section 456. (x) Section 457. (xi) Section 459. (xii) Section 460. (xiii) Section 461. (xiv) Section 1331. (xv) Chapter 21 (commencing with Section 1850) of Division 1.1. (xvi) Chapter 18 (commencing with Section 1660) of Division 1.1. (xvii) Chapter 19 (commencing with Section 1670) of Division 1.1. (B) With respect to any savings association, any provision of Division 1.6 (commencing with Section 4800) and Division 2 (commencing with Section 5000). (C) With respect to any insurance premium finance agency, any provision of Division 7 (commencing with Section 18000). (D) With respect to any business and industrial development corporation, any provision of Division 15 (commencing with Section 31000). (E) With respect to any credit union, any of the following provisions: (i) Section 14252. (ii) Section 14253. (iii) Section 14255. (iv) Article 4 (commencing with Section 14350) of Chapter 3 of Division 5. (v) Section 14401. (vi) Section 14404. (vii) Section 14408, only as that section applies to gifts to directors, volunteers, and employees, and the related family or business interests of the directors, volunteers, and employees. (viii) Section 14409. (ix) Section 14410. (x) Article 5 (commencing with Section 14600) of Chapter 4 of Division 5. (xi) Article 6 (commencing with Section 14650) of Chapter 4 of Division 5, excluding subdivision (a) of Section 14651. (xii) Section 14803. (xiii) Section 14851. (xiv) Section 14858. (xv) Section 14860. (xvi) Section 14861. (xvii) Section 14863. (F) With respect to any money transmitter, any provision of Division 1.2 (commencing with Section 2000). (2) “Licensee” means any bank, savings association, credit union, trust company, money transmitter, insurance premium finance agency, or business and industrial development corporation that is authorized by the commissioner to conduct business in this state. (b) Notwithstanding any other provision of this code that applies to a licensee or a subsidiary of a licensee, after notice and an opportunity to be heard, the commissioner may, by order that shall include findings of fact which incorporates a determination made in accordance with subdivision (e), levy civil penalties against any licensee or any subsidiary of a licensee who has violated any provision of applicable law, any order issued by the commissioner, any written agreement between the commissioner and the licensee or subsidiary of the licensee, or any condition of any approval issued by the commissioner. The commissioner shall have the sole authority to bring any action with respect to a violation of applicable law subject to a penalty imposed under this section. Except as provided in paragraphs (1) and (2), any penalty imposed by the commissioner may not exceed one thousand dollars ($1,000) a day, provided that the aggregate penalty of all offenses in any one action against any licensee or subsidiary of a licensee shall not exceed fifty thousand dollars ($50,000). (1) If the commissioner determines that any licensee or subsidiary of the licensee has recklessly violated any applicable law, any order issued by the commissioner, any provision of any written agreement between the commissioner and the licensee or subsidiary, or any condition of any approval issued by the commissioner, the commissioner may impose a penalty not to exceed five thousand dollars ($5,000) per day, provided that the aggregate penalty of all offenses in an action against any licensee or subsidiary of a licensee shall not exceed seventy-five thousand dollars ($75,000). (2) If the commissioner determines that any licensee or subsidiary of the licensee has knowingly violated any applicable law, any order issued by the commissioner, any provision of any written agreement between the commissioner and the licensee or subsidiary, or any condition of any approval issued by the commissioner, the commissioner may impose a penalty not to exceed ten thousand dollars ($10,000) per day, provided that the aggregate penalty of all offenses in an action against any licensee or subsidiary of a licensee shall not exceed 1 percent of the total assets of the licensee or subsidiary of a licensee subject to the penalty. (c) Nothing in this section shall be construed to impair or impede the commissioner from pursuing any other administrative action allowed by law. (d) Nothing in this section shall be construed to impair or impede the commissioner from bringing an action in court to enforce any law or order he or she has issued, including orders issued under this section. Nothing in this section shall be construed to impair or impede the commissioner from seeking any other damages or injunction allowed by law. (e) In determining the amount and the appropriateness of initiating a civil money penalty under subdivision (b), the commissioner shall consider all of the following: (1) Evidence that the violation or practice or breach of duty was intentional or was committed with a disregard of the law or with a disregard of the consequences to the institution. (2) The duration and frequency of the violations, practices, or breaches of duties. (3) The continuation of the violations, practices, or breaches of duty after the licensee or subsidiary of the licensee was notified, or, alternatively, its immediate cessation and correction. (4) The failure to cooperate with the commissioner in effecting early resolution of the problem. (5) Evidence of concealment of the violation, practice, or breach of duty or, alternatively, voluntary disclosure of the violation, practice, or breach of duty. (6) Any threat of loss, actual loss, or other harm to the institution, including harm to the public confidence in the institution, and the degree of that harm. (7) Evidence that a licensee or subsidiary of a licensee received financial gain or other benefit as a result of the violation, practice, or breach of duty. (8) Evidence of any restitution paid by a licensee or subsidiary of a licensee of losses resulting from the violation, practice, or breach of duty. (9) History of prior violations, practices, or breaches of duty, particularly where they are similar to the actions under consideration. (10) Previous criticism of the institution for similar actions. (11) Presence or absence of a compliance program and its effectiveness. (12) Tendency to engage in violations of law, unsafe or unsound financial institutions practices, or breaches of duties. (13) The existence of agreements, commitments, orders, or conditions imposed in writing intended to prevent the violation, practice, or breach of duty. (14) Whether the violation, practice, or breach of duty causes quantifiable, economic benefit or loss to the licensee or the subsidiary of the licensee. In those cases, removal of the benefit or recompense of the loss usually will be insufficient, by itself, to promote compliance with the applicable law, order, or written agreement. The penalty amount should reflect a remedial purpose and should provide a deterrent to future misconduct. (15) Other factors as the commissioner may, in his or her opinion, consider relevant to assessing the penalty or establishing the amount of the penalty. (f) The amounts collected under this section shall be deposited in the appropriate fund of the department. For purposes of this subdivision, the term “appropriate fund” means the fund to which the annual assessments of fined licensees, or the parent licensee of the fined subsidiary, are credited. (Amended by Stats. 2018, Ch. 699, Sec. 1. (SB 1361) Effective January 1, 2019.)
  123. 330.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

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    The Superintendent of Banks’ authority under the California Constitution is delegated to the commissioner.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 330. The authority vested in the Superintendent of Banks under subdivision (2) of Section 1 of Article XV of the California Constitution is delegated to the commissioner. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  124. 3301.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 3. Examination [3301 - 3311] ( Chapter 3 added by Stats. 2023, Ch. 792, Sec. 1. )

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    The department may examine licensees and their agents, and the licensee must pay the examination costs.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 3. Examination [3301 - 3311] ( Chapter 3 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3301. (a) (1) (A) The department may, at any time and from time to time, examine the business and any office, within or outside this state, of any licensee, or any agent of a licensee, in order to ascertain whether the business is being conducted in a lawful manner and whether all digital financial asset business activity is properly accounted for. (B) The directors, officers, and employees of a licensee, or agent of a licensee, being examined by the department shall exhibit to the department, on request, any or all of the licensee’s accounts, books, correspondence, memoranda, papers, and other records and shall otherwise facilitate the examination so far as it may be in their power to do so. (2) The department may examine a licensee pursuant to this subdivision without prior notice to the licensee. (b) A licensee shall pay the reasonable and necessary costs of an examination under this section to the commissioner and the commissioner may maintain an action for the recovery of the cost in any court of competent jurisdiction. In determining the cost of the examination, the commissioner may use the estimated average hourly cost for all persons performing examinations of licensees or other persons subject to this division for the fiscal year. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  125. 3303.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 3. Examination [3301 - 3311] ( Chapter 3 added by Stats. 2023, Ch. 792, Sec. 1. )

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    A licensee must keep required records for resident-related digital financial asset activity for five years and make certain outside-state records available to the department within three days after request.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 3. Examination [3301 - 3311] ( Chapter 3 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3303. (a) A licensee shall maintain, for all digital financial asset business activity with, or on behalf of, a resident for five years after the date of the activity, a record of all of the following: (1) Any transaction of the licensee with, or on behalf of, the resident or for the licensee’s account in this state, including all of the following: (A) The identity of the resident. (B) The form of the transaction. (C) The amount, date, and payment instructions given by the resident. (D) The account number, name, and United States Postal Service mailing address of the resident, and, to the extent feasible, other parties to the transaction. (2) The aggregate number of transactions and aggregate value of transactions by the licensee with, or on behalf of, the resident and for the licensee’s account in this state expressed in United States dollar equivalent of digital financial assets for the previous 12 calendar months. (3) Any transaction in which the licensee exchanged one form of digital financial asset for legal tender or another form of digital financial asset with, or on behalf of, the resident. (4) A general ledger maintained at least monthly that lists all assets, liabilities, capital, income, and expenses of the licensee. (5) Any business call report the licensee is required to create or provide to the department. (6) Bank statements and bank reconciliation records for the licensee and the name, account number, and United States Postal Service mailing address of any bank the licensee uses in the conduct of its digital financial asset business activity with, or on behalf of, the resident. (7) A report of any dispute with the resident. (8) If applicable, a report maintained at least monthly that demonstrates compliance with Section 3601. (b) A licensee shall maintain records required by subdivision (a) in a form that enables the department to determine whether the licensee is in compliance with this division, any court order, and the laws of this state. (c) If a licensee maintains records outside this state that pertain to transactions with, or on behalf of, a resident, the licensee shall make the records available to the department not later than three days after request, or, on a determination by the department, at a later time. (d) All records maintained by a licensee are subject to inspection by the department. (Amended by Stats. 2024, Ch. 945, Sec. 2. (AB 1934) Effective January 1, 2025.)
  126. 3305.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 3. Examination [3301 - 3311] ( Chapter 3 added by Stats. 2023, Ch. 792, Sec. 1. )

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    The department may work with other regulators and agencies and share records and information about a licensee in this state.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 3. Examination [3301 - 3311] ( Chapter 3 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3305. The department may cooperate, coordinate, jointly examine, consult, and share records and other information with a self-regulatory organization, a federal or state agency, law enforcement, or a regulator of a jurisdiction outside the United States, concerning the affairs and conduct of a licensee in this state. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  127. 3307.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 3. Examination [3301 - 3311] ( Chapter 3 added by Stats. 2023, Ch. 792, Sec. 1. )

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    A licensee must file a report with the department about certain changes, generally within 15 days after the change.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 3. Examination [3301 - 3311] ( Chapter 3 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3307. (a) A licensee shall file with the department a report of the following, as may be applicable: (1) A material change in information in the application for a license under this division or the most recent annual report of the licensee under this division. (2) A change in the licensee’s business for the conduct of its digital financial asset business activity with, or on behalf of, a resident that meets one of the following criteria: (A) The change may raise a legal or regulatory issue about the permissibility of the licensee’s digital financial business activity. (B) The proposed change might raise material safety and soundness or operational concerns. (C) The proposed change is to digital financial business activity that may cause such activity to be materially different from that previously listed on the application for licensing by the commissioner. (3) A change of an executive officer, responsible individual, or person in control of the licensee. (b) A report required by this section shall be filed not later than 15 days after the change described in subdivision (a). (Amended by Stats. 2026, Ch. 52, Sec. 6. (SB 97) Effective June 30, 2026.)
  128. 3309.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 3. Examination [3301 - 3311] ( Chapter 3 added by Stats. 2023, Ch. 792, Sec. 1. )

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    A person seeking control of a licensee must file an application and required records with the department before the change in control, and the department may approve, conditionally approve, deny, revoke, or modify the decision.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 3. Examination [3301 - 3311] ( Chapter 3 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3309. (a) For purposes of this section, “proposed person to be in control” means the person that would control a licensee after a proposed transaction that would result in a change in control of the licensee. (b) The following rules apply in determining whether a person has control over a licensee: (1) There is a rebuttable presumption of control if a person directly or indirectly owns, controls, holds with the power to vote, or holds proxies representing, 10 percent or more of the then outstanding voting securities issued by the licensee. (2) A person has control over a licensee if the person’s voting power in the licensee constitutes or will constitute at least 25 percent of the total voting power of the licensee. (3) A person has control over a licensee if the person’s voting power in another person constitutes or will constitute at least 10 percent of the total voting power of the other person and the other person’s voting power in the licensee constitutes at least 10 percent of the total voting power of the licensee. (4) A person does not have control over a licensee solely because that person is an executive officer of the licensee. (c) Before a proposed change in control of a licensee, the proposed person to be in control shall submit to the department in a record both of the following: (1) An application in a form and medium prescribed by the department. (2) The information and records that Section 3203 would require if the proposed person to be in control already had control of the licensee. (d) The department shall not approve an application unless the commissioner finds all of the following: (1) The proposed person to be in control and all executive officers of the proposed person to be in control, if any, are of good character and sound financial standing. (2) The proposed person to be in control is competent to engage in the business of digital financial business activity. (3) It is reasonable to believe that, if the person acquires control of the licensee, the proposed person to be in control and the licensee will comply with all applicable provisions of this division and any regulation or order issued under this division. (4) The proposed person to be in control plans, if any, to make any major change in the business, corporate structure, or management of the licensee are not detrimental to the safety and soundness of the licensee. (e) The department, in accordance with Section 3203, shall approve, approve with conditions, or deny an application for a change in control of a licensee. The department, in a record, shall send notice of its decision to the licensee and the person that would be in control if the department had approved the change in control. If the department denies the application, the licensee shall abandon the proposed change in control or cease digital financial asset business activity with or on behalf of residents. (f) If the department applies a condition to approval of a change in control of a licensee, and the department does not receive notice of the applicant’s acceptance of the condition specified by the department not later than 31 days after the department sends notice of the condition, the application is deemed denied. If the application is deemed denied, the licensee shall abandon the proposed change in control or cease digital financial asset business activity with, or on behalf of, residents. (g) The department may revoke or modify a determination under subdivision (d), after notice and opportunity to be heard, if, in its judgment, revocation or modification is consistent with this division. (h) If a change in control of a licensee requires approval of an agency of the state, and the action of the other agency conflicts with that of the department, the department shall confer with the other agency. If the proposed change in control cannot be completed because the conflict cannot be resolved, the licensee shall abandon the change in control or cease digital financial asset business activity with, or on behalf of, residents. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  129. 331.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

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    The commissioner may approve and use secure electronic filing methods, and those methods must include identity verification for the filer.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 331. The commissioner may adopt and implement any method of accepting electronic filings of applications, reports, or other matters, which, in the opinion of the commissioner, is secure. Any method of electronic filing chosen by the commissioner shall include a method to verify the identity of the person making the filing. The verification shall be deemed to satisfy all other verifications required by the commissioner, and shall have the same force and effect as the use of manual signatures. (Amended by Stats. 2018, Ch. 699, Sec. 2. (SB 1361) Effective January 1, 2019.)
  130. 331.5.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

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    Licensees under the commissioner’s jurisdiction must set up and maintain an electronic service address, keep it on file with the commissioner, and be able to receive reasonable attachments. The commissioner can fine a licensee that fails to give notice before changing that address.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 331.5. (a) (1) A licensee subject to the commissioner’s jurisdiction shall establish and maintain an electronic service address designated for receiving communications and documents that are sent by the commissioner to licensees. This electronic service address shall be provided to the commissioner upon licensure. The electronic service address provided to the commissioner shall not be the electronic service address of any individual employee. A licensee shall have the capacity to receive an attachment that accompanies a message sent to its electronic service address, provided the size of the attachment is reasonable in relation to the technology available at the time the attachment is sent. (2) Prior to changing the electronic service address most recently provided to the commissioner, the licensee shall notify the commissioner of the change and provide to the commissioner his or her new electronic service address. The commissioner may impose a fine of up to fifty dollars ($50) per day, not to exceed one thousand dollars ($1,000) in the aggregate, on a licensee who fails to notify the commissioner before changing his or her electronic service address or fails to provide the commissioner a new electronic service address. (3) The commissioner shall provide each licensee that establishes and maintains an electronic service address in accordance with this section with an electronic service address designated for receiving correspondence from licensees subject to the commissioner’s jurisdiction. This service address shall have the capacity to receive an attachment that accompanies a message sent by the licensee, provided the size of the attachment is reasonable in relation to the technology available at the time the attachment is sent. (b) A communication sent to an electronic service address established pursuant to this section does not satisfy any notice requirement, or displace any law or regulation, that requires notice to be served in a different manner, if a hearing right attaches to the notice. (Added by Stats. 2018, Ch. 699, Sec. 3. (SB 1361) Effective January 1, 2019.)
  131. 3311.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 3. Examination [3301 - 3311] ( Chapter 3 added by Stats. 2023, Ch. 792, Sec. 1. )

