Signed by Governor Gavin Newsom

Vote Smart's Synopsis:

Vote to amend and pass a bill that amends various California state laws relating to consumer protections and privacy.

Highlights:

• Establishes the consumer privacy subfund and specifies that 95% of administrative fines collected from violations of the California Consumer Privacy Act shall be allocated to this subfund (Sec. 1-3).

• Establishes the consumer privacy grant subfund and specifies that 5% of administrative fines and civil penalties collected from actions brought by the attorney general for violations of the California Consumer Privacy Act shall be allocated to this subfund (Sec. 1-4).

• Establishes the attorney general consumer privacy enforcement subfund and specifies that 95% of civil penalties collected from actions brought by the attorney general for violations of the California Consumer Privacy Act shall be allocated to this subfund (Sec. 2-4).

• Requires that the California Privacy Protection Agency administer the aforementioned funds to protect privacy, educate children, and funding cooperative programs to combat fraudulent activities (Sec. 2).

• Amends existing requirements surrounding the use and allocation of the consumer privacy fund (Sec. 2).

• Requires that the Privacy Protection Agency allocate one-third of funds from the consumer privacy grant subfund to the following recipients to fulfill the aforementioned purposes (Sec. 2):

• Nonprofit organizations;

• Public agencies, including school districts; and

• Law enforcement agencies.

• Specifies that the administration of grants shall begin when the subfund surpasses an amount of $300 thousand (Sec. 2).

• Specifies that unspent funds from the fund and subfund shall be carried over into FY 2025-2026 as follows (Sec. 2):

• 45% to the consumer privacy subfund;

• 45% to the attorney general's consumer privacy enforcement subfund; and

• 10% to the consumer privacy grant subfund.

• Increases the fee charged for the filing of a notice or report during the broker-dealer certificate application process from $25 to $50 (Sec. 5).

• Increases the fee charged to keep in effect for the following year any notice or report filed during the broker-dealer certificate application process from $35 to $50 (Sec. 5).

• Amends references to the state corporations fund to instead refer to the financial protection fund (Sec. 5-16)

• Increases the following application fees and exemptions (Sec. 6:

• Registration of the offer of franchises from $675 to $1,865;

• Renewal of registration from $450 to $1,245;

• Initial notice of exemption from $450 to $1,245; and

• Filing of each consecutive notice of exemption from $150 to $415.

• Repeals a previous $75 cap on various examination and application fees that may be charged to banks and credit unions authorized to engage in the trust business and specifies that the commissioner may set the fee at their discretion within certain parameters (Sec. 7-14).

• Increases the annual fee charged for an escrow license from $2,800 to $7,215 (Sec. 15).

• Specifies that deficit and surplus adjustments are to be based on the prior two fiscal years (Sec. 15-16).

• Increases the maximum additional amount to be collected annually from residential mortgage lenders and servicer licensees from $5 thousand to $15 thousand (Sec. 16).

• Increases the maximum pro rata share to be collected annually from residential mortgage lenders and servicer licensees from $1 thousand to $3 thousand (Sec. 16).

• Extends certain bank information and record requirements through January 1, 2032 (Sec. 17).

• Establishes a notification process through which the California Department of Corrections and Rehabilitation may request to sell or lease real property beyond its needs (Sec. 20).

• Specifies that the California Department of General Services choose to adopt the aforementioned property for alternative purposes before any sale (Sec. 20).

• Specifies that alternative purposes may not include use as a detention facility (Sec. 20).

• Specifies that the Department of General Services may set the sale or lease price in any such transfers of property (Sec. 20).

• Specifies that the net proceeds of any such transfer shall be deposited into the deficit recovery bond retirement sinking fund subaccount (Sec. 20).

• Specifies that all other revenues shall be deposited into the property acquisition law money account and be made available for transfer to the Department of General Services for specified activities  (Sec. 20).

• Exempts the employment of outside counsel by a state agency for certain purposes from a provision requiring the written consent of the attorney general before initiating counsel employment (Sec. 21).

