January 21, 2021

Volume XI, Number 21

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January 19, 2021

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Governor Proposes Large Increase In DFPI Budget

Pursuant to Article IV, Section 12(a) of the California Constitution, today is the deadline for the Governor to submit a proposed balanced budget.  The next step is for the budget to be introduced into both houses of the legislature in identical budget bills.  Cal. Const. Art. IV, § 12(b)(2).  The legislature is required to enact a budget bill by midnight on June 15 (the state's fiscal year begins on July 1).  Cal. Const. Art. IV, § 12(b)(3).  During the period between the introduction of the budget bills and enactment, the budget committees in the Senate and the Assembly review the proposed budget.  The Legislative Analyst's Office will also perform a detailed analysis of the Governor's budget and release reports.  By May 14, the Governor will submit changes to the budget based on updated revenue data.  After differences between the Assembly and Senate versions of the budget are reconciled, both houses vote on a single version of the bill.  A budget bill becomes effective upon the Governor's signature (unless a different date is specified in the bill).  Cal. Const. Art. IV, § 12(e)(1).  If a budget bill is not passed by midnight on June 14, the Constitution prohibits any appropriation from the current budget or future budget to pay any salary or reimbursement for travel or living expenses for Members of the Legislature during any regular or special session for the period from midnight on June 15 until the day that the budget bill is presented to the Governor.

The Governor's proposed budget for the 2021-2022 fiscal year includes a nearly 24% increase in the budget of the Department of Financial Protection and Innovation.  This includes nearly $11 million and 44 new positions to license, regulate, and examine debt collectors in compliance with Chapter 163, Statutes of 2020 (SB 908).  Overall, the Governor is proposing a 12.5% increase in the number of authorized positions for the DFPI.

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© 2010-2020 Allen Matkins Leck Gamble Mallory & Natsis LLP National Law Review, Volume XI, Number 11
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About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm
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Keith Bishop works with privately held and publicly traded companies on federal and state corporate and securities transactions, compliance, and governance matters. He is highly-regarded for his in-depth knowledge of the distinctive corporate and regulatory requirements faced by corporations in the state of California.

While many law firms have a great deal of expertise in federal or Delaware corporate law, Keith’s specific focus on California corporate and securities law is uncommon. A former California state regulator of securities and financial institutions, Keith has decades of...

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