"Eppure non si muove"
In this July post, I noted that "if conduct is not
ongoing, it is impossible for someone to discontinue or
desist". The California legislature, however, sees no such
logical problem. Late last month, it enacted and Governor Gavin
Newsom signed AB 2433 (Grayson). Consequently, the
Commissioner of the Department of Financial Protection &
Innovation will soon have the authority to issue desist and refrain
orders even though the activity in question has already
stopped.
According to the Senate Floor analysis, the bill's genesis was two 2020
decisions by Administrative Law Judges finding that the
Commissioner lacked the authority to issue desist and refrain
orders when the activity is not continuing. The bill amends
Corporations Code Sections 25249, 25250, 25251, 29542, 31406, and
31407 of the Corporations Code and Financial Code Sections 2148,
12307.2, 17415, 17602, 17603, 17604, 22690, 22707.5, 22712, 28158,
28164, 50321, 50322, and 50323. The