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    A licensee must submit merger materials to the department before a proposed merger or consolidation, and the department may approve, conditionally approve, or deny the application.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 3. Examination [3301 - 3311] ( Chapter 3 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3311. (a) Before a proposed merger or consolidation of a licensee with another person, the licensee shall submit all of the following, as applicable, to the department in a record: (1) An application in a form and medium prescribed by the department. (2) The plan of merger or consolidation in accordance with subdivision (e). (3) In the case of a licensee, the information required by Section 3203 concerning the person that would be the surviving entity in the proposed merger or consolidation. (b) If a proposed merger or consolidation would change the control of a licensee, the licensee shall comply with Section 3309 and this section. (c) The department shall not approve the application for a merger or consolidation unless the commissioner finds all of the following: (1) That the merger or consolidation will not result in a monopoly and will not be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize digital financial business activity in this state. (2) That the merger or consolidation will not have the effect in any section of this state of substantially lessening competition, tending to create a monopoly, or otherwise being in restraint of trade, or that the anticompetitive effect is clearly outweighed in the public interest by the probable effect of the merger in meeting the convenience and needs of the community to be served. (3) That the financial condition of the surviving entity, including its capital and liquidity, will be satisfactorily based on the factors listed in subdivision (b) of Section 3207. (4) That the executive officers of the surviving entity are of good character and sound financial standing and are competent to engage in digital financial business activity. (d) The department, in accordance with Section 3203, shall approve, conditionally approve, or deny an application for approval of a merger or consolidation of a licensee. The department, in a record, shall send notice of its decision to the licensee and the person that would be the surviving entity. If the department denies the application, the licensee shall abandon the merger or consolidation or cease digital financial asset business activity with, or on behalf of, residents. (e) The department may revoke or modify a determination under subdivision (c), after notice and opportunity to be heard, if, in its judgment, revocation or modification is consistent with this division. (f) A plan of merger or consolidation of a licensee with another person shall do all of the following: (1) Describe the effect of the proposed transaction on the licensee’s conduct of digital financial asset business activity with, or on behalf of, residents. (2) Identify each person to be merged or consolidated and the person that would be the surviving entity. (3) Describe the terms and conditions of the merger or consolidation and the mode of carrying it into effect. (g) If a merger or consolidation of a licensee and another person requires approval of an agency of this state, and the action of the other agency conflicts with that of the department, the department shall confer with the other agency. If the proposed merger or consolidation cannot be completed because the conflict cannot be resolved, the licensee shall abandon the merger or consolidation or cease digital financial asset business activity with, or on behalf of, residents. (h) The department may condition approval of an application under subdivision (a). If the department does not receive notice from the parties that the parties accept the department’s condition not later than 31 days after the department sends notice in a record of the condition, the application is deemed denied. If the application is deemed denied, the licensee shall abandon the merger or consolidation or cease digital financial asset business activity with, or on behalf of, residents. (i) If a licensee acquires substantially all of the assets of a person, whether or not the person’s license was approved by the department, the transaction is subject to this section. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  132. 332.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

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    The commissioner may, by regulation, make certain substantively different federal banking-law provisions apply to specified state banks, but must file the regulation and follow listed limits on expiration and reuse.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 332. (a) (1) In this section, “federal law” includes, but is not limited to, the United States Constitution, any federal statute, any federal court decision, and any regulation, circular, bulletin, interpretation, decision, order, and waiver issued by a federal agency. (2) The definitions set forth in Section 1750 apply to this section. (b) (1) Notwithstanding any other provision of law, except as provided in subdivision (c), if the commissioner finds that any provision of federal law applicable to national banking associations doing business in this state is substantively different from the provisions of this code applicable to banks organized under the laws of this state, the commissioner may by regulation make that provision of federal law applicable to banks organized under the laws of this state. (2) If the commissioner finds that any provision of federal law applicable to foreign (other nation) banks with respect to federal agencies or federal branches in this state is substantively different from the provisions of this code applicable to foreign (other nation) banks with respect to agencies or branch offices licensed by the commissioner under Chapter 20 (commencing with Section 1750) of Division 1.1, the commissioner may by regulation make that provision of federal law applicable to foreign (other nation) banks with respect to agencies or branch offices licensed by the commissioner under Chapter 20 (commencing with Section 1750) of Division 1.1. (c) (1) Section 11343.4 and Article 5 (commencing with Section 11346) and Article 6 (commencing with Section 11349) of Chapter 3.5 of Part 1 of Division 3 of Title 2 of the Government Code do not apply to any regulation adopted under subdivision (b). (2) The commissioner shall file any regulation adopted pursuant to subdivision (b), together with a citation to this section as authority for the adoption and a citation to the provisions of federal law made applicable by the regulation, with the Office of Administrative Law for filing with the Secretary of State and publication in the California Code of Regulations. (3) Any regulation adopted under subdivision (b) shall become effective on the date when it is filed with the Secretary of State unless the commissioner prescribes a later date in the regulation or in a written instrument filed with the regulation. (4) Any regulation adopted under subdivision (b) shall expire at 12 p.m. on December 31 of the year following the calendar year in which it becomes effective. (5) Any regulation adopted pursuant to subdivision (b) shall be subject to the following restrictions: (A) The commissioner shall not renew or reinstate the regulation adopted pursuant to subdivision (b). (B) The commissioner shall not adopt a new regulation pursuant to subdivision (b), to address the same conformity issue that was addressed by the regulation that expired pursuant to subdivision (c). (d) The commissioner may adopt regulations pursuant to subdivision (b) that are exempt from the expiration and restrictions of subdivision (c) if the regulations are adopted in compliance with all provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of the Government Code, including those listed in paragraph (1) of subdivision (c). (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  133. 333.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

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    The commissioner has the power to supervise and examine all licensees.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 333. The powers of supervision and examination of all licensees are vested in the commissioner. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  134. 334.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

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    The commissioner may make or waive reasonable or necessary rules and regulations to carry out the commissioner’s duties and responsibilities.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 334. The commissioner may promulgate or waive such rules and regulations as may be reasonable or necessary to carry out his or her duties and responsibilities. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  135. 335.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

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    The commissioner may call a licensee’s board meeting when the commissioner thinks it is necessary or appropriate to carry out official duties.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 335. (a) The commissioner, whenever in his or her opinion such action is necessary or appropriate to carry out his or her duties, may call a meeting of the board of directors of a licensee. (b) A meeting of the board of a licensee called by the commissioner shall be held upon four days’ notice by first-class mail or 24 hours’ notice delivered personally or by telephone. The notice shall be given by the commissioner or, if the commissioner so orders, by an officer of the licensee. (c) A meeting of the board of a licensee called by the commissioner shall be held at a place within this state as may be designated by the commissioner and specified in the notice of the meeting. (d) The expenses of a meeting of the board of a licensee called by the commissioner shall be paid by the licensee. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  136. 336.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

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    The commissioner may require a licensee to write down any asset to its then fair market value.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 336. The commissioner may, at any time, require a licensee to write down any asset held by the licensee to a valuation that will represent the asset’s then fair market value. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  137. 337.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

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    The commissioner must examine certain licensees for sanctions compliance and must send evidence to the U.S. Treasury if a violation is found; the commissioner may also bring an action.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 337. (a) The commissioner, when conducting examinations under Section 500, 14250, 16150, or 16700, shall examine a licensee that maintains a correspondent account or payable-through account for compliance with the federal Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111-195), associated federal regulations, and any related presidential executive orders. If the commissioner finds that a licensee is in violation, the commissioner may bring an action in accordance with Section 566, 14302, 16200, or 16900, and shall forward evidence of the violation to the United States Department of the Treasury. For purposes of this section, “correspondent account” and “payable-through account” have the meanings given those terms in Section 5381A of Title 31 of the United States Code. (b) This section shall become inoperative if both of the following conditions occur: (1) Iran is removed from the United States Department of State’s list of countries that have been determined to repeatedly provide support for acts of international terrorism. (2) Pursuant to the appropriate federal statute, the President determines and certifies to the appropriate committee of the United States Congress that Iran has ceased its efforts to design, develop, manufacture, or acquire a nuclear explosive device or related materials and technology. (Added by Stats. 2013, Ch. 139, Sec. 2. (AB 978) Effective January 1, 2014. Conditionally inoperative by its own provisions.)
  138. 338.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. )

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    If a wildfire emergency is declared, the commissioner must coordinate with mortgage lenders and servicers to support mortgage forbearance, foreclosure prevention, and loss mitigation programs for affected borrowers.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 2. Commissioner of Financial Protection and Innovation [320 - 338] ( Heading of Article 2 amended by Stats. 2022, Ch. 452, Sec. 99. ) ## 338. Upon declaration of a state of emergency, pursuant to the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code) due to a wildfire, including, but not limited to, any unplanned, unwanted wildland fire, including unauthorized human-caused fires, escaped wildland fire use events, escaped prescribed fire projects, and all other wildland fires where the objective is to extinguish the fire, the commissioner shall coordinate with mortgage lenders and servicers subject to the commissioner’s jurisdiction, including those who lend money in connection with the purchase or financing of a mobilehome as that term is defined in Section 798.3 of the Civil Code, operating in this state to facilitate and monitor the implementation and promotion of mortgage forbearance, foreclosure prevention, and loss mitigation programs available to borrowers who experience a material decrease in household income or a material increase in household expenses due, directly or indirectly, to the wildfire emergency. (Added by Stats. 2025, Ch. 547, Sec. 4. (SB 610) Effective January 1, 2026.)
  139. 3401.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 4. Enforcement [3401 - 3415] ( Chapter 4 added by Stats. 2023, Ch. 792, Sec. 1. )

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    This section defines “enforcement measure” to include actions like suspending or revoking a license, ordering a cease-and-desist, seeking a receiver or injunction, assessing a penalty, recovering security, imposing conditions, and seeking restitution.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 4. Enforcement [3401 - 3415] ( Chapter 4 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3401. For the purpose of this chapter, “enforcement measure” means an action that includes, but is not limited to, all of the following: (a) Suspend or revoke a license under this division. (b) Order a person to cease and desist from doing digital financial asset business activity with, or on behalf of, a resident. (c) Request the court to appoint a receiver for the assets of a person doing digital financial asset business activity with, or on behalf of, a resident. (d) Request the court to issue temporary, preliminary, or permanent injunctive relief against a person doing digital financial asset business activity with, or on behalf of, a resident. (e) Assess a penalty under Section 3407. (f) Recover on the security under Section 3207 and initiate a plan to distribute the proceeds for the benefit of a resident injured by a violation of this division, or law of this state other than this division that applies to digital financial asset business activity with, or on behalf of, a resident. (g) Impose necessary or appropriate conditions on the conduct of digital financial asset business activity with, or on behalf of, a resident. (h) Seek restitution on behalf of a resident if the department shows economic injury due to a violation of this division. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  140. 3403.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 4. Enforcement [3401 - 3415] ( Chapter 4 added by Stats. 2023, Ch. 792, Sec. 1. )

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    The department may enforce this division against certain licensees and non-licensees, and may extend filing deadlines or waive some enforcement measures for good cause.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 4. Enforcement [3401 - 3415] ( Chapter 4 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3403. (a) The department may take an enforcement measure against a licensee or person that is not a licensee but has engaged, is engaging, or is about to engage in digital financial asset business activity with, or on behalf of, a resident in any of the following instances: (1) The licensee or person materially violates this division, a rule adopted or order issued under this division, or a law of this state other than this division that applies to digital financial asset business activity of the violator with, or on behalf of, a resident. (2) The licensee or person does not cooperate substantially with an examination or investigation by the department, fails to pay a fee, or fails to submit a report or documentation. (3) The licensee or person, in the conduct of its digital financial asset business activity with, or on behalf of, a resident, has engaged, is engaging, or is about to engage in any of the following: (A) An unsafe or unsound act or practice. (B) An unfair or deceptive act or practice. (C) Fraud or intentional misrepresentation. (D) Misappropriation of legal tender, a digital financial asset, or other value held by a fiduciary. (4) An agency of the United States or another state takes an action against the licensee or person, which would constitute an enforcement measure if the department had taken the action. (5) The licensee or person is convicted of a crime related to its digital financial asset business activity with, or on behalf of, a resident or involving fraud or felonious activity that, as determined by the department, makes the licensee or person unsuitable to engage in digital financial asset business activity. (6) Any of the following occurs: (A) The licensee or person becomes insolvent. (B) The licensee or person makes a general assignment for the benefit of its creditors. (C) The licensee or person becomes the debtor, alleged debtor, respondent, or person in a similar capacity in a case or other proceeding under any bankruptcy, reorganization, arrangement, readjustment, insolvency, receivership, dissolution, liquidation, or similar law, and does not obtain from the court, within a reasonable time, confirmation of a plan or dismissal of the case or proceeding. (D) The licensee or person applies for, or permits the appointment of, a receiver, trustee, or other agent of a court for itself or for a substantial part of its assets. (7) The licensee or person makes a material misrepresentation to the department. (b) On application and for good cause, the department may do either of the following: (1) Extend the due date for filing a document or report under paragraph (2) of subdivision (a). (2) Waive, to the extent warranted by circumstances, including a bona fide error notwithstanding reasonable procedures designed to prevent error, an enforcement measure issued for a violation described by paragraph (2) of subdivision (a) if the department determines that the waiver will not adversely affect the likelihood of compliance with this division. (c) In an enforcement action related to operating without a license under this division, it is a defense to the action that the person has in effect a customer identification program reasonably designed to identify whether a customer is a resident that failed to identify the particular customer as a resident. (d) A proceeding under this division is subject to the Administrative Procedure Act, as described in Section 11370 of the Government Code. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  141. 3405.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 4. Enforcement [3401 - 3415] ( Chapter 4 added by Stats. 2023, Ch. 792, Sec. 1. )

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    The department may enforce only after notice and a hearing, except in urgent situations and excluding civil penalties under Section 3407; affected persons get an expedited postaction hearing unless they waive it.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 4. Enforcement [3401 - 3415] ( Chapter 4 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3405. (a) Except as provided in subdivision (b), the department may take an enforcement measure only after notice and opportunity for a hearing as appropriate in the circumstances. (b) (1) (A) The department may take an enforcement measure, other than the imposition of a civil penalty under Section 3407, without notice if the circumstances require action before notice can be given. (B) A person subject to an enforcement measure pursuant to this paragraph shall have the right to an expedited postaction hearing by the department unless the person has waived the hearing. (2) (A) The department may take an enforcement measure, other than the imposition of a civil penalty under Section 3407, after notice and without a prior hearing if the circumstances require action before a hearing can be held. (B) A person subject to an enforcement measure pursuant to this paragraph shall have the right to an expedited postaction hearing by the department unless the person has waived the hearing. (3) The department may take an enforcement measure, other than the imposition of a civil penalty under Section 3407, after notice and without a hearing if the person conducting digital financial asset business activity with, or on behalf of, a resident does not timely request a hearing. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  142. 3407.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 4. Enforcement [3401 - 3415] ( Chapter 4 added by Stats. 2023, Ch. 792, Sec. 1. )

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    The department may impose civil penalties for certain violations of this division involving digital financial asset business activity.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 4. Enforcement [3401 - 3415] ( Chapter 4 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3407. (a) If a person other than a licensee has engaged, is engaging, or is about to engage in digital financial asset business activity with, or on behalf of, a resident in violation of this division, the department may assess a civil penalty against the person in an amount not to exceed one hundred thousand dollars ($100,000) for each day the person is in violation of this division. (b) If a licensee or covered person materially violates a provision of this division, the department may assess a civil penalty in an amount not to exceed twenty thousand dollars ($20,000) for each day of violation or for each act or omission in violation. (c) A civil penalty under this section continues to accrue until the date the violation ceases. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  143. 3409.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 4. Enforcement [3401 - 3415] ( Chapter 4 added by Stats. 2023, Ch. 792, Sec. 1. )

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    License revocations, suspensions, and cease-and-desist orders take effect one day after the department sends notice.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 4. Enforcement [3401 - 3415] ( Chapter 4 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3409. (a) Revocation of a license under this division is effective against a licensee one day after the department sends notice in a record of the revocation to the licensee by a means reasonably selected for the notice to be received by the recipient in one day to the address provided for receiving communications from the department. (b) Suspension of a license under this division or an order to cease and desist is effective against a licensee or other person one day after the department sends notice in a record of the suspension or order to the licensee or other person by a means reasonably selected for the notice to be received by the recipient in one day to the address provided for receiving communications from the department or, if no address is provided, to the recipient’s last known address. A suspension or order to cease and desist remains in effect until the earliest of the following: (1) Entry of an order by the department under the Administrative Procedure Act, as described in Section 11370 of the Government Code. (2) Entry of a court order setting aside or limiting the suspension or order to cease and desist. (3) A date specified by the department. (c) If, without reason to know of the department’s notice sent under this section, a licensee or other person does not comply in accordance with the notice until the notice is actually received at the address provided, the department may consider the delay in compliance in imposing a sanction for the failure. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  144. 3411.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 4. Enforcement [3401 - 3415] ( Chapter 4 added by Stats. 2023, Ch. 792, Sec. 1. )

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    The department may enter into a consent order with a person about an enforcement measure.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 4. Enforcement [3401 - 3415] ( Chapter 4 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3411. The department may enter into a consent order with a person regarding an enforcement measure. The order may provide that it does not constitute an admission of fact by a party. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  145. 3413.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 4. Enforcement [3401 - 3415] ( Chapter 4 added by Stats. 2023, Ch. 792, Sec. 1. )

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    The commissioner may exercise the division’s powers whenever needed for the public welfare, even if no license application has been filed or a license has been issued, surrendered, suspended, or revoked.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 4. Enforcement [3401 - 3415] ( Chapter 4 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3413. Whenever the commissioner deems it necessary for the general welfare of the public, the commissioner has continuous authority to exercise the powers set forth in this division whether or not an application for a license has been filed with the commissioner, any license has been issued, or if issued, has been surrendered, suspended, or revoked. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  146. 3415.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 4. Enforcement [3401 - 3415] ( Chapter 4 added by Stats. 2023, Ch. 792, Sec. 1. )

