California Assembly Bill AB33 Amended / Bill

 BILL NUMBER: AB 33AMENDED BILL TEXT AMENDED IN SENATE JUNE 11, 2009 AMENDED IN ASSEMBLY MARCH 24, 2009 AMENDED IN ASSEMBLY FEBRUARY 10, 2009 INTRODUCED BY Assembly Member Nava DECEMBER 1, 2008  An act to amend Sections 30, 31, 7500.3, 7502.1, 7502.2, 7522, 7582.2, 7742, 10003, 10004, 10005, 10071, 10082, 10131.3, 10146, 10147, 10149, 10150.6, 10151.5, 10153, 10159.2, 10175.2, 10176.1, 10177, 10225, 10231.2, 10232.1, 10232.2, 10232.4, 10232.25, 10236.2, 10239, 10249.3, 10249.8, 10249.9, 10451.5, 10470.1, 10471, 10471.5, 10472, 10501, 11000.1, 11000.2, 11001, 11003.4, 11010, 11011, 11012, 11018, 11018.1, 11018.2, 11018.7, 11212, 11225, 11232, 11243, 11302, 11314, 11315, 11315.5, 11316, 11317, 11318, 11325, 11326, 11327, 11328, 11340, 11341, 11344, 11350, 11352, 11360, 11361, 11400, 11401, 11406, 11407, 11408, 11409, 11412, 11422, 11502.5, 17511.1, 17537.2, and 20009 of, and to repeal Sections 10050, 10051, 10052, 10053, 10073, 10075, 10076, 10077, 10078, 10079, 10080, 11301, 11310, 11313 of, the Business and Professions Code, to amend Sections 163, 500, 1001, 1101.1, 1300, 2207, 7813.5, 8011.5, 12504, 12532, 13205, 13406, 13408.5, 14025, 15679.2, 15911.21, 17656, 23000, 25004, 25005, 25014.6, 25100, 25102, 25243.5, 25247, 25254, 25600, 25602, 25604, 25606, 25607, 25612.5, 25614, 25702, 28033, 28505, 28715, 29200, 29503, 31004, 31210, 31408, 31503, 31513 of, and to repeal Sections 25601, 25603, and 25620 of, the Corporations Code, to amend Sections 112, 200, 201, 210, 210.5, 215, 262, 1856, 4057, 4805.055, 4970, 4990, 5104, 12003, 12100, 12104, 12307.4, 14003, 14200.1, 14200.2, 14381, 17002, 17006, 17210.2, 17214, 17303, 17311, 17312, 17320, 17331, 17423.1, 18002, 18002.5, 18339, 18427.9, 18596, 22005, 22159.5, 22160, 22304, 23001, 23070, 23071, 23072, 23073, 23074, 23102, 28000, 30002, 30005, 30217, 31055, 33045.5, 33785, 50003, 50303, 50307.1, 50602, 50702 of, and to add Sections 203 and 210.9 to, the Financial Code, and to amend Section 13975 of the Government Code,   An act to amend Sections 11302 and 11310 of, to amend and repeal Section 10015 of, and to amend, repeal, and add Sections 10000, 10050, 11301, and 11313 of, the Business and Professions Code, to amend, repeal, and add Sectio   ns 25005 and 31004 of the Corporations Code, to amend Sections 4970 and 23001 of, to amend and repeal Section 252 of, to amend, repeal, and add Sections 112, 210, 4805.055, 5104, 5106, 12003, 14003, 17002, 18002, 18002.5, 22005, 30002, 31055, and 33045.5 of, to add Sections 23002 and 50003.5 to, and to add Division 0.5 (commencing with Section 25) to, the Financial Code, and to amend, repeal, and add Sections 13975 and 13978.6 of the Government Code,  relating to financial services. LEGISLATIVE COUNSEL'S DIGEST AB 33, as amended, Nava.  Department of Financial Services.   Financial services.  Existing law establishes the Department of Financial Institutions, the Department of Corporations, the Department of Real Estate, and the Office of Real Estate Appraisers in the Business, Transportation and Housing Agency. Existing law provides for the licensing and regulation of, among others, banks, credit unions, and other financial institutions by the Commissioner of Financial Institutions. Existing law provides for the licensing and regulation of, among others, residential mortgage lenders and finance lenders by the Commissioner of Corporations. Existing law provides for the licensing and regulation of, among others, real estate brokers  and salespersons  by the Real Estate Commissioner. Existing law provides for the licensure and regulation of real estate appraisers by the Director of the Office of Real Estate Appraisers. This bill would do the following  , effective July 1, 2011  : (1)  abolish the Department of Corporations (DOC), the Department of Financial Institutions (DFI), the Department of Real Estate (DRE), and the Office of Real Estate Appraisers (OREA), (2) create a new Department of Financial Services (DFS), (3) designate the chief officer of DFS as the Commissioner of Financial Services, (4) transfer the powers, duties, purposes, jurisdiction, responsibilities, and functions of the Commissioner of Corporations, the Commissioner of Financial Institutions, the Real Estate Commissioner, and the Director of the Office of Real Estate Appraisers and those respective departments and that office to the Commissioner of Financial Services and DFS, and (5) require DFS to regulate those persons, entities, and transactions subject to regulation by, or subject to the jurisdiction of, DOC, DFI, DRE, and OREA   establish a new Department of Financial Services (DFS) in the Business, Transportation and Housing Agency (BTHA), (2) designate the chief officer of DFS as the Commissioner of Financial Services, (3) transfer the powers, duties, purposes, jurisdiction, responsibilities, and functions of the DOC and DFI to 2 new divisions under the DFS, the Division of Corporations and the Division of Financial Institutions, (4) designate the Commissioner of Corporations and the Commissioner of Financial Institutions as the directors of the Division of Corporations and the Division of Financial Institutions, respectively, (5) establish a new Office of Financial Consumer Advocacy within the DFS, and (6) transfer authority over real estate appraisers to the Department of Real Estate (DRE) under the Real Estate Law  .  This bill would, effective July 1, 2012, transfer from the DRE to the Division of Corporations the authority to license and regulate real estate licensees that provide lending, mortgage brokerage services, and business opportunity activities.   In order to implement the above provisions, this bill would require the BTHA, DFI, DOC, DRE, and the Office of Real Estate Appraisers to, on or before January 1, 2011, make specified recommendations regarding the consolidation of these entities or their respective operations.  The bill would make findings and declarations in this regard  , and would make technical and conforming changes to related provisions and definitions  . Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   The Legislature finds and declares all of the following:   (a) The regulation and oversight of financial services in California is principally divided between two regulators, the Department of Financial Institutions and the Department of Corporations.   (b) California is one of only a few states that separate the regulation of financial services among different licensing agencies. California is also anomalous in that three state departments regulate and oversee mortgage brokerage as well as the sale of specified business opportunity activities.   (c) This division of oversight is most apparent in the regulation of home mortgage lending that is split among multiple licensing schemes, including the California Finance Lenders Law, the California Residential Mortgage Lending Act, the Real Estate Law, and laws governing the operation of state and federally chartered banks or credit unions.   (d) The Department of Real Estate and the Office of Real Estate Appraisers protect consumers in real estate transactions by licensing real estate agents and appraisers, respectively.   (e) This partition of regulation dilutes consumer protection and creates confusion and unnecessary administrative difficulties for financial services entities.   (f) The current regulatory system creates licensing arbitrage, with entities seeking out licenses from various regulators in order to obtain an advantage.   SEC. 2.   Section 10000 of the   Business and Professions Code   is amended to read:  10000. This part may be cited as the Real Estate Law.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 3.   Section 10000 is added to the   Business and Professions Code   , to read:   10000. (a) This part and Part 3 (commencing with Section 11300) may be cited as the Real Estate Law. (b) This section shall become operative on July 1, 2011.   