Bill Text: CA SB1363 | 2009-2010 | Regular Session | Enrolled

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Bill Title: Escrow agents.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Vetoed) 2010-09-29 - In Senate. To unfinished business. (Veto) [SB1363 Detail]

Download: California-2009-SB1363-Enrolled.html

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BILL NUMBER: SB 1363	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 26, 2010
	PASSED THE ASSEMBLY  AUGUST 19, 2010
	AMENDED IN ASSEMBLY  AUGUST 2, 2010
	AMENDED IN SENATE  APRIL 26, 2010
	AMENDED IN SENATE  APRIL 12, 2010

INTRODUCED BY   Senator Runner

                        FEBRUARY 19, 2010

   An act to add Section 17405.5 to the Financial Code, relating to
escrow agents.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1363, Runner. Escrow agents.
   Existing law, the Escrow Law, provides for the licensure and
regulation of escrow agents by the Commissioner of Corporations. Each
person licensed under that law is required to participate as a
member of Fidelity Corporation, a nonprofit mutual benefit
corporation, established to indemnify its members against loss.
Existing law requires a shareholder, officer, director, trustee,
manager, or employee of an escrow agent to obtain a Fidelity
Corporation Certificate as a condition of employment.
   This bill would require an officer, director, trustee, or escrow
manager of a licensee who has access to money or negotiable
securities of the licensee, and certain other persons, to complete a
course in escrow management conducted by the commissioner, within 12
months following their receipt of a Fidelity Corporation Certificate,
as specified.



THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 17405.5 is added to the Financial Code, to
read:
   17405.5.  (a) The following persons shall complete a course in
escrow management conducted by the commissioner within 12 months of
their receipt of a Fidelity Corporation Certificate:
   (1) Any officer, director, trustee, or escrow manager of an escrow
agent, whether or not compensated, who has access to money or
negotiable securities belonging to the escrow agent in the regular
discharge of his or her duties.
   (2) Any person who may draw checks upon the escrow agent or upon
the trust funds of the escrow agent in the regular discharge of his
or her duties.
   (3) Any other person, as determined by the commissioner.
   (b) The commissioner may charge persons required to comply with
this section a reasonable fee, as determined by the commissioner, to
cover the costs to administer this section.
   (c) This section shall apply to all licensees that become newly
licensed or that undergo a change in ownership on or after January 1,
2011, and to all persons described in subdivision (a) who are hired
on or after January 1, 2011, by licensees that were in existence
prior to that date.
   (d) For purposes of this section, a "change in ownership" shall be
deemed to have occurred when a licensee is required to file a new
application for licensure pursuant to the requirements of Section
17213, and that license application is approved by the commissioner.