13975-13984

GOVERNMENT CODE
SECTION 13975-13984




13975.  The Business and Transportation Agency in state government
is hereby renamed the Business, Transportation and Housing Agency.
The agency consists of the State Department of Alcoholic Beverage
Control, the Department of the California Highway Patrol, the
Department of Corporations, the Department of Housing and Community
Development, the Department of Motor Vehicles, the Department of Real
Estate, the Department of Transportation, the Department of
Financial Institutions, the Department of Managed Health Care, and
the Board of Pilot Commissioners for the Bays of San Francisco, San
Pablo, and Suisun; and the California Housing Finance Agency is also
located within the Business, Transportation and Housing Agency, as
specified in Division 31 (commencing with Section 50000) of the
Health and Safety Code.



13975.1.  (a) This section applies to every action brought in the
name of the people of the State of California by the Commissioner of
Corporations before, on, or after the effective date of this section,
when enforcing provisions of those laws administered by the
Commissioner of Corporations which authorize the Commissioner of
Corporations to seek a permanent or preliminary injunction,
restraining order, or writ of mandate, or the appointment of a
receiver, monitor, conservator, or other designated fiduciary or
officer of the court. Upon a proper showing, a permanent or
preliminary injunction, restraining order, or writ of mandate shall
be granted and a receiver, monitor, conservator, or other designated
fiduciary or officer of the court may be appointed for the defendant
or the defendant's assets, or any other ancillary relief may be
granted as appropriate. The court may order that the expenses and
fees of the receiver, monitor, conservator, or other designated
fiduciary or officer of the court, be paid from the property held by
the receiver, monitor, conservator, or other court designated
fiduciary or officer, but neither the state, the Business,
Transportation, and Housing Agency, nor the Department of
Corporations shall be liable for any of those expenses and fees,
unless expressly provided for by written contract.
   (b) The receiver, monitor, conservator, or other designated
fiduciary or officer of the court may do any of the following subject
to the direction of the court:
   (1) Sue for, collect, receive, and take into possession all the
real and personal property derived by any unlawful means, including
property with which that property or the proceeds thereof has been
commingled if that property or the proceeds thereof cannot be
identified in kind because of the commingling.
   (2) Take possession of all books, records, and documents relating
to any unlawfully obtained property and the proceeds thereof. In
addition, they shall have the same right as a defendant to request,
obtain, inspect, copy, and obtain copies of books, records, and
documents maintained by third parties that relate to unlawfully
obtained property and the proceeds thereof.
   (3) Transfer, encumber, manage, control, and hold all property
subject to the receivership, including the proceeds thereof, in the
manner directed or ratified by the court.
   (4) Avoid a transfer of any interest in any unlawfully obtained
property including the proceeds thereof to any person who committed,
aided or abetted, or participated in the commission of unlawful acts
or who had knowledge that the property had been unlawfully obtained.
   (5) Avoid a transfer of any interest in any unlawfully obtained
property including the proceeds thereof made with the intent to
hinder or delay the recovery of that property or any interest in it
by the receiver or any person from whom the property was unlawfully
obtained.
   (6) Avoid a transfer of any interest in any unlawfully obtained
property including the proceeds thereof that was made within one year
before the date of the entry of the receivership order if less than
a reasonably equivalent value was given in exchange for the transfer,
except that a bona fide transferee for value and without notice that
the property had been unlawfully obtained may retain the interest
transferred until the value given in exchange for the transfer is
returned to the transferee.
   (7) Avoid a transfer of any interest in any unlawfully obtained
property including the proceeds thereof made within 90 days before
the date of the entry of the receivership order to a transferee from
whom the defendant unlawfully obtained some property if (A) the
receiver establishes that the avoidance of the transfer will promote
a fair pro rata distribution of restitution among all people from
whom defendants unlawfully obtained property and (B) the transferee
cannot establish that the specific property transferred was the same
property which had been unlawfully obtained from the transferee.
   (8) Exercise any power authorized by statute or ordered by the
court.
   (c) No person with actual or constructive notice of the
receivership shall interfere with the discharge of the receiver's
duties.
   (d) No person may file any action or enforce or create any lien,
or cause to be issued, served, or levied any summons, subpoena,
attachment, or writ of execution against the receiver or any property
subject to the receivership without first obtaining prior court
approval upon motion with notice to the receiver and the Commissioner
of Corporations. Any legal procedure described in this subdivision
commenced without prior court approval is void except as to a bona
fide purchaser or encumbrancer for value and without notice of the
receivership. No person without notice of the receivership shall
incur any liability for commencing or maintaining any legal procedure
described by this subdivision.
   (e) The court has jurisdiction of all questions arising in the
receivership proceedings and may make any orders and judgments as may
be required, including orders after noticed motion by the receiver
to avoid transfers as provided in paragraphs (4), (5), (6), and (7)
of subdivision (b).
   (f) This section is cumulative to all other provisions of law.
   (g) If any provision of this section or the application thereof to
any person or circumstances is held invalid, that invalidity shall
not affect other provisions or applications of this section which can
be given effect without the invalid provision or application, and to
this end the provisions of this section are severable.
   (h) The recordation of a copy of the receivership order imparts
constructive notice of the receivership in connection with any matter
involving real property located in the county in which the
receivership order is recorded.



