SECTIONS 25600-25620

25600.  There is in the state government, in the Business andTransportation Agency a Department of Corporations, which shalladminister the provisions of this division. The chief officer of theDepartment of Corporations is the Commissioner of Corporations. Thecommissioner shall be appointed by the Governor and shall hold officeat the pleasure of the Governor. He or she shall receive an annualsalary as fixed in the Government Code. Within 15 days from the timeof his or her appointment the commissioner shall take and subscribeto the constitutional oath of office and file it in the office of theSecretary of State. Whenever the term "Division of Corporations" is used in the law,it means the Department of Corporations.25601.  The commissioner shall have his principal office in the Cityof Sacramento, and may establish branch offices in the City andCounty of San Francisco, in the City of Los Angeles and in the Cityof San Diego. The commissioner shall from time to time obtain thenecessary furniture, stationery, fuel, light, and other properconveniences for the transaction of the business of the Department ofCorporations.25602.  In accordance with the laws governing the state civilservice, the commissioner shall employ and, with the approval of theDepartment of Finance, fix the compensation of such personnel as thecommissioner needs to discharge properly the duties imposed upon thecommissioner by law, including legal counsel to act as the attorneyfor the commissioner in actions or proceedings brought by or againstthe commissioner under or pursuant to any provision of any law underthe commissioner's jurisdiction, or in which the commissioner joinsor intervenes as to a matter within the commissioner's jurisdiction,as a friend of the court or otherwise, and stenographic reporters totake and transcribe the testimony in any formal hearing orinvestigation before the commissioner or before a person authorizedby the commissioner. The personnel of the Department of Corporationsshall perform such duties as the commissioner assigns to them. Suchemployees as the commissioner designates by rule or order shall,within 15 days after their appointments, take and subscribe to theconstitutional oath of office and file it in the office of theSecretary of State.25603.  The commissioner shall adopt a seal bearing the inscription:"Commissioner of Corporations, State of California." The seal shallbe affixed to or imprinted on all orders and certificates issued byhim and such other instruments as he directs. All courts shall takejudicial notice of this seal.25604.  The administration and enforcement of, and the education ofthe public relative to, the laws and programs of the Department ofCorporations shall be supported from the State Corporations Fund.Funds appropriated from the State Corporations Fund and madeavailable for expenditure for any law or program of the departmentmay come from fees collected from the following: (a) Section 25608, except for fees collected pursuant tosubdivisions (o) to (r), inclusive, of Section 25608. (b) Section 25608.1.25605.  (a) The commissioner may publish any information filed withhim or obtained by him, if, in the judgment of the commissioner, suchaction is in the public interest. No provision of this lawauthorizes the commissioner or any of his assistants, clerks, ordeputies to disclose any information withheld from public inspectionexcept among themselves or when necessary or appropriate in aproceeding or investigation under this law or to other federal orstate regulatory agencies. No provision of this law either creates orderogates from any privilege which exists at common law or otherwisewhen documentary or other evidence is sought under a subpoenadirected to the commissioner or any of his assistants, clerks, ordeputies. (b) It is unlawful for the commissioner or any of his assistants,clerks, or deputies to use for personal benefit any information whichis filed with or obtained by the commissioner and which is not thengenerally available to the public.25606.  (a) The Attorney General shall render to the commissioneropinions upon all questions of law, relating to the construction orinterpretation of any law under the commissioner's jurisdiction orarising in the administration thereof, that may be submitted to theAttorney General by the commissioner, and upon the commissioner'srequest shall act as the attorney for the commissioner in actions andproceedings brought by or against the commissioner under or pursuantto any provision of any law under the commissioner's jurisdiction. (b) Sections 11041, 11042 and 11043 of the Government Code do notapply to the Commissioner of Corporations.25607.  (a) Neither the commissioner nor any of the commissioner'sassistants, clerks, or deputies shall be interested as a director,officer, shareholder, member (other than a member of an organizationformed for religious purposes), partner, agent, or employee of anyperson who, during the period of the official's or employee'sassociation with the Department of Corporations, (1) was licensed orapplied for license as a broker-dealer or investment adviser underthis division, or (2) applied for or secured the qualification of thesale of securities under this division. (b) Nothing contained in subdivision (a) shall prohibit theholding or purchasing of any securities by any assistant, clerk, ordeputy in accordance with rules as the commissioner shall adopt forthe purpose of protecting the public interest and avoiding conflictsof interest. (c) Nothing contained in subdivision (a) shall prohibit theholding or purchasing of any securities by the commissioner if any ofthe following criteria is met: (1) The securities held or purchased by the commissioner areexempt from the qualification requirements of Sections 25110, 25120,and 25130 by virtue of Section 25100, provided that the holding orpurchasing of those securities is in accordance with rules adoptedfor the purpose of protecting the public interest and avoidingconflicts of interest. (2) The securities held or purchased by the commissioner are notsubject to Sections 25110, 25120, and 25130 by virtue of Section25100.1, provided that the holding or purchasing of those securitiesis in accordance with rules adopted for the purpose of protecting thepublic interest and avoiding conflicts of interest. (3) The holding or purchasing of any securities by thecommissioner meets each of the following requirements: (A) The securities are held or purchased through a managementaccount or trust administered by a bank or trust company authorizedto do business in this state, and the bank or trust company has soleinvestment discretion regarding the holding, purchase, and sale ofsecurities. (B) The commissioner did not, directly or indirectly, advise,counsel, command, or suggest the holding, purchase, or sale of anysecurity or furnish any information relating to the security to thebank or trust company. (C) The account or trust does not at any time have more than 10percent of its total assets invested in the securities of any oneissuer or hold more than 5 percent of the outstanding shares or unitsof any class of securities of any one issuer. (D) The commissioner shall report to the Attorney General not lessoften than quarterly all holdings, purchases, and sales ofsecurities by him or her as authorized in paragraph (3), whichreports shall be retained by the Attorney General as publicdocuments.25608.  (a) The commissioner shall charge and collect the fees fixedin this section and Section 25608.1. All fees charged and collectedunder this section and Section 25608.1 shall be transmitted to theTreasurer at least weekly, accompanied by a detailed statementthereof and shall be credited to the State Corporations Fund. (b) The fee for filing an application for a negotiating permitunder subdivision (c) of Section 25102 is fifty dollars ($50). (c) The fee for filing a notice pursuant to paragraph (5) ofsubdivision (h) of Section 25102 and the fee for filing a noticepursuant to paragraph (4) of subdivision (f) of Section 25102, inaddition to the fee prescribed in those paragraphs, if applicable,shall be determined based on the value of the securities proposed tobe sold in the transaction for which the notice is filed and inaccordance with subdivision (g), and shall be as follows:  Value of  Securities  Proposed to be Sold Filing Fee  $25,000 or less $ 25  $25,001 to $100,000 $ 35  $100,001 to $500,000 $ 50  $500,001 to $1,000,000 $150  Over $1,000,000 $300 (d) The fee for filing an application for designation of an issuerpursuant to subdivision (k) of Section 25100 is fifty dollars ($50). (e) The fee for filing an application for qualification of thesale of securities by notification under Section 25112 or by permitunder paragraph (1) of subdivision (b) of Section 25113 (exceptapplications for qualification by permit of the sale of any guaranteeof any security, the fees for which applications are fixed insubdivision (k)) is two hundred dollars ($200) plus one-fifth of 1percent of the aggregate value of the securities sought to be sold inthis state up to a maximum aggregate fee of two thousand fivehundred dollars ($2,500). The fee for filing a small company application for qualificationof the sale of securities by permit under paragraph (2) ofsubdivision (b) of Section 25113 is two thousand five hundred dollars($2,500). In the case where the costs of processing a small companyapplication exceed the filing fee, an additional fee shall becharged, not to exceed one thousand dollars ($1,000), over and abovethe filing fee based on the costs of the salary or other compensationpaid to persons processing the application plus overhead costsreasonably incurred in the performance of the work. In determiningthe costs, the commissioner may use the estimated average hourly costfor all persons processing applications for the fiscal year. (f) The fee for filing an application for qualification of thesale of securities by coordination under Section 25111 or a notice ofintention to sell under subdivision (t) of Section 25100 is twohundred dollars ($200) plus one-fifth of 1 percent of the aggregatevalue of the securities sought to be sold in this state up to amaximum aggregate fee of two thousand five hundred dollars ($2,500). (g) For the purpose of determining the fees fixed in subdivisions(e) and (f): (1) The value of the securities shall be the price at which thecompany proposes to sell the securities, or the value, as alleged inthe application, or the actual value, as determined by