"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 bill will take effect on January 1, 2023.

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