California 2015-2016 Regular Session Status: Enacted

AB 1517 — Business.

Last action — Chaptered by Secretary of State - Chapter 190, Statutes of 2015.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 10, 2015. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 6 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

(1) Existing law abolished the Department of Corporations and the Department of Financial Institutions and transferred their responsibilities to the Department of Business Oversight, which is headed by a Commissioner of Business Oversight. This bill would transfer additional duties from the abolished Department of Corporations and the abolished Department of Financial Institutions to the Department of Business Oversight and the Commissioner of Business Oversight, as specified, as well as the Department of Managed Health Care. This bill would also update cross-references and outdated contact information with respect to the Department of Business Oversight. (2) Existing law, the Corporate Securities Law of 1968, makes it unlawful for a person, in connection with the offer, sale, or purchase of a security, directly or indirectly, to employ a device, scheme, or artifice to defraud, make an untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which they were made, not misleading, or engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person. This bill would instead make it unlawful for any person to offer or sell a security in this state, or to buy or offer to buy a security in this state, by means of any written or oral communication that includes an untrue statement of a material fact or omits to state a material fact necessary to make the statements made, in the light of the circumstances under which the statements were made, not misleading. Existing law, the Corporate Securities Law of 1968, requires the offer and sale of securities in the state to be qualified with the Commissioner of Business Oversight, unless exempt. That law exempts specific securities or transactions from qualification, including, among others, any security issued or guaranteed by a public utility holding company, as specified. This bill would revise this exemption to exempt any security issued or guaranteed by a public utility holding company that is regulated in respect to its rates and charges by the United States or a state, and delete obsolete cross-references. This bill would also update and delete obsolete cross-references to federal law in the Corporate Securities Law of 1968. (3) Existing law limits the amount of funds of a bank or trust company that are deposited in any other financial institution, as specified, unless the financial institution has been designated as a depositary for the funds of the depositing bank or trust company by a vote of the majority of the directors of the depositing bank or trust company and the financial institution has been approved by the commissioner as a depositary for the purposes of these provisions. This bill would repeal these provisions. (4) Existing law, the Banking Law, prescribes the conditions pursuant to which a state-chartered bank may engage in the practice of banking. Existing law requires a bank to have authorization to open an office. Existing law defines core and noncore banking business and defines a facility, in this context, as an office in this state at which a bank engages in noncore banking business but not core banking business. This bill would delete the phrase "in this state" from the definition of a facility, as described above. (5) Existing law requires an industrial loan company to annually file with the Commissioner of Business Oversight an audit report containing audited financial statements and other relevant information the commissioner may require relating to the company. Existing law further requires an industrial loan company whose certificate has been surrendered or revoked to submit to the commissioner a closing audit report containing audited financial statements, as specified. This bill would repeal the requirement for the closing audit report. (6) This bill would also make technical changes and corrections.

Bill Text

Action History

  1. Chaptered by Secretary of State - Chapter 190, Statutes of 2015.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 3 p.m.

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 2421.).

  5. In Assembly. Concurrence in Senate amendments pending. May be considered on or after July 15 pursuant to Assembly Rule 77.

  6. Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 1900.).

  7. Read second time. Ordered to third reading.

  8. From committee: Be placed on second reading file pursuant to Senate Rule 28.8.

  9. From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (June 17). Re-referred to Com. on APPR.

  10. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.I.

  11. Referred to Com. on B. & F.I.

  12. In Senate. Read first time. To Com. on RLS. for assignment.

  13. Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1451.)

  14. Read second time. Ordered to Consent Calendar.

  15. From committee: Do pass. To Consent Calendar. (Ayes 17. Noes 0.) (May 6).

  16. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (April 27). Re-referred to Com. on APPR.