thecommissioner, of the consideration (if other than money) to bereceived in exchange therefor, or of the securities when sold,whichever is greater. (2) Interim or voting trust certificates shall have a value equalto the aggregate value of the securities to be represented by theinterim or voting trust certificates. (3) The value of a warrant or right to purchase or subscribe toanother security of the same or another issuer shall be an amountequal to the consideration to be paid for that warrant or right plusan amount equal to the consideration to be paid upon purchase of theadditional securities, provided that if the latter amount is notdeterminable at the time of qualification, that amount shall then bethe value of the additional securities as determined by thecommissioner. (4) In the case of a share dividend where the shareholders aregiven an option to accept either cash or additional shares of commonstock, the value of the securities to be sold shall be the maximumamount of cash that would be payable in the event that allshareholders elected to accept cash. (h) The fee for filing an application for qualification of thesale of securities by permit under Section 25121 is: (1) Two hundred dollars ($200) in connection with any change(including any stock split or reverse stock split or stock dividend,except a stock dividend where the shareholders are given an option toaccept either cash or additional shares of common stock) in therights, preferences, privileges, or restrictions of or on outstandingsecurities. (2) Two hundred dollars ($200) plus one-fifth of 1 percent of thevalue, as alleged in the application, or the actual value, asdetermined by the commissioner, of the consideration to be receivedin exchange therefor, up to a maximum aggregate fee of two thousandfive hundred dollars ($2,500), in any exchange of securities by theissuer with its existing security holders exclusively, or in anyexchange in connection with any merger or consolidation or purchaseof corporate assets in consideration of the issuance of securities,or any entity conversion transaction. (i) The fee for filing an application for qualification of thesale of securities by notification under Section 25131 shall be onehundred dollars ($100). (j) The fee for an application for the removal of any conditionunder Section 25141 is fifty dollars ($50). (k) The fee for filing any application for a permit to execute orissue any guarantee of any security is fifty dollars ($50). (l) The fee for acting as escrowholder for securities underSection 25149 is fifty dollars ($50). In addition, a fee of twodollars and fifty cents ($2.50) shall be paid for the deposit withthe commissioner of each new certificate or other document resultingfrom a transfer in escrow. (m) The fee for filing an application for an order (1) consentingto the transfer in escrow of securities or (2) consenting to thetransfer of securities subject to any condition imposed by thecommissioner requiring the commissioner's consent to the transfer istwenty dollars ($20) for each transfer. (n) The filing fee for an amendment to an application filed afterthe effective date of the qualification of the sale of securities isfifty dollars ($50) plus any additional fee that would have beenrequired to be paid with the original application for qualificationof the sale of securities under this section if the matters set forthin the amendment had been included in the original application. (o) (1) The fee for filing an application for a broker-dealercertificate under Section 25211 is three hundred dollars ($300). (2) Each broker-dealer shall pay to the commissioner its pro ratashare of all costs and expenses, reasonably incurred in theadministration of the broker-dealer program under this division, asestimated by the commissioner for the ensuing year and any deficitactually incurred or anticipated in the administration of the programin the year in which the assessment is made. The pro rata shareshall be the proportion that the broker-dealer and the number of itsagents in this state bears to the aggregate number of broker-dealersand agents in this state as shown by records maintained by or onbehalf of the commissioner. The pro rata share may include the costsof any examinations, audit, or investigation provided for insubdivision (r). (3) Every broker-dealer who has secured from the commissioner acertificate shall, in order to keep the certificate in effect for anadditional period, pay a minimum assessment of seventy-five dollars($75) on or before the 31st of December in each year. (4) The commissioner may assess and levy against eachbroker-dealer any additional amount above the minimum assessmentamount of seventy-five dollars ($75) that is reasonable and necessaryto support the broker-dealer program under this division. If anadditional amount is assessed, the commissioner shall notify eachbroker-dealer by mail of any additional amount assessed and leviedagainst it on or before the 30th day of May in each year, and thatamount shall be paid within 20 days thereafter. If payment is notmade within 20 days, the commissioner shall assess and collect apenalty in addition to the assessment of 1 percent of the assessmentfor each month or part of a month that the payment is delayed orwithheld. (5) If