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    This section says the chapter does not create a private right of action for a resident, duties and obligations under this chapter add to other legal duties, and residents may still bring an action to enforce rights under Section 3503.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 4. Enforcement [3401 - 3415] ( Chapter 4 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3415. (a) This chapter shall not be construed to provide a private right of action to a resident. (b) The duties and obligations imposed by this chapter are cumulative with any other duties or obligations imposed under any other law, and shall not be construed to relieve any party from any duties or obligations imposed under any other law. (c) This section does not preclude an action by a resident to enforce rights under Section 3503. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  147. 350.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 3. Deputies and Employees [350 - 357] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. )

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    The Governor appoints the chief deputy and sets the chief deputy’s annual salary; the chief deputy serves at the Governor’s pleasure.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 3. Deputies and Employees [350 - 357] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 350. The chief deputy shall be appointed by the Governor and hold office at the pleasure of the Governor. The annual salary of the chief deputy shall be fixed by the Governor. (Amended by Stats. 2013, Ch. 353, Sec. 50. (SB 820) Effective September 26, 2013. Operative July 1, 2013, by Sec. 129 of Ch. 353.)
  148. 3501.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 5. Disclosures and Protections [3501 - 3509] ( Chapter 5 added by Stats. 2023, Ch. 792, Sec. 1. )

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    Covered persons must give residents specified disclosures before and during digital financial asset transactions, and provide transaction confirmations unless a daily-confirmation option applies.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 5. Disclosures and Protections [3501 - 3509] ( Chapter 5 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3501. (a) When engaging in digital financial business activity with a resident, a covered person shall provide to a resident the disclosures required by subdivision (b) and any additional disclosure the department by rule determines reasonably necessary for the protection of residents. The department shall determine by rule the time and form required for disclosure. A disclosure required by this section shall be made separately from any other information provided by the covered person and in a clear and conspicuous manner in a record the resident may keep. A covered person may propose, for the department’s approval, alternate disclosures as more appropriate for its digital financial asset business activity with, or on behalf of, residents. (b) Before engaging in digital financial asset business activity with a resident, a covered person shall disclose, to the extent applicable to the digital financial asset business activity the covered person will undertake with the resident, all of the following: (1) A schedule of fees and charges the covered person may assess, the manner by which fees and charges will be calculated if they are not set in advance and disclosed, and the timing of the fees and charges. (2) Whether the product or service provided by the covered person is covered by either of the following: (A) A form of insurance or other guarantee against loss by an agency of the United States as follows: (i) Up to the full United States dollar equivalent of digital financial assets placed under the control of, or purchased from, the covered person as of the date of the placement or purchase, including the maximum amount provided by insurance under the Federal Deposit Insurance Corporation, National Credit Union Share Insurance Fund, or otherwise available from the Securities Investor Protection Corporation. (ii) If not provided at the full United States dollar equivalent of the digital financial asset placed under the control of or purchased from the covered person, the maximum amount of coverage for each resident expressed in the United States dollar equivalent of the digital financial asset. (B) (i) Private insurance against theft or loss, including cybertheft or theft by other means. (ii) Upon request of a resident with whom a covered person engages in digital financial asset business activity, a covered person shall disclose the terms of the insurance policy to the resident in a manner that allows the resident to understand the specific insured risks that may result in partial coverage of the resident’s assets. (3) The irrevocability of a transfer or exchange and any exception to irrevocability. (4) A description of all of the following: (A) The covered person’s liability for an unauthorized, mistaken, or accidental transfer or exchange. (B) The resident’s responsibility to provide notice to the covered person of an unauthorized, mistaken, or accidental transfer or exchange. (C) The basis for any recovery by the resident from the covered person in case of an unauthorized, mistaken, or accidental transfer or exchange. (D) General error resolution rights applicable to an unauthorized, mistaken, or accidental transfer or exchange. (E) The method for the resident to update the resident’s contact information with the covered person. (5) That the date or time when the transfer or exchange is made and the resident’s account is debited may differ from the date or time when the resident initiates the instruction to make the transfer or exchange. (6) Whether the resident has a right to stop a preauthorized payment or revoke authorization for a transfer and the procedure to initiate a stop-payment order or revoke authorization for a subsequent transfer. (7) The resident’s right to receive a receipt, trade ticket, or other evidence of the transfer or exchange. (8) The resident’s right to at least 14 days’ prior notice of a change in the covered person’s fee schedule, other terms and conditions that have a material impact on digital financial asset business activity with the resident, or the policies applicable to the resident’s account. The 14-day notice requirement shall not apply to changes in terms and conditions or policies that are reasonably necessary to address a risk of loss to the resident or the covered person, to the extent that the change does not relate to the covered person’s fee schedule. (9) That no digital financial asset is currently recognized as legal tender by California or the United States. (10) (A) A list of instances in the past 12 months when the covered person’s service was unavailable to 10,000 or more customers seeking to engage in digital financial asset business activity due to a service outage on the part of the covered person and the causes of each identified service outage. (B) As part of the disclosure required by this paragraph, the covered person may list any steps the covered person has taken to resolve underlying causes for those outages. (c) Except as otherwise provided in subdivision (d), at the conclusion of a digital financial asset transaction with, or on behalf of, a resident, a covered person shall provide the resident a confirmation in a record which contains all of the following: (1) The name and contact information of the covered person, including the toll-free telephone number required under Section 3507. (2) The type, value, date, precise time, and amount of the transaction. (3) The fee charged for the transaction, including any charge for conversion of a digital financial asset to legal tender, bank credit, or other digital financial asset, as well as any indirect charges. (d) If a covered person discloses that it will provide a daily confirmation in the initial disclosure under subdivision (c), the covered person may elect to provide a single, daily confirmation for all transactions with, or on behalf of, a resident on that day instead of a per transaction confirmation. (Amended by Stats. 2026, Ch. 52, Sec. 7. (SB 97) Effective June 30, 2026.)
  149. 3503.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 5. Disclosures and Protections [3501 - 3509] ( Chapter 5 added by Stats. 2023, Ch. 792, Sec. 1. )

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    A covered person holding a digital financial asset for others must keep enough of each asset type on hand to satisfy customer entitlements, and must also hold eligible securities at or above the stated liability amount.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 5. Disclosures and Protections [3501 - 3509] ( Chapter 5 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3503. (a) (1) A covered person that has control of a digital financial asset for one or more persons shall at all times maintain in its control an amount of each type of digital financial asset sufficient to satisfy the aggregate entitlements of the persons to the type of digital financial asset. (2) If a covered person violates this subdivision, the property interests of the persons in the digital financial asset are pro rata property interests in the type of digital financial asset to which the persons are entitled without regard to the time the persons became entitled to the digital financial asset or the covered person obtained control of the digital financial asset. (b) A digital financial asset maintained for purposes of compliance with this section shall meet all of the following criteria: (1) The digital financial asset shall be held for the persons entitled to the digital financial asset. (2) The digital financial asset shall not be property of the covered person. (3) The digital financial asset shall not be subject to the claims of creditors of the covered person. (c) A covered person may comply with this section by including, and complying with, a provision in its contract with a resident that states all of the following: (1) That a digital financial asset controlled by the covered person on behalf of the resident will be treated as a financial asset under Division 8 (commencing with Section 8101) of the Commercial Code. (2) That the covered person is a securities intermediary under Division 8 (commencing with Section 8101) of the Commercial Code with respect to any digital financial assets under control of the covered person on behalf of the resident. (3) That the resident’s account or wallet provided by or through the covered person is a securities account under Division 8 (commencing with Section 8101) of the Commercial Code. (d) Even if commingled with other assets of the covered person, digital financial assets maintained for purposes of compliance with this section are deemed to be held in trust for the benefit of the customers of the covered persons’ digital financial asset business activity, in the event of bankruptcy or receivership of the covered person, or in the event of an action by a creditor against the covered person who is not a beneficiary of this statutory trust. Digital financial assets maintained for purposes of compliance with this section or eligible securities impressed with a trust pursuant to this subdivision shall not be subject to attachment, levy of execution, or sequestration by order of any court, except for a beneficiary of this statutory trust. (e) A covered person shall at all times own eligible securities, as described in subdivision (b) of Section 2082, having an aggregate market value computed in accordance with United States generally accepted accounting principles of not less than the aggregate amount of all of its outstanding United States dollar-denominated liabilities owed to its customers. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  150. 3505.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 5. Disclosures and Protections [3501 - 3509] ( Chapter 5 added by Stats. 2023, Ch. 792, Sec. 1. )

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    Covered exchanges must certify certain checks before listing or offering a digital financial asset, and must follow execution, disclosure, review, and routing rules when handling resident transactions.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 5. Disclosures and Protections [3501 - 3509] ( Chapter 5 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3505. (a) (1) Except as provided for under paragraph (2), a covered exchange, prior to listing or offering a digital financial asset that the covered exchange can exchange on behalf of a resident, shall certify on a form provided by the department that the covered exchange has done the following: (A) Identified the likelihood that the digital financial asset would be deemed a security by federal or California regulators. (B) Provided, in writing, full and fair disclosure of all material facts relating to conflicts of interest that are associated with the covered exchange and the digital financial asset. (C) Conducted a comprehensive risk assessment designed to ensure consumers are adequately protected from cybersecurity risk, risk of malfeasance, including theft, risks related to code or protocol defects, or market-related risks, including price manipulation and fraud. (D) Established policies and procedures to reevaluate the appropriateness of the continued listing or offering of the digital financial asset, including an evaluation of whether material changes have occurred. (E) Established policies and procedures to cease listing or offering the digital financial asset, including notification to affected consumers and counterparties. (2) Certification by a covered exchange shall not be required for any digital financial asset approved for listing on or before January 1, 2025, by the New York Department of Financial Services pursuant to Part 200 of Title 23 of the New York Code of Rules and Regulations. (3) The department, after a finding that a covered exchange has listed or offered a digital financial asset without appropriate certification or after a finding that material misrepresentations were made in the certification process, shall require the covered exchange to cease offering or listing the digital financial asset and may assess the civil penalty of up to twenty thousand dollars ($20,000) per day the violation has occurred. (b) (1) A covered exchange shall make every effort to execute a resident’s request to exchange a digital financial asset that the covered exchange receives fully and promptly. (2) (A) A covered exchange shall use reasonable diligence to ensure that the outcome to the resident is as favorable as possible under prevailing market conditions. Compliance with this paragraph shall be determined by factors, including, but not limited to, all of the following: (i) The character of the market for the digital financial asset, including price and volatility. (ii) The size and type of transaction. (iii) The number of markets checked. (iv) Accessibility of appropriate pricing. (B) At least once every six months, a covered exchange shall review aggregated trading records of residents against benchmarks to determine execution quality, shall investigate the causes of any variance, and shall promptly take action to remedy issues identified in that review. (3) (A) In a transaction for or with a resident, the covered exchange shall not interject a third party between the covered exchange and the best market for the digital financial asset in a manner inconsistent with this subdivision. (B) This paragraph does not apply to a transaction in which a resident receives stablecoin in exchange for legal tender or bank or credit union credit. For purposes of this subparagraph, “stablecoin” has the same meaning as “payment stablecoin,” as defined in Section 5901 of Title 12 of the United States Code. (4) If a covered exchange cannot execute directly with a market and employs other means in order to ensure an execution advantageous to the resident, the burden of showing the acceptable circumstances for doing so is on the covered exchange. (5) A covered exchange shall provide and make available to a resident an up-to-date description of the order execution practices of the covered exchange, which shall include a description of how the covered exchange receives and achieves the order preferences of a resident. (6) Nothing in this subdivision shall be construed to authorize the department to impose, by rule, specific trade routing rules. (c) For purposes of this section: (1) “Conflict of interest” means an interest that might incline a covered exchange or a natural person who is an associated person of a covered exchange to make a recommendation that is not disinterested. (2) “Covered exchange” means a covered person that exchanges or holds itself out as being able to exchange a digital financial asset for a resident. (d) Failure of a particular policy or procedure adopted under this section to meet its goals in a particular instance is not a ground for liability of the licensee if the policy or procedure was created, implemented, and monitored properly. Repeated failures of a policy or procedure are evidence that the policy or procedure was not created or implemented properly. (Amended by Stats. 2026, Ch. 52, Sec. 8. (SB 97) Effective June 30, 2026.)
  151. 3507.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 5. Disclosures and Protections [3501 - 3509] ( Chapter 5 added by Stats. 2023, Ch. 792, Sec. 1. )

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    A covered person must show a toll-free customer service phone number on its website, and the line must be open 10 hours a day, Monday through Friday, except federal holidays.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 5. Disclosures and Protections [3501 - 3509] ( Chapter 5 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3507. A covered person shall prominently display on its internet website a toll-free telephone number through which a resident can contact the licensee for customer service issues and receive live customer assistance. The telephone line shall be operative 10 hours per day, Monday through Friday, excluding federal holidays. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  152. 3509.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 5. Disclosures and Protections [3501 - 3509] ( Chapter 5 added by Stats. 2023, Ch. 792, Sec. 1. )

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    The chapter’s requirements for covered persons and covered exchanges become operative on July 1, 2026.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 5. Disclosures and Protections [3501 - 3509] ( Chapter 5 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3509. The requirements imposed on a covered person or a covered exchange under this chapter shall be operative on July 1, 2026. (Amended by Stats. 2024, Ch. 945, Sec. 3. (AB 1934) Effective January 1, 2025.)
  153. 351.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 3. Deputies and Employees [350 - 357] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. )

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    The Governor appoints the Senior Deputy Commissioner positions, subject to Senate confirmation, and sets their annual salary.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 3. Deputies and Employees [350 - 357] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 351. (a) The chief officer of the Division of Corporations and Financial Institutions is the Senior Deputy Commissioner of Financial Protection and Innovation for the Division of Corporations and Financial Institutions. The Senior Deputy Commissioner of Financial Protection and Innovation for the Division of Corporations and Financial Institutions shall be appointed by the Governor, subject to Senate confirmation, and shall hold office at the pleasure of the Governor. The Senior Deputy Commissioner of Financial Protection and Innovation for the Division of Corporations and Financial Institutions shall receive an annual salary as fixed by the Governor. (b) The chief officer of the Division of Consumer Financial Protection is the Senior Deputy Commissioner of Financial Protection and Innovation for the Division of Consumer Financial Protection. The Senior Deputy Commissioner of Financial Protection and Innovation for the Division of Consumer Financial Protection shall be appointed by the Governor, subject to Senate confirmation, and shall hold office at the pleasure of the Governor. The Senior Deputy Commissioner of Financial Protection and Innovation for the Division of Consumer Financial Protection shall receive an annual salary as fixed by the Governor. (Amended by Stats. 2020, Ch. 157, Sec. 5. (AB 1864) Effective January 1, 2021.)
  154. 352.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 3. Deputies and Employees [350 - 357] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. )

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    The commissioner may hire staff and attorneys, but must set their duties and compensation under State Personnel Board classifications; attorney hiring also needs Governor approval of the terms.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 3. Deputies and Employees [350 - 357] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 352. The commissioner may employ deputies in addition to the chief deputy, and examiners, appraisers, technical assistants, investigators, administrative assistants, clerks, and other employees that he or she may need to discharge in a proper manner the duties imposed upon him or her by law. He or she shall prescribe their duties and fix their compensation in accordance with classifications made by the State Personnel Board. The commissioner may also, at those times and on those terms as may be approved by the Governor, employ those attorneys as he or she may need. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  155. 353.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 3. Deputies and Employees [350 - 357] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. )

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    Each deputy and examiner must take and subscribe to the constitutional oath of office before starting the duties of office.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 3. Deputies and Employees [350 - 357] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 353. Before entering upon the duties of his or her office each deputy and examiner shall take and subscribe to the constitutional oath of office. (Amended by Stats. 2013, Ch. 353, Sec. 53. (SB 820) Effective September 26, 2013. Operative July 1, 2013, by Sec. 129 of Ch. 353.)
  156. 354.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 3. Deputies and Employees [350 - 357] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. )

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    The commissioner may require deputies, examiners, or other department employees to post an official bond, and the department must pay the bond premium.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 3. Deputies and Employees [350 - 357] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 354. The commissioner may require, at any time, of any deputy, examiner, or other employee of the department, an official bond in such amount as the commissioner may deem necessary. The premium for bonds required by the commissioner shall be an expense of the department. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  157. 355.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 3. Deputies and Employees [350 - 357] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. )

