reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 5 - Eligible Securities › Section 2084.

2084. (a) A licensee shall be deemed to own an eligible security only if the following apply:
(1) (A) The licensee owns the eligible security solely and exclusively in its own right, both of record and beneficially.
(B) Notwithstanding subparagraph (A), a licensee shall be deemed to own accounts held for the benefit of the licensee’s customers that otherwise meet the requirements of paragraph (2) of subdivision (b) of Section 2082.
(2) The eligible security is not subject to any pledge, lien, or security interest.
(3) The licensee can freely negotiate, assign, or otherwise transfer the eligible security.
(b) Notwithstanding subdivision (a), a licensee shall not be deemed not to own an eligible security solely on account of either of the following facts, provided that, but for that fact, the licensee would be deemed to own the eligible security under the provisions of subdivision (a):
(1) The fact that the eligible security is owned of record by a documented nominee of the licensee or by a securities depository.
(2) The fact that the licensee has pledged the eligible security with the United States or any state of the United States to secure payment by the licensee of transmission money.
(Amended by Stats. 2023, Ch. 463, Sec. 9. (AB 1116) Effective January 1, 2024.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 5 - Eligible Securities › Section 2085.

2085. If the commissioner finds that any eligible security or class of eligible securities is not of sufficient liquidity or quality to be eligible securities, the commissioner may by regulation or order declare the security or class of securities to be ineligible.
(Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 5 - Eligible Securities › Section 2086.

2086. If the commissioner finds that any security or class of securities that is not an eligible security is of sufficient liquidity and quality to be an eligible security, the commissioner may by regulation or order declare the security or class of securities to be eligible securities.
(Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 5 - Eligible Securities › Section 2087.

2087. (a) If the commissioner finds that a rating assigned to a class of securities by an eligible securities rating service indicates that the class of securities is of sufficient quality to be eligible securities, the commissioner may by regulation or order declare the rating to be an eligible rating.
(b) With respect to this division “eligible rating” means any rating assigned to such security or class of securities by such eligible securities rating service which the commissioner has by regulation or order declared to be an eligible rating.
(Amended by Stats. 2012, Ch. 356, Sec. 20. (SB 979) Effective January 1, 2013.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 5 - Eligible Securities › Section 2088.

2088. (a) The commissioner may by regulation or order declare a credit rating agency to be an eligible securities rating service if the commissioner finds the following with respect to the securities rating service:
(1) It has been continuously engaged in the business of rating securities for a period of not less than three years.
(2) It is competent to rate securities and is nationally recognized for rating securities in a competent manner.
(3) It publishes its ratings of securities on a nationwide basis.
(b) With respect to this division “eligible securities rating service” means any credit rating agency that the commissioner by regulation or order declared to be an eligible securities ratings service.
(Amended by Stats. 2014, Ch. 499, Sec. 11. (AB 2209) Effective January 1, 2015.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 5 - Eligible Securities › Section 2089.

2089. A licensee shall maintain eligible securities that are adequately diversified, predominantly of a duration commensurate with the licensee’s outstanding money transmission obligations, and of sufficient liquidity and quality to promptly pay the outstanding money transmission obligations of the licensee.
(Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 6 - Consumer Disclosures › Section 2100.

2100. (a) (1) Each licensee shall file with the commissioner a certified copy of every receipt form used by it or by its agent for receiving money for transmission prior to its first use. No licensee or its agent shall use any receipt, a certified copy of which has not been filed with the commissioner, or use a receipt that the commissioner has deemed not to be in compliance pursuant to paragraph (2).
(2) If the commissioner determines, within 30 business days of the filing date of a receipt, that the receipt does not comply with the requirements of this section or Sections 2102 and 2103, the commissioner shall notify the licensee in writing that the receipt is not in compliance with those requirements.
(b) Notwithstanding subdivision (a), before a new licensee issues its first receipt to a customer, it shall file with the commissioner a certified copy of the receipt forms to be used by it or its agents for receiving money for transmission. The new licensee shall not use the receipt forms until approved by the commissioner. For purposes of this subdivision, a new licensee is a licensee that has not been previously licensed by the commissioner as a money transmitter or has not previously received money for transmission in California.
(c) If a receipt is required by this division to be in English and another language, the English version of the receipt shall govern any dispute concerning the terms of the receipt. However, any discrepancies between the English version and any other version due to the translation of the receipt from English to another language including errors or ambiguities shall be construed against the licensee or its agent and the licensee or its agent shall be liable for any damages caused by these discrepancies.
(d) Any licensee violating the requirements of this section shall be subject to a fine of fifty dollars ($50) for each violation. This provision is in addition to any other enforcement provisions that may apply to such a violation.
(e) If any licensee or its agent uses a receipt form, a certified copy of which has not been filed with the commissioner, the licensee shall be liable for the acts of its agent whether or not the licensee authorized the agent to use that form.
(f) The receipt form shall comply with the requirements of Sections 2102 and 2103.
(Amended by Stats. 2012, Ch. 356, Sec. 22. (SB 979) Effective January 1, 2013.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 6 - Consumer Disclosures › Section 2101.

