AB 1864 — Financial institutions: regulation: Department of Financial Protection and Innovation.

Summary

(1) Existing law establishes the Department of Business Oversight in the Business, Consumer Services, and Housing Agency, headed by the Commissioner of Business Oversight. Under existing law, the department has charge of the execution of specified laws relating to various financial institutions and financial services, including banks, trust companies, credit unions, finance lenders, and residential mortgage lenders. This bill would rename the "Department of Business Oversight" as the "Department of Financial Protection and Innovation," which would be charged with execution of the above-specified laws. The bill would also put this department in charge of various other laws relating to providing financial products and services in this state. The bill would rename the commissioner of the department as the "Commissioner of Financial Protection and Innovation." The bill would specify that upon the operative date of its provisions, the powers, duties, responsibilities, and functions of the former Commissioner of Business Oversight and the Department of Business Oversight would become those of the Commissioner of Financial Protection and Innovation (commissioner) and the Department of Financial Protection and Innovation (department) , respectively. The bill would require the commissioner and department to retain all of the rights, properties, debts, and liabilities of the former commissioner and department and would specify that the change of name does not affect the validity of actions, proceedings, permits, or other actions taken previously. This bill would enact the California Consumer Financial Protection Law (CCFPL) to strengthen consumer protections by expanding the ability of the department to improve accountability and transparency in the California financial system and promote nondiscriminatory access to responsible, affordable credit, among other purposes. The bill would require the department to regulate the provision of various consumer financial products or services and to exercise nonexclusive oversight and enforcement authority under California consumer financial laws and, to the extent permissible, under the federal consumer financial laws. The bill would make it unlawful for covered persons or service providers, as defined, to, among other acts, engage in unlawful, unfair, deceptive, or abusive acts or practices with respect to consumer financial products or services, or offer or provide a consumer a financial product or service that is not in conformity with any consumer financial law. The bill would grant the department, among other duties, the power to bring administrative and civil actions, issue subpoenas, promulgate regulations, hold hearings, issue publications, conduct investigations, and implement outreach and education programs. The bill would also require the department to promulgate specified regulations and to promulgate rules regarding registration requirements applicable to a covered person within certain timeframes and subject to specified conditions. The bill would require the Legislature to conduct public hearings to obtain input on feasibility, and would require the commissioner to annually appear before and present information on enforcement actions and various other activities under the CCFPL to the appropriate legislative committees. The bill would further require the department to establish the Financial Technology Innovation Office, as specified. This bill would require all moneys collected or received by the commissioner under the CCFPL to be deposited with the State Treasurer to the credit of the Financial Protection Fund, which the bill would create, for the administration of the CCFPL. Moneys in those funds would consist of fees, fines, penalties, and other moneys received. All moneys in the fund would be available, upon appropriation by the Legislature, for purposes of the CCFPL. The bill would authorize the department to set and collect a reasonable annual registration fee for each entity required to register under this law and to take action against persons who engage in unfair, deceptive, or abusive practices with respect to consumer financial products or services. The bill would require covered persons and service providers to file certain documents, under oath, with the department. By expanding the crime of perjury, the bill would impose a state-mandated local program. The bill would also impose specific civil and monetary penalties for violations of the CCFPL, as well as injunctive relief. The bill would require administrative procedures under the act to be conducted in accordance with the provisions of the Administrative Procedure Act and would authorize the department to enter into agreements with the Attorney General regarding coordinating civil and investigatory actions among these agencies. The bill would also require the commissioner to prepare and publish on its internet website an annual report containing specified information. (2) Existing law generally prohibits state agencies from employing in-house counsel to act on behalf of the agency or its employees in judicial or administrative adjudicative proceedings but exempts specified agencies from this provision, including the Regents of the University of California and the Trustees of the California State University. This bill would exempt the Department of Financial Protection and Innovation from that provision. (3) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

• Chaptered 09/25/20 - Chaptered Current pdf September 25, 2020
• Enrolled 09/04/20 - Enrolled pdf September 04, 2020
• Amended 08/25/20 - Amended Senate pdf August 25, 2020
• Amended 02/25/20 - Amended Assembly pdf February 25, 2020
• Introduced 01/07/20 - Introduced pdf January 07, 2020
• AB1864 View text html

Action History

1. September 25, 2020

   Chaptered by Secretary of State - Chapter 157, Statutes of 2020.

2. September 25, 2020

   Approved by the Governor.

3. September 15, 2020

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

4. August 31, 2020

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 58. Noes 16. Page 5482.).

5. August 31, 2020

   In Assembly. Concurrence in Senate amendments pending.

6. August 31, 2020

   Read third time. Passed. Ordered to the Assembly. (Ayes 28. Noes 10.).

7. August 30, 2020

   Read second time. Ordered to third reading.

8. August 29, 2020

   From committee: Do pass. (Ayes 13. Noes 5.) (August 29).

9. August 27, 2020

   In committee: Hearing postponed by committee.

10. August 25, 2020

    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.R.

11. August 24, 2020

    Joint Rules 61 and 62(a) suspended. (Ayes 29. Noes 10. Page 4299.)

12. July 01, 2020

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

13. June 16, 2020

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

14. June 15, 2020

    Read third time. Passed. Ordered to the Senate. (Ayes 60. Noes 14. Page 4862.)

15. March 10, 2020

    Read second time. Ordered to third reading.

16. March 09, 2020

    Ordered to second reading.

17. March 09, 2020

    Withdrawn from committee.

18. March 09, 2020

    Assembly Rule 96 suspended. (Ayes 57. Noes 15. Page 4273.)

19. February 26, 2020

    Re-referred to Com. on BUDGET.

20. February 25, 2020

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

21. January 17, 2020

    Referred to Com. on BUDGET.

22. January 08, 2020

    From printer. May be heard in committee February 7.

23. January 07, 2020

    Read first time. To print.

Sponsors

• Monique Limón · Primary

Votes

Subjects