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    Certain financial-regulator officers and employees are barred from having specified financial ties or business relationships with banks and similar institutions they supervise, with limited exceptions for some accounts and loans.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 3. Deputies and Employees [350 - 357] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 355. The Commissioner of Financial Protection and Innovation, the Senior Deputy Commissioner of the Division of Financial Institutions, or any deputy or employee of the Division of Financial Institutions shall not do or be any of the following with respect to any bank, savings association, credit union, or industrial loan company supervised by the department: (a) Be indebted, directly or indirectly, as borrower, endorser, surety, or guarantor to any such bank, savings association, credit union, or industrial loan company. (b) Be an officer, director, or employee of any such bank, savings association, credit union, or industrial loan company. (c) Own or deal in directly or indirectly, the shares or obligations of any such bank, savings association, credit union, or industrial loan company. (d) Be interested in or, directly or indirectly, receive from any such bank, savings association, credit union, or industrial loan company or any officer, director, or employee thereof, any salary, fee, compensation, or other valuable thing by way of gift, credit, compensation for services, or otherwise. However, this subdivision does not prohibit any person from being interested in or directly or indirectly receiving (1) anything which is expressly excluded from a definition of “gift” or “honorarium” in the Political Reform Act of 1974 (Title 9 (commencing with Section 81000) of the Government Code) or in regulations issued under the Political Reform Act of 1974 by the Fair Political Practices Commission or (2) anything which, if received by the commissioner, would constitute a gift or honorarium within the meaning of the Political Reform Act of 1974 or regulations issued under the Political Reform Act of 1974 by the Fair Political Practices Commission but which the commissioner would not be prohibited from receiving under the Political Reform Act of 1974 or regulations issued under the Political Reform Act of 1974 by the Fair Political Practices Commission. (e) Be interested in or engage in the negotiation of any loan to, obligation of, or accommodation for another person to or with any such bank, savings association, credit union, or industrial loan company. Notwithstanding the foregoing the commissioner and any deputy or employee may have and maintain one or more deposit or similar accounts in any bank, savings association, credit union, or industrial loan company in this state and may maintain with any bank, savings association, credit union, or industrial loan company in this state a loan which was not obtained in violation of this section if the person reports the loan in writing to the department within 30 days after the person commences their term of appointment or employment with the department and if the loan is not renewed, renegotiated, extended, or otherwise modified on or after July 1, 1997. A violation of this section by any person shall constitute sufficient grounds for their removal or discharge. (Amended by Stats. 2022, Ch. 452, Sec. 100. (SB 1498) Effective January 1, 2023.)
  158. 356.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 3. Deputies and Employees [350 - 357] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. )

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    If the commissioner cannot act for more than 30 consecutive days, or if the office is vacant, the chief deputy takes over the commissioner’s powers and duties until the commissioner returns or recovers, or until a new commissioner is appointed and qualifies.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 3. Deputies and Employees [350 - 357] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 356. If the commissioner is unable to perform his or her duties for more than 30 consecutive days or if the office of the commissioner becomes vacant, the chief deputy shall have all the powers and duties of the commissioner until the return or recovery of the commissioner, or, in case of a vacancy, until a new commissioner is appointed by the Governor and qualifies to hold office. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  159. 357.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 3. Deputies and Employees [350 - 357] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. )

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    A deputy commissioner or examiner who knows of a licensee’s insolvency or unsafe condition must report it in writing to the commissioner.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 3. Deputies and Employees [350 - 357] ( Article 3 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 357. If a deputy commissioner or any examiner has knowledge of the insolvency or unsafe condition of any licensee and willfully fails to report that fact to the commissioner in writing, he or she is guilty of a felony. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  160. 370.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. )

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    The commissioner may have an office in certain California cities or another appropriate state location, and must provide the department’s office space, furniture, and equipment at the department’s expense.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 370. The commissioner may have an office in the City of Sacramento, the City of Los Angeles, the City of San Diego, the City and County of San Francisco, or any other location in the state that he or she considers appropriate. The commissioner shall provide at the expense of the department such office space, furniture, and equipment as may be necessary or convenient for the transaction of the business of the department. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  161. 3701.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 7. Policies and Procedures [3701 - 3702] ( Chapter 7 added by Stats. 2023, Ch. 792, Sec. 1. )

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    Applicants and licensees must create, maintain, monitor, and disclose required policies and procedures for digital financial asset business activity, with some security-related disclosure exceptions.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 7. Policies and Procedures [3701 - 3702] ( Chapter 7 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3701. (a) An applicant, before submitting an application, shall create and, during licensure, maintain in a record policies and procedures for all of the following: (1) An information security program and an operational security program. (2) A business continuity program. (3) A disaster recovery program. (4) An antifraud program. (5) A program to prevent money laundering. (6) A program to prevent funding of terrorist activity. (7) (A) A program designed to ensure compliance with this division and other laws of this state or federal laws applicable to the digital financial asset business activity contemplated by the licensee with, or on behalf of, residents and to assist the licensee in achieving the purposes of other state laws and federal laws if violation of those laws has a remedy under this division. (B) The program described by this paragraph shall specify detailed policies and procedures that the licensee undertakes to minimize the probability that the licensee facilitates the exchange of unregistered securities. (b) A policy required by subdivision (a) shall be in a record and designed to be adequate for a licensee’s contemplated digital financial asset business activity with, or on behalf of, residents, considering the circumstances of all participants and the safe operation of the activity. Any policy and implementing procedure shall be compatible with other policies and the procedures implementing them and not conflict with policies or procedures applicable to the licensee under other state law. A policy and implementing procedure may be one in existence in the licensee’s digital financial asset business activity with, or on behalf of, residents. (c) A licensee’s policy for detecting fraud shall include all of the following: (1) Identification and assessment of the material risks of its digital financial asset business activity related to fraud, which shall include any form of market manipulation and insider trading by the licensee, its employees, or its customers. (2) Protection against any material risk related to fraud identified by the department or the licensee. (3) Periodic evaluation and revision of the antifraud procedure. (d) A licensee’s policy for preventing money laundering and financing of terrorist activity shall include all of the following: (1) Identification and assessment of the material risks of its digital financial asset business activity related to money laundering and financing of terrorist activity. (2) Procedures, in accordance with federal law or guidance published by federal agencies responsible for enforcing federal law, pertaining to money laundering and financing of terrorist activity. (3) Filing reports under the Bank Secrecy Act (31 U.S.C. Sec. 5311 et seq.) or Chapter X of Title 31 of the Code of Federal Regulations and other federal or state law pertaining to the prevention or detection of money laundering or financing of terrorist activity. (e) A licensee’s information security and operational security policy shall include reasonable and appropriate administrative, physical, and technical safeguards to protect the confidentiality, integrity, and availability of any nonpublic personal information or digital financial asset it receives, maintains, or transmits. (f) A licensee shall file with the department a copy of a report it makes to a federal authority. (g) A licensee’s protection policy under subdivision (e) for residents shall include all of the following: (1) Any action or system of records required to comply with this division and other state law applicable to the licensee with respect to digital financial asset business activity with, or on behalf of, a resident. (2) A procedure for resolving disputes between the licensee and a resident. (3) A procedure for a resident to report an unauthorized, mistaken, or accidental digital financial asset business activity transaction. (4) A procedure for a resident to file a complaint with the licensee and for the resolution of the complaint in a fair and timely manner with notice to the resident as soon as reasonably practical of the resolution and the reasons for the resolution. (h) After the policies and procedures required under this section are created by the licensee, the licensee shall engage a responsible individual with adequate authority and experience to monitor each policy and procedure, publicize it as appropriate, recommend changes as desirable, and enforce it. (i) A licensee may request advice from the department as to compliance with this section and, with the department’s approval, outsource functions, other than compliance, required under this section, and may request a determination from the department that a policy or procedure is not subject to the disclosure requirement described in subdivision (k) due to potential security risks. (j) Failure of a particular policy or procedure adopted under this section to meet its goals in a particular instance is not a ground for liability of the licensee if the policy or procedure was created, implemented, and monitored properly. Repeated failures of a policy or procedure are evidence that the policy or procedure was not created or implemented properly. (k) (1) Except as provided in paragraph (2), policies and procedures adopted under this section shall be disclosed separately from other disclosures made available to a resident, in a clear and conspicuous manner and in the medium through which the resident contacted the licensee. (2) This subdivision does not apply to either of the following: (A) Programs with information that is sensitive to potential security risks, including those programs described in paragraphs (1) to (6), inclusive, of subdivision (a). (B) Any policy or procedure the department previously determined is not subject to this subdivision due to potential security risks. (Amended by Stats. 2026, Ch. 52, Sec. 10. (SB 97) Effective June 30, 2026.)
  162. 3702.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 7. Policies and Procedures [3701 - 3702] ( Chapter 7 added by Stats. 2023, Ch. 792, Sec. 1. )

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    Applicants must set up and keep written compliance policies before applying, and licensees must assign a qualified person to monitor and enforce those policies.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 7. Policies and Procedures [3701 - 3702] ( Chapter 7 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3702. (a) An applicant, before submitting its application, shall establish and maintain in a record a policy or procedure designed to ensure compliance with this division, and law of this state other than this division, if the other law is relevant to the digital financial asset business activity contemplated by the licensee or the scope of this division or this division could assist in the purpose of the other law because violation of the other law has a remedy under this division. (b) A policy or procedure under subdivision (a) shall be compatible, and not conflict, with requirements applicable to a licensee under other state law or under federal law and may be a policy or procedure in existence for the licensee’s digital financial asset business activity with, or on behalf of, a resident. (c) After the policies and procedures required under this section are created by the licensee, the licensee shall engage a responsible individual with adequate authority and experience to monitor any policy or procedure, publicize it as appropriate, recommend changes as desirable, and enforce it. (d) A licensee may request advice from the department regarding compliance with this section and, with the department’s approval, outsource functions, other than compliance, required under this section. (e) Failure of a particular policy or procedure adopted under this section to meet its goals in a particular instance is not a ground for liability of the licensee if the policy or procedure was created, implemented, and monitored properly. Repeated failures of a policy or procedure are evidence that the policy or procedure was not created or implemented properly. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  163. 372.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    The department may spend money, as allowed by law, on necessary travel expenses for its officers and employees when they are traveling on duty, within or outside the state.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 372. The department may expend moneys in accordance with law for the necessary travel expenses of officers and employees of the department while traveling in the line of their duties either within or without the state. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  164. 373.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    The commissioner must adopt and keep an official seal.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 373. The commissioner shall adopt and keep an official seal. Papers executed by the commissioner in his or her official capacity pursuant to law and bearing the seal, or copies thereof certified by him or her, shall be received in evidence in like manner as the original and may be recorded in the same manner and with the same effect as a deed regularly acknowledged. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  165. 374.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. )

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    The commissioner may or must charge set fees for approving and sealing instruments, certifying copies, and copying pages when those services are requested or proper.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 374. (a) Whenever it is necessary for the commissioner to approve any instrument and to affix his or her official seal thereto, the commissioner shall charge a fee of twenty-five dollars ($25) therefor. (b) Whenever it is proper for the department to furnish a copy of any paper that has been filed therein and to certify to the paper, the commissioner may charge twenty-five cents ($0.25) for each page copied. (c) Whenever the commissioner is required or requested to certify copies of documents, the commissioner may charge a fee of twenty-five dollars ($25) for certifying the copied documents and for affixing his or her official seal. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  166. 375.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    Reports made by the commissioner, including verified examination reports, count as prima facie evidence of the facts they state.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 375. Official reports made by the commissioner and verified reports of an examination made by the commissioner, exclusively or in conjunction with or with assistance from any agency of the United States, of a state of the United States, or of a foreign nation are prima facie evidence of the facts stated in the reports for all purposes. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  167. 376.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. )

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    The commissioner must issue and distribute a bulletin at least once each month, covering the listed regulatory actions and any other information the commissioner considers appropriate.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 376. At least once each month, the commissioner shall issue and disseminate as the commissioner deems appropriate a bulletin containing the following information: (a) Information regarding any of the following actions taken since issuance of the previous bulletin: (1) The filing, approval, or denial under Chapter 1 (commencing with Section 1000) of Division 1.1 of an application for authority to organize a California state bank, or the issuance under Chapter 3 (commencing with Section 1040) of Division 1.1 of a certificate of authority to a California state bank. (2) The filing, approval, or denial under Article 1 (commencing with Section 5400) of Chapter 2 of Division 2 of an application for the issuance of an organizing permit for the organization of a California savings association, or for the issuance under Article 2 (commencing with Section 5500) of Chapter 2 of Division 2 of a certificate of authority to a California savings association. (3) The filing, approval, or denial under Article 2 (commencing with Section 14150) of Chapter 2 of Division 5 of an application for a certificate to act as a credit union, or the issuance of a certificate to engage in the business of a credit union. (4) The filing, approval, or denial under Division 1.2 (commencing with Section 2000), Division 7 (commencing with Section 18000), or Division 15 (commencing with Section 31000) of an application for a license to engage in business, or the issuance under any of those laws of a license to engage in business. (5) The filing, approval, or denial under Chapter 20 (commencing with Section 1750) of Division 1.1 of an application by a foreign (other nation) bank to establish its first office of any particular class (as determined under Section 1753) in this state, or the issuance under that chapter of a license in connection with the establishment of such an office. (6) The filing, approval, or denial under Division 1.6 (commencing with Section 4800) of an application for approval of a sale, merger, or conversion. (7) The filing, approval, or denial under Article 6 (commencing with Section 5700) of Chapter 2 of Division 2 of an application for approval of a conversion of a federal savings association into a state savings association, or the filing of a federal charter of a state savings association that has converted to a federal savings association. (8) The filing, approval, or denial under Article 7 (commencing with Section 5750) of Chapter 2 of Division 2 of an application for approval of a reorganization, merger, consolidation, or transfer of assets of a state savings association. (9) The filing, approval, or denial under Chapter 9 (commencing with Section 15200) of Division 5 of an application for approval of a merger, dissolution, or conversion of a credit union. (10) The taking of possession of the property and business of a California state bank, savings association, credit union, or person licensed by the commissioner under any of the laws cited in paragraph (4). (b) Other information as the commissioner deems appropriate. (Amended by Stats. 2013, Ch. 334, Sec. 21. (SB 537) Effective January 1, 2014.)
  168. 377.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. )

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    If the Financial Institutions Law requires securities to be deposited with the Treasurer, they must be deposited only after the commissioner approves them and issues a written order. The Treasurer may also, with the owner’s consent, place the securities with a qualified trust company or bank.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 377. Notwithstanding any other provision of this code, whenever any provision of the Financial Institutions Law requires the pledge of securities to be deposited with the Treasurer, to ensure the performance of any act or duty, the securities after first being approved by the commissioner and upon the written order of the commissioner, shall be deposited with the Treasurer. The Treasurer, with the consent of the owner of the securities deposited or to be deposited with the Treasurer, may place the securities in the custody of a qualified trust company or bank in the same manner and under the same conditions provided in Article 3 (commencing with Section 16550) of Chapter 4 of Part 2 of Division 4 of Title 2 of the Government Code. (Amended by Stats. 2013, Ch. 334, Sec. 22. (SB 537) Effective January 1, 2014.)
  169. 378.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. )

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    If the commissioner learns of a criminal-penalty violation of state law, the commissioner must promptly advise the Attorney General.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 378. Whenever the commissioner is notified of or discovers a violation of the state law punishable by criminal penalties, he or she shall promptly advise the Attorney General. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  170. 379.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    The commissioner may share fingerprints with law enforcement for specified people, but only for the section’s limited criminal-record purpose and only with the affected person’s written consent.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 379. (a) For the purposes of this section the following definitions shall apply: (1) “Control” has the meaning set forth in subdivision (b) of Section 1250. “Control” also means the ownership of a subject person by means of sole proprietorship, partnership, or by any other similar means. (2) “Controlling person” means a person who, directly or indirectly, controls a subject person. (3) “Subject person” means any licensee. (b) Notwithstanding any other provision of law, and subject to subdivision (c), the commissioner may deliver, or cause to be delivered, to local, state, or federal law enforcement agencies fingerprints taken of any of the following: (1) An applicant for employment with the department. (2) A person licensed, or proposed to be licensed, as a subject person. (3) A director, officer, or employee of an existing or proposed subject person. (4) An existing or proposed controlling person of a subject person. (5) A director, officer, or employee of an existing or proposed controlling person of a subject person. (6) A director, officer, or employee of an existing or proposed affiliate of a subject person. (c) The authorization in subdivision (b) may only be used by the department for the purpose of obtaining information regarding an individual as to the existence and nature of the criminal record, if any, of that individual relating to convictions, and to any arrest for which the individual is released on bail or on his or her own recognizance pending trial, for the commission or attempted commission of a crime involving robbery, burglary, theft, embezzlement, fraud, forgery, bookmaking, receiving stolen property, counterfeiting, or involving checks or credit cards or using computers. (d) No request shall be submitted pursuant to this section without the written consent of the person affected. (e) Any criminal history information obtained pursuant to this section shall be confidential and no recipient shall disclose its contents other than for the purpose for which it was acquired. (Amended by Stats. 2013, Ch. 334, Sec. 23. (SB 537) Effective January 1, 2014.)
  171. 380.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    The commissioner must tell appropriate state and federal regulatory officials about certain enforcement actions and about troubled or risky conduct by covered financial institutions when the source conditions are met.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 380. (a) The commissioner shall inform appropriate state and federal officials charged with the regulation of financial institutions or securities transactions of any enforcement actions, including, but not limited to, civil or criminal actions, cease and desist orders, license or authorization suspensions or revocations, or an open investigation. (b) The commissioner shall inform appropriate state and federal officials charged with the regulation of financial institutions or securities transactions if it appears that any bank, bank holding company, savings association, savings and loan holding company, credit union, industrial loan company, industrial loan holding company, or other licensee of the department is conducting its business in a fraudulent, unsafe, unsound, or injurious manner, or has suffered or will suffer substantial financial loss or damage, and it appears to the commissioner that the information is relevant to the regulatory activities of the other agency. (Amended by Stats. 2014, Ch. 401, Sec. 25. (AB 2763) Effective January 1, 2015.)
  172. 3801.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 8. Miscellaneous Provisions [3801- 3801.] ( Chapter 8 added by Stats. 2023, Ch. 792, Sec. 1. )

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    This section says the division is severable: if one provision or its application is invalid, the rest can still remain effective if they can stand without it.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 8. Miscellaneous Provisions [3801- 3801.] ( Chapter 8 added by Stats. 2023, Ch. 792, Sec. 1. ) ## 3801. The provisions of this division are severable. If any provision of this division or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
  173. 381.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    Chapter 5 of the Government Code does not apply to hearings conducted by the department.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 381. Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to hearings conducted by the department. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  174. 382.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. )