SEC. 4.   Section 10050 of the   Business and Professions Code   is amended to read:  10050. There is in the Business and Transportation Agency a Department of Real Estate, the chief officer of which department is named the Real Estate Commissioner. It shall be the principal responsibility of the commissioner to enforce all laws in this part (commencing with Section 10000) and Chapter 1 (commencing with Section 11000) of Part 2 of this division in a manner which achieves the maximum protection for the purchasers of real property and those persons dealing with real estate licensees.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 5.  Section 10050 is added to the   Business and Professions Code   , to read:   10050. (a) There is in the Business and Transportation Agency a Department of Real Estate, the chief officer of which department is named the Real Estate Commissioner. (b) It shall be the principal responsibility of the commissioner to enforce all laws in this part (commencing with Section 10000), Chapter 1 (commencing with Section 11000) of Part 2, and Part 3 (commencing with Section 11300) of this division, subject to subdivision (c) of Section 49 of the Financial Code, in a manner that achieves the maximum protection for the purchasers of real property and those persons dealing with real estate licensees and real estate appraisers. (c) This section shall become operative on July 1, 2011.   SEC. 6.   Section 11301 of the   Business and Professions Code   is amended to read:  11301. There is hereby created within the Business, Transportation and Housing Agency an Office of Real Estate Appraisers to administer and enforce this part.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 7.   Section 11301 is added to the   Business and Professions Code   , to read:   11301. (a) There is hereby created within the Department of Real Estate an Office of Real Estate Appraisers to administer and enforce this part. (b) This section shall become operative on July 1, 2011.   SEC. 8.   Section 11302 of the   Business and Professions Code   is amended to read:  11302. For the purpose of applying this part, the following terms, unless otherwise expressly indicated, shall mean and have the following definitions: (a) "Agency" means the Business, Transportation and Housing Agency. (b) "Appraisal" means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion in a federally related transaction as to the market value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information. The term "appraisal" does not include an opinion given by a real estate licensee or engineer or land surveyor in the ordinary course of his or her business in connection with a function for which a license is required under Chapter 7 (commencing with Section 6700) or Chapter 15 (commencing with Section 8700) of Division 3, or Chapter 3 (commencing with Section 10130) or Chapter 7 (commencing with Section 10500) and the opinion shall not be referred to as an appraisal. This part does not apply to a probate referee acting pursuant to Sections 400 to 408, inclusive, of the Probate Code unless the appraised transaction is federally related. (c) "Appraisal Foundation" means the Appraisal Foundation that was incorporated as an Illinois not-for-profit corporation on November 30, 1987. (d) "Appraisal Subcommittee" means the Appraisal Subcommittee of the Federal Financial Institutions Examination Council. (e) "Director" means the Director of the Office of Real Estate Appraisers. (f) "Federal financial institutions regulatory agency" means the Federal Reserve Board, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, Office of Thrift Supervision, Federal Home Loan Bank System, National Credit Union Administration, the Resolution Trust Corporation, and any other agency determined by the director to have jurisdiction over transactions subject to this part. (g) "Federally related real estate appraisal activity" means the act or process of making or performing an appraisal on real estate or real property in a federally related transaction and preparing an appraisal as a result of that activity. (h) "Federally related transaction" means any real estate-related financial transaction which a federal financial institutions regulatory agency engages in, contracts for or regulates and which requires the services of a state licensed real estate appraiser regulated by this part. This term also includes any transaction identified as such by a federal financial institutions regulatory agency. (i) "License" means any license, certificate, permit, registration, or other means issued by the office authorizing the person to whom it is issued to act pursuant to this part within this state. (j) "Licensure" means the procedures and requirements a person shall comply with in order to qualify for issuance of a license and includes the issuance of the license. (k) "Office" means the Office of Real Estate Appraisers. (l) "Secretary" means the Secretary of the Business, Transportation and Housing Agency. (m) "State licensed real estate appraiser" is a person who is issued and holds a current valid license under this part. (n) "Uniform Standards of Professional Appraisal Practice" are the standards of professional appraisal practice established by the Appraisal Foundation. (o) "Course provider" means a person or entity that provides educational courses related to professional appraisal practice.  (p) "Commissioner" means the Real Estate Commissioner.   SEC. 9.   Section 11310 of the   Business and Professions Code   is amended to read:  11310. The Governor shall appoint, subject to confirmation by the Senate, the Director of the Office of Real Estate Appraisers who shall  , in consultation with the Governor and secretary,  administer the licensing and certification program for real estate appraisers. In making the appointment, consideration shall be given to the qualifications of an individual that demonstrate knowledge of the real estate appraisal profession. (a)  The   (1)     Prior to July 1, 2011, the  director shall serve at the pleasure of the Governor  and shall administer the licensing and certification program in consultation with the Governor and secretary  . The salary for the director shall be fixed and determined by the secretary with approval of the Department of Personnel Administration.  (2) On and after July 1, 2011, the director shall serve at the pleasure of the Governor and shall administer the licensing and certification program in consultation with the Governor and the commissioner. The salary for the director shall be fixed and determined by the commissioner with approval of the Department of Personnel Administration.  (b) The director shall not be actively engaged in the appraisal business or any other affected industry for the term of appointment, and thereafter the director shall be subject to Section 87406 of the Government Code. (c) The director, in consultation with the secretary  or, on and after July 1, 2011, in consultation with the commissioner,  and in accordance with the State Civil Service Act, may appoint and fix the compensation of legal, clerical, technical, investigation, and auditing personnel as may be necessary to carry out this part. All personnel shall perform their respective duties under the supervision and direction of the director. (d) The director may appoint not more than four deputy directors as he or she deems appropriate. The deputy directors shall perform their respective duties under the supervision and direction of the director. (e) Every power granted to or duty imposed upon the director under this part may be exercised or performed in the name of the director by the deputy directors, subject to conditions and limitations as the director may prescribe.  SEC. 10.   