2101. Every licensee or its agent shall forward all money received for transmission or give instructions committing equivalent money to the person designated by the customer. Unless the transmission is for the payment of goods or services or unless otherwise ordered by his or her customer, this requirement shall be satisfied within 10 days after receiving that money.
(Amended by Stats. 2013, Ch. 533, Sec. 7. (AB 786) Effective January 1, 2014.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 6 - Consumer Disclosures › Section 2102.

2102. (a) Every licensee or its agent shall refund to the customer within 10 days of receipt of the customer’s written request for a refund any and all money received for transmission unless any of the following occurs:
(1) The money has been forwarded within 10 days of the date of receipt.
(2) Instructions have been given committing an equivalent amount of money to the person designated by the customer within 10 days of the date of the receipt of the money from the customer.
(3) The customer instructs the licensee to transmit the money at a time beyond 10 days. If the customer gives instructions as to when the money shall be forwarded or transmitted and the moneys have not yet been forwarded or transmitted, the licensee or its agent shall refund the customer’s money within 10 days of receipt of the customer’s written request for a refund.
(4) The refund would violate law.
(b) If a customer’s instructions as to when the money shall be forwarded or transmitted are not complied with and the money has not yet been forwarded or transmitted, the customer has a right to a refund of his or her money. A cause of action under this section may be brought in small claims court if it does not exceed the jurisdiction of that court, or in any other appropriate court. The customer shall be entitled to recover each of the following:
(1) Any and all money received for transmission, plus any fees and charges paid by the customer.
(2) A penalty in an amount not to exceed one thousand dollars ($1,000). The court shall award the prevailing party costs and attorney’s fees.
(Amended by Stats. 2014, Ch. 499, Sec. 12. (AB 2209) Effective January 1, 2015.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 6 - Consumer Disclosures › Section 2104.

2104. Each licensee or agent shall prominently post on the premises of each branch office that issues or sells payment instruments, and at machines located in this state and operated by the licensee or agent that issues or sells payment instruments, a notice clearly stating that payment instruments are not insured by the federal government, the state government, or any other public or private entity. This notice shall be printed in English and in the same language principally used by the licensee or any agent of the licensee to advertise, solicit, or negotiate, either orally or in writing, with respect to the purchase of payment instruments. The information required in this notice shall be clear, legible, and in letters not less than one-half inch in height. The notice shall be posted in a conspicuous location in the unobstructed view of the public within the premises. The licensee shall provide to each of its agents the notice required by this section. In those locations operated by an agent, the agent, not the licensee, shall be responsible for the failure to properly post the required notice.
(Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 6 - Consumer Disclosures › Section 2105.

2105. (a) Each licensee or agent shall prominently post on the premises of each branch office that conducts money transmission a notice stating that:
“If you have complaints with respect to any aspect of the money transmission activities conducted at this location, you may contact the California Department of Financial Protection and Innovation at its toll-free telephone number, 1-866-275-2677, by email at consumer.services@dfpi.ca.gov, or by mail at the Department of Financial Protection and Innovation, Consumer Services, 2101 Arena Boulevard, Sacramento, CA 95834.”
(b) The commissioner may by order or regulation modify the content of the notice required by this section. This notice shall be printed in English and in the same language principally used by the licensee or any agent of the licensee to advertise, solicit, or negotiate either orally or in writing, with respect to money transmission at that branch office. The information required in this notice shall be clear, legible, and in letters not less than one-half inch in height. The notice shall be posted in a conspicuous location in the unobstructed view of the public within the premises. The licensee shall provide to each of its agents the notice required by this section. In those locations operated by an agent, the agent, and not the licensee, shall be responsible for the failure to properly post the required notice.
(c) In the event that a licensee or agent conducts money transmission activity via an internet website or a mobile application that is not in a branch office, the commissioner may authorize an alternative form of the notice required in subdivision (a).
(Amended by Stats. 2022, Ch. 16, Sec. 1. (SB 577) Effective April 28, 2022.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 6 - Consumer Disclosures › Section 2106.

