DBO Establishes Protocol To Block Unlicensed Payday Lenders’ Ads

When I served as California’s Commissioner of Corporations, Internet commerce was just finding its legs and we were concerned about how to apply the Corporate Securities Law to this new technology.  For state regulators, the challenge has been how to prevent unlicensed activity from entering the state through the Internet.  This week, the Department of

Legislature Considers Allowing Alternative Currencies

Last March, I pointed out that Corporations Code Section 107 prohibits any corporation, flexible purpose corporation, association or individual from issuing or putting in circulation, as money, anything but the lawful money of the United States.  This raised the question in my mind whether Bitcoin was money.  See Ever Wonder What Money Is? California Has

DBO to Licensees: “Thou Shalt Have A Dedicated Electronic Mailbox And Read Your Email Daily”

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Late last month, Department of Business Oversight Commissioner Jan Owen issued an order requiring licensees to: establish within their computer electronic mail system an electronic mailbox; dedicate the email address to receiving communications from the DBO; and monitor the mailbox daily. The Commissioner’s order further requires that the mailbox have the capability of receiving attachments.  The Commissioner

Money Transmission Act Petition Withdrawn/Initiative Would Presume Harm For Release Of “Personally Identifying Information”

Money Transmission Act Petition Withdrawn Earlier this month, I wrote about a pending petition questioning the failure of the Department of Business Oversight to adopt regulations under the Money Transmission Act.  I’ve recently learned that after receiving assurance from the DBO that it would adopt regulations soon, the petitioner decided to withdraw the petition.  If the

Petition Questions Lack Of MTA Regulations

Soon, the Office of Administrative Law will decide whether it will determine the merits of a petition for review of underground regulations allegedly being enforced by the Department of Business Oversight (fka Department of Financial Institutions).  Regardless of whether the OAL accepts the petition, the petition raises some troubling questions about the DBO’s administration and

Ever Wonder Who’s In Charge At The Department Of Business Oversight?

I’m still adjusting to the fact that the Departments of Corporations and Financial Institutions have merged or morphed into the totalitarian sounding Department of Business Oversight.  See DOC and DFI – RIP.  Like each of its predecessors, the new Department is headed by a single Commissioner.  In July, Governor Brown appointed Jan Lynn Owen as the Department’s

Ever Wonder What Money Is? California Has Some Answers And I Have Some Questions

Yesterday’s post discussed virtual currencies (e.g., Bitcoin) and the General Corporation’s law prohibition on issuing or putting into circulation money.  But what exactly is money?  The General Corporation Law has no answer.  I’m aware of at least three different California statutes that define “money”. Government Sanction Seems To Be The Sine Qua Non Of Money First, we have the California Uniform Commercial

New Law Aims To Make It Easier To Levy On Bank Accounts

Last year, the Consumer Financial Services Committee of the Business Law Section of the California State Bar sponsored AB 2364 (Wagner).  This bill, which took effect on Tuesday, is intended to simplify the process for levying on bank accounts for both creditors and banks.  Until now, a creditor was required to identify and serve separately each branch of a

No Complaint Window At Many State Agencies

John Milton is one of my favorite writers.  In his influential defense of freedom of speech, Areopagitica, he linked liberty to the right to complain about the government: [B]ut when complaints are freely heard, deeply consider’d and speedily reform’d, then is the utmost bound of civill liberty attain’d, that wise men looke for. (original spelling)

Bank Group Seeks Depublication Of Bank Libel Opinion

In this post, I wrote about a recent decision by the First District Court of Appeal declaring Financial Code Section 1327 unconstitutional on its face.  Summit Bank v. Rogers, 2012 Cal. App. LEXIS 633 (May 29, 2012).  That statute generally makes it illegal to make derogatory comments about a bank.  In this 2010 post, I had