CA Gov. Newsom

Los Angeles Times columnist David Lazarus’ column (January 9) noted that California Governor Gavin Newsom … “unveil[ed] a California Consumer Financial Protection Law as part of his proposed 2020-21 state budget.” The proposed California Consumer Financial Protection Law would overhaul the existing Department of Business Oversight and rename it the Department of Financial Protection and Innovation, or DFPI, according to Lazarus.

“It appears what California is trying to do is create a state version of the Consumer Financial Protection Bureau … significantly, the new law also would give the state oversight of debt collectors — a regulatory function now limited to federal authorities,” wrote Lazarus.  State oversight of industries is often the precursor to licensure.