It is now official. Governor Newsom has signed AB 1864.
There is much to dislike about this bill, beginning with the fact that it will rename the Department of Business Oversight as the Department of Financial Protection and Innovation. Although I never liked the Department's current name with its Orwellian overtones, the new name is insufferably prolix. Moreover, the name change will waste a great deal of time in amending scores of statutes and regulations for no substantive purpose.
More troubling are the circumstances of the bill's enactment. Until August 25, the bill consisted of a single section that read in its entirety:
"It is the intent of the Legislature to enact statutory changes, relating to the Budget Act of 2020."
Then, Assemblywoman Monique Limón gutted and amended the bill. On the last day of the session, the legislature passed the bill. This bit of legislative legerdemain eliminated any meaningful opportunity for the general public to comment on the text of the bill. There is no little irony in the fact that the ostensible purpose of the DFPI to protect Californians from abusive and predatory practices.
AB 1864 will take effect on January 1, 2021