• Exempts the Office of the Governor from the aforementioned provision (Sec. 22).

• Establishes an attorney-client relationship between the attorney general and a state agency they represent (Sec. 24). 

• Exempts certain documents from requirements relating to public access and defines state agencies as separate legal entities (Sec. 24).

• Repeals provisions specifying the ways in which funds from the Indian gaming special distribution fund are to be allocated (Sec. 25).

• Exempts California Small Business Technical Assistance Program applicants whose federal contracts were rescinded in FY 2024-2025 for reasons other than noncompliance from certain requirements concerning federal contracts (Sec. 26).

• Requires that a bank provide written notification to the Joint Legislative Budget Committee when federal funds are fully recycled into state dollars before committing to any additional financing projects (Sec. 27).

• Amends references to the climate catalyst revolving loan fund program to instead refer to the catalyst revolving fund program (Sec. 27-38)

• Specifies that a climate catalyst project may include the financing of working capital (Sec. 31).

• Specifies that revisions to or repeals of climate catalyst financing plans shall take effect 30 days after the committee has received written notice (Sec. 31).

• Establishes the forest biomass management and utilization category (Sec. 31).

• Establishes the climate-smart agriculture category (Sec. 31).

• Establishes the clean energy transmission category and repeals redundant provisions (Sec. 30).

• Establishes the state energy financing institution category (Sec. 31).

• Establishes the federal greenhouse gas reduction fund category (Sec. 31).

• Requires that banks include the total amount of federal moneys applied to the climate catalyst project in existing annual reporting (Sec. 32).

• Repeals a provision requiring banks to prepare their budgets for review before November 1 annually (Sec. 37).

• Repeals specified responsibilities and requirements of the California Office of Planning and Research and transfers responsibilities and requirements to the California Office of Land Use and Climate Innovation (Sec. 38-40).

• Authorizes the Office of Land Use and Climate Innovation to adopt additional procedures, standards, and definitions in the implementation of the aforementioned provisions (Sec. 38).

• Expands the criteria under which one may qualify as an eligible child for welfare eligibility (Sec. 41).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends various California state laws relating to consumer protections and privacy.

Highlights:

• Establishes the consumer privacy subfund and specifies that 95% of administrative fines collected from violations of the California Consumer Privacy Act shall be allocated to this subfund (Sec. 1-3).

• Establishes the consumer privacy grant subfund and specifies that 5% of administrative fines and civil penalties collected from actions brought by the attorney general for violations of the California Consumer Privacy Act shall be allocated to this subfund (Sec. 1-4).

• Establishes the attorney general consumer privacy enforcement subfund and specifies that 95% of civil penalties collected from actions brought by the attorney general for violations of the California Consumer Privacy Act shall be allocated to this subfund (Sec. 2-4).

• Requires that the California Privacy Protection Agency administer the aforementioned funds to protect privacy, educate children, and funding cooperative programs to combat fraudulent activities (Sec. 2).

• Amends existing requirements surrounding the use and allocation of the consumer privacy fund (Sec. 2).

• Requires that the Privacy Protection Agency allocate one-third of funds from the consumer privacy grant subfund to the following recipients to fulfill the aforementioned purposes (Sec. 2):

• Nonprofit organizations;

• Public agencies, including school districts; and

• Law enforcement agencies.

• Specifies that the administration of grants shall begin when the subfund surpasses an amount of $300 thousand (Sec. 2).

• Specifies that unspent funds from the fund and subfund shall be carried over into FY 2025-2026 as follows (Sec. 2):

• 45% to the consumer privacy subfund;

• 45% to the attorney general's consumer privacy enforcement subfund; and

• 10% to the consumer privacy grant subfund.

• Increases the fee charged for the filing of a notice or report during the broker-dealer certificate application process from $25 to $50 (Sec. 5).

• Increases the fee charged to keep in effect for the following year any notice or report filed during the broker-dealer certificate application process from $35 to $50 (Sec. 5).

