Department of Financial Services.

Existing law, until July 1, 2013, creates the Department of Corporations and the Department of Financial Institutions within the Business, Transportation and Housing Agency. The Department of Corporations provides for the licensure and regulation of businesses engaged in financial transactions, including securities brokers and dealers, investment advisors, financial planners, and certain fiduciaries and lenders, as specified. The Department of Financial Institutions oversees the operation of state-chartered financial institutions, including banks, credit unions, and various entities providing financial services. The Commissioner of Corporations and the Commissioner of Financial Institutions are responsible for overseeing and carrying out the duties and responsibilities of their respective departments. The Governor's Reorganization Plan No. 2 of 2012 (GRP 2) , effective July 1, 2013, abolishes the Department of Corporations and the Department of Financial Institutions and transfer their responsibilities to the Department of Business Oversight, which would be established within the Business and Consumer Services Agency. The executive officer of the new Department of Business Oversight would be the Commissioner of Business Oversight. The department is organized to include a Division of Corporations and a Division of Financial Institutions, each of which would be overseen by a deputy commissioner of the department. This bill would delete references to the Department of Business Oversight, as provided for in the GRP 2, and would instead transfer the duties of the Department of Corporations and the Department of Financial Institutions to the Department of Financial Services, as specified. The bill also would make various technical changes provided for in the GRP 2.