2106. (a) No licensee shall sell or issue any form of payment instrument in California unless a certified copy of the payment instrument has first been filed with the commissioner. The payment instrument shall clearly identify the licensee as the issuer.
(b) The commissioner may by order or regulation declare that a form of payment instrument is prohibited if it is misleading in any material respect or otherwise does not comply with applicable law.
(c) A payment instrument that identifies the agent through which the licensee sells the payment instrument shall identify the agent as such and shall identify the licensee at least as conspicuously as it does the agent.
(Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 6 - Consumer Disclosures › Section 2107.

2107. (a) A licensee shall prominently display on its internet website a toll-free telephone number through which a customer may contact the licensee for customer service issues and receive live customer assistance.
(b) The telephone line shall be operative at least 10 hours per day, Monday through Friday, excluding federal holidays.
(c) This section shall become operative on July 1, 2022.
(Added by Stats. 2021, Ch. 453, Sec. 2. (AB 1320) Effective January 1, 2022. Operative July 1, 2022, by its own provisions.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 7 - Examinations, Special Reports, and Records › Section 2120.

2120. (a) The commissioner may at any time and from time to time examine the business and any office, within or outside this state, of any licensee or any agent of a licensee in order to ascertain whether that business is being conducted in a lawful manner and whether all money transmission is properly accounted for.
(b) The directors, officers, and employees of any licensee or agent of a licensee being examined by the commissioner shall exhibit to the commissioner, on request, any or all of the licensee’s accounts, books, correspondence, memoranda, papers, and other records and shall otherwise facilitate the examination so far as it may be in their power to do so.
(Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 7 - Examinations, Special Reports, and Records › Section 2121.

2121. The commissioner may consult and cooperate with other state or federal money transmission regulators in enforcing and administering this division. They may jointly pursue examinations and take other official action that they are otherwise empowered to take.
(Amended by Stats. 2012, Ch. 356, Sec. 23. (SB 979) Effective January 1, 2013.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 7 - Examinations, Special Reports, and Records › Section 2122.

2122. A licensee shall file a report with the commissioner within five business days after the licensee has reason to know of the occurrence any of the following events:
(a) The filing of a petition by or against the licensee under the United States Bankruptcy Code (11 U.S.C. Secs. 101-110, incl.) for bankruptcy or reorganization.
(b) The filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors.
(c) The commencement of a proceeding to revoke or suspend its license in a state or country in which the licensee engages in business or is licensed.
(d) The cancellation or other impairment of the licensee’s bond or other security.
(e) A charge or conviction of the licensee or of an executive officer, manager, director, or person in control of the licensee for a felony.
(f) A charge or conviction of an agent for a felony.
(Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 7 - Examinations, Special Reports, and Records › Section 2123.

2123. A licensee that is a money services business under the regulations adopted pursuant to the United States Bank Secrecy Act (31 C.F.R. Chapter X) and the agents of the licensee that are money services businesses shall comply with those regulations.
(Amended by Stats. 2022, Ch. 452, Sec. 104. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 7 - Examinations, Special Reports, and Records › Section 2124.

2124. (a) A licensee shall maintain the following records for determining its compliance with this division for at least three years:
(1) A record of each payment instrument or stored value obligation sold.
(2) A general ledger posted at least monthly containing all asset, liability, capital, income, and expense accounts.
(3) Bank statements and bank reconciliation records.
(4) Records of outstanding payment instruments and stored value obligations.
(5) Records of each payment instrument and stored-value obligation paid within the three-year period.
(6) A list of the last known names and addresses of all of the licensee’s agents and their branch offices.
(7) Any other records the commissioner reasonably requires by order or regulation.
(b) A licensee or its agent shall maintain records of any receipts provided pursuant to Section 2102 for six months or a longer period of time specified in the contract between the licensee and its agent.
(c) The items specified in subdivisions (a) and (b) may be maintained in any form of record.
(d) Records may be maintained outside this state if they are made available to the commissioner on seven days’ notice that is sent in a record.
(e) If records not required to be maintained in English pursuant to Section 456 are in a language other than English, the licensee shall provide records translated into English within seven days’ notice that is sent in a record.
(f) Each licensee shall maintain any other records required by the commissioner.
(Amended by Stats. 2014, Ch. 499, Sec. 15. (AB 2209) Effective January 1, 2015.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 7 - Examinations, Special Reports, and Records › Section 2125.