  17. Measure version as amended on April 16 corrected.

  18. In committee: Hearing postponed by committee.

  19. Re-referred to Com. on B. & F.

  20. From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

  21. In committee: Hearing postponed by committee.

  22. Re-referred to Com. on B. & F.

  23. From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

  24. In committee: Hearing postponed by committee.

  25. Referred to Com. on B. & F.

  26. From printer. May be heard in committee April 10.

  27. Read first time. To print.

Sponsors

  • Committee on Banking and Finance · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Committee on Banking and Finance

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 1517 B. & F. Concurrence in Senate Amendments By DABABNEH

Passed 79 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 69001
Democratic 4000
Republican 6000
Total 79001
% of votes cast 99%0%0%1%
How each member voted (80)
Member Party Vote
Achadjian — Yea
Alejo — Yea
Bloom — Yea
Brough — Yea
Brown — Yea
Low — Yea
Maienschein — Yea
Mathis — Yea
Rendon — Yea
Steinorth — Yea
Wagner — Yea
Williams — Yea
Wood — Yea
Eggman — Yea
Daly — Yea
Frazier — Yea
Linder — Yea
Salas — Yea
Mayes — Yea
Cooper — Yea
Olsen — Yea
Rodriguez — Yea
Weber — Yea
Burke — Yea
Gatto — Yea
Gomez — Yea
Gordon — Not Voting
Harper — Yea
Campos — Yea
Holden — Yea
Jones-Sawyer — Yea
Kim — Yea
Levine — Yea
Gray — Yea
McCarty — Yea
Atkins — Yea
Chang — Yea
Bonilla — Yea
Lopez — Yea
Medina — Yea
Melendez — Yea
Mullin — Yea
Baker — Yea
Bigelow — Yea
Chau — Yea
Chiu — Yea
Chu — Yea
Chávez — Yea
Cooley — Yea
Dababneh — Yea
Dodd — Yea
Nazarian — Yea
O'Donnell — Yea
Obernolte — Yea
Perea — Yea
Quirk — Yea
Ridley-Thomas — Yea
Santiago — Yea
Thurmond — Yea
Ting — Yea
Waldron — Yea
Wilk — Yea
Gonzalez — Yea
Hadley — Yea
Beth Gaines — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Mark Stone — Yea
Roger Hernández — Yea
Travis Allen — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gipson, Mike A. Democratic Yea
Irwin, Jacqui Democratic Yea
Dahle, Megan Republican Yea
Gallagher, James Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Lackey, Tom Republican Yea
Patterson, Joe Republican Yea

Official roll call →

3rd Reading AB1517 Committee On B. & F. (Dababneh) By Block

Passed 40 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 37000
Democratic 3000
Total 40000
% of votes cast 100%0%0%0%
How each member voted (40)
Member Party Vote
Hertzberg — Yea
Hill — Yea
Lara — Yea
Leyva — Yea
Moorlach — Yea
Nielsen — Yea
Roth — Yea
Vidak — Yea
Fuller — Yea
Galgiani — Yea
Cannella — Yea
Allen — Yea
Mitchell — Yea
Anderson — Yea
Leno — Yea
Pan — Yea
De León — Yea
Runner — Yea
Glazer — Yea
Hall — Yea
Hancock — Yea
Hernandez — Yea
Bates — Yea
Beall — Yea
Block — Yea
Hueso — Yea
Huff — Yea
Liu — Yea
Mendoza — Yea
Monning — Yea
Morrell — Yea
Pavley — Yea
Wieckowski — Yea
Wolk — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Mark Stone — Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Yea

Official roll call →

AB 1517 B. & F. Consent Calendar Second Day

Passed 78 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 68002
Democratic 4000
Republican 6000
Total 78002
% of votes cast 98%0%0%3%
How each member voted (80)
Member Party Vote
Achadjian — Yea
Alejo — Yea
Baker — Yea
Bloom — Yea
Brough — Yea
Brown — Yea
Harper — Yea
Low — Yea
Maienschein — Yea
Mathis — Yea
Obernolte — Yea
Perea — Yea
Santiago — Yea
Ting — Yea
Wilk — Yea
Eggman — Yea
Dababneh — Yea
Daly — Yea
Frazier — Yea
Gatto — Yea
Chau — Yea
Chu — Yea
Salas — Yea
Cooper — Yea
Mayes — Yea
O'Donnell — Yea
Olsen — Yea
Rendon — Yea
Rodriguez — Yea
Weber — Yea
Williams — Yea
Gomez — Yea
Burke — Yea
Holden — Yea
Jones-Sawyer — Yea
Gray — Yea
Kim — Yea
Levine — Yea
Atkins — Yea
Campos — Yea
Bonilla — Yea
Linder — Not Voting
Lopez — Yea
McCarty — Yea
Medina — Not Voting
Bigelow — Yea
Chang — Yea
Chiu — Yea
Chávez — Yea
Cooley — Yea
Dodd — Yea
Melendez — Yea
Mullin — Yea
Nazarian — Yea
Quirk — Yea
Ridley-Thomas — Yea
Steinorth — Yea
Thurmond — Yea
Wagner — Yea
Waldron — Yea
Wood — Yea
Gonzalez — Yea
Gordon — Yea
Hadley — Yea
Beth Gaines — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Mark Stone — Yea
Roger Hernández — Yea
Travis Allen — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gipson, Mike A. Democratic Yea
Irwin, Jacqui Democratic Yea
Dahle, Megan Republican Yea
Gallagher, James Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Lackey, Tom Republican Yea
Patterson, Joe Republican Yea