Section 11313 of the   Business and Professions Code  is amended to read:  11313. The office is under the supervision and control of the secretary. The duty of enforcing and administering this part is vested in the director and he or she is responsible to the secretary therefor. The director shall adopt and enforce rules and regulations as are determined reasonably necessary to carry out the purposes of this part. Those rules and regulations shall be adopted pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 11.   Section 11313 is added to the   Business and Professions Code   , to read:   11313. (a) The office is under the supervision and control of the commissioner. The duty of enforcing and administering this part is vested in the director and he or she is responsible to the commissioner therefor. The director shall adopt and enforce rules and regulations as are determined reasonably necessary to carry out the purposes of this part. Those rules and regulations shall be adopted pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (b) This section shall become operative on July 1, 2011.   SEC. 12.   Section 25005 of the   Corporations Code   is amended to read:  25005. "Commissioner" means the Commissioner of Corporations.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 13.   Section 25005 is added to the   Corporations Code   , to read:   25005. (a) As used in this part, the following terms have the following meanings: (1) "Department of Corporations" or "department" means the Department of Financial Services, Division of Corporations. (2) "Commissioner of Corporations" or "commissioner" means the Director of the Division of Corporations. (b) This section shall become operative on July 1, 2011.   SEC. 14.   Section 31004 of the   Corporations Code   is amended to read:  31004. "Commissioner" means the Commissioner of Corporations.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 15.   Section 31004 is added to the   Corporations Code   , to read:   31004. (a) As used in this part, the following terms have the following meanings: (1) "Department of Corporations" or "department" means the Department of Financial Services, Division of Corporations. (2) "Commissioner of Corporations" or "commissioner" means the Director of the Division of Corporations. (b) This section shall become operative on July 1, 2011.   SEC. 16.   Division 0.5 (commencing with Section 25) is added to the   Financial Code   , to read:   DIVISION 0.5. Consolidation of Financial Services 25. Effective July 1, 2011, there shall be in the state government, in the Business, Transportation and Housing Agency, a Department of Financial Services, which shall consist of the following: (a) The Division of Financial Institutions, comprised of the former Department of Financial Institutions, which shall be primarily responsible for the execution of all laws previously under that department's jurisdiction subject to oversight by the Commissioner of Financial Services. (b) The Division of Corporations, comprised of the former Department of Corporations, which shall be primarily responsible for the execution of all laws previously under that department's jurisdiction subject to oversight by the Commissioner of Financial Services. (c) The Office of Financial Consumer Advocacy, which shall advise the Commissioner of Financial Services on how the Department of Financial Services can provide a high degree of service and protection to the public, shall be responsible for public outreach to financial consumers, and shall perform such other duties as determined by the Commissioner of Financial Services. (d) (1) Effective July 1, 2012, the Department of Financial Services, through the Division of Corporations, shall license and regulate mortgage brokers, including those real estate licensees who arrange loans secured by real property in the state, and shall license and regulate those real estate licensees who provide lending and business opportunity activities, as determined pursuant to Section 48, all of whom shall be deemed to be fiduciaries in their relationship with, and have attendant fiduciary duties toward, their principals. (2) (A) On or before January 1, 2012, the Commissioner of Financial Services, in consultation with the Director of the Division of Corporations and the Real Estate Commissioner, shall adopt regulations creating a new license or licenses and setting related fees such as the Commissioner of Financial Institutions believes appropriate for the Department of Financial Institutions, through the Division of Corporations, to assume responsibility for the provisions of the Real Estate Law that allow real estate licensees to provide lending, mortgage brokerage services, and business opportunity activities, as determined pursuant to Section 48, and including, but not limited to, those activities described in subdivisions (d) and (e) of Section 10131 of the Business and Professions Code. (B) As of the effective date of those regulations, persons holding licenses issued by the Department of Real Estate shall no longer be authorized to provide lending, mortgage brokerage services, and business opportunity activities, including, but not limited to, those activities described in subdivisions (d) and (e) of Section 10131 of the Business and Professions Code, without first obtaining a license to do so from the Division of Corporations. 26. The chief officer of the Department of Financial Services shall be the Commissioner of Financial Services. The Commissioner of Financial Services shall be the head of the department and, except as otherwise provided in this code, shall be subject to the provisions of the Government Code relating to department heads, but need not reside in Sacramento. 27. The Commissioner of Financial Services shall be appointed by the Governor and shall hold office at the pleasure of the Governor. The appointment of the commissioner shall be subject to confirmation by the Senate. The commissioner shall receive an annual salary fixed by the Secretary of the Business, Transportation and Housing Agency and the Department of Personnel Administration. 28. The Commissioner of Financial Services shall be a citizen of the United States. The commissioner shall be chosen solely for his or her qualifications and fitness to perform the duties of his or her office. 29. Before entering upon the duties of his or her office, the Commissioner of Financial Services shall take and subscribe to the constitutional oath of office and file the same with the Secretary of State. 30. The Commissioner of Financial Services shall be responsible for the performance of all duties, the exercise of all powers and jurisdiction, and the assumption and discharge of all responsibilities formerly vested by law in the Department of Financial Institutions and the Department of Corporations. As described in Section 32, the Director of the Division of Financial Institutions and the Director of the Division of Corporations shall be vested with the primary responsibility for all of the duties, powers, and jurisdiction of the former Commissioner of Financial Institutions and the Commissioner of Corporations, respectively, subject to oversight by the Commissioner of Financial Services. The commissioner has, and may exercise, all the powers necessary or convenient for the administration and enforcement of these laws. The commissioner may issue such rules and regulations consistent with law as he or she may deem necessary or advisable in executing the powers, duties, and responsibilities of the Department of Financial Services. 