Administration And Power Of The Commissioner - - CA Financial

Section § 28152

The commissioner examines licensed businesses at least once every three years to ensure they follow the rules. The commissioner can also look into other related companies if there's proof of illegal activity connected to the licensed company.

Businesses must pay for these examinations, which the commissioner could legally collect. The findings belong to the commissioner and are shared only with the business, law enforcement, or regulatory agencies for further action. The commissioner provides a written report to the business and ensures any rule-breaking is fixed.

If the commissioner finds it unnecessary, some branch office exams might be skipped to protect the public.

(a) As often as the commissioner deems necessary and appropriate, but at least once every 36 months, the commissioner shall examine the affairs of each licensee for compliance with this division. The commissioner shall appoint suitable persons to perform the examination. The commissioner and his or her appointees may examine the books, records, and documents of the licensee, and may examine the licensee’s officers, directors, employees, or agents under oath regarding the licensee’s operations. The commissioner may cooperate with any agency of the state, the federal government, or other states.

(b) Unless otherwise exempt pursuant to Section 28102, affiliates of a licensee are subject to examination by the commissioner on the same terms as the licensee, but only when reports from, or examination of, a licensee provides documented evidence of unlawful activity between a licensee and affiliate benefitting, affecting, or arising from the activities regulated by this division.

(c) The cost of each examination of a licensee shall be paid to the commissioner by the licensee examined, and the commissioner may maintain an action for the recovery of the cost in any court of competent jurisdiction. In determining the cost of the examination, the commissioner may use the estimated average hourly cost for all persons performing examinations of licensees or other persons subject to this division for the fiscal year.

(d) The statement of the findings of an examination shall belong to the commissioner and shall not be disclosed to anyone other than the licensee, law enforcement officials, or other state or federal regulatory agencies for further investigation and enforcement. Reports required of licensees by the commissioner under this division and results of examinations performed by the commissioner under this division are the property of the commissioner.

(e) The commissioner shall provide a written statement of the findings of the examination, issue a copy of that statement to the licensee and take appropriate steps to ensure correction of any violations of this division.

(f) Notwithstanding any provision of this division, the commissioner shall have the authority to waive one or more branch office examinations, if the commissioner deems that the branch office examinations are not necessary for the protection of the public, due to the centralized operations of the licensee or other factors acceptable to the commissioner.

commissioner examination licensee compliance business examination costs affiliates examination unlawful activity investigation examination findings regulatory agency cooperation examination exemption branch office waiver centralized operations public protection business rule violations licensee examinations examination frequency state and federal cooperation

(Added by Stats. 2016, Ch. 824, Sec. 2. (AB 2251) Effective January 1, 2017. Operative July 1, 2018, pursuant to Section 28182.)

Section § 28153

This law says that if you're not specifically excluded by another part of this law, the commissioner can ask you to provide information in writing or fill out special reports. You'll need to do this under oath or however the commissioner asks, and within a reasonable timeframe set by them.

The commissioner may require persons who are not expressly excluded from this division under subdivision (b) of Section 28102 to file with the commissioner, under oath or otherwise, in the form and within a reasonable period of time as prescribed by the commissioner by special reports, or answers in writing to specific questions or requests for information.

commissioner's request information submission special reports under oath timely response prescribed format specific questions information requests non-excluded individuals compliance requirements reporting obligations information filing

(Added by Stats. 2018, Ch. 379, Sec. 19. (AB 38) Effective January 1, 2019.)

Section § 28153.5

If someone wants to claim that they are exempt or have an exception from a certain definition in this legal context, they are responsible for proving it themselves.

In any proceeding under this division, the burden of proving an exemption or an exception from a definition is upon the person claiming it.

burden of proof claiming exemption proving exception definition exception responsibility of claimant legal proceeding exemption claim financial exemptions CA burden of proof exceptions in law proving a claim evidence requirement exemption burden legal exceptions responsibility definition exemptions

(Added by Stats. 2018, Ch. 379, Sec. 20. (AB 38) Effective January 1, 2019.)