    Verify source ↗

    The department must collect fingerprints from covered workers and send them to the Department of Justice for criminal record checks.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 4. Administration of the Department [370 - 382] ( Article 4 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 382. (a) The department shall require fingerprint images from any department employee, prospective employee or applicant seeking employment within the department, contractor, subcontractor, or volunteer who may have access to criminal offender record information. (b) The fingerprint images described in subdivision (a) shall be furnished to the Department of Justice for the purpose of obtaining state- and national-level criminal record information, and to determine the existence and nature of any of the following: (1) A record of state or federal convictions and the existence and nature of state or federal arrests for which the person is free on bail or on their own recognizance pending trial or appeal. (2) Being convicted of, or pleading nolo contendere to, a crime, or having committed an act involving dishonesty, fraud, or deceit, if the crime or act is substantially related to the qualifications, functions, or duties of a person in accordance with this provision. (3) Any conviction or arrest for which the person is free on bail or on their own recognizance pending trial or appeal that has a reasonable nexus to the information or data that the person will be given access. (c) When the Department of Justice receives a request for national-level criminal offender record information, it shall forward the request to the Federal Bureau of Investigation. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response as provided under subdivision (k) or (o) of Section 11105 of the Penal Code to the department. (d) The department shall request subsequent arrest notifications from the Department of Justice as provided under Section 11105.2 of the Penal Code. (e) The Department of Justice may assess a fee sufficient to cover the processing costs required under this section, as authorized pursuant to subdivision (e) of Section 11105 of the Penal Code. (f) For purposes of this section, “criminal offender record information” means the same as defined in Section 13102 of the Penal Code. (Amended by Stats. 2024, Ch. 997, Sec. 6. (AB 179) Effective September 30, 2024.)
  175. 3901.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 9. Digital Financial Asset Transaction Kiosks [3901 - 3907] ( Chapter 9 added by Stats. 2023, Ch. 871, Sec. 1. )

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    This section defines key terms used in the division, including charges, digital financial asset transaction kiosk, cash, licensed digital financial asset exchange, and operator.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 9. Digital Financial Asset Transaction Kiosks [3901 - 3907] ( Chapter 9 added by Stats. 2023, Ch. 871, Sec. 1. ) ## 3901. For purposes of this division: (a) “Charges” means either of the following: (1) Fees or expenses paid by the customer. (2) The difference between the current market price of the digital financial asset on a licensed digital financial asset exchange and the price of the digital financial asset charged to the customer. (b) (1) “Digital financial asset transaction kiosk” means an electronic information processing device that is capable of accepting or dispensing cash in exchange for a digital financial asset. (2) As used in this subdivision, “cash” means physical United States currency, both coins and paper currency. (c) “Licensed digital financial asset exchange” means a digital financial asset exchange that is not an operator and has either of the following: (1) A license to conduct virtual currency business activity in this state or the State of New York pursuant to Part 200 of Title 23 of the New York Codes, Rules and Regulations. (2) A license pursuant to this division. (d) “Operator” means a person who owns, operates, or manages a digital financial asset transaction kiosk located in this state. (Added by Stats. 2023, Ch. 871, Sec. 1. (SB 401) Effective January 1, 2024.)
  176. 3902.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 9. Digital Financial Asset Transaction Kiosks [3901 - 3907] ( Chapter 9 added by Stats. 2023, Ch. 871, Sec. 1. )

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    An operator may not accept or dispense more than $1,000 in a day through a digital financial asset transaction kiosk.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 9. Digital Financial Asset Transaction Kiosks [3901 - 3907] ( Chapter 9 added by Stats. 2023, Ch. 871, Sec. 1. ) ## 3902. An operator shall not accept or dispense more than one thousand dollars ($1,000) in a day from or to a customer via a digital financial asset transaction kiosk. (Added by Stats. 2023, Ch. 871, Sec. 1. (SB 401) Effective January 1, 2024.)
  177. 3904.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 9. Digital Financial Asset Transaction Kiosks [3901 - 3907] ( Chapter 9 added by Stats. 2023, Ch. 871, Sec. 1. )

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    An operator may not charge a customer more than the greater of $5 or 15% of the U.S. dollar value of the digital assets in a single digital financial asset transaction, starting January 1, 2025.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 9. Digital Financial Asset Transaction Kiosks [3901 - 3907] ( Chapter 9 added by Stats. 2023, Ch. 871, Sec. 1. ) ## 3904. On or after January 1, 2025, an operator shall not collect charges, whether direct or indirect, from a customer related to a single digital financial asset transaction that exceed the greater of the following: (a) Five dollars ($5). (b) Fifteen percent of the United States dollar equivalent of digital financial assets involved in the transaction according to the publicly quoted market price of the digital asset on a licensed digital financial asset exchange at the time the customer initiates the transaction. (Added by Stats. 2023, Ch. 871, Sec. 1. (SB 401) Effective January 1, 2024.)
  178. 3905.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 9. Digital Financial Asset Transaction Kiosks [3901 - 3907] ( Chapter 9 added by Stats. 2023, Ch. 871, Sec. 1. )

    Verify source ↗

    An operator of a digital financial asset transaction kiosk must give customers a written disclosure before a transaction and a receipt for each kiosk transaction.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 9. Digital Financial Asset Transaction Kiosks [3901 - 3907] ( Chapter 9 added by Stats. 2023, Ch. 871, Sec. 1. ) ## 3905. (a) (1) On or after January 1, 2025, before a digital financial asset transaction, an operator shall provide a written disclosure in English and in the same language principally used by the operator to advertise, solicit, or negotiate with a customer containing the terms and conditions of the transaction, which shall include, at a minimum, all of the following: (A) The amount of a digital financial asset involved in the transaction. (B) The amount, in United States dollars, of any fees, expenses, and charges collected by the operator. (C) The United States dollar price of the digital financial asset that is charged to the customer and the United States dollar price of the digital financial asset as listed by a licensed digital financial asset exchange. (D) If an operator does not provide a method to reverse or refund a transaction, a warning that all transactions are final and cannot be undone. (2) The disclosure required by this subdivision shall be clear and conspicuous and provided separately from any other disclosure provided by the operator. (b) An operator shall provide a customer with a receipt for any transaction made at the operator’s digital financial asset transaction kiosk that includes all of the following information: (1) The name of the customer. (2) The date and time of the transaction. (3) The name of the operator. (4) The amount of a digital financial asset involved in the transaction. (5) The amount of United States dollars involved in the transaction. (6) The amount, in United States dollars, of any fees collected by the operator in relation to the transaction. (7) The amount, in United States dollars, of any spread between the United States dollar price of the digital financial asset that is charged to the customer and the United States dollar price of the digital financial asset as listed by a licensed digital financial asset exchange. (8) The name of the licensed digital financial asset exchange the operator used to calculate the spread described in paragraph (7). (Added by Stats. 2023, Ch. 871, Sec. 1. (SB 401) Effective January 1, 2024.)
  179. 3906.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 9. Digital Financial Asset Transaction Kiosks [3901 - 3907] ( Chapter 9 added by Stats. 2023, Ch. 871, Sec. 1. )

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    Operators must give the department a list of kiosk locations and update it within 30 days of changes; the department must publish the list online.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 9. Digital Financial Asset Transaction Kiosks [3901 - 3907] ( Chapter 9 added by Stats. 2023, Ch. 871, Sec. 1. ) ## 3906. (a) An operator shall provide to the department a list of all locations of digital financial asset transaction kiosks that the operator owns, operates, or manages in this state. (b) An operator shall provide the department with updates to the list required by this section within 30 days of any changes. (c) The department shall make the list required by this section for each operator available to the public on the department’s internet website. (Added by Stats. 2023, Ch. 871, Sec. 1. (SB 401) Effective January 1, 2024.)
  180. 3907.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 9. Digital Financial Asset Transaction Kiosks [3901 - 3907] ( Chapter 9 added by Stats. 2023, Ch. 871, Sec. 1. )

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    An operator must follow Section 3201 when engaging in digital financial asset business activity, and must meet additional licensing, fee-limit, and chapter-compliance requirements when allowing another person to use an operator-owned, operated, or managed digital financial asset transaction kiosk.

    ## Financial Code - FIN ## DIVISION 1.25. Digital Financial Assets Businesses [3101 - 3907] ( Division 1.25 added by Stats. 2023, Ch. 792, Sec. 1. ) ## CHAPTER 9. Digital Financial Asset Transaction Kiosks [3901 - 3907] ( Chapter 9 added by Stats. 2023, Ch. 871, Sec. 1. ) ## 3907. (a) On or after July 1, 2026, an operator shall comply with Section 3201 to the extent that the operator engages in digital financial asset business activity. (b) If an operator does not engage in digital financial asset business activity but allows or facilitates another person to engage in digital financial asset business activity via a digital financial asset transaction kiosk that is owned, operated, or managed by the operator, the operator shall do all of the following: (1) On or after July 1, 2026, ensure that the person engaging in digital financial asset business activity via the digital financial asset transaction kiosk has a license pursuant to this division. (2) Ensure that any charges collected from a customer, whether collected by the operator, a person engaging in digital financial asset business activity via the digital financial asset transaction kiosk, or both, comply with the limits provided by Section 3904. (3) Comply with all other provisions of this chapter. (Amended by Stats. 2024, Ch. 945, Sec. 6. (AB 1934) Effective January 1, 2025.)
  181. 4.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. )

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    The general provisions in this section govern how the code is construed, unless the context requires otherwise.

    ## Financial Code - FIN ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1951, Ch. 364. ) ## 4. Unless the context otherwise requires the general provisions hereinafter set forth govern the construction of this code. (Enacted by Stats. 1951, Ch. 364.)
  182. 400.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 5. Financial Institutions Fund [400- 400.] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 2. )

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    A Financial Institutions Fund is established in the State Treasury, and money collected or received by the commissioner under this code must be deposited with the Treasurer to the credit of that fund, except as otherwise provided in Division 5.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 5. Financial Institutions Fund [400- 400.] ( Article 5 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 400. As of the operative date of this section, there is established a Financial Institutions Fund in the State Treasury. Except as otherwise provided in Division 5 (commencing with Section 14000), all money collected or received by the commissioner under this code shall be deposited with the Treasurer to the credit of the Financial Institutions Fund. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)
  183. 4000.

    ## Financial Code - FIN ## DIVISION 1.3. THE SETTING OF FEES IN CONSUMER CREDIT AGREEMENTS AND RELATED CONSUMER PROTECTIONS [4000 - 4002] ( Heading of Division 1.3 renumbered from Division 1.1 by Stats. 2011, Ch. 243, Sec. 5. )

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    This section defines key terms used in the division on fees in consumer credit agreements and related consumer protections.

    ## Financial Code - FIN ## DIVISION 1.3. THE SETTING OF FEES IN CONSUMER CREDIT AGREEMENTS AND RELATED CONSUMER PROTECTIONS [4000 - 4002] ( Heading of Division 1.3 renumbered from Division 1.1 by Stats. 2011, Ch. 243, Sec. 5. ) ## 4000. (a) For purposes of this division, the following terms have the following meanings: (1) “Charge cardholder” and “charge card issuer” have the meaning defined in Section 1748.21 of the Civil Code and “charge card” means those cards defined in subdivision (a) of Section 1748.21 of the Civil Code and upon which the full balance is due and payable in each billing cycle. (2) “Consumer” means a natural person. (3) “Consumer credit agreement” means any written instrument providing for an extension of unsecured open-end credit for personal, family, or household purposes, that governs the relationship between a supervised financial organization and one or more consumers. (4) “Charge card agreement” means the written instrument that creates and governs the relationship between a charge card issuer and one or more consumers. (5) “Minimum payment” means that amount of money recited on a billing statement for an open-end credit account that must be received by the supervised financial institution by a specified due date. (6) “Open-end credit” has the meaning set forth in Section 1026.2(a)(20) of Regulation Z. (7) “Regulation Z” means any rule, regulation, or interpretation promulgated by the Consumer Financial Protection Bureau under the federal Truth in Lending Act, as amended (15 U.S.C. Sec. 1601 et seq.), and any interpretation or approval issued by an official or employee of the Federal Reserve System duly authorized by the director of the bureau under the Truth in Lending Act, as amended, to issue interpretations or approvals. (8) “Security interest” has the meaning set forth in Section 1026.2(a)(25) of Regulation Z. (9) “Supervised financial organization” means a state or federally regulated bank, savings association, savings bank, or credit union, or a subsidiary of any of the above. (10) “Unsecured” means that the supervised financial organization is not granted a security interest in personal or real property under the consumer credit agreement. (b) Notwithstanding any other provisions of law, the definitions contained in this section shall control transactions governed by this division. (Amended by Stats. 2014, Ch. 64, Sec. 11. (AB 2742) Effective January 1, 2015.)
  184. 4001.

    ## Financial Code - FIN ## DIVISION 1.3. THE SETTING OF FEES IN CONSUMER CREDIT AGREEMENTS AND RELATED CONSUMER PROTECTIONS [4000 - 4002] ( Heading of Division 1.3 renumbered from Division 1.1 by Stats. 2011, Ch. 243, Sec. 5. )

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    This section limits late payment and overlimit fees in consumer credit and charge card agreements, and requires certain disclosures and payment-processing rules.

    ## Financial Code - FIN ## DIVISION 1.3. THE SETTING OF FEES IN CONSUMER CREDIT AGREEMENTS AND RELATED CONSUMER PROTECTIONS [4000 - 4002] ( Heading of Division 1.3 renumbered from Division 1.1 by Stats. 2011, Ch. 243, Sec. 5. ) ## 4001. (a) A supervised financial organization or charge card issuer may not charge more than any of the following amounts: (1) If set forth in the consumer credit or charge card agreement, one of the following fees: (A) Seven dollars ($7) with respect to any monthly billing cycle as a late payment charge on the minimum payment due that is not paid within five days after the date the payment is due. (B) Ten dollars ($10) with respect to any monthly billing cycle as a late payment charge on the minimum payment due that is not paid within 10 days after the date the payment is due. (C) Fifteen dollars ($15) with respect to any monthly billing cycle as a late payment charge on the minimum payment due that is not paid within 15 days after the date the payment is due. (2) In lieu of the fee permitted by paragraph (1), if the consumer has already incurred two late payment fees during the preceding 12-month period, the fee charged may be no more than ten dollars ($10) with respect to any monthly billing cycle as a late payment charge on the minimum payment due that is not paid within five days after the date the payment is due. (3) Ten dollars ($10) with respect to any charge that causes the outstanding balance to exceed the credit limit by five hundred dollars ($500) or 120 percent, whichever is less. No overlimit fee may be charged unless the charge causes the outstanding balance to exceed the credit limit by five hundred dollars ($500) or 120 percent, whichever is less. Not more than one overlimit charge may be assessed with respect to any monthly billing cycle. (b) In addition to imposing a fee for any late payment or overlimit as authorized by subdivision (a), a supervised financial organization may assess a finance charge at the rates set forth in the consumer credit agreement on the outstanding balance, which may include any late payment or overlimit fee charged on a prior billing statement. (c) Whenever a consumer fails to make a minimum payment on or before the due date specified in the billing statement, plus the applicable late payment grace period, a late payment fee may be assessed by the supervised financial organization or charge card issuer. A supervised financial organization or charge card issuer may impose no more than one late payment fee with respect to any monthly billing cycle. All payments by the consumer shall be applied by a supervised financial organization to satisfaction of scheduled payments in the order that they become due. A charge card issuer shall apply all payments made by the consumer to satisfaction of unpaid amounts in the order that they become due. (d) A supervised financial organization shall provide a minimum number of days between the monthly billing statement date and the date upon which the minimum payment is due, exclusive of the applicable late payment grace period provided for in paragraph (1) of subdivision (a), and a charge card issuer shall provide a minimum number of days between the monthly billing statement date and the date upon which the applicable late payment grace period provided for in paragraph (1) of subdivision (a) begins to run, of at least: (1) Twenty-three days, on an average basis over a calendar year or other consecutive 12-month period, for any organization or issuer charging the fee authorized by subparagraph (A) of paragraph (1) of subdivision (a). (2) Twenty days, on an average basis over a calendar year or other consecutive 12-month period, for any organization or issuer charging the fee authorized by subparagraph (B) or (C) of paragraph (1) of subdivision (a). (e) (1) The applicable late payment grace period and fee shall be disclosed in the consumer credit agreement. The late payment grace period shall be disclosed in the consumer credit or charge card agreement but need not be disclosed in any monthly or other billing statement. The amount and conditions for imposition of any fee for overlimit activity shall also be disclosed in the consumer credit or charge card agreement. (2) If a consumer credit or charge card agreement contains a provision for a late payment fee or overlimit fee, each monthly or other billing statement shall disclose the amount of the late payment and overlimit fee and the date the minimum payment is due. (Added by Stats. 1994, Ch. 1079, Sec. 1. Effective January 1, 1995.)
  185. 4002.

    ## Financial Code - FIN ## DIVISION 1.3. THE SETTING OF FEES IN CONSUMER CREDIT AGREEMENTS AND RELATED CONSUMER PROTECTIONS [4000 - 4002] ( Heading of Division 1.3 renumbered from Division 1.1 by Stats. 2011, Ch. 243, Sec. 5. )

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    A supervised financial organization must give certain application records, without charge, to a requesting person or a person-specified law enforcement officer, and must do so within 10 business days after the request and required documents are provided.

