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HomeFinancial CodeDiv. 3Ch. 2§ 12105 Commissioner Enforcement Actions

§ 12105 Commissioner Enforcement Actions

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 12105 Commissioner Enforcement Actions

This law lets the state commissioner sue people who break the rules, get a court order to stop them, and charge fines up to $2,500 for each administrative violation and up to $10,000 for each civil violation.

Key Takeaways

  • •The commissioner can bring a court case to stop illegal actions and get court orders.
  • •Administrative fines can be up to $2,500 for each violation; civil fines can be up to $10,000 for each willful violation.
  • •The court can also order restitution, disgorgement, and pay the commissioner’s attorney fees.

Example

A restaurant serves alcohol without a proper license and also fails to post required health notices.

The commissioner can file a lawsuit to make the restaurant stop the illegal behavior, ask the court for an injunction, and then fine the restaurant $2,500 for each administrative breach and $10,000 for each civil breach.

How to Calculate

Administrative Penalty = Number of violations × $2,500 per violation Civil Penalty = Number of violations × $10,000 per violation

  1. Count how many separate violations occurred.
  2. Multiply that count by $2,500 to get the administrative fine.
  3. Multiply the same count by $10,000 to get the civil fine (if the conduct is willful).

The restaurant was found to have 3 separate violations of the licensing rules.

Result: Administrative Penalty = 3 × $2,500 = $7,500 Civil Penalty = 3 × $10,000 = $30,000

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 12105 Commissioner Enforcement Actions

(a) Whenever it appears to the commissioner that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of this division, or any rule or order promulgated pursuant to this division, the commissioner may, at his or her discretion, bring an action in the name of the people of the State of California in the superior court to enjoin the acts or practices or to enforce compliance. Upon a proper showing, a permanent or preliminary injunction, a regaining order, or a writ of mandate shall be granted and a receiver or conservator may be appointed for the defendant’s assets. (b) If the commissioner determines it is in the public interest, the commissioner may include in any action under this division a claim for ancillary relief, including, but not limited to, a claim for restitution or disgorgement or damages on behalf of the persons injured by the act or practice constituting the subject matter of the action, and the administrative or civil court shall have jurisdiction to award an additional relief. (c) The commissioner may, after appropriate notice and opportunity for hearing, levy administrative penalties against any person or licensee who violates any provision of this division, or rule or order promulgated pursuant to this division, in an amount not to exceed two thousand five hundred dollars ($2,500) per violation. Any hearing shall be held in accordance with the Administrative Procedure Act, Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all of the powers granted under this act. If no hearing is requested within 30 days from the date of service of the order, the order shall become final. (d) Any licensee or person who willfully violates any provision of this division, or any rule or order thereunder, shall be liable for a civil penalty not to exceed ten thousand dollars ($10,000) for each violation, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the commissioner in any court of competent jurisdiction. (e) In any action brought under this division, the commissioner is entitled to receive costs, which in the discretion of the administrative or civil court shall include an amount representing reasonable attorney’s fees and any related expenses for services rendered. (Added by Stats. 2002, Ch. 779, Sec. 5. Effective January 1, 2003.)

Last verified: January 10, 2026

Key Terms

restitutioninjunctioncomplianceviolationcommissiondamagesclaimpenalty

Related Statutes

  • § 23051 Commissioner Enforcement Authority
  • § 17607 Commissioner Enforcement Injunctions
  • § 28168 Commissioner Enforcement Injunction
  • § 50324 Commissioner Enforcement Actions
  • § 12106 Commissioner Investigative Enforcement Powers

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 12105.
View Official Source