13975.2.  (a) This section applies to every action brought in the
name of the people of the State of California by the Director of the
Department of Managed Health Care before, on, or after the effective
date of this section, when enforcing provisions of those laws
administered by the Director of the Department of Managed Health Care
which authorize the Director of Managed Health Care to seek a
permanent or preliminary injunction, restraining order, or writ of
mandate, or the appointment of a receiver, monitor, conservator, or
other designated fiduciary or officer of the court. Upon a proper
showing, a permanent or preliminary injunction, restraining order, or
writ of mandate shall be granted and a receiver, monitor,
conservator, or other designated fiduciary or officer of the court
may be appointed for the defendant or the defendant's assets, or any
other ancillary relief may be granted as appropriate. The court may
order that the expenses and fees of the receiver, monitor,
conservator, or other designated fiduciary or officer of the court,
be paid from the property held by the receiver, monitor, conservator,
or other court designated fiduciary or officer, but neither the
state, the Business, Transportation and Housing Agency, nor the
Department of Managed Health Care shall be liable for any of those
expenses and fees, unless expressly provided for by written contract.
   (b) The receiver, monitor, conservator, or other designated
fiduciary or officer of the court may do any of the following subject
to the direction of the court:
   (1) Sue for, collect, receive, and take into possession all the
real and personal property derived by any unlawful means, including
property with which that property or the proceeds thereof has been
commingled if that property or the proceeds thereof cannot be
identified in kind because of the commingling.
   (2) Take possession of all books, records, and documents relating
to any unlawfully obtained property and the proceeds thereof. In
addition, they shall have the same right as a defendant to request,
obtain, inspect, copy, and obtain copies of books, records, and
documents maintained by third parties that relate to unlawfully
obtained property and the proceeds thereof.
   (3) Transfer, encumber, manage, control, and hold all property
subject to the receivership, including the proceeds thereof, in the
manner directed or ratified by the court.
   (4) Avoid a transfer of any interest in any unlawfully obtained
property including the proceeds thereof to any person who committed,
aided or abetted, or participated in the commission of unlawful acts
or who had knowledge that the property had been unlawfully obtained.
   (5) Avoid a transfer of any interest in any unlawfully obtained
property including the proceeds thereof made with the intent to
hinder or delay the recovery of that property or any interest in it
by the receiver or any person from whom the property was unlawfully
obtained.
   (6) Avoid a transfer of any interest in any unlawfully obtained
property including the proceeds thereof that was made within one year
before the date of the entry of the receivership order if less than
a reasonably equivalent value was given in exchange for the transfer,
except that a bona fide transferee for value and without notice that
the property had been unlawfully obtained may retain the interest
transferred until the value given in exchange for the transfer is
returned to the transferee.
   (7) Avoid a transfer of any interest in any unlawfully obtained
property including the proceeds thereof made within 90 days before
the date of the entry of the receivership order to a transferee from
whom the defendant unlawfully obtained some property if (A) the
receiver establishes that the avoidance of the transfer will promote
a fair pro rata distribution of restitution among all people from
whom defendants unlawfully obtained property and (B) the transferee
cannot establish that the specific property transferred was the same
property that had been unlawfully obtained from the transferee.
   (8) Exercise any power authorized by statute or ordered by the
court.
   (c) No person with actual or constructive notice of the
receivership shall interfere with the discharge of the receiver's
duties.
   (d) No person may file any action or enforce or create any lien,
or cause to be issued, served, or levied any summons, subpoena,
attachment, or writ of execution against the receiver or any property
subject to the receivership without first obtaining prior court
approval upon motion with notice to the receiver and the Director of
the Department of Managed Health Care. Any legal procedure described
in this subdivision commenced without prior court approval is void
except as to a bona fide purchaser or encumbrancer for value and
without notice of the receivership. No person without notice of the
receivership shall incur any liability for commencing or maintaining
any legal procedure described by this subdivision.
   (e) The court shall have jurisdiction of all questions arising in
the receivership proceedings and may make any orders and judgments as
may be required, including orders after noticed motion by the
receiver to avoid transfers as provided in paragraphs (4), (5), (6),
and (7) of subdivision (b).
   (f) This section is cumulative to all other provisions of law.
   (g) If any provision of this section or the application thereof to
any person or circumstances is held invalid, that invalidity shall
not affect other provisions or applications of this section that can
be given effect without the invalid provision or application, and to
this end the provisions of this section are severable.
   (h) The recordation of a copy of the receivership order imparts
constructive notice of the receivership in connection with any matter
involving real property located in the county in which the
receivership order is recorded.



13976.  The agency is under the supervision of an executive officer
known as the Secretary of the Business, Transportation and Housing
Agency. He shall be appointed by the Governor, subject to
confirmation by the Senate, and shall hold office at the pleasure of
the Governor.
   The annual salary of the secretary is provided for by Chapter 6
(commencing with Section 11550) of Part 1 of Division 3 of Title 2 of
this code.
   As used in this part, "agency" and "secretary" refer to the
Business, Transportation and Housing Agency and the Secretary of the
Business, Transportation and Housing Agency, respectively, unless the
context otherwise requires.



