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HomeFinancial CodeDiv. 3Ch. 5§ 12404 Commissioner Disciplinary Authority

§ 12404 Commissioner Disciplinary Authority

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

§ 12404 Commissioner Disciplinary Authority

This law lets the commissioner punish people who break the rules in certain jobs by stopping them from working in those jobs for a while or forever. It applies if they did something bad on purpose or caused harm.

Key Takeaways

  • •The commissioner can punish people by stopping them from working in certain jobs if they break rules or cause harm.
  • •If someone is accused, they get 15 days to ask for a hearing to explain their side.
  • •If someone is suspended or barred, they can't work in any job covered by this law, even if they're not directly licensed.
  • •The punishment can last up to 12 months or be permanent.

Example

A manager at a charity lies about how money is spent and gets caught.

The commissioner can stop this manager from working in any similar job because they were dishonest and broke the rules.

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

Official Source
View on CA.gov

§ 12404 Commissioner Disciplinary Authority

(a) The commissioner may, after appropriate notice and opportunity for hearing, by order, censure or suspend for a period not exceeding 12 months, or bar from any position of employment, management, or control any licensee, any nonprofit community service organization subject to Section 12104, or any other person, if the commissioner finds either of the following: (1) That the censure, suspension, or bar is in the public interest and that the person has committed or caused a violation of this division or rule or order of the commissioner, which violation was either known or should have been known by the person committing or causing it or has caused material damage to the licensee, nonprofit community service organization, or to the public. (2) That the person has been convicted of or pleaded nolo contendere to any crime, or has been held liable in any civil action by final judgment, or any administrative judgment by any public agency, if that crime or civil or administrative judgment involved any offense involving dishonesty, fraud, or deceit, or any other offense reasonably related to the qualifications, functions, or duties of a person engaged in the business in accordance with the provisions of this division. (b) Within 15 days from the date of a notice of intention to issue an order pursuant to subdivision (a), the person may request a hearing under the Administrative Procedure Act (Chapter 4.5 (commencing with Section 11400) of Division 3 of Title 2 of the Government Code). Upon receipt of a request, the matter shall be set for hearing to commence within 30 days after such receipt unless the person subject to this division consents to a later date. If no hearing is requested within 15 days after the mailing or service of such notice and none is ordered by the commissioner, the failure to request a hearing shall constitute a waiver of the right to a hearing. (c) Upon receipt of a notice of intention to issue an order pursuant to this section, the person who is the subject of the proposed order is immediately prohibited from engaging in any activities subject to licensure or exempt from licensure under Section 12104 of the law. (d) Persons suspended or barred under this section are prohibited from participating in any business activity of a licensee or a person exempt from licensure under Section 12104 and from engaging in any business activity on the premises where a licensee or a person exempt from licensure under Section 12104 is conducting business. (Added by Stats. 2007, Ch. 101, Sec. 16. Effective January 1, 2008.)

Last verified: January 10, 2026

Key Terms

judgmentemploymentcommissioncrimewaiverfraudporthearing

Related Statutes

  • § 28156 Disciplinary Actions For Violations
  • § 30609 Securities Depository Discipline
  • § 50318 Mortgage Licensee Discipline Authority
  • § 17423 Escrow Agent Discipline Rules
  • § 50319 Escrow Insolvency Enforcement

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 12404.
View Official Source