2125. A licensee adding or replacing a key individual shall do all of the following:
(a) Provide notice to the commissioner within 15 days after the effective date of the key individual’s appointment.
(1) Within 90 days of compliance with this subdivision, the commissioner may issue a notice of disapproval of a key individual if the competence, experience, character, or integrity of the individual supports a determination by the commissioner that it is not in the best interests of the public or the licensee’s customers to permit the individual to be a key individual of the licensee.
(2) If the notice provided pursuant to this subdivision is not disapproved within 90 days after the date on which the notice was provided, the key individual shall be deemed approved. This timeframe does not apply to applications filed pursuant to Section 2035.
(b) Provide information, as applicable, required by Sections 80.4105 and 80.4105.10 of Title 10 of the California Code of Regulations, as amended from time to time, within 45 days of the effective date.
(Added by Stats. 2023, Ch. 463, Sec. 10. (AB 1116) Effective January 1, 2024.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 7 - Examinations, Special Reports, and Records › Section 2127.

2127. Before January 1, 2025, a person licensed under this division to engage in the business of money transmission shall not be subject to a provision of the act adding this section to the extent that the provision conflicts with the law in effect on December 31, 2023, or to the extent the provision establishes new requirements not imposed under the law in effect on December 31, 2023.
(Added by Stats. 2023, Ch. 463, Sec. 11. (AB 1116) Effective January 1, 2024.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 8 - Additional Enforcement Provisions › Section 2148.

2148. (a) If it appears to the commissioner that a licensee is violating or has violated, or is failing or has failed to comply with any law of this state, the commissioner may direct the licensee to comply with the law by an order issued under the commissioner’s official seal, or if it appears to the commissioner that any licensee is conducting or has conducted its business in an unsafe or injurious manner, the commissioner may in like manner direct it to discontinue the unsafe or injurious practices. The order shall require the licensee to show cause before the commissioner, at a time and place to be fixed by the commissioner, as to why the order should not be observed.
(b) If, upon any hearing held pursuant to subdivision (a), the commissioner finds that the licensee is violating or has violated, or is failing or has failed to comply with any law of this state or is conducting or has conducted its business in an unsafe or injurious manner, the commissioner may make a final order directing it to comply with the law or to discontinue the unsafe or injurious practices. A licensee shall comply with the final order unless, within 10 days after the issuance of the order, its enforcement is restrained in a proceeding brought by the licensee.
(Amended by Stats. 2022, Ch. 188, Sec. 7. (AB 2433) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 8 - Additional Enforcement Provisions › Section 2149.

2149. (a) The commissioner may issue an order suspending or revoking a license, or taking possession of and placing a licensee in receivership, if after notice and an opportunity for hearing, the commissioner finds that:
(1) The licensee is violating this division or a regulation adopted or an order issued under this division, or a condition of approval issued under this division.
(2) The licensee does not cooperate with an examination or investigation by the commissioner.
(3) The licensee engages in fraud, intentional misrepresentation, or gross negligence.
(4) The competence, experience, character, or general fitness of the licensee, or any director, officer, employee, or person in control of a licensee, indicates that it is not in the public interest to permit the person to provide money transmission services.
(5) The licensee engages in an unsafe or unsound practice.
(6) The licensee is insolvent, suspends payment of its obligations, or makes a general assignment for the benefit of its creditors.
(7) The licensee does not remove an agent after the commissioner issues and serves upon the licensee a final order including a finding that the agent has violated this division.
(8) The licensee has applied for an adjudication of bankruptcy, reorganization, arrangement, or other relief under any bankruptcy, reorganization, insolvency, or moratorium law, or any person has applied for any such relief under that law against the licensee and the licensee has by any affirmative act approved of or consented to the action or the relief has been granted.
(9) Any fact or condition exists that, if it had existed at the time when the licensee applied for its license, would have been grounds for denying the application.
(b) In determining whether a licensee is engaging in an unsafe or unsound practice, the commissioner may consider the size and condition of the licensee’s provision of money transmission services, the magnitude of the loss, the gravity of the violation of this division, and the previous conduct of the person involved.
(Amended by Stats. 2012, Ch. 356, Sec. 25. (SB 979) Effective January 1, 2013.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 8 - Additional Enforcement Provisions › Section 2150.