31. (a) (1) For purposes of 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 1700 apply to this section. (b) Notwithstanding any other provision of law, except as provided in subdivision (c), if the Commissioner of Financial Services finds that any provision of federal law applicable to financial services providers doing business in this state is substantively different from the provisions of this code applicable to financial services providers organized under the laws of this state or operating under a license issued by the state, the Commissioner of Financial Services may, by regulation, if he or she deems it advisable, make that provision of federal law applicable to financial services providers organized under the laws of this state or operating under a license issued by the state. (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 of Financial Services 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 of Financial Services 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 of Financial Services shall not renew or reinstate the regulation adopted pursuant to subdivision (b). (B) The Commissioner of Financial Services 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 paragraph (4). (d) The Commissioner of Financial Services 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). 32. Effective July 1, 2011, the Division of Financial Institutions shall be headed by the former Commissioner of Financial Institutions who shall have the title Director of the Division of Financial Institutions. Effective July 1, 2011, the Division of Corporations shall be headed by the former Commissioner of Corporations who shall have the title Director of the Division of Corporations. After July 1, 2011, the Commissioner of Financial Services shall have the authority to appoint the directors of these divisions who shall hold office at the commissioner's pleasure. 33. The Office of Financial Consumer Advocacy shall be headed by the Director of the Office of Financial Consumer Advocacy who shall be appointed by the Commissioner of Financial Services and shall serve at the commissioner's pleasure. The Director of the Office of Financial Consumer Advocacy shall be chosen solely for his or her qualifications and fitness to perform the duties of his or her office. The annual salary of the Director of the Office of Financial Consumer Advocacy shall be fixed by the Commissioner of Financial Services and the Department of Personnel Administration. 34. (a) Effective July 1, 2011, the Commissioner of Financial Services and the Department of Financial Services shall succeed to all the rights and property of the Commissioner of Corporations and the Commissioner of Financial Institutions, and the Department of Corporations and the Department of Financial Institutions, respectively. The Commissioner of Financial Services and the Department of Financial Services shall be subject to all the debts and liabilities of the predecessor Commissioner of Corporations and the Commissioner of Financial Institutions, and the Department of Corporations and the Department of Financial Institutions, as if the Commissioner of Financial Services and the Department of Financial Services had incurred them. (b) Any action or proceeding by or against the Commissioner of Corporations, the Commissioner of Financial Institutions, the Department of Corporations, or the Department of Financial Institutions may be prosecuted to judgment, which shall bind the Commissioner of Financial Services or the Department of Financial Services, respectively. Alternatively, the Commissioner of Financial Services or the Department of Financial Services may be proceeded against or substituted in place of the Commissioner of Corporations or the Commissioner of Financial Institutions and the Department of Corporations or the Department of Financial Institutions, respectively. (c) The following funds and accounts shall be under the jurisdiction of the Commissioner of Financial Services: (1) The Financial Institutions Fund created by Section 265. (2) The Credit Union Fund created by Section 14354. (3) The Guaranty Corporation Fund created by Section 18535. (4) The State Corporations Fund created by subdivision (b) of Section 13978.6 of the Government Code. (5) Any other fund or account subject to the jurisdiction of the former Department of Corporations or the former Department of Financial Institutions. (d) All agreements entered into with, and orders and regulations issued by, the Commissioner of Corporations or the Commissioner of Financial Institutions, or the Department of Financial Institutions or the Department of Corporations, shall continue in effect as if the agreements were entered into with, and the orders and regulations were issued by, the Commissioner of Financial Services or the Department of Financial Services. 35. (a) The Commissioner of Financial Services 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 oversight of financial services. (2) Any agreement with a governmental agency that regulates financial services is exempt from the advertising and competitive bidding requirements of the Public Contract Code. 36. Notwithstanding any other law, the Commissioner of Financial Services 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 this division, and shall have the same force and effect as the use of manual signatures. 37. The Commissioner of Financial Services shall appoint a chief deputy who shall hold office at the pleasure of the Commissioner of Financial Services. The annual salary of the chief deputy shall be fixed by the Commissioner of Financial Services with the approval of the Director of Finance. The chief deputy shall be chosen solely for his or her qualifications and fitness to perform the duties of his or her office and for the ability to succeed to the office of the Commissioner of Financial Services, if needed. If the Commissioner of Financial Services is unable to perform his or her duties for more than 30 consecutive days or if the office of the Commissioner of Financial Services becomes vacant, the chief deputy shall have all the powers and duties of the Commissioner of Financial Services until the return or recovery of the Commissioner of Financial Services, or, in case of a vacancy, until a new Commissioner of Financial Services is appointed by the Governor and qualifies to hold office. 38. The Commissioner of Financial Services may employ deputies in addition to the chief deputy and other employees that he or she may need to discharge in a proper manner the duties imposed upon him or her by law. The commissioner 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. 39. Before entering upon the duties of his or her office, each deputy of the Commissioner of Financial Services, the Director of the Division of Financial Institutions, the Director of the Division of Corporations, and the Director of the Office of Financial Consumer Advocacy shall take and subscribe to the constitutional oath of office and file the same with the Secretary of State. 40. The Commissioner of Financial Services may require, at any time, of any deputy, the Director of the Division of Financial Institutions, the Director of the Division of Corporations, the Director of the Office of Financial Consumer Advocacy, or any other employee of the department, an official bond in such amount as he or she may deem necessary. The premium for bonds required by the commissioner shall be an expense of the department. 41. On or before July 1, 2011, the Commissioner of Financial Services shall adopt and promulgate a Conflict of Interest Code pursuant to the provisions of Article 3 of Chapter 3 of Title 9 of the Government Code (commencing with Section 87300). The Conflict of Interest Code shall have the force of law and any violation of the Conflict of Interest Code by a designated employee shall be deemed a violation of Chapter 3 of Title 9 of the Government Code. 42. In addition to the offices previously maintained by the Department of Financial Institutions and the Department of Corporations, the Commissioner of Financial Services may establish offices in 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 of Financial Services. 43. The Department of Financial Services 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. 44. The Commissioner of Financial Services shall adopt and keep an official seal. Papers executed by the Commissioner of Financial Services 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. 