    ## Financial Code - FIN ## DIVISION 1.3. THE SETTING OF FEES IN CONSUMER CREDIT AGREEMENTS AND RELATED CONSUMER PROTECTIONS [4000 - 4002] ( Heading of Division 1.3 renumbered from Division 1.1 by Stats. 2011, Ch. 243, Sec. 5. ) ## 4002. (a) (1) Upon the request of a person who has obtained a police report pursuant to Section 530.6 of the Penal Code, a supervised financial organization shall provide to the person, or to a law enforcement officer specified by the person, copies of all application forms or application information containing the person’s name, address, or other identifying information pertaining to the application filed with the supervised financial organization by an unauthorized person in violation of Section 530.5 of the Penal Code. (2) Before providing the person with copies pursuant to paragraph (1), the supervised financial organization shall inform the requesting person of the categories of identifying information that the unauthorized person used to complete the application, and shall require the requesting person to provide identifying information in those categories and a copy of the police report. (3) The supervised financial organization shall provide copies of all forms and information required by this section, without charge, within 10 business days of receipt of the person’s request and submission of the required copy of the police report and identifying information. (b) (1) Before a supervised financial organization provides copies to a law enforcement officer pursuant to paragraph (1) of subdivision (a), the supervised financial organization may require the requesting person to provide them with a signed and dated statement by which the person does all of the following: (A) Authorizes disclosure for a stated period. (B) Specifies the name of the agency or department to which the disclosure is authorized. (C) Identifies the type of records that the person authorizes to be disclosed. (2) The supervised financial organization shall include in the statement to be signed by the requesting person a notice that the person has the right at any time to revoke the authorization. (c) As used in this section, “law enforcement officer” means a peace officer as defined by Section 830.1 of the Penal Code. (Added by Stats. 2001, Ch. 493, Sec. 2. Effective January 1, 2002.)
  186. 405.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 6. State Banking Account [405 - 414] ( Article 6 added by Stats. 2011, Ch. 243, Sec. 2. )

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    The commissioner must collect an annual pro rata fund from supervised banks and trust companies to cover department expenses, with a minimum assessment of $5,000 and a capped base assessment rate.

    ## Financial Code - FIN ## DIVISION 1. FINANCIAL INSTITUTIONS [99 - 900] ( Division 1 repealed and added by Stats. 2011, Ch. 243, Sec. 2. ) ## CHAPTER 3. Department of Financial Protection and Innovation [300 - 414] ( Heading of Chapter 3 amended by Stats. 2022, Ch. 452, Sec. 98. ) ## ARTICLE 6. State Banking Account [405 - 414] ( Article 6 added by Stats. 2011, Ch. 243, Sec. 2. ) ## 405. (a) The commissioner shall annually collect pro rata from the banks and trust companies under the supervision of the department a fund in an amount sufficient in the commissioner’s judgment to meet the expenses of the department in administering laws relating to banks or trust companies or to the banking or trust business that are not otherwise provided for and to provide a reasonable reserve for contingencies. (b) The amount of the annual assessment for the fund on any bank or trust company shall not be less than five thousand dollars ($5,000). Above that minimum amount, except as otherwise provided in subdivision (c), the annual assessment shall not exceed the sum of the products of a base assessment rate, or percentage thereof, and segregated portions of its total resources, according to the following table: Segregated Total Resources Percentage of Base (In Millions or Fractions Thereof) Assessment Rate First $2 100.0 Next $18 50.0 Next $80 12.0 Next $100 6.25 Next $800 6.0 Next $1,000 4.0 Next $4,000 3.5 Next $14,000 3.0 Next $20,000 2.5 Excess over $40,000 1.5 (c) (1) For purposes of determining the annual assessment on banks and trust companies that have one or more foreign (other state) branch offices, the resources of foreign (other state) branch offices shall be excluded from total resources, except that the commissioner may order the resources of foreign (other state) branch offices to be included in total resources if and to the extent that it is necessary in the commissioner’s judgment to meet the expenses of the department on account of foreign (other state) branch offices and a reasonable reserve for contingencies. (2) If the commissioner finds that a bank or trust company allocated any resource to a foreign (other state) branch office for the purpose, in whole or in part, of reducing its annual assessment, the commissioner may, for purposes of calculating the annual assessment on the bank or trust company, reallocate the resource to the bank’s or trust company’s head office. (d) The base assessment rate shall be set by the commissioner from time to time at the commissioner’s discretion, not to exceed two dollars and twenty cents ($2.20) per one thousand dollars ($1,000) of total resources. (Amended by Stats. 2013, Ch. 334, Sec. 24. (SB 537) Effective January 1, 2014.)
  187. 4050.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. )

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    This division may be cited as the California Financial Information Privacy Act.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. ) ## 4050. This division shall be known and may be cited as the California Financial Information Privacy Act. (Added by Stats. 2003, Ch. 241, Sec. 1. Effective January 1, 2004. Section operative July 1, 2004, pursuant to Section 4060.)
  188. 40500.

    ## Financial Code - FIN ## DIVISION 19. RELEASE OF DEMAND DEPOSIT FUNDS [40500 - 40501] ( Division 19 added by Stats. 1985, Ch. 1057, Sec. 1. )

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    A financial institution must not transfer funds from a depositor’s account unless the depositor has authorized it.

    ## Financial Code - FIN ## DIVISION 19. RELEASE OF DEMAND DEPOSIT FUNDS [40500 - 40501] ( Division 19 added by Stats. 1985, Ch. 1057, Sec. 1. ) ## 40500. It is the intent of the Legislature that a financial institution shall not transfer funds from a depositor’s account unless authorization has been granted by that depositor. This division is declaratory of existing case law and is intended to codify the law for the convenience of the public, regulatory authorities, and financial institutions. (Added by Stats. 1985, Ch. 1057, Sec. 1.)
  189. 40501.

    ## Financial Code - FIN ## DIVISION 19. RELEASE OF DEMAND DEPOSIT FUNDS [40500 - 40501] ( Division 19 added by Stats. 1985, Ch. 1057, Sec. 1. )

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    Banks and similar financial institutions may not release demand deposit funds to anyone other than the account holder, except with the depositor’s authorization, as allowed by law, or for certain setoffs.

    ## Financial Code - FIN ## DIVISION 19. RELEASE OF DEMAND DEPOSIT FUNDS [40500 - 40501] ( Division 19 added by Stats. 1985, Ch. 1057, Sec. 1. ) ## 40501. In accordance with the implied contract existing between a financial institution and its depositor, no bank, savings association, credit union, or other financial institution operating in this state which maintains and services demand deposit accounts, including NOW accounts, may release any funds from those accounts to any person or entity who is not the account holder, unless the funds are released pursuant to the depositor’s authorization or in accordance with the law. This section does not apply to any setoff for a debt claimed to be owed to a bank, savings association, credit union, or other financial institution by a customer. (Added by Stats. 1985, Ch. 1057, Sec. 1.)
  190. 4051.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. )

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    This section states the Legislature’s intent that financial institutions give consumers notice and meaningful choice about sharing or selling consumers’ nonpublic personal information.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. ) ## 4051. (a) The Legislature intends for financial institutions to provide their consumers notice and meaningful choice about how consumers’ nonpublic personal information is shared or sold by their financial institutions. (b) It is the intent of the Legislature in enacting the California Financial Information Privacy Act to afford persons greater privacy protections than those provided in Public Law 106-102, the federal Gramm-Leach-Bliley Act, and that this division be interpreted to be consistent with that purpose. (Added by Stats. 2003, Ch. 241, Sec. 1. Effective January 1, 2004. Section operative July 1, 2004, pursuant to Section 4060.)
  191. 4051.5.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. )

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    The Legislature states that California consumers should have control over disclosure of their nonpublic personal information, including consent before certain sharing and an opt-out for sharing among affiliated companies.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. ) ## 4051.5. (a) The Legislature finds and declares all of the following: (1) The California Constitution protects the privacy of California citizens from unwarranted intrusions into their private and personal lives. (2) Federal banking legislation, known as the Gramm-Leach-Bliley Act, which breaks down restrictions on affiliation among different types of financial institutions, increases the likelihood that the personal financial information of California residents will be widely shared among, between, and within companies. (3) The policies intended to protect financial privacy imposed by the Gramm-Leach-Bliley Act are inadequate to meet the privacy concerns of California residents. (4) Because of the limitations of these federal policies, the Gramm-Leach-Bliley Act explicitly permits states to enact privacy protections that are stronger than those provided in federal law. (b) It is the intent of the Legislature in enacting this division: (1) To ensure that Californians have the ability to control the disclosure of what the Gramm-Leach-Bliley Act calls nonpublic personal information. (2) To achieve that control for California consumers by requiring that financial institutions that want to share information with third parties and unrelated companies seek and acquire the affirmative consent of California consumers prior to sharing the information. (3) To further achieve that control for California consumers by providing consumers with the ability to prevent the sharing of financial information among affiliated companies through a simple opt-out mechanism via a clear and understandable notice provided to the consumer. (4) To provide, to the maximum extent possible, consistent with the purposes cited above, a level playing field among types and sizes of businesses consistent with the objective of providing consumers control over their nonpublic personal information, including providing that those financial institutions with limited affiliate relationships may enter into agreements with other financial institutions as provided in this division, and providing that the different business models of differing financial institutions are treated in ways that provide consistent consumer control over information-sharing practices. (5) To adopt to the maximum extent feasible, consistent with the purposes cited above, definitions consistent with federal law, so that in particular there is no change in the ability of businesses to carry out normal processes of commerce for transactions voluntarily entered into by consumers. (Added by Stats. 2003, Ch. 241, Sec. 1. Effective January 1, 2004. Section operative July 1, 2004, pursuant to Section 4060.)
  192. 4052.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. )

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    This section defines key terms used in the California Financial Information Privacy Act, including nonpublic personal information, personally identifiable financial information, financial institution, affiliate, nonaffiliated third party, and consumer.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. ) ## 4052. For the purposes of this division: (a) “Nonpublic personal information” means personally identifiable financial information (1) provided by a consumer to a financial institution, (2) resulting from any transaction with the consumer or any service performed for the consumer, or (3) otherwise obtained by the financial institution. Nonpublic personal information does not include publicly available information that the financial institution has a reasonable basis to believe is lawfully made available to the general public from (1) federal, state, or local government records, (2) widely distributed media, or (3) disclosures to the general public that are required to be made by federal, state, or local law. Nonpublic personal information shall include any list, description, or other grouping of consumers, and publicly available information pertaining to them, that is derived using any nonpublic personal information other than publicly available information, but shall not include any list, description, or other grouping of consumers, and publicly available information pertaining to them, that is derived without using any nonpublic personal information. (b) “Personally identifiable financial information” means information (1) that a consumer provides to a financial institution to obtain a product or service from the financial institution, (2) about a consumer resulting from any transaction involving a product or service between the financial institution and a consumer, or (3) that the financial institution otherwise obtains about a consumer in connection with providing a product or service to that consumer. Any personally identifiable information is financial if it was obtained by a financial institution in connection with providing a financial product or service to a consumer. Personally identifiable financial information includes all of the following: (1) Information a consumer provides to a financial institution on an application to obtain a loan, credit card, or other financial product or service. (2) Account balance information, payment history, overdraft history, and credit or debit card purchase information. (3) The fact that an individual is or has been a consumer of a financial institution or has obtained a financial product or service from a financial institution. (4) Any information about a financial institution’s consumer if it is disclosed in a manner that indicates that the individual is or has been the financial institution’s consumer. (5) Any information that a consumer provides to a financial institution or that a financial institution or its agent otherwise obtains in connection with collecting on a loan or servicing a loan. (6) Any personally identifiable financial information collected through an Internet cookie or an information collecting device from a Web server. (7) Information from a consumer report. (c) “Financial institution” means any institution the business of which is engaging in financial activities as described in Section 1843(k) of Title 12 of the United States Code and doing business in this state. An institution that is not significantly engaged in financial activities is not a financial institution. The term “financial institution” does not include any institution that is primarily engaged in providing hardware, software, or interactive services, provided that it does not act as a debt collector, as defined in 15 U.S.C. Sec. 1692a, or engage in activities for which the institution is required to acquire a charter, license, or registration from a state or federal governmental banking, insurance, or securities agency. The term “financial institution” does not include the Federal Agricultural Mortgage Corporation or any entity chartered and operating under the Farm Credit Act of 1971 (12 U.S.C. Sec. 2001 et seq.), provided that the entity does not sell or transfer nonpublic personal information to an affiliate or a nonaffiliated third party. The term “financial institution” does not include institutions chartered by Congress specifically to engage in a proposed or actual securitization, secondary market sale, including sales of servicing rights, or similar transactions related to a transaction of the consumer, as long as those institutions do not sell or transfer nonpublic personal information to a nonaffiliated third party. The term “financial institution” does not include any provider of professional services, or any wholly owned affiliate thereof, that is prohibited by rules of professional ethics and applicable law from voluntarily disclosing confidential client information without the consent of the client. The term “financial institution” does not include any person licensed as a dealer under Article 1 (commencing with Section 11700) of Chapter 4 of Division 5 of the Vehicle Code that enters into contracts for the installment sale or lease of motor vehicles pursuant to the requirements of Chapter 2B (commencing with Section 2981) or 2D (commencing with Section 2985.7) of Title 14 of Part 4 of Division 3 of the Civil Code and assigns substantially all of those contracts to financial institutions within 30 days. (d) “Affiliate” means any entity that controls, is controlled by, or is under common control with, another entity, but does not include a joint employee of the entity and the affiliate. A franchisor, including any affiliate thereof, shall be deemed an affiliate of the franchisee for purposes of this division. (e) “Nonaffiliated third party” means any entity that is not an affiliate of, or related by common ownership or affiliated by corporate control with, the financial institution, but does not include a joint employee of that institution and a third party. (f) “Consumer” means an individual resident of this state, or that individual’s legal representative, who obtains or has obtained from a financial institution a financial product or service to be used primarily for personal, family, or household purposes. For purposes of this division, an individual resident of this state is someone whose last known mailing address, other than an Armed Forces Post Office or Fleet Post Office address, as shown in the records of the financial institution, is located in this state. For purposes of this division, an individual is not a consumer of a financial institution solely because he or she is (1) a participant or beneficiary of an employee benefit plan that a financial institution administers or sponsors, or for which the financial institution acts as a trustee, insurer, or fiduciary, (2) covered under a group or blanket insurance policy or group annuity contract issued by the financial institution, (3) a beneficiary in a workers’ compensation plan, (4) a beneficiary of a trust for which the financial institution is a trustee, or (5) a person who has designated the financial institution as trustee for a trust, provided that the financial institution provides all required notices and rights required by this division to the plan sponsor, group or blanket insurance policyholder, or group annuity contractholder. (g) “Control” means (1) ownership or power to vote 25 percent or more of the outstanding shares of any class of voting security of a company, acting through one or more persons, (2) control in any manner over the election of a majority of the directors, or of individuals exercising similar functions, or (3) the power to exercise, directly or indirectly, a controlling influence over the management or policies of a company. However, for purposes of the application of the definition of control as it relates to credit unions, a credit union has a controlling influence over the management or policies of a credit union service organization (CUSO), as that term is defined by state or federal law or regulation, if the CUSO is at least 67 percent owned by credit unions. For purposes of the application of the definition of control to a financial institution subject to regulation by the United States Securities and Exchange Commission, a person who owns beneficially, either directly or through one or more controlled companies, more than 25 percent of the voting securities of a company is presumed to control the company, and a person who does not own more than 25 percent of the voting securities of a company is presumed not to control the company, and a presumption regarding control may be rebutted by evidence, but in the case of an investment company, the presumption shall continue until the United States Securities and Exchange Commission makes a decision to the contrary according to the procedures described in Section 2(a)(9) of the federal Investment Company Act of 1940. (h) “Necessary to effect, administer, or enforce” means the following: (1) The disclosure is required, or is a usual, appropriate, or acceptable method to carry out the transaction or the product or service business of which the transaction is a part, and record or service or maintain the consumer’s account in the ordinary course of providing the financial service or financial product, or to administer or service benefits or claims relating to the transaction or the product or service business of which it is a part, and includes the following: (A) Providing the consumer or the consumer’s agent or broker with a confirmation, statement, or other record of the transaction, or information on the status or value of the financial service or financial product. (B) The accrual or recognition of incentives, discounts, or bonuses associated with the transaction or communications to eligible existing consumers of the financial institution regarding the availability of those incentives, discounts, and bonuses that are provided by the financial institution or another party. (C) In the case of a financial institution that has issued a credit account bearing the name of a company primarily engaged in retail sales or a name proprietary to a company primarily engaged in retail sales, the financial institution providing the retailer with nonpublic personal information as follows: (i) Providing the retailer, or licensees or contractors of the retailer that provide products or services in the name of the retailer and under a contract with the retailer, with the names and addresses of the consumers in whose name the account is held and a record of the purchases made using the credit account from a business establishment, including a Web site or catalog, bearing the brand name of the retailer. (ii) Where the credit account can only be used for transactions with the retailer or affiliates of that retailer that are also primarily engaged in retail sales, providing the retailer, or licensees or contractors of the retailer that provide products or services in the name of the retailer and under a contract with the retailer, with nonpublic personal information concerning the credit account, in connection with the offering or provision of the products or services of the retailer and those licensees or contractors. (2) The disclosure is required or is one of the lawful or appropriate methods to enforce the rights of the financial institution or of other persons engaged in carrying out the financial transaction or providing the product or service. (3) The disclosure is required, or is a usual, appropriate, or acceptable method for insurance underwriting or the placement of insurance products by licensed agents and brokers with authorized insurance companies at the consumer’s request, for reinsurance, stop loss insurance, or excess loss insurance purposes, or for any of the following purposes as they relate to a consumer’s insurance: (A) Account administration. (B) Reporting, investigating, or preventing fraud or material misrepresentation. (C) Processing premium payments. (D) Processing insurance claims. (E) Administering insurance benefits, including utilization review activities. (F) Participating in research projects. (G) As otherwise required or specifically permitted by federal or state law. (4) The disclosure is required, or is a usual, appropriate, or acceptable method, in connection with the following: (A) The authorization, settlement, billing, processing, clearing, transferring, reconciling, or collection of amounts charged, debited, or otherwise paid using a debit, credit or other payment card, check, or account number, or by other payment means. (B) The transfer of receivables, accounts, or interests therein. (C) The audit of debit, credit, or other payment information. (5) The disclosure is required in a transaction covered by the federal Real Estate Settlement Procedures Act (12 U.S.C. Sec. 2601 et seq.) in order to offer settlement services prior to the close of escrow (as those services are defined in 12 U.S.C. Sec. 2602), provided that (A) the nonpublic personal information is disclosed for the sole purpose of offering those settlement services and (B) the nonpublic personal information disclosed is limited to that necessary to enable the financial institution to offer those settlement services in that transaction. (i) “Financial product or service” means any product or service that a financial holding company could offer by engaging in an activity that is financial in nature or incidental to a financial activity under subsection (k) of Section 1843 of Title 12 of the United States Code (the United States Bank Holding Company Act of 1956). Financial service includes a financial institution’s evaluation or brokerage of information that the financial institution collects in connection with a request or an application from a consumer for a financial product or service. (j) “Clear and conspicuous” means that a notice is reasonably understandable and designed to call attention to the nature and significance of the information contained in the notice. (k) “Widely distributed media” means media available to the general public and includes a telephone book, a television or radio program, a newspaper, or a Web site that is available to the general public on an unrestricted basis. (Added by Stats. 2003, Ch. 241, Sec. 1. Effective January 1, 2004. Section operative July 1, 2004, pursuant to Section 4060.)
  193. 4052.5.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. )