• Amends references to the state corporations fund to instead refer to the financial protection fund (Sec. 5-16)

• Increases the following application fees and exemptions (Sec. 6:

• Registration of the offer of franchises from $675 to $1,865;

• Renewal of registration from $450 to $1,245;

• Initial notice of exemption from $450 to $1,245; and

• Filing of each consecutive notice of exemption from $150 to $415.

• Repeals a previous $75 cap on various examination and application fees that may be charged to banks and credit unions authorized to engage in the trust business and specifies that the commissioner may set the fee at their discretion within certain parameters (Sec. 7-14).

• Increases the annual fee charged for an escrow license from $2,800 to $7,215 (Sec. 15).

• Specifies that deficit and surplus adjustments are to be based on the prior two fiscal years (Sec. 15-16).

• Increases the maximum additional amount to be collected annually from residential mortgage lenders and servicer licensees from $5 thousand to $15 thousand (Sec. 16).

• Increases the maximum pro rata share to be collected annually from residential mortgage lenders and servicer licensees from $1 thousand to $3 thousand (Sec. 16).

• Extends certain bank information and record requirements through January 1, 2032 (Sec. 17).

• Establishes a notification process through which the California Department of Corrections and Rehabilitation may request to sell or lease real property beyond its needs (Sec. 20).

• Specifies that the California Department of General Services choose to adopt the aforementioned property for alternative purposes before any sale (Sec. 20).

• Specifies that alternative purposes may not include use as a detention facility (Sec. 20).

• Specifies that the Department of General Services may set the sale or lease price in any such transfers of property (Sec. 20).

• Specifies that the net proceeds of any such transfer shall be deposited into the deficit recovery bond retirement sinking fund subaccount (Sec. 20).

• Specifies that all other revenues shall be deposited into the property acquisition law money account and be made available for transfer to the Department of General Services for specified activities  (Sec. 20).

• Exempts the employment of outside counsel by a state agency for certain purposes from a provision requiring the written consent of the attorney general before initiating counsel employment (Sec. 21).

• Exempts the Office of the Governor from the aforementioned provision (Sec. 22).

• Establishes an attorney-client relationship between the attorney general and a state agency they represent (Sec. 24). 

• Exempts certain documents from requirements relating to public access and defines state agencies as separate legal entities (Sec. 24).

• Repeals provisions specifying the ways in which funds from the Indian gaming special distribution fund are to be allocated (Sec. 25).

• Exempts California Small Business Technical Assistance Program applicants whose federal contracts were rescinded in FY 2024-2025 for reasons other than noncompliance from certain requirements concerning federal contracts (Sec. 26).

• Requires that a bank provide written notification to the Joint Legislative Budget Committee when federal funds are fully recycled into state dollars before committing to any additional financing projects (Sec. 27).

• Amends references to the climate catalyst revolving loan fund program to instead refer to the catalyst revolving fund program (Sec. 27-38)

• Specifies that a climate catalyst project may include the financing of working capital (Sec. 31).

• Specifies that revisions to or repeals of climate catalyst financing plans shall take effect 30 days after the committee has received written notice (Sec. 31).

• Establishes the forest biomass management and utilization category (Sec. 31).

• Establishes the climate-smart agriculture category (Sec. 31).

• Establishes the clean energy transmission category and repeals redundant provisions (Sec. 30).

• Establishes the state energy financing institution category (Sec. 31).

• Establishes the federal greenhouse gas reduction fund category (Sec. 31).

• Requires that banks include the total amount of federal moneys applied to the climate catalyst project in existing annual reporting (Sec. 32).

• Repeals a provision requiring banks to prepare their budgets for review before November 1 annually (Sec. 37).

• Repeals specified responsibilities and requirements of the California Office of Planning and Research and transfers responsibilities and requirements to the California Office of Land Use and Climate Innovation (Sec. 38-40).

• Authorizes the Office of Land Use and Climate Innovation to adopt additional procedures, standards, and definitions in the implementation of the aforementioned provisions (Sec. 38).

• Expands the criteria under which one may qualify as an eligible child for welfare eligibility (Sec. 41).

Full Bill Text