February 8, 2023

Volume XIII, Number 39

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Governor Proposes To Increase In DFPI Spending

Yesterday, Governor Gavin Newsom met the constitutional deadline for submitting a proposed budget.  Cal. Const. Art. IV, § 12(a).  The release of the budget kicks of a prolonged legislative process.  In the next several weeks, the budget committee chairs in each house  of the legislature will introduce the Governor’s budget proposal in bill form.  During this time,  the Legislative Analyst’s Office will conduct a detailed review of the budget bill and releases various reports.  The California Constitution requires the legislature to pass a budget by midnight on June 15 of each year (the fiscal year ends on June 30).  Cal. Const. Art. IV, § 12(c)(3).  If the legislature fails to do so, the Constitution prohibits any appropriation from the current budget or future budget to pay any salary or reimbursement for travel or living expenses for legislators from June 15 until the day that the budget bill is presented to the Governor.  Cal. Const. Art. IV, § 12(h).  

The Governor is proposing to add over 40 positions to the Department of Financial Protection & Innovation and increase spending by approximately 5%.   The increased positions are being allocated primarily to the department's lender-fiduciary, debt collectors and consumer financial protection programs.   The latter two programs are the result of California's enactment of the California Consumer Financial Protection Law and the Debt Collection Licensing Act, which took effect on January 1, 2021 and 2022, respectively.

© 2010-2023 Allen Matkins Leck Gamble Mallory & Natsis LLP National Law Review, Volume XII, Number 11
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About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm
Partner

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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