Official roll call →

Do pass. To Consent Calendar.

Passed 17 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 13000
Democratic 2000
Republican 2000
Total 17000
% of votes cast 100%0%0%0%
How each member voted (17)
Member Party Vote
Bloom — Yea
Quirk — Yea
Wagner — Yea
Wood — Yea
Eggman — Yea
Chang — Yea
Gomez — Yea
Holden — Yea
Daly — Yea
Bigelow — Yea
Rendon — Yea
Weber — Yea
Eduardo Garcia — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gallagher, James Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

Subjects

finance technology
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Frequently asked questions

What does AB 1517 do?
(1) Existing law abolished the Department of Corporations and the Department of Financial Institutions and transferred their responsibilities to the Department of Business Oversight, which is headed by a Commissioner of Business Oversight. This bill would transfer additional duties from the abolished Department of Corporations and the abolished Department of Financial Institutions to the Department of Business Oversight and the Commissioner of Business Oversight, as specified, as well as the Department of Managed Health Care. This bill would also update cross-references and outdated contact information with respect to the Department of Business Oversight. (2) Existing law, the Corporate Securities Law of 1968, makes it unlawful for a person, in connection with the offer, sale, or purchase of a security, directly or indirectly, to employ a device, scheme, or artifice to defraud, make an untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which they were made, not misleading, or engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person. This bill would instead make it unlawful for any person to offer or sell a security in this state, or to buy or offer to buy a security in this state, by means of any written or oral communication that includes an untrue statement of a material fact or omits to state a material fact necessary to make the statements made, in the light of the circumstances under which the statements were made, not misleading. Existing law, the Corporate Securities Law of 1968, requires the offer and sale of securities in the state to be qualified with the Commissioner of Business Oversight, unless exempt. That law exempts specific securities or transactions from qualification, including, among others, any security issued or guaranteed by a public utility holding company, as specified. This bill would revise this exemption to exempt any security issued or guaranteed by a public utility holding company that is regulated in respect to its rates and charges by the United States or a state, and delete obsolete cross-references. This bill would also update and delete obsolete cross-references to federal law in the Corporate Securities Law of 1968. (3) Existing law limits the amount of funds of a bank or trust company that are deposited in any other financial institution, as specified, unless the financial institution has been designated as a depositary for the funds of the depositing bank or trust company by a vote of the majority of the directors of the depositing bank or trust company and the financial institution has been approved by the commissioner as a depositary for the purposes of these provisions. This bill would repeal these provisions. (4) Existing law, the Banking Law, prescribes the conditions pursuant to which a state-chartered bank may engage in the practice of banking. Existing law requires a bank to have authorization to open an office. Existing law defines core and noncore banking business and defines a facility, in this context, as an office in this state at which a bank engages in noncore banking business but not core banking business. This bill would delete the phrase "in this state" from the definition of a facility, as described above. (5) Existing law requires an industrial loan company to annually file with the Commissioner of Business Oversight an audit report containing audited financial statements and other relevant information the commissioner may require relating to the company. Existing law further requires an industrial loan company whose certificate has been surrendered or revoked to submit to the commissioner a closing audit report containing audited financial statements, as specified. This bill would repeal the requirement for the closing audit report. (6) This bill would also make technical changes and corrections.
Who sponsors AB 1517?
AB 1517 is sponsored by Committee on Banking and Finance.
What is the current status of AB 1517?
This bill has been enacted into law. Introduced March 10, 2015. Enacted.
Where can I track AB 1517?
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