Revocation Of Licenses - - CA Financial

Section § 12400

This law outlines the circumstances under which a commission can suspend or revoke a business license. If a licensee fails to report new mobile units, branch offices, or agency locations within 10 days, doesn't comply with commission demands, violates rules, or if any concerning fact arises that would have initially prevented them from getting the license, their license may be at risk.

The commissioner may, upon reasonable opportunity to be heard, suspend or revoke any license issued pursuant to this division, if he finds that:

(a) The licensee has failed to report within 10 days the establishment of a mobile unit, branch office, or agency location, or has failed upon demand of the commissioner pursuant to Section 12301.4 of this code to terminate and cancel any agency.

(b) The licensee has violated any provision of this division or any rule or regulation made by the commissioner under and with the authority of this division.

(c) Any fact or condition exists which, if it had existed at the time of the original application for such license, reasonably would have warranted the commissioner in refusing originally to issue such license.

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(Amended by Stats. 1968, Ch. 869.)

Section § 12401

This law allows the commissioner to temporarily suspend someone's license for up to 30 days. The suspension can happen after giving three days' notice and holding a hearing while an investigation takes place.

The commissioner may upon three days’ notice and a hearing, suspend any license for a period not exceeding 30 days, pending investigation.

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(Enacted by Stats. 1951, Ch. 364.)

Section § 12401.1

If a licensee doesn't pay their required fee within 10 days after being notified by the commissioner, their license can be suspended or revoked right away. However, if the licensee requests a hearing in writing, and it doesn't happen within 60 days, the suspension or revocation is canceled as if it never happened.

The commissioner may by order summarily suspend or revoke the license of a licensee who fails to pay the license fee prescribed by Section 12214 within 10 days after notice by the commissioner that such fee is due and payable. If, after such an order is made, a request for hearing is filed in writing and hearing is not held within 60 days thereafter, the order is rescinded as of its effective date.

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(Amended by Stats. 1972, Ch. 644.)

Section § 12402

This law states that unless a different timeline is specified, all hearings related to this division must follow the procedures outlined in another section of the Government Code. Additionally, the commissioner involved in these hearings has all the powers described in that section.

Except where a shorter time for setting the hearing is prescribed in this division, all hearings under this division shall be conducted in accordance with Chapter 5 of Part 1 of Division 3 of Title 2 of the Government Code and in all cases the commissioner shall have all the powers granted therein.

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(Enacted by Stats. 1951, Ch. 364.)

Section § 12403

If you disagree with a decision or action made by the commissioner, you have the right to have it reviewed following legal procedures.

Every order, decision, license, or other official act of the commissioner is subject to review in accordance with law.

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(Enacted by Stats. 1951, Ch. 364.)

Section § 12404

This law allows the commissioner to take action against specific individuals or organizations involved in financial services. If someone violates certain regulations or is involved in crimes related to dishonesty or fraud, the commissioner can censure or temporarily suspend them for up to a year, or even permanently bar them from related work. This decision follows proper notice and an opportunity for a hearing under the Administrative Procedure Act. If the person doesn't ask for a hearing within 15 days of notification, they lose their right to one. Once a notice is issued, the individual is immediately banned from participating in related business activities. Barred individuals cannot engage in business where regulated activities occur.

(a) The commissioner may, after appropriate notice and opportunity for hearing, by order, censure or suspend for a period not exceeding 12 months, or bar from any position of employment, management, or control any licensee, any nonprofit community service organization subject to Section 12104, or any other person, if the commissioner finds either of the following:

(1) That the censure, suspension, or bar is in the public interest and that the person has committed or caused a violation of this division or rule or order of the commissioner, which violation was either known or should have been known by the person committing or causing it or has caused material damage to the licensee, nonprofit community service organization, or to the public.

(2) That the person has been convicted of or pleaded nolo contendere to any crime, or has been held liable in any civil action by final judgment, or any administrative judgment by any public agency, if that crime or civil or administrative judgment involved any offense involving dishonesty, fraud, or deceit, or any other offense reasonably related to the qualifications, functions, or duties of a person engaged in the business in accordance with the provisions of this division.

(b) Within 15 days from the date of a notice of intention to issue an order pursuant to subdivision (a), the person may request a hearing under the Administrative Procedure Act (Chapter 4.5 (commencing with Section 11400) of Division 3 of Title 2 of the Government Code). Upon receipt of a request, the matter shall be set for hearing to commence within 30 days after such receipt unless the person subject to this division consents to a later date. If no hearing is requested within 15 days after the mailing or service of such notice and none is ordered by the commissioner, the failure to request a hearing shall constitute a waiver of the right to a hearing.

(c) Upon receipt of a notice of intention to issue an order pursuant to this section, the person who is the subject of the proposed order is immediately prohibited from engaging in any activities subject to licensure or exempt from licensure under Section 12104 of the law.

(d) Persons suspended or barred under this section are prohibited from participating in any business activity of a licensee or a person exempt from licensure under Section 12104 and from engaging in any business activity on the premises where a licensee or a person exempt from licensure under Section 12104 is conducting business.

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(Added by Stats. 2007, Ch. 101, Sec. 16. Effective January 1, 2008.)