2150. (a) The commissioner may issue an order suspending or revoking the designation of an agent if, after notice and an opportunity for hearing, the commissioner finds that:
(1) The agent violated this division or a regulation adopted or an order issued under this division.
(2) The agent did not cooperate with an examination or investigation by the commissioner.
(3) The agent engaged in fraud, intentional misrepresentation, or gross negligence.
(4) The agent is convicted of a violation of a state or federal anti-money laundering statute.
(5) The competence, experience, character, or general fitness of the agent, or any director, officer, employee, or person in control of the agent, indicates that it is not in the public interest to permit the agent to provide money transmissions.
(6) The agent is engaging in an unsafe or unsound practice.
(7) The agent has made or caused to be made in any application or report filed with the commissioner or in any proceeding before the commissioner, any statement that was at the time and in the light of the circumstances under which it was made, false or misleading with respect to any material fact, or has omitted to state in any of those applications, reports, or proceedings any material fact which is required to be stated therein.
(8) The agent is an agent of a licensee who, because of its operations and financial condition, is not competent to supervise and monitor the agent.
(9) The agent will not comply with all applicable provisions of this division and of any regulation or order issued under this division.
(b) In determining whether an agent is engaging in an unsafe or unsound practice, the commissioner may consider the size and condition of the agent’s provision of money transmission services, the magnitude of the loss, the gravity of the violation of this division or a rule adopted or order issued under this division, and the previous conduct of the agent.
(c) No licensee shall appoint as an agent any person with respect to whom an order issued under this section is in effect.
(d) No person with respect to whom an order issued under this section is in effect shall become or continue to be an agent of any licensee.
(e) If applicable, the commissioner may disclose to the licensee criminal history information upon which an order is based.
(Amended by Stats. 2012, Ch. 356, Sec. 26. (SB 979) Effective January 1, 2013.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 8 - Additional Enforcement Provisions › Section 2150.1.

2150.1. (a) Every order, decision, or other official act of the commissioner is subject to review in accordance with law.
(b) Whenever the commissioner has taken possession of the property and business of any licensee, the licensee, within 10 days after that taking, if it deems itself aggrieved thereby, may apply to the superior court in the county in which the head office of the licensee is located to enjoin further proceedings. The court, after citing the commissioner to show cause why further proceedings should not be enjoined and after a hearing and a determination of the facts upon the merits, may dismiss the application or enjoin the commissioner from further proceedings and direct the commissioner to surrender the property and business to the licensee.
(Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 8 - Additional Enforcement Provisions › Section 2150.2.

2150.2. (a) If the commissioner finds that any of the factors set forth in Section 2149 is true with respect to any licensee and that it is necessary for the protection of the public interest, the commissioner may issue an order immediately suspending or revoking the licensee’s license.
(b) Within 30 days after the license is suspended or revoked pursuant to subdivision (a), the licensee may file with the commissioner an application for a hearing on the suspension or revocation.
(c) If the commissioner fails to commence a hearing within 15 business days after the application is filed with the commissioner pursuant to subdivision (b) or within a longer period of time agreed to by the licensee, the suspension or revocation shall be deemed rescinded.
(d) Within 30 days after the hearing, the commissioner shall affirm, modify, or rescind the suspension or revocation. Otherwise, the suspension or revocation shall be deemed rescinded.
(e) The right of the licensee to petition for judicial review of the suspension or revocation shall not be affected by the failure of the licensee to apply to the commissioner for a hearing on the suspension or revocation pursuant to subdivision (b).
(Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 8 - Additional Enforcement Provisions › Section 2151.

2151. (a) If the commissioner finds that any of the factors set forth in Section 2150 is true with respect to any agent and that it is necessary for the protection of the public interest, the commissioner may issue an order immediately suspending or barring that agent from continuing to be or becoming an agent of any licensee during the period for which that order is in effect.
(b) Within 30 days after an order is issued pursuant to subdivision (a), the licensee or the agent or former agent with respect to whom the order was issued may file with the commissioner an application for a hearing on the order.
(c) If the commissioner fails to commence a hearing within 20 business days after the application is filed with the commissioner pursuant to subdivision (b) or within a longer period of time agreed to by the parties, the suspension or revocation shall be deemed rescinded.
(d) Within 30 days after the hearing, the commissioner shall affirm, modify, or rescind the order.
(e) The right of the licensee or agent or former agent to petition for judicial review of the order shall not be affected by the failure of that person to apply to the commissioner for a hearing on the order pursuant to subdivision (b).
(Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 8 - Additional Enforcement Provisions › Section 2151.1.