45. Notwithstanding any other law, as of July 1, 2011, all references to the Department of Financial Institutions shall be deemed to refer to the Division of Financial Institutions within the Department of Financial Services and all references to the Department of Corporations shall be deemed to refer to the Division of Corporations within the Department of Financial Services. 46. (a) The Department of Real Estate shall continue to exist in state government, subject to the limitations, effective July 1, 2012, set forth in subdivision (d) of Section 25 with regard to authority that is transferred to the Department of Financial Services, Division of Corporations, and shall continue to be located within the Business, Transportation and Housing Agency. (b) Effective July 1, 2011, the Office of Real Estate Appraisers shall be transferred to the Department of Real Estate. The Office of Real Estate Appraisers shall be primarily responsible for the execution of all laws previously under its jurisdiction subject to oversight by the Director of the Office of Real Estate Appraisers. The Real Estate Appraisers' Licensing and Certification Law (Part 3 (commencing with Section 11300) of Division 4 of the Business and Professions Code), shall be deemed to be part of the Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code). 47. After transfer to the Department of Real Estate on July 1, 2011, the Office of Real Estate Appraisers shall continue to be headed by the Director of the Office of Real Estate Appraisers. The Director of the Office of Real Estate Appraisers shall be appointed by the Governor and shall serve at his or her pleasure. 48. On or before January 1, 2011, and for purposes of implementation of Section 25, the Secretary of the Business, Transportation and Housing Agency, in consultation with the Commissioner of Financial Institutions, the Commissioner of Corporations, and the Real Estate Commissioner, shall submit a report to the Legislature that addresses the following: (a) Recommendations regarding all appropriate areas for consolidation of the operations, licensing frameworks, regulations, and other aspects of, on and after July 1, 2011, the Department of Financial Institutions and Department of Corporations, and of pertinent lending, mortgage brokerage, and business opportunity activities by Department of Real Estate licensees. (b) Recommendations regarding any new or different authorities needed to address any gaps in, or shortcomings of, the regulation of financial services in California. (c) Recommendations regarding the possible consolidation of the regulation of any other financial services that currently takes place outside of the jurisdiction of the Business, Transportation and Housing Agency. (d) Recommendations regarding the consolidation of the regulation of home mortgage lending in California, including, but not limited to, recommendations on licensing schemes, including the California Finance Lenders Law (Division 9 (commencing with Section 22000), the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000), the Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code), and laws governing the operation of state and federally chartered banks or credit unions. (e) Recommendations regarding any firewalls between the future Department of Financial Services and its divisions and office of Financial Consumer Advocacy, or employees, that may be advisable. (f) Recommendations regarding an efficient and effective implementation of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (Public Law 110-289) within the Department of Financial Services. (g) Recommendations regarding additional changes that should be made in light of any developments at the federal level regarding the regulation of financial services. (h) Recommendations to better serve and protect financial consumers in California, including, but not limited to, public outreach and public protections. (i) Recommendations regarding the advisability of establishing recovery accounts to protect financial services consumers in California. (j) Recommendations regarding any staffing changes that are advisable. (k) Recommendations regarding any information technology changes that are advisable. (l) Recommendations regarding the optimal number, size, and locations of offices for the Department of Financial Services and its divisions and the Office of Financial Consumer Advocacy. (m) Recommendations regarding the structure of fees and other revenue sources, as well as reserve accounts. (n) The estimated cost impacts of all recommendations made and details regarding how those estimated impacts are expected to manifest. (o) Any other recommendations the Secretary of the Business, Transportation and Housing Agency believes would be helpful. (p) Recommendations regarding any necessary statutory changes required to achieve the recommendations made in the report. 49. On or before January 1, 2011, and for purposes of implementing Sections 46 and 47, the Real Estate Commissioner and the Director of the Office of Real Estate Appraisers shall submit a joint report to the Secretary of Business, Transportation and Housing that addresses the following: (a) Recommendations regarding the consolidation of the operations, licensing frameworks, and other aspects of the Department of Real Estate and the Office of Real Estate Appraisers. (b) Recommendations regarding any new or different authorities needed to effect the consolidation. (c) Recommendations regarding any firewalls between the Department of Real Estate and the Office of Real Estate Appraisers or employees that may be advisable to ensure compliance with federal law. Those recommendations shall protect the independence of the appraiser regulatory function from realty related activities, and ensure that decisions relating to appraisal license issuance, revocation, and disciplinary actions shall be made by the Director of the Office of Real Estate Appraisers and may not be made by the Real Estate Commissioner. (d) Recommendations regarding any necessary statutory changes required to achieve the recommendations made in the report. (e) Recommendations regarding any necessary regulation changes required to achieve the recommendations in the report. (f) Recommendations regarding the structure of fees and other revenue sources, as well as reserve accounts. (g) Recommendations regarding the future of the Recovery Account of the Real Estate Fund and the advisability of establishing additional or different recovery accounts to protect consumers in real estate transactions in California. (h) Recommendations regarding staffing changes that are advisable. (i) Recommendations regarding technology changes that are advisable. (j) Recommendations regarding state representation at administrative hearings. (k) The estimated cost impacts of all recommendations made and details regarding how those estimated impacts are expected to manifest. (l) Any other recommendations that the Real Estate Commissioner and the Director of the Office of Real Estate Appraisers believes would be helpful. (m) Recommendations addressing any federal level restrictions or impositions on such consolidation of entities.   SEC. 17.   Section 112 of the   Financial Code   is amended to read:  112. "Commissioner" means the Commissioner of Financial Institutions and "department" means the Department of Financial Institutions.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 18.   Section 112 is added to the   Financial Code   , to read:   112. (a) As used in this division, the following terms have the following meanings: (1) "Department of Financial Institutions" or "department" means the Department of Financial Services, Division of Financial Institutions. (2) "Commissioner of Financial Institutions" or "commissioner" means the Director of the Division of Financial Institutions. (b) This section shall become operative on July 1, 2011.   