    Verify source ↗

    A financial institution generally may not disclose a consumer’s nonpublic personal information to nonaffiliated third parties without the consumer’s explicit prior consent.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. ) ## 4052.5. Except as provided in Sections 4053, 4054.6, and 4056, a financial institution shall not sell, share, transfer, or otherwise disclose nonpublic personal information to or with any nonaffiliated third parties without the explicit prior consent of the consumer to whom the nonpublic personal information relates. (Added by Stats. 2003, Ch. 241, Sec. 1. Effective January 1, 2004. Section operative July 1, 2004, pursuant to Section 4060.)
  194. 4053.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. )

    Verify source ↗

    A financial institution generally may not share a consumer’s nonpublic personal information with nonaffiliated third parties or affiliates unless the section’s consent and notice rules are met.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. ) ## 4053. (a) (1) A financial institution shall not disclose to, or share a consumer’s nonpublic personal information with, any nonaffiliated third party as prohibited by Section 4052.5, unless the financial institution has obtained a consent acknowledgment from the consumer that complies with paragraph (2) that authorizes the financial institution to disclose or share the nonpublic personal information. Nothing in this section shall prohibit or otherwise apply to the disclosure of nonpublic personal information as allowed in Section 4056. A financial institution shall not discriminate against or deny an otherwise qualified consumer a financial product or a financial service because the consumer has not provided consent pursuant to this subdivision and Section 4052.5 to authorize the financial institution to disclose or share nonpublic personal information pertaining to him or her with any nonaffiliated third party. Nothing in this section shall prohibit a financial institution from denying a consumer a financial product or service if the financial institution could not provide the product or service to a consumer without the consent to disclose the consumer’s nonpublic personal information required by this subdivision and Section 4052.5, and the consumer has failed to provide consent. A financial institution shall not be liable for failing to offer products and services to a consumer solely because that consumer has failed to provide consent pursuant to this subdivision and Section 4052.5 and the financial institution could not offer the product or service without the consent to disclose the consumer’s nonpublic personal information required by this subdivision and Section 4052.5, and the consumer has failed to provide consent. Nothing in this section is intended to prohibit a financial institution from offering incentives or discounts to elicit a specific response to the notice. (2) A financial institution shall utilize a form, statement, or writing to obtain consent to disclose nonpublic personal information to nonaffiliated third parties as required by Section 4052.5 and this subdivision. The form, statement, or writing shall meet all of the following criteria: (A) The form, statement, or writing is a separate document, not attached to any other document. (B) The form, statement, or writing is dated and signed by the consumer. (C) The form, statement, or writing clearly and conspicuously discloses that by signing, the consumer is consenting to the disclosure to nonaffiliated third parties of nonpublic personal information pertaining to the consumer. (D) The form, statement, or writing clearly and conspicuously discloses (i) that the consent will remain in effect until revoked or modified by the consumer; (ii) that the consumer may revoke the consent at any time; and (iii) the procedure for the consumer to revoke consent. (E) The form, statement, or writing clearly and conspicuously informs the consumer that (i) the financial institution will maintain the document or a true and correct copy; (ii) the consumer is entitled to a copy of the document upon request; and (iii) the consumer may want to make a copy of the document for the consumer’s records. (b) (1) A financial institution shall not disclose to, or share a consumer’s nonpublic personal information with, an affiliate unless the financial institution has clearly and conspicuously notified the consumer annually in writing pursuant to subdivision (d) that the nonpublic personal information may be disclosed to an affiliate of the financial institution and the consumer has not directed that the nonpublic personal information not be disclosed. A financial institution does not disclose information to, or share information with, its affiliate merely because information is maintained in common information systems or databases, and employees of the financial institution and its affiliate have access to those common information systems or databases, or a consumer accesses a Web site jointly operated or maintained under a common name by or on behalf of the financial institution and its affiliate, provided that where a consumer has exercised his or her right to prohibit disclosure pursuant to this division, nonpublic personal information is not further disclosed or used by an affiliate except as permitted by this division. (2) Subdivision (a) shall not prohibit the release of nonpublic personal information by a financial institution with whom the consumer has a relationship to a nonaffiliated financial institution for purposes of jointly offering a financial product or financial service pursuant to a written agreement with the financial institution that receives the nonpublic personal information provided that all of the following requirements are met: (A) The financial product or service offered is a product or service of, and is provided by, at least one of the financial institutions that is a party to the written agreement. (B) The financial product or service is jointly offered, endorsed, or sponsored, and clearly and conspicuously identifies for the consumer the financial institutions that disclose and receive the disclosed nonpublic personal information. (C) The written agreement provides that the financial institution that receives that nonpublic personal information is required to maintain the confidentiality of the information and is prohibited from disclosing or using the information other than to carry out the joint offering or servicing of a financial product or financial service that is the subject of the written agreement. (D) The financial institution that releases the nonpublic personal information has complied with subdivision (d) and the consumer has not directed that the nonpublic personal information not be disclosed. (E) Notwithstanding this section, until January 1, 2005, a financial institution may disclose nonpublic personal information to a nonaffiliated financial institution pursuant to a preexisting contract with the nonaffiliated financial institution, for purposes of offering a financial product or financial service, if that contract was entered into on or before January 1, 2004. Beginning on January 1, 2005, no nonpublic personal information may be disclosed pursuant to that contract unless all the requirements of this subdivision are met. (3) Nothing in this subdivision shall prohibit a financial institution from disclosing or sharing nonpublic personal information as otherwise specifically permitted by this division. (4) A financial institution shall not discriminate against or deny an otherwise qualified consumer a financial product or a financial service because the consumer has directed pursuant to this subdivision that nonpublic personal information pertaining to him or her not be disclosed. A financial institution shall not be required to offer or provide products or services offered through affiliated entities or jointly with nonaffiliated financial institutions pursuant to paragraph (2) where the consumer has directed that nonpublic personal information not be disclosed pursuant to this subdivision and the financial institution could not offer or provide the products or services to the consumer without disclosure of the consumer’s nonpublic personal information that the consumer has directed not be disclosed pursuant to this subdivision. A financial institution shall not be liable for failing to offer or provide products or services offered through affiliated entities or jointly with nonaffiliated financial institutions pursuant to paragraph (2) solely because the consumer has directed that nonpublic personal information not be disclosed pursuant to this subdivision and the financial institution could not offer or provide the products or services to the consumer without disclosure of the consumer’s nonpublic personal information that the consumer has directed not be disclosed to affiliates pursuant to this subdivision. Nothing in this section is intended to prohibit a financial institution from offering incentives or discounts to elicit a specific response to the notice set forth in this division. Nothing in this section shall prohibit the disclosure of nonpublic personal information allowed by Section 4056. (5) The financial institution may, at its option, choose instead to comply with the requirements of subdivision (a). (c) Nothing in this division shall restrict or prohibit the sharing of nonpublic personal information between a financial institution and its wholly owned financial institution subsidiaries; among financial institutions that are each wholly owned by the same financial institution; among financial institutions that are wholly owned by the same holding company; or among the insurance and management entities of a single insurance holding company system consisting of one or more reciprocal insurance exchanges which has a single corporation or its wholly owned subsidiaries providing management services to the reciprocal insurance exchanges, provided that in each case all of the following requirements are met: (1) The financial institution disclosing the nonpublic personal information and the financial institution receiving it are regulated by the same functional regulator; provided, however, that for purposes of this subdivision, financial institutions regulated by the Office of the Comptroller of the Currency, Office of Thrift Supervision, National Credit Union Administration, or a state regulator of depository institutions shall be deemed to be regulated by the same functional regulator; financial institutions regulated by the Securities and Exchange Commission, the United States Department of Labor, or a state securities regulator shall be deemed to be regulated by the same functional regulator; and insurers admitted in this state to transact insurance and licensed to write insurance policies shall be deemed to be in compliance with this paragraph. (2) The financial institution disclosing the nonpublic personal information and the financial institution receiving it are both principally engaged in the same line of business. For purposes of this subdivision, “same line of business” shall be one and only one of the following: (A) Insurance. (B) Banking. (C) Securities. (3) The financial institution disclosing the nonpublic personal information and the financial institution receiving it share a common brand, excluding a brand consisting solely of a graphic element or symbol, within their trademark, service mark, or trade name, which is used to identify the source of the products and services provided. A wholly owned subsidiary shall include a subsidiary wholly owned directly or wholly owned indirectly in a chain of wholly owned subsidiaries. Nothing in this subdivision shall permit the disclosure by a financial institution of medical record information, as defined in Section 791.02 of the Insurance Code, except in compliance with the requirements of this division, including the requirements set forth in subdivisions (a) and (b). (d) (1) A financial institution shall be conclusively presumed to have satisfied the notice requirements of subdivision (b) if it uses the form set forth in this subdivision. The form set forth in this subdivision or a form that complies with subparagraphs (A) to (L), inclusive, of this paragraph shall be sent by the financial institution to the consumer so that the consumer may make a decision and provide direction to the financial institution regarding the sharing of his or her nonpublic personal information. If a financial institution does not use the form set forth in this subdivision, the financial institution shall use a form that meets all of the following requirements: (A) The form uses the same title (“IMPORTANT PRIVACY CHOICES FOR CONSUMERS”) and the headers, if applicable, as follows: “Restrict Information Sharing With Companies We Own Or Control (Affiliates)” and “Restrict Information Sharing With Other Companies We Do Business With To Provide Financial Products And Services.” (B) The titles and headers in the form are clearly and conspicuously displayed, and no text in the form is smaller than 10-point type. (C) The form is a separate document, except as provided by subparagraph (D) of paragraph (2), and Sections 4054 and 4058.7. (D) The choice or choices pursuant to subdivision (b) and Section 4054.6, if applicable, provided in the form are stated separately and may be selected by checking a box. (E) The form is designed to call attention to the nature and significance of the information in the document. (F) The form presents information in clear and concise sentences, paragraphs, and sections. (G) The form uses short explanatory sentences (an average of 15-20 words) or bullet lists whenever possible. (H) The form avoids multiple negatives, legal terminology, and highly technical terminology whenever possible. (I) The form avoids explanations that are imprecise and readily subject to different interpretations. (J) The form achieves a minimum Flesch reading ease score of 50, as defined in Section 2689.4(a)(7) of Title 10 of the California Code of Regulations, in effect on March 24, 2003, except that the information in the form included to comply with subparagraph (A) shall not be included in the calculation of the Flesch reading ease score, and the information used to describe the choice or choices pursuant to subparagraph (D) shall score no lower than the information describing the comparable choice or choices set forth in the form in this subdivision. (K) The form provides wide margins, ample line spacing and uses boldface or italics for key words. (L) The form is not more than one page. (2) (A) None of the instructional items appearing in brackets in the form set forth in this subdivision shall appear in the form provided to the consumer, as those items are for explanation purposes only. If a financial institution does not disclose or share nonpublic personal information as described in a header of the form, the financial institution may omit the applicable header or headers, and the accompanying information and box, in the form it provides pursuant to this subdivision. The form with those omissions shall be conclusively presumed to satisfy the notice requirements of this subdivision. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * NOTICE OF INCOMPLETE TEXT: The Important Privacy Choices for Consumers form appears in the hard-copy publication of the chaptered bill. See Sec. 8, Chapter 444 (p. 15), Statutes of 2013. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * (B) If a financial institution uses a form other than that set forth in this subdivision, the financial institution may submit that form to its functional regulator for approval, and for forms filed with the Office of Privacy Protection prior to July 1, 2007, that approval shall constitute a rebuttable presumption that the form complies with this section. (C) A financial institution shall not be in violation of this subdivision solely because it includes in the form one or more brief examples or explanations of the purpose or purposes, or context, within which information will be shared, as long as those examples meet the clarity and readability standards set forth in paragraph (1). (D) The outside of the envelope in which the form is sent to the consumer shall clearly state in 16-point boldface type “IMPORTANT PRIVACY CHOICES,” except that a financial institution sending the form to a consumer in the same envelope as a bill, account statement, or application requested by the consumer does not have to include the wording “IMPORTANT PRIVACY CHOICES” on that envelope. The form shall be sent in any of the following ways: (i) With a bill, other statement of account, or application requested by the consumer, in which case the information required by Title V of the Gramm-Leach-Bliley Act may also be included in the same envelope. (ii) As a separate notice or with the information required by Title V of the Gramm-Leach-Bliley Act, and including only information related to privacy. (iii) With any other mailing, in which case it shall be the first page of the mailing. (E) If a financial institution uses a form other than that set forth in this subdivision, that form shall be filed with the Office of Privacy Protection within 30 days after it is first used. (3) The consumer shall be provided a reasonable opportunity prior to disclosure of nonpublic personal information to direct that nonpublic personal information not be disclosed. A consumer may direct at any time that his or her nonpublic personal information not be disclosed. A financial institution shall comply with a consumer’s directions concerning the sharing of his or her nonpublic personal information within 45 days of receipt by the financial institution. When a consumer directs that nonpublic personal information not be disclosed, that direction is in effect until otherwise stated by the consumer. A financial institution that has not provided a consumer with annual notice pursuant to subdivision (b) shall provide the consumer with a form that meets the requirements of this subdivision, and shall allow 45 days to lapse from the date of providing the form in person or the postmark or other postal verification of mailing before disclosing nonpublic personal information pertaining to the consumer. Nothing in this subdivision shall prohibit the disclosure of nonpublic personal information as allowed by subdivision (c) or Section 4056. (4) A financial institution may elect to comply with the requirements of subdivision (a) with respect to disclosure of nonpublic personal information to an affiliate or with respect to nonpublic personal information disclosed pursuant to paragraph (2) of subdivision (b), or subdivision (c) of Section 4054.6. (5) If a financial institution does not have a continuing relationship with a consumer other than the initial transaction in which the product or service is provided, no annual disclosure requirement exists pursuant to this section as long as the financial institution provides the consumer with the form required by this section at the time of the initial transaction. As used in this section, “annually” means at least once in any period of 12 consecutive months during which that relationship exists. The financial institution may define the 12-consecutive-month period, but shall apply it to the consumer on a consistent basis. If, for example, a financial institution defines the 12-consecutive-month period as a calendar year and provides the annual notice to the consumer once in each calendar year, it complies with the requirement to send the notice annually. (6) A financial institution with assets in excess of twenty-five million dollars ($25,000,000) shall include a self-addressed first class business reply return envelope with the notice. A financial institution with assets of up to and including twenty-five million dollars ($25,000,000) shall include a self-addressed return envelope with the notice. In lieu of the first class business reply return envelope required by this paragraph, a financial institution may offer a self-addressed return envelope with the notice and at least two alternative cost-free means for consumers to communicate their privacy choices, such as calling a toll-free number, sending a facsimile to a toll-free telephone number, or using electronic means. A financial institution shall clearly and conspicuously disclose in the form required by this subdivision the information necessary to direct the consumer on how to communicate his or her choices, including the toll-free or facsimile number or Web site address that may be used, if those means of communication are offered by the financial institution. (7) A financial institution may provide a joint notice from it and one or more of its affiliates or other financial institutions, as identified in the notice, so long as the notice is accurate with respect to the financial institution and the affiliates and other financial institutions. (e) Nothing in this division shall prohibit a financial institution from marketing its own products and services or the products and services of affiliates or nonaffiliated third parties to customers of the financial institution as long as (1) nonpublic personal information is not disclosed in connection with the delivery of the applicable marketing materials to those customers except as permitted by Section 4056 and (2) in cases in which the applicable nonaffiliated third party may extrapolate nonpublic personal information about the consumer responding to those marketing materials, the applicable nonaffiliated third party has signed a contract with the financial institution under the terms of which (A) the nonaffiliated third party is prohibited from using that information for any purpose other than the purpose for which it was provided, as set forth in the contract, and (B) the financial institution has the right by audit, inspections, or other means to verify the nonaffiliated third party’s compliance with that contract. (Amended by Stats. 2013, Ch. 444, Sec. 8. (SB 138) Effective January 1, 2014. Note: See published chaptered bill for complete section text. The Important Privacy Choices for Consumers form appears on page 15 of Ch. 444.)
  195. 4053.5.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. )