2151.1. The commissioner may assess a civil penalty against a person that violates this division or a regulation adopted or an order issued under this division in an amount not to exceed one thousand dollars ($1,000) for each violation or, in the case of a continuing violation, one thousand dollars ($1,000) for each day or part thereof during which the violation continues, plus this state’s costs and expenses for the investigation and prosecution of the matter, including reasonable attorney’s fees.
(Amended by Stats. 2012, Ch. 356, Sec. 27. (SB 979) Effective January 1, 2013.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 8 - Additional Enforcement Provisions › Section 2152.

2152. (a) A person that intentionally makes a false statement, misrepresentation, or false certification in a record filed or required to be maintained under this division or that intentionally makes a false entry or omits a material entry in such a record is guilty of a felony.
(b) A person that knowingly engages in an activity for which a license is required under this division without being licensed or exempt from licensure under this division is guilty of a felony.
(c) Nothing in this division limits the power of the state to punish any person for any act that constitutes a crime under any statute.
(Amended by Stats. 2012, Ch. 356, Sec. 28. (SB 979) Effective January 1, 2013.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 8 - Additional Enforcement Provisions › Section 2153.

2153. The enforcement provisions of this division are in addition to any other enforcement powers that the commissioner may have under law.
(Amended by Stats. 2012, Ch. 356, Sec. 29. (SB 979) Effective January 1, 2013.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 9 - Miscellaneous Provisions › Section 2170.

2170. Any licensee may surrender its license by filing with the commissioner the license and a report with any information as the commissioner requires. The voluntary surrender of the license shall become effective at the time and upon the conditions as the commissioner specifies by order.
(Added by Stats. 2011, Ch. 243, Sec. 4. (SB 664) Effective January 1, 2012.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 9 - Miscellaneous Provisions › Section 2171.

2171. If any provision of this division or the application thereof to any person or circumstances is held invalid, illegal, or unenforceable, that invalidity, illegality, or unenforceability shall not affect other provisions or applications of this division that can be given effect without the invalid, illegal, or unenforceable provision or application, and to this end, the provisions of this division are declared to be severable.
(Amended by Stats. 2012, Ch. 356, Sec. 30. (SB 979) Effective January 1, 2013.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 9 - Miscellaneous Provisions › Section 2172.

2172. (a) A license issued under the former Chapter 14 (commencing with Section 1800), Chapter 14A (commencing with Section 1851), or the former Division 16 (commencing with Section 33000) that is in effect immediately before January 1, 2011, shall remain in effect as a valid license under this division.
(b) Any person that, prior to January 1, 2011, was not required to obtain a license under the former Chapter 14 (commencing with Section 1800), Chapter 14A (commencing with Section 1851), or Division 16 (commencing with Section 33000), but is required to have a license under this division, shall file an application for a license pursuant to this division by July 1, 2011, in order to continue conducting money transmission in this state directly or through agents. If the application is timely filed and pending with the commissioner, that person may continue to conduct money transmission in this state, until the application has been approved, abandoned, or denied.
(Amended by Stats. 2012, Ch. 356, Sec. 31. (SB 979) Effective January 1, 2013.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 9 - Miscellaneous Provisions › Section 2174.

2174. (a) The commissioner may prepare written decisions, opinion letters, and other formal written guidance to be issued to persons seeking clarification regarding the requirements of this division.
(b) The commissioner shall make public on the commissioner’s Internet Web site all written decisions, opinion letters, and other formal written guidance issued to persons seeking clarification regarding the requirements of this division. The commissioner may, at his or her discretion or upon request by an applicant or licensee, redact proprietary or other confidential information regarding an applicant or licensee from any decision, letter, or other written guidance issued in connection with an applicant or licensee.
(Added by Stats. 2013, Ch. 533, Sec. 9. (AB 786) Effective January 1, 2014.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 9 - Miscellaneous Provisions › Section 2175.