SEC. 19.   Section 210 of the   Financial Code   is amended to read:  210. The chief officer of the Department of Financial Institutions is the Commissioner of Financial Institutions. The Commissioner of Financial Institutions is the head of the department and, except as otherwise provided in this code, is subject to the provisions of the Government Code relating to department heads, but need not reside in Sacramento.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 20.   Section 210 is added to the   Financial Code  , to read:   210. The Director of the Division of Financial Institutions is the head of the Division of Financial Institutions, as specified in Division 0.5 (commencing with Section 25). This section shall become operative on July 1, 2011.   SEC. 21.   Section 252 of the   Financial Code   is amended to read:  252. 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.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 22.   Section 4805.055 of the   Financial Code   is amended to read:  4805.055. "Commissioner" means the Commissioner of Financial Institutions.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 23.   Section 4805.055 is added to the   Financial Code   , to read:   4805.055. (a) As used in this division, the following terms have the following meanings: (1) "Department of Financial Institutions" or "department" means the Department of Financial Services, Division of Financial Institutions. (2) "Commissioner of Financial Institutions" or "commissioner" means the Director of the Division of Financial Institutions. (b) This section shall become operative on July 1, 2011.   SEC. 24.   Section 4970 of the   Financial Code   is amended to read:  4970. For purposes of this division: (a) "Annual percentage rate" means the annual percentage rate for the loan calculated according to the provisions of the federal Truth in Lending Act and the regulations adopted thereunder by the Federal Reserve Board. (b) "Covered loan" means a consumer loan in which the original principal balance of the loan does not exceed the most current conforming loan limit for a single-family first mortgage loan established by the Federal National Mortgage Association in the case of a mortgage or deed of trust, and where one of the following conditions are met: (1) For a mortgage or deed of trust, the annual percentage rate at consummation of the transaction will exceed by more than eight percentage points the yield on Treasury securities having comparable periods of maturity on the 15th day of the month immediately preceding the month in which the application for the extension of credit is received by the creditor. (2) The total points and fees payable by the consumer at or before closing for a mortgage or deed of trust will exceed 6 percent of the total loan amount. (c) "Points and fees" shall include the following: (1) All items required to be disclosed as finance charges under Sections 226.4(a) and 226.4(b) of Title 12 of the Code of Federal Regulations, including the Official Staff Commentary, as amended from time to time, except interest. (2) All compensation and fees paid to mortgage brokers in connection with the loan transaction. (3) All items listed in Section 226.4(c)(7) of Title 12 of the Code of Federal Regulations, only if the person originating the covered loan receives direct compensation in connection with the charge. (d) "Consumer loan" means a consumer credit transaction that is secured by real property located in this state used, or intended to be used or occupied, as the principal dwelling of the consumer that is improved by a one-to-four residential unit. "Consumer loan" does not include a reverse mortgage, an open line of credit as defined in Part 226 of Title 12 of the Code of Federal Regulations (Regulation Z), or a consumer credit transaction that is secured by rental property or second homes. "Consumer loan" does not include a bridge loan. For purposes of this division, a bridge loan is any temporary loan, having a maturity of one year or less, for the purpose of acquisition or construction of a dwelling intended to become the consumer's principal dwelling. (e) "Original principal balance" means the total initial amount the consumer is obligated to repay on the loan. (f) "Licensing agency" shall mean the Department of Real Estate for licensed real estate brokers, the Department of Corporations for licensed residential mortgage lenders and licensed finance lenders and brokers, and the Department of Financial Institutions for commercial and industrial banks and savings associations and credit unions organized in this state.  On and after July 1, 2011, or as otherwise specified, "licensing agency" shall instead be defined as specified in Sections 25, 45, and 46.  (g) "Licensed person" means a real estate broker licensed under the Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code), a finance lender or broker licensed under the California Finance Lenders Law (Division 9 (commencing with Section 22000)), a residential mortgage lender licensed under the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000)), a commercial or industrial bank organized under the Banking Law (Division 1 (commencing with Section 99)), a savings association organized under the Savings Association Law (Division 2 (commencing with Section 5000)), and a credit union organized under the California Credit Union Law (Division 5 (commencing with Section 14000)). Nothing in this division shall be construed to prevent any enforcement by a governmental entity against any person who originates a loan and who is exempt or excluded from licensure by all of the licensing agencies, based on a violation of any provision of this division. Nothing in this division shall be construed to prevent the Department of Real Estate from enforcing this division against a licensed salesperson employed by a licensed real estate broker as if that salesperson were a licensed person under this division. A licensed person includes any person engaged in the practice of consumer lending, as defined in this division, for which a license is required under any other provision of law, but whose license is invalid, suspended or revoked, or where no license has been obtained. (h) "Originate" means to arrange, negotiate, or make a consumer loan. (i) "Servicer" has the same meaning provided in Section 6 (i)(2) of the Real Estate Settlement Procedures Act of 1974.  SEC. 25.   Section 5104 of the   Financial Code   is amended to read:  5104. "Commissioner" means the Commissioner of Financial Institutions.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 26.   Section 5104 is added to the   Financial Code   , to r   ead:   5104. As used in this division, "Commissioner of Financial Institutions" or "commissioner" means the Director of the Division of Financial Institutions. This section shall become operative on July 1, 2011.   SEC. 27.   Section 5106 of the   Financial Code   is amended to read:  5106. "Department" means the Department of Financial Institutions.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 28.   Section 5106 is added to the   Financial Code   , to read:   5106. As used in this division, "Department of Financial Institutions" or "department" means the Department of Financial Services, Division of Financial Institutions. This section shall become operative on July 1, 2011.   SEC. 29.  Section 12003 of the   Financial Code   is amended to read:  12003. "Commissioner" means the Commissioner of Corporations of the State of California, or any deputy, investigator, auditor, or any other person employed by him  or her  .  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 30.   