    Verify source ↗

    An entity receiving nonpublic personal information from a financial institution generally may not disclose it to another entity, and information received under a Section 4056 exception may only be used or disclosed in the ordinary course of business for the covered activity.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. ) ## 4053.5. Except as otherwise provided in this division, an entity that receives nonpublic personal information from a financial institution under this division shall not disclose this information to any other entity, unless the disclosure would be lawful if made directly to the other entity by the financial institution. An entity that receives nonpublic personal information pursuant to any exception set forth in Section 4056 shall not use or disclose the information except in the ordinary course of business to carry out the activity covered by the exception under which the information was received. (Added by Stats. 2003, Ch. 241, Sec. 1. Effective January 1, 2004. Section operative July 1, 2004, pursuant to Section 4060.)
  196. 4054.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. )

    Verify source ↗

    A financial institution can send the required consumer notice electronically if specific writing, delivery, and form requirements are met, and it cannot make a consumer’s electronic reply ineffective.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. ) ## 4054. (a) Nothing in this division shall require a financial institution to provide a written notice to a consumer pursuant to Section 4053 if the financial institution does not disclose nonpublic personal information to any nonaffiliated third party or to any affiliate, except as allowed in this division. (b) A notice provided to a member of a household pursuant to Section 4053 shall be considered notice to all members of that household unless that household contains another individual who also has a separate account with the financial institution. (c) (1) The requirement to send a written notice to a consumer may be fulfilled by electronic means if the following requirements are met: (A) The notice, and the manner in which it is sent, meets all of the requirements for notices that are required by law to be in writing, as set forth in Section 101 of the federal Electronic Signatures in Global and National Commerce Act. (B) All other requirements applicable to the notice, as set forth in this division, are met, including, but not limited to, requirements concerning content, timing, form, and delivery. An electronic notice sent pursuant to this section is not required to include a return envelope. (C) The notice is delivered to the consumer in a form the consumer may keep. (2) A notice that is made available to a consumer, and is not delivered to the consumer, does not satisfy the requirements of paragraph (1). (3) Any electronic consumer reply to an electronic notice sent pursuant to this division is effective. A person that electronically sends a notice required by this division to a consumer may not by contract, or otherwise, eliminate the effectiveness of the consumer’s electronic reply. (4) This division modifies the provisions of Section 101 of the federal Electronic Signatures in Global and National Commerce Act. However, it does not modify, limit, or supersede the provisions of subsection (c), (d), (e), (f), or (h) of Section 101 of the federal Electronic Signatures in Global and National Commerce Act, nor does it authorize electronic delivery of any notice of the type described in subsection (b) of Section 103 of that federal act. (Added by Stats. 2003, Ch. 241, Sec. 1. Effective January 1, 2004. Section operative July 1, 2004, pursuant to Section 4060.)
  197. 4054.6.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. )

    Verify source ↗

    A financial institution may share limited customer information with an affinity partner only when the statute’s conditions are met, and any email sent using obtained addresses must identify the sender and include a free opt-out contact method.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. ) ## 4054.6. (a) When a financial institution and an organization or business entity that is not a financial institution (“affinity partner”) have an agreement to issue a credit card in the name of the affinity partner (“affinity card”), the financial institution shall be permitted to disclose to the affinity partner in whose name the card is issued only the following information pertaining to the financial institution’s customers who are in receipt of the affinity card: (1) name, address, telephone number, and electronic mail address and (2) record of purchases made using the affinity card in a business establishment, including a Web site, bearing the brand name of the affinity partner. (b) When a financial institution and an affinity partner have an agreement to issue a financial product or service, other than a credit card, on behalf of the affinity partner (“affinity financial product or service”), the financial institution shall be permitted to disclose to the affinity partner only the following information pertaining to the financial institution’s customers who obtained the affinity financial product or service: name, address, telephone number, and electronic mail address. (c) The disclosures specified in subdivisions (a) and (b) shall be permitted only if the following requirements are met: (1) The financial institution has provided the consumer a notice meeting the requirements of subdivision (d) of Section 4053, and the consumer has not directed that nonpublic personal information not be disclosed. A response to a notice meeting the requirements of subdivision (d) directing the financial institution to not disclose nonpublic personal information to a nonaffiliated financial institution shall be deemed a direction to the financial institution to not disclose nonpublic personal information to an affinity partner, unless the form containing the notice provides the consumer with a separate choice for disclosure to affinity partners. (2) The financial institution has a contractual agreement with the affinity partner that requires the affinity partner to maintain the confidentiality of the nonpublic personal information and prohibits affinity partners from using the information for any purposes other than verifying membership, verifying the consumer’s contact information, or offering the affinity partner’s own products or services to the consumer. (3) The customer list is not disclosed in any way that reveals or permits extrapolation of any additional nonpublic personal information about any customer on the list. (4) If the affinity partner sends any message to any electronic mail addresses obtained pursuant to this section, the message shall include at least both of the following: (A) The identity of the sender of the message. (B) A cost-free means for the recipient to notify the sender not to electronically mail any further message to the recipient. (d) Nothing in this section shall prohibit the disclosure of nonpublic personal information pursuant to Section 4056. (e) This section does not apply to credit cards issued in the name of an entity primarily engaged in retail sales or a name proprietary to a company primarily engaged in retail sales. (Added by Stats. 2003, Ch. 241, Sec. 1. Effective January 1, 2004. Section operative July 1, 2004, pursuant to Section 4060.)
  198. 4056.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. )

    Verify source ↗

    A financial institution may release nonpublic personal information only in the listed circumstances, and this division does not apply to information that is not personally identifiable to a particular person.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. ) ## 4056. (a) This division shall not apply to information that is not personally identifiable to a particular person. (b) Notwithstanding Sections 4052.5, 4053, 4054, and 4054.6, a financial institution may release nonpublic personal information under the following circumstances: (1) The nonpublic personal information is necessary to effect, administer, or enforce a transaction requested or authorized by the consumer, or in connection with servicing or processing a financial product or service requested or authorized by the consumer, or in connection with maintaining or servicing the consumer’s account with the financial institution, or with another entity as part of a private label credit card program or other extension of credit on behalf of that entity, or in connection with a proposed or actual securitization or secondary market sale, including sales of servicing rights, or similar transactions related to a transaction of the consumer. (2) The nonpublic personal information is released with the consent of or at the direction of the consumer. (3) The nonpublic personal information is: (A) Released to protect the confidentiality or security of the financial institution’s records pertaining to the consumer, the service or product, or the transaction therein. (B) Released to protect against or prevent actual or potential fraud, identity theft, unauthorized transactions, claims, or other liability. (C) Released for required institutional risk control, or for resolving customer disputes or inquiries. (D) Released to persons holding a legal or beneficial interest relating to the consumer, including for purposes of debt collection. (E) Released to persons acting in a fiduciary or representative capacity on behalf of the consumer. (4) The nonpublic personal information is released to provide information to insurance rate advisory organizations, guaranty funds or agencies, applicable rating agencies of the financial institution, persons assessing the institution’s compliance with industry standards, and the institution’s attorneys, accountants, and auditors. (5) The nonpublic personal information is released to the extent specifically required or specifically permitted under other provisions of law and in accordance with the Right to Financial Privacy Act of 1978 (12 U.S.C. Sec. 3401 et seq.), to law enforcement agencies, including a federal functional regulator, the Secretary of the Treasury with respect to subchapter II of Chapter 53 of Title 31, and Chapter 2 of Title I of Public Law 91-508 (12 U.S.C. Secs. 1951-1959), the California Department of Insurance or other state insurance regulators, the State Bar of California, or the Federal Trade Commission, and self-regulatory organizations, or for an investigation on a matter related to public safety. (6) The nonpublic personal information is released in connection with a proposed or actual sale, merger, transfer, or exchange of all or a portion of a business or operating unit if the disclosure of nonpublic personal information concerns solely consumers of the business or unit. (7) The nonpublic personal information is released to comply with federal, state, or local laws, rules, and other applicable legal requirements; to comply with a properly authorized civil, criminal, administrative, or regulatory investigation or subpoena or summons by federal, state, or local authorities; or to respond to judicial process or government regulatory authorities having jurisdiction over the financial institution for examination, compliance, or other purposes as authorized by law. (8) When a financial institution is reporting a known or suspected instance of elder or dependent adult financial abuse or is cooperating with a local adult protective services agency investigation of known or suspected elder or dependent adult financial abuse pursuant to Article 3 (commencing with Section 15630) of Chapter 11 of Part 3 of Division 9 of the Welfare and Institutions Code. (9) The nonpublic personal information is released to an affiliate or a nonaffiliated third party in order for the affiliate or nonaffiliated third party to perform business or professional services, such as printing, mailing services, data processing or analysis, or customer surveys, on behalf of the financial institution, provided that all of the following requirements are met: (A) The services to be performed by the affiliate or nonaffiliated third party could lawfully be performed by the financial institution. (B) There is a written contract between the affiliate or nonaffiliated third party and the financial institution that prohibits the affiliate or nonaffiliated third party, as the case may be, from disclosing or using the nonpublic personal information other than to carry out the purpose for which the financial institution disclosed the information, as set forth in the written contract. (C) The nonpublic personal information provided to the affiliate or nonaffiliated third party is limited to that which is necessary for the affiliate or nonaffiliated third party to perform the services contracted for on behalf of the financial institution. (D) The financial institution does not receive any payment from or through the affiliate or nonaffiliated third party in connection with, or as a result of, the release of the nonpublic personal information. (10) The nonpublic personal information is released to identify or locate missing and abducted children, witnesses, criminals and fugitives, parties to lawsuits, parents delinquent in child support payments, organ and bone marrow donors, pension fund beneficiaries, and missing heirs. (11) The nonpublic personal information is released to a real estate appraiser licensed or certified by the state for submission to central data repositories such as the California Market Data Cooperative, and the nonpublic personal information is compiled strictly to complete other real estate appraisals and is not used for any other purpose. (12) The nonpublic personal information is released as required by Title III of the federal United and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA Patriot Act; P.L. 107-56). (13) The nonpublic personal information is released either to a consumer reporting agency pursuant to the Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.) or from a consumer report reported by a consumer reporting agency. (14) The nonpublic personal information is released in connection with a written agreement between a consumer and a broker-dealer registered under the Securities Exchange Act of 1934 or an investment adviser registered under the Investment Advisers Act of 1940 to provide investment management services, portfolio advisory services, or financial planning, and the nonpublic personal information is released for the sole purpose of providing the products and services covered by that agreement. (c) Nothing in this division is intended to change existing law relating to access by law enforcement agencies to information held by financial institutions. (Amended by Stats. 2024, Ch. 227, Sec. 29. (AB 3279) Effective January 1, 2025.)
  199. 4056.5.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. )

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    This section exempts certain licensed persons and entities from the division’s privacy rules, but the exemption ends when nonpublic personal information is shared with affiliates or nonaffiliated third parties.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. ) ## 4056.5. (a) The provisions of this division do not apply to any person or entity that meets the requirements of paragraph (1) or (2) below. However, when nonpublic personal information is being or will be shared by a person or entity meeting the requirements of paragraph (1) or (2) with an affiliate or nonaffiliated third party, this division shall apply. (1) The person or entity is licensed in one or both of the following categories and is acting within the scope of the respective license or certificate: (A) As an insurance producer, licensed pursuant to Chapter 5 (commencing with Section 1621), Chapter 6 (commencing with Section 1760), or Chapter 8 (commencing with Section 1831) of Division 1 of the Insurance Code, as a registered investment adviser pursuant to Chapter 3 (commencing with Section 25230) of Part 3 of Division 1 of Title 4 of the Corporations Code, or as an investment adviser pursuant to Section 202(a)(11) of the federal Investment Advisers Act of 1940. (B) Is licensed to sell securities by the National Association of Securities Dealers (NASD). (2) The person or entity meets the requirements in paragraph (1) and has a written contractual agreement with another person or entity described in paragraph (1) and the contract clearly and explicitly includes the following: (A) The rights and obligations between the licensees arising out of the business relationship relating to insurance or securities transactions. (B) An explicit limitation on the use of nonpublic personal information about a consumer to transactions authorized by the contract and permitted pursuant to this division. (C) A requirement that transactions specified in the contract fall within the scope of activities permitted by the licenses of the parties. (b) The restrictions on disclosure and use of nonpublic personal information, and the requirement for notification and disclosure provided in this division, shall not limit the ability of insurance producers and brokers to respond to written or electronic, including telephone, requests from consumers seeking price quotes on insurance products and services or to obtain competitive quotes to renew an existing insurance contract, provided that any nonpublic personal information disclosed pursuant to this subdivision shall not be used or disclosed except in the ordinary course of business in order to obtain those quotes. (c) (1) The disclosure or sharing of nonpublic personal information from an insurer, as defined in Section 23 of the Insurance Code, or its affiliates to an exclusive agent, defined for purposes of this division as a licensed agent or broker pursuant to Chapter 5 (commencing with Section 1621) of Part 2 of Division 1 of the Insurance Code whose contractual or employment relationship requires that the agent offer only the insurer’s policies for sale or financial products or services that meet the requirements of paragraph (2) of subdivision (b) of Section 4053 and are authorized by the insurer, or whose contractual or employment relationship with an insurer gives the insurer the right of first refusal for all policies of insurance by the agent, and who may not share nonpublic personal information with any insurer other than the insurer with whom the agent has a contractual or employment relationship as described above, is not a violation of this division, provided that the agent may not disclose nonpublic personal information to any party except as permitted by this division. An insurer or its affiliates do not disclose or share nonpublic personal information with exclusive agents merely because information is maintained in common information systems or databases, and exclusive agents of the insurer or its affiliates have access to those common information systems or databases, provided that where a consumer has exercised his or her rights to prohibit disclosure pursuant to this division, nonpublic personal information is not further disclosed or used by an exclusive agent except as permitted by this division. (2) Nothing in this subdivision is intended to affect the sharing of information allowed in subdivision (a) or subdivision (b). (Added by Stats. 2003, Ch. 241, Sec. 1. Effective January 1, 2004. Section operative July 1, 2004, pursuant to Section 4060.)
  200. 4057.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. )

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    This section sets civil penalties for entities that improperly disclose, share, obtain, or use nonpublic personal information, and it requires the court to consider specific factors when setting the penalty.

    ## Financial Code - FIN ## DIVISION 1.4. CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT [4050 - 4060] ( Heading of Division 1.4 renumbered from Division 1.2 by Stats. 2011, Ch. 243, Sec. 6. ) ## 4057. (a) An entity that negligently discloses or shares nonpublic personal information in violation of this division shall be liable, irrespective of the amount of damages suffered by the consumer as a result of that violation, for a civil penalty not to exceed two thousand five hundred dollars ($2,500) per violation. However, if the disclosure or sharing results in the release of nonpublic personal information of more than one individual, the total civil penalty awarded pursuant to this subdivision shall not exceed five hundred thousand dollars ($500,000). (b) An entity that knowingly and willfully obtains, discloses, shares, or uses nonpublic personal information in violation of this division shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) per individual violation, irrespective of the amount of damages suffered by the consumer as a result of that violation. (c) In determining the penalty to be assessed pursuant to a violation of this division, the court shall take into account the following factors: (1) The total assets and net worth of the violating entity. (2) The nature and seriousness of the violation. (3) The persistence of the violation, including any attempts to correct the situation leading to the violation. (4) The length of time over which the violation occurred. (5) The number of times the entity has violated this division. (6) The harm caused to consumers by the violation. (7) The level of proceeds derived from the violation. (8) The impact of possible penalties on the overall fiscal solvency of the violating entity. (d) In the event a violation of this division results in the identity theft of a consumer, as defined by Section 530.5 of the Penal Code, the civil penalties set forth in this section shall be doubled. (e) The civil penalties provided for in this section shall be exclusively assessed and recovered in a civil action brought in the name of the people of the State of California in any court of competent jurisdiction by any of the following: (1) The Attorney General. (2) The functional regulator with jurisdiction over regulation of the financial institution as follows: (A) In the case of banks, savings associations, credit unions, commercial lending companies, and bank holding companies, by the Department of Financial Protection and Innovation, Division of Financial Institutions or the appropriate federal authority. (B) In the case of any person engaged in the business of insurance, by the Department of Insurance. (C) In the case of any investment broker or dealer, investment company, investment adviser, residential mortgage lender or finance lender, by the Department of Financial Protection and Innovation, Division of Corporations. (D) In the case of a financial institution not subject to the jurisdiction of any functional regulator listed under subparagraphs (A) to (C), inclusive, above, by the Attorney General. (Amended by Stats. 2022, Ch. 452, Sec. 105. (SB 1498) Effective January 1, 2023.)

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