2175. The commissioner may offer informal guidance to any prospective applicant for a license under this division, regarding the conditions of licensure that may be applied to that person. The commissioner shall inform any applicant that requests that guidance of the minimum net worth, and other licensing requirements, that will be required of that applicant, based on the information provided by the applicant concerning its plan to conduct business under this division, and the factors used to make that determination as described in Section 2040.
(Amended by Stats. 2014, Ch. 499, Sec. 16. (AB 2209) Effective January 1, 2015.)
2023 California Code › Financial Code - FIN › DIVISION 1.2 - MONEY TRANSMISSION ACT › CHAPTER 9 - Miscellaneous Provisions › Section 2176.

2176. At any time, if the commissioner deems it necessary for the general welfare of the public, he or she may exercise any power set forth in this division with respect to a money transmission business, regardless of whether an application for a license has been filed with the commissioner, a license has been issued, or, if issued, the license has been surrendered, suspended, or revoked.
(Added by Stats. 2014, Ch. 499, Sec. 17. (AB 2209) Effective January 1, 2015.)
2023 California Code › Financial Code - FIN › DIVISION 1.25 - Digital Financial Assets Businesses › CHAPTER 2 - Licensure › Section 3201.

3201. On or after July 1, 2025, a person shall not engage in digital financial asset business activity, or hold itself out as being able to engage in digital financial asset business activity, with or on behalf of a resident unless any of the following is true:
(a) The person is licensed in this state by the department under Section 3203.
(b) The person submits an application on or before July 1, 2025, and is awaiting approval or denial of that application.
(c) The person is exempt from licensure under this division pursuant to Section 3103.
(Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
2023 California Code › Financial Code - FIN › DIVISION 1.25 - Digital Financial Assets Businesses › CHAPTER 2 - Licensure › Section 3205.

3205. (a) The commissioner may issue a conditional license to an applicant who holds or maintains a license to conduct virtual currency business activity in the state of New York pursuant to Part 200 of Title 23 of the New York Code of Rules and Regulations or a charter as a New York State limited purpose trust company with approval to conduct a virtual currency business under New York law, provided the license was issued or approved no later than January 1, 2023, and the applicant pays all appropriate fees and complies with the requirements of this division.
(b) The commissioner may issue a conditional license to an applicant pending compliance with the requirements of Section 3219 if all of the following conditions are met:
(1) The applicant has supplied all fingerprints required under Section 3219.
(2) The applicant meets all other requirements for licensure.
(3) Notwithstanding the commissioner’s reasonable efforts, the commissioner has been unable to complete the criminal history investigations required by Section 3219 with reasonable speed.
(c) A conditional license issued pursuant to this section shall expire at the earliest of the following:
(1) Upon issuance of an unconditional license.
(2) Upon denial of a license application.
(3) Upon revocation of a license issued pursuant to Part 200 of Title 23 of the New York Code of Rules and Regulations or disapproval or revocation of a charter as a New York State limited purpose trust company with approval to conduct a virtual currency business under New York law.
(Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
2023 California Code › Financial Code - FIN › DIVISION 1.25 - Digital Financial Assets Businesses › CHAPTER 2 - Licensure › Section 3209.

3209. (a) The department shall issue a license to an applicant if all of the following conditions are satisfied:
(1) The commissioner finds that all of the criteria described in paragraph (1) of subdivision (b) of Section 3203 are satisfied.
(2) The applicant has complied with this chapter.
(3) The applicant has paid the costs of the investigation under subdivision (e) of Section 3203.
(4) The applicant has paid the initial license fee under paragraph (3) of subdivision (a) of Section 3203.
(b) An applicant may appeal a denial of its application under Section 3203 pursuant to the Administrative Procedure Act, as described in Section 11370 of the Government Code, not later than 30 days after the department notifies the applicant that the application at an address specified under subparagraph (K) of paragraph (2) of subdivision (a) of Section 3203 has been denied or deemed denied.
(Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
2023 California Code › Financial Code - FIN › DIVISION 1.25 - Digital Financial Assets Businesses › CHAPTER 2 - Licensure › Section 3215.

3215. (a) The department may adopt rules necessary to implement this division and may offer informal guidance to any prospective applicant for a license under this division regarding the conditions of licensure that may be applied to that person. The commissioner shall inform any applicant that requests that guidance of the minimum capital and liquidity, and other licensing requirements, that will be required of that applicant, based on the information provided by the applicant concerning the applicant’s plan to conduct business under this division, and the factors used to make that determination as described in Section 3203.
(b) (1) The commissioner may prepare written decisions, opinion letters, and other formal written guidance to be issued to persons seeking clarification regarding the requirements of this division.
(2) The commissioner shall make public on the commissioner’s internet website all written decisions, opinion letters, and other formal written guidance issued to persons seeking clarification regarding the requirements of this division. The commissioner may, at their discretion or upon request by an applicant or licensee, redact proprietary or other confidential information regarding an applicant or licensee from any decision, letter, or other written guidance issued in connection with an applicant or licensee.
(Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
2023 California Code › Financial Code - FIN › DIVISION 1.25 - Digital Financial Assets Businesses › CHAPTER 2 - Licensure › Section 3217.