Section 12003 is added to the   Financial Code   , to read:   12003. (a) As used in this division, the following terms have the following meanings: (1) "Department of Corporations" or "department" means the Department of Financial Services, Division of Corporations. (2) "Commissioner of Corporations" or "commissioner" means the Director of the Division of Corporations, or any deputy, investigator, auditor, or any other person employed by him or her. (b) This section shall become operative on July 1, 2011.   SEC. 31.   Section 14003 of the   Financial Code   is amended to read:  14003. "Commissioner" means the Commissioner of Financial Institutions of the State of California.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 32.   Section 14003 is added to the   Financial Code   , to read:   14003. (a) As used in this division, the following terms have the following meanings: (1) "Department of Financial Institutions" or "department" means the Department of Financial Services, Division of Financial Institutions. (2) "Commissioner of Financial Institutions" or "commissioner" means the Director of the Division of Financial Institutions. (b) This section shall become operative on July 1, 2011.   SEC. 33.   Section 17002 of the   Financial Code   is amended to read:  17002. "Commissioner" means the Commissioner of Corporations.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 34.   Section 17002 is added to the   Financial Code   , to read:   17002. (a) As used in this division, the following terms have the following meanings: (1) "Department of Corporations" or "department" means the Department of Financial Services, Division of Corporations. (2) "Commissioner of Corporations" or "commissioner" means the Director of the Division of Corporations. (b) This section shall become operative on July 1, 2011.   SEC. 35.   Section 18002 of the   Financial Code   is amended to read:  18002. "Commissioner" means the Commissioner of Financial Institutions of the State of California.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 36.   Section 18002 is added to the   Financial Code   , to read:   18002. As used in this division, "Commissioner of Financial Institutions" or "commissioner" means the Director of the Division of Financial Institutions. This section shall become operative on July 1, 2011.   SEC. 37.   Section 18002.5 of the   Financial Code   is amended to read:  18002.5. "Department" means the Department of Financial Institutions.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 38.   Section 18002.5 is added to the   Financial Code   , to read:   18002.5. As used in this division, "Department of Financial Institutions" or "department" means the Department of Financial Services, Division of Financial Institutions. This section shall become operative on July 1, 2011.   SEC. 39.   Section 22005 of the   Financial Code   is amended to read:  22005. "Commissioner" means the Commissioner of Corporations.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 40.   Section 22005 is added to the   Financial Code  , to read:   22005. (a) As used in this division, the following terms have the following meanings: (1) "Department of Corporations" or "department" means the Department of Financial Services, Division of Corporations. (2) "Commissioner of Corporations" or "commissioner" means the Director of the Division of Corporations. (b) This section shall become operative on July 1, 2011.   SEC. 41.   Section 23001 of the   Financial Code   is amended to read   :  23001. As used in this division, the following terms have the following meanings: (a) "Deferred deposit transaction" means a transaction whereby a person defers depositing a customer's personal check until a specific date, pursuant to a written agreement for a fee or other charge, as provided in Section 23035. (b) "Commissioner" means the Commissioner of Corporations  , except as specified in Section 23002  . (c) "Department" means the Department of Corporations  , except as specified in Section 23002  . (d) "Licensee" means any person who offers, originates, or makes a deferred deposit transaction, who arranges a deferred deposit transaction for a deferred deposit originator, who acts as an agent for a deferred deposit originator, or who assists a deferred deposit originator in the origination of a deferred deposit transaction. However, "licensee" does not include a state or federally chartered bank, thrift, savings association, industrial loan company, or credit union. "Licensee" also does not include a retail seller engaged primarily in the business of selling consumer goods, including consumables, to retail buyers that cashes checks or issues money orders for a minimum fee not exceeding two dollars ($2) as a service to its customers that is incidental to its main purpose or business. "Licensee" also does not include an employee regularly employed by a licensee at the licensee's place of business. An employee, when acting under the scope of the employee's employment, shall be exempt from any other law from which the employee's employer is exempt. (e) "Person" means an individual, a corporation, a partnership, a limited liability company, a joint venture, an association, a joint stock company, a trust, an unincorporated organization, a government entity, or a political subdivision of a government entity. (f) "Deferred deposit originator" means a person who offers, originates, or makes a deferred deposit transaction.  SEC. 42.   Section 23002 is added to the   Financial Code   , to read:   23002. (a) As used in this division, the following terms have the following meanings: (1) "Department of Corporations" or "department" means the Department of Financial Services, Division of Corporations. (2) "Commissioner of Corporations" or "commissioner" means the Director of the Division of Corporations. (b) This section shall become operative on July 1, 2011.   SEC. 43.   Section 30002 of the   Financial Code   is amended to read:  30002. "Commissioner" means the Commissioner of Corporations.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 44.   Section 30002 is added to the   Financial Code   , to read:   30002. (a) As used in this division, the following terms have the following meanings: (1) "Department of Corporations" or "department" means the Department of Financial Services, Division of Corporations. (2) "Commissioner of Corporations" or "commissioner" means the Director of the Division of Corporations. (b) This section shall become operative on July 1, 2011.   SEC. 45.   Section 31055 of the   Financial Code   is amended to read:  31055. "Commissioner" means the Commissioner of Financial Institutions  ,  or any person to whom the Commissioner of Financial Institutions delegates the authority to act for him or her in the particular matter.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 46.   Section 31055 is added to the   Financial Code   , to read:   31055. (a) As used in this division, the following terms have the following meanings: (1) "Department of Financial Institutions" or "department" means the Department of Financial Services, Division of Financial Institutions. (2) "Commissioner of Financial Institutions" or "commissioner" means the Director of the Division of Financial Institutions, or any person to whom the director delegates the authority to act for him or her in a particular matter. (b) This section shall become operative on July 1, 2011.   SEC. 47.   Section 33045.5 of the   Financial Code   is amended to read:  33045.5. "Commissioner" means the Commissioner of Financial Institutions  ,  or any person to whom the Commissioner of Financial Institutions delegates the authority to act for the Commissioner of Financial Institutions in this matter.  This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.  SEC. 48.   Section 33045.5 is added to the   Financial Code   , to read:   33045.5. (a) As used in this division, the following terms have the following meanings: (1) "Department of Financial Institutions" or "department" means the Department of Financial Services, Division of Financial Institutions. (2) "Commissioner of Financial Institutions" or "commissioner" means the Director of the Division of Financial Institutions, or any person to whom the director delegates the authority to act for him or her in a particular matter. (b) This section shall become operative on July 1, 2011.   