Corporations Department, 1919-1982

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Summary

Title:: Inventory of the Department of Corporations Records
Dates:: 1919-1982
Creators:: Department of Corporations
Abstract:: The records of the Department of Corporations and its predecessor, the Department of Investment - Division of Corporations, consist of 21 cubic feet of documents spanning the years 1966-1982 and are organized into six records series: Subject Files, Commissioner Office Files, Lender-Fiduciary Files, Application Files, Bill Files, and Legislative Correspondence. The Department of Investment - Division of Corporations was established by law (Statutes of 1929, Chapter 277) to bring the agencies regulating the finance and banking industry under one jurisdiction. The Division of Corporations remained under the jurisdiction of the Department of Investments until 1969. Assembly Bill 387 (Statutes of 1969, Chapter 138) amended various codes regarding executive reorganization and authorized the creation of a stand-alone Department of Corporations. Its mission is to ensure an efficient and accessible financial services marketplace in California, to educate the public about the risks and rewards in investing and finances, and to enforce California's financial services laws to protect the public from fraud.
Extent:: 21 cubic feet
Language:: Languages represented in the collection: English
Preferred citation:: [Identification of item], Department of Corporations Records, [Record Group Number].[series number], Box [number], folder [number], California State Archives, Office of the Secretary of State, Sacramento, California.

Background

Scope and content:

The records of the Department of Corporations and its predecessor, the Department of Investments - Division of Corporations, consist of 21 cubic feet of documents spanning the years 1966-1982. The Department of Corporations records are organized into six records series: Subject Files, Commissioner Office Files, Lender-Fiduciary Files, Application Files, Bill Files, and Legislative Correspondence. These records document the changes in corporations, securities and franchising policy, and legislation during the later half of the twentieth century.

One especially useful group of files within the Subject Files series relates to the Corporate Securities Act of 1968 (CSA). The CSA outlines the corporation code for the State of California. The subject files relating to the CSA contain correspondence, memos and input from businesses on the regulations. They also include comments on proposed changes to the act and minutes from hearings. Another highlight of the Department of Corporations records is the application for franchising from recognizable corporations like Taco Bell or the Delorean Motor Company. These applications are found in the Application Files.

The Bill Files and the Legislative Correspondence contain records pertaining to legislation that directly affects corporations, franchises, or securities. The Bill Files include memoranda, correspondence, and brief descriptions of certain bills. The Legislative Correspondence relates to both assembly and senate bills that have to do with corporation law within the state.

The Department of Investments-Division of Corporations became the Department of Corporations with the passage of AB 387 in the 1969 legislative session. All records created when the department was known as the Division of Corporations have R305 as the identification number while the records created by the Department of Corporations have R129 as the identification number. Some series, like the Subject Files series, have two different identification numbers.

Biographical / historical:

The Department of Corporations is responsible for regulating and licensing businesses including securities brokers and dealers, investment advisers and financial planners, and certain fiduciaries and lenders in the state of California. The department also regulates the offer and sale of securities, franchises, and off-exchange commodities.

The department originated with the Investment Companies Act of 1913 and the creation of the Corporations Department. In 1929, the Department of Investment was established by law (Statutes of 1929, Chapter 277). The department was created to bring the agencies regulating the finance and banking industry under one jurisdiction. The functions of the State Banking Department, Bureau of Building and Loan Supervision, State Corporations Department, Insurance Department, and State Real Estate Department remained the same and the former departments became divisions under the Department of Investments.

The Division of Corporations remained under the jurisdiction of the Department of Investments until the 1969. Assembly Bill 387 (Statutes of 1969, Chapter 138) amended various codes regarding executive reorganization and authorized the creation of a stand-alone Department of Corporations. The bill also dissolved the Department of Investments.

The newly anointed Department of Corporations had three main programs - the Securities and Franchise Program, the Lender-Fiduciary Program, and the Administration Program. The Securities and Franchises Program aimed to provide the appropriate controls over the solicitation, marketing and sale of securities and franchises to California residents and take enforcement action when necessary. The Lender-Fiduciary Program provided regulatory surveillance over companies lending money or receiving funds in a fiduciary capacity.

The responsibilities of the Department of Corporations have largely remained the same through 2011. Its mission is to ensure an efficient and accessible financial services marketplace in California, to educate the public about the risks and rewards in investing and finances, and to enforce California's financial services laws to protect the public from fraud. The Department of Corporations is under the Business, Transportation, and Housing Agency and the authority of the Governor.

Acquisition information:

The California State Archives acquired the Department of Corporation Records according to state law.

Physical location:

California State Archives

Rules or conventions:

Finding aid prepared using Describing Archives: a Content Standard

Indexed terms

Subjects:: California. Dept. of Corporations
Investments
Finance

About this collection guide

Collection Guide Author:: Processed by Meghan Kane and Archives Staff
Date Encoded:: Machine-readable finding aid created by Meghan Kane. Machine-readable finding aid derived from MS Word. Date of source: 01 April 2011.

Access and use

Restrictions:: Collection is open for research.
Terms of access:: For permission to reproduce or publish, please contact the California State Archives. Permission for reproduction or publication is given on behalf of the California State Archives as the owner of the physical items. The researcher assumes all responsibility for possible infringement which may arise from reproduction or publication of materials from the California State Archives collections.

Preferred citation:: [Identification of item], Department of Corporations Records, [Record Group Number].[series number], Box [number], folder [number], California State Archives, Office of the Secretary of State, Sacramento, California.

Location of this collection:: California State Archives

1020 "O" Street

Sacramento, CA 95814, US