13977.  Before entering upon the duties of his office the secretary
shall execute an official bond to the state in the penal sum of fifty
thousand dollars ($50,000) conditioned upon the faithful performance
of his duties.


13978.  The secretary has the power of general supervision over, and
is directly responsible to the Governor for, the operations of each
department, office, and unit within the agency. The secretary may
issue such orders as the secretary deems appropriate to exercise any
power or jurisdiction, or to assume or discharge any responsibility,
or to carry out or effect any of the purposes vested by law in any
department in the agency.



13978.2.  The Secretary of the Business, Transportation and Housing
Agency shall advise the Governor on, and assist the Governor in
establishing, major policy and program matters affecting each
department, office, or other unit within the agency, and shall serve
as the principal communication link for the effective transmission of
policy problems and decisions between the Governor and each such
department, office, or other unit.



13978.4.  The Secretary of the Business, Transportation and Housing
Agency shall exercise the authority vested in the Governor in respect
to the functions of each department, office, or other unit within
the agency, including the adjudication of conflicts between or among
the departments, offices, or other units; and shall represent the
Governor in coordinating the activities of each such department,
office, or other unit with those of other agencies, federal, state,
or local.



13978.6.  (a) The Secretary of the Business, Transportation and
Housing Agency shall be generally responsible for the sound fiscal
management of each department, office, or other unit within the
agency. The secretary shall review and approve the proposed budget of
each department, office, or other unit. The secretary shall hold the
head of each department, office, or other unit responsible for
management control over the administrative, fiscal, and program
performance of his or her department, office, or other unit. The
secretary shall review the operations and evaluate the performance at
appropriate intervals of each department, office, or other unit, and
shall seek continually to improve the organization structure, the
operating policies, and the management information systems of each
department, office, or other unit.
   (b) There is in the Business, Transportation, and Housing Agency a
Department of Corporations, which has the responsibility for
administering various laws. In order to effectively support the
Department of Corporations in the administration of these laws, there
is hereby established the State Corporations Fund. All expenses and
salaries of the Department of Corporations shall be paid out of the
State Corporations Fund. Therefore, notwithstanding any provision of
any law administered by the Department of Corporations declaring that
fees, reimbursements, assessments, or other money or amounts charged
and collected by the Department of Corporations under these laws are
to be delivered or transmitted to the Treasurer and deposited to the
credit of the General Fund, on and after July 1, 1992, all fees,
reimbursements, assessments, and other money or amounts charged and
collected under these laws and attributable to the 1992-93 fiscal
year and subsequent fiscal years shall be delivered or transmitted to
the Treasurer and deposited to the credit of the State Corporations
Fund.
   (c) Funds appropriated from the State Corporations Fund and made
available for expenditure for any law or program of the Department of
Corporations may come from the following:
   (1) Fees and any other amounts charged and collected pursuant to
Section 25608 of the Corporations Code, except for fees and other
amounts charged and collected pursuant to subdivisions (o) to (r),
inclusive, of Section 25608 of the Corporations Code.
   (2) Fees collected pursuant to subdivisions (a), (b), (c), and (d)
of Section 25608.1 of the Corporations Code.



13979.  The secretary shall develop and report to the Governor on
legislative, budgetary, and administrative programs to accomplish
comprehensive, long-range, coordinated planning and policy
formulation in the matters of public interest related to the agency.
To accomplish this end, the secretary may hold public hearings,
consult with and use the services and cooperation of other state
agencies, employ staff and consultants, and appoint advisory and
technical committees to assist in the work.



13979.1.  With respect to coordinated planning and policy
formulation in transportation and housing policies, the secretary
shall be responsible for resolving significant policy conflicts among
state, local, and federal housing plans and programs and state,
local, or federal transportation plans and programs which impede
effective implementation of state housing or state transportation
policy.


13980.  For the purpose of administration, the secretary shall
review the organization of the agency and report to the Governor on
such changes as he deems necessary properly to segregate and conduct
the work of the agency.


13981.  The secretary and any other officer or employee within the
agency designated in writing by the secretary shall have the power of
a head of a department pursuant to Article 2 (commencing with
Section 11180) of Chapter 2, Part 1, Division 3, Title 2 of the
Government Code.



13982.  Whenever a power is granted to the secretary, the power may
be exercised by such officer or employee within the agency as
designated in writing by the secretary.



13983.  The secretary shall conduct a program relating to the
medical aspects of traffic injury and accident control.



13984.  In order to ensure that Section 10240.3 of the Business and
Professions Code and Sections 215.5, 22171, and 50333 of the
Financial Code are applied consistently to all California entities
engaged in the brokering, originating, servicing, underwriting, and
issuance of nontraditional mortgage products, the secretary shall
ensure that the Commissioner of Real Estate, the Commissioner of
Financial Institutions, and the Commissioner of Corporations
coordinate their policymaking and rulemaking efforts.