Commissioner Alvarez Leaves Office On Friday - What Happens Next?

Allen Matkins
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Allen Matkins

Recently,  Manuel P. Alvarez announced that June 18 will be his last day as Commissioner of the Department of Financial Protection & Innovation.  Until Governor Newsom appoints a successor, Chief Deputy Commissioner Chris Shultz will serve as the Acting Commissioner.  According to the DFPI,  Mr. Shultz "has been with DFPI for more than a year and a half, acting as second in command at the Department.  He also served as Acting Director at the Department of Consumer Affairs." 

Under the Government Code, the new Commissioner is subject to confirmation by the California Senate.  Unlike the federal system, the new Commissioner may begin performing duties before confirmation.  If the Senate refuses to confirm, the person may continue to serve  until 60 days have elapsed since the refusal to confirm or until 365 days have elapsed since the person first began performing the duties of the office, whichever occurs first.   If the Senate fails to confirm within the applicable 365-day period, the person may not continue to serve in that office, and the office for which the appointment was made is deemed to be vacant as of the first day immediately following the end of the 365-day period.  Cal. Gov't Code § 1774.  

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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