3217. (a) The commissioner may establish relationships or contracts with the Nationwide Multistate Licensing System and Registry or other entities designated by the Nationwide Multistate Licensing System and Registry to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this division.
(b) For the purpose of participating in the Nationwide Multistate Licensing System and Registry, the commissioner may waive or modify, in whole or in part, by rule, regulation, or order, any or all of the requirements of this division and establish new requirements as reasonably necessary to participate in the Nationwide Multistate Licensing System and Registry.
(c) Notwithstanding any other provision of law, the commissioner may use the Nationwide Multistate Licensing System and Registry as a channeling agent between the United States Department of Justice and the commissioner for requesting information from, and distributing information to, the Department of Justice and the United States Department of Justice, including the Federal Bureau of Investigation pursuant to Section 5110 of the SAFE Act, any other governmental agency, or any other source, as directed by the commissioner.
(d) The commissioner shall establish a process through which applicants and licensees may challenge information entered into the Nationwide Multistate Licensing System and Registry by the commissioner.
(Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
2023 California Code › Financial Code - FIN › DIVISION 1.25 - Digital Financial Assets Businesses › CHAPTER 2 - Licensure › Section 3221.

3221. (a) An applicant shall not be denied a license on the basis of a criminal conviction, or on the basis of acts underlying a criminal conviction, if the convicted person has obtained a certificate of rehabilitation under Chapter 3.5 (commencing with Section 4852.01) of Title 6 of Part 3 of the Penal Code or has been granted clemency or a pardon by a state or federal executive.
(b) An applicant shall not be denied a license on the basis of a conviction that has been dismissed pursuant to Section 1203.4, 1203.4a, 1203.41, or 1203.425 of the Penal Code. An applicant who has a conviction that has been dismissed pursuant to Section 1203.4, 1203.4a, 1203.41, or 1203.425 of the Penal Code shall provide the commissioner with proof of the dismissal if it is not reflected in the applicant’s criminal history record report.
(c) An applicant shall not be denied a license on the basis of an arrest that resulted in a disposition other than a conviction, including an arrest that resulted in an infraction, citation, or juvenile adjudication.
(d) If an applicant is denied a license based solely or in part on conviction history, the applicant shall be notified in writing of all of the following:
(1) The denial or disqualification of licensure.
(2) The procedure for the applicant to challenge the decision or to request reconsideration.
(3) That the applicant has the right to appeal the decision.
(4) The processes to request a copy of the applicant’s complete conviction history and to question the accuracy or completeness of the record.
(Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)
2023 California Code › Financial Code - FIN › DIVISION 1.25 - Digital Financial Assets Businesses › CHAPTER 2 - Licensure › Section 3223.

3223. (a) Except as otherwise provided in Section 5111 of the SAFE Act, the requirements under any federal law or the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code) regarding the privacy or confidentiality of any information or material provided to the Nationwide Multistate Licensing System and Registry, and any privilege arising under federal or state law, including the rules of any state court, with respect to that information or material, shall continue to apply to the information or material after the information or material has been disclosed to the Nationwide Multistate Licensing System and Registry. The information and material may be shared with all state and federal regulatory officials with industry oversight authority without the loss of privilege or the loss of confidentiality protections provided by federal law or the Information Practices Act of 1977.
(b) Information or material that is subject to a privilege or confidentiality under subdivision (a) shall not be subject to either of the following:
(1) Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or an agency of the federal government or the state.
(2) Subpoena or discovery, or admission into evidence, in any private civil action or administrative process, unless with respect to any privilege held by the Nationwide Multistate Licensing System and Registry with respect to the information or material, the person to whom the information or material pertains waives, in whole or in part, in the discretion of that person, that privilege.
(c) This section shall not apply with respect to the information or material relating to the employment history of, and publicly adjudicated disciplinary and enforcement actions included in, the Nationwide Multistate Licensing System and Registry for access by the public.
(Added by Stats. 2023, Ch. 792, Sec. 1. (AB 39) Effective January 1, 2024.)