SEC. 49.   Section 50003.5 is added to the   Financial Code   , to read:   50003.5. (a) Notwithstanding Section 50003, as used in this division, the following terms have the following meanings: (1) "Department of Corporations" or "department" means the Department of Financial Services, Division of Corporations. (2) "Commissioner of Corporations" or "commissioner" means the Director of the Division of Corporations. (b) This section shall become operative on July 1, 2011.   SEC. 50.   Section 13975 of the   Government Code   is amended to read:  13975. (a)    The Business and Transportation Agency in state government is hereby renamed the Business, Transportation and Housing Agency. The agency consists of the State Department of Alcoholic Beverage Control, the Department of the California Highway Patrol, the Department of Corporations, the Department of Housing and Community Development, the Department of Motor Vehicles, the Department of Real Estate, the Department of Transportation, the Department of Financial Institutions, the Department of Managed Health Care, and the Board of Pilot Commissioners for the Bays of San Francisco, San Pablo, and Suisun  ; and the   .   The  California Housing Finance Agency is also located within the Business, Transportation and Housing Agency, as specified in Division 31 (commencing with Section 50000) of the Health and Safety Code.  (b) This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 51.   Section 13975 is added to the   Government Code   , to read:   13975. (a) The Business and Transportation Agency in state government is hereby renamed the Business, Transportation and Housing Agency. The agency consists of the State Department of Alcoholic Beverage Control, the Department of the California Highway Patrol, the Department of Financial Services, the Department of Housing and Community Development, the Department of Motor Vehicles, the Department of Real Estate, the Department of Transportation, the Department of Managed Health Care, and the Board of Pilot Commissioners for the Bays of San Francisco, San Pablo, and Suisun. The California Housing Finance Agency is also located within the Business, Transportation and Housing Agency, as specified in Division 31 (commencing with Section 50000) of the Health and Safety Code. (b) This section shall become operative on July 1, 2011.   SEC. 52.   Section 13978.6 of the   Government Code   is amended to read:  13978.6. (a) The Secretary of the Business, Transportation and Housing Agency shall be generally responsible for the sound fiscal management of each department, office, or other unit within the agency. The secretary shall review and approve the proposed budget of each department, office, or other unit. The secretary shall hold the head of each department, office, or other unit responsible for management control over the administrative, fiscal, and program performance of his or her department, office, or other unit. The secretary shall review the operations and evaluate the performance at appropriate intervals of each department, office, or other unit, and shall seek continually to improve the organization structure, the operating policies, and the management information systems of each department, office, or other unit. (b) There is in the Business, Transportation, and Housing Agency a Department of Corporations, which has the responsibility for administering various laws. In order to effectively support the Department of Corporations in the administration of these laws, there is hereby established the State Corporations Fund. All expenses and salaries of the Department of Corporations shall be paid out of the State Corporations Fund. Therefore, notwithstanding any provision of any law administered by the Department of Corporations declaring that fees, reimbursements, assessments, or other money or amounts charged and collected by the Department of Corporations under these laws are to be delivered or transmitted to the Treasurer and deposited to the credit of the General Fund, on and after July 1, 1992, all fees, reimbursements, assessments, and other money or amounts charged and collected under these laws and attributable to the 1992-93 fiscal year and subsequent fiscal years shall be delivered or transmitted to the Treasurer and deposited to the credit of the State Corporations Fund. (c) Funds appropriated from the State Corporations Fund and made available for expenditure for any law or program of the Department of Corporations may come from the following: (1) Fees and any other amounts charged and collected pursuant to Section 25608 of the Corporations Code, except for fees and other amounts charged and collected pursuant to subdivisions (o) to (r), inclusive, of Section 25608 of the Corporations Code. (2) Fees collected pursuant to subdivisions (a), (b), (c), and (d) of Section 25608.1 of the Corporations Code.  (d) This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.   SEC. 53.   Section 13978.6 is added to the   Government Code   , to read:   13978.6. (a) The Secretary of the Business, Transportation and Housing Agency shall be generally responsible for the sound fiscal management of each department, office, or other unit within the agency. The secretary shall review and approve the proposed budget of each department, office, or other unit. The secretary shall hold the head of each department, office, or other unit responsible for management control over the administrative, fiscal, and program performance of his or her department, office, or other unit. The secretary shall review the operations and evaluate the performance at appropriate intervals of each department, office, or other unit, and shall seek continually to improve the organization structure, the operating policies, and the management information systems of each department, office, or other unit. (b) There is in the Business, Transportation and Housing Agency a Department of Financial Services, which has the responsibility for administering various laws. In order to effectively support the Department of Financial Services in the administration of these laws, there is hereby continued in existence the State Corporations Fund. All expenses and salaries of the Department of Financial Services shall be paid out of the State Corporations Fund. Therefore, notwithstanding any provision of any law administered by the Department of Financial Services declaring that fees, reimbursements, assessments, or other money or amounts charged and collected by the Department of Financial Services under these laws are to be delivered or transmitted to the Treasurer and deposited to the credit of the General Fund, on and after July 1, 1992, all fees, reimbursements, assessments, and other money or amounts charged and collected under these laws and attributable to the 1992-93 fiscal year and subsequent fiscal years shall be delivered or transmitted to the Treasurer and deposited to the credit of the State Corporations Fund. (c) Funds appropriated from the State Corporations Fund and made available for expenditure for any law or program of the Department of Financial Services may come from the following: (1) Fees and any other amounts charged and collected pursuant to Section 25608 of the Corporations Code, except for fees and other amounts charged and collected pursuant to subdivisions (o) to (r), inclusive, of Section 25608 of the Corporations Code. (2) Fees collected pursuant to subdivisions (a), (b), (c), and (d) of Section 25608.1 of the Corporations Code. (d) This section shall become operative on July 1, 2011.  All matter omitted in this version of the bill appears in the bill as amended in the Assembly, March 24, 2009 (JR11)