a broker-dealer fails to pay any assessment on or beforethe 30th day of the month following the day upon which payment isdue, the commissioner may by order summarily suspend or revoke thecertificate issued to the broker-dealer. If, after that order ismade, a request for hearing is filed in writing and a hearing is notheld within 60 days thereafter, the order is deemed rescinded as ofits effective date. During any period when its certificate is revokedor suspended, a broker-dealer shall not conduct business pursuant tothis division except as may be permitted by order of thecommissioner; provided, however, that the revocation, suspension, orsurrender of a certificate shall not affect the powers of thecommissioner as provided under this division. (6) In determining the amount assessed, the commissioner shallconsider all appropriations from the State Corporations Fund for thesupport of the broker-dealer program under this division and allreimbursements applicable to the administration of the broker-dealerprogram under this division. (p) The commissioner shall charge a fee of twenty-five dollars($25) for the filing of a notice or report required by rule adoptedpursuant to subdivision (b) of Section 25210 or subdivision (b) ofSection 25230. (q) (1) Except as provided for in paragraph (2), the fee forfiling an application for an investment adviser under Section 25231is one hundred twenty-five dollars ($125), and payment of this amountshall keep the certificate, if granted, in effect during thecalendar year during which it is granted. Every investment adviserwho has secured from the commissioner a certificate shall, in orderto keep the certificate in effect for an additional period, pay arenewal fee of one hundred twenty-five dollars ($125) on or beforethe 31st day of December. (2) Paragraph (1) shall not apply to a broker-dealer licensedunder Section 25210. (r) (1) Except as provided for in paragraph (2), the fee for anyroutine or nonroutine regulatory examination, audit, or investigationis the amount of the salary or other compensation paid to thepersons making the examination, audit, or investigation plus theamount of expenses including overhead reasonably incurred in theperformance of the work. In determining the costs associated with anexamination, audit, or investigation, the commissioner may use theestimated average hourly cost for all persons performingexaminations, audits, or investigations for the fiscal year. (2) An investment adviser licensed under Section 25230 pursuant tothe Investment Adviser Registration Depository shall not be subjectto paragraph (1) only in regard to the fee for a routine regulatoryexamination of its investment advisory services for which it islicensed under Section 25230. (s) The fee for any hearing held by the commissioner pursuant toSection 25142 shall be the sum determined by the commissioner tocover the actual expense of noticing and holding the hearing. (t) The commissioner may fix by rule a reasonable charge for anypublications issued under his or her authority. The charges shall notapply to reports of the commissioner in the ordinary course ofdistribution. (u) The fee for filing an offer under subdivision (b) of Section25507 shall be the amount of filing fee payable under subdivision(e), (f), (h), or (i) of this section if an application had beenfiled to qualify the transaction in which the securities upon whichthe offer is to be made were sold in violation of the qualificationprovisions of this law. (v) The fee for filing an application for exemption pursuant tosubdivision (l) of Section 25100 is two hundred fifty dollars ($250). (w) The commissioner may by rule require payment of a fee forfiling a notice or report required by a rule adopted pursuant toSection 25105. The fee required in connection with a transaction asdefined by that rule shall not exceed the fees specified insubdivision (c) based on the value of the securities sold, but thecommissioner may permit a single notice for more than onetransaction. (x) The fee for filing the first notice of transaction undersubdivision (n) of Section 25102 is six hundred dollars ($600). (y) The fee for filing a notice of transaction under subdivision(o) of Section 25102 shall be the fee for filing an application forqualification of the sale of securities by permit under paragraph (1)of subdivision (b) of Section 25113 as set forth in subdivision (e)of this section. (z) The fee for filing a notice of transaction under subdivision(h) of Section 25103 shall be six hundred dollars ($600).25608.1.  (a) The fee for an investment company filing a noticepursuant to subdivision (b) of Section 25100.1 is two hundred dollars($200) plus one-fifth of 1 percent of the aggregate value of thesecurities sought to be sold in this state up to a maximum aggregatefee of two thousand five hundred dollars ($2,500). (b) The fee for an issuer filing a notice pursuant to subdivision(a) of Section 25102.1 is six hundred dollars ($600). (c) The fee for an issuer filing a notice pursuant to subdivision(d) of Section 25102.1 is three hundred dollars ($300). (d) The fee for an investment adviser filing a notice pursuant tosubdivision (b) of Section 25230.1 is one hundred twenty-five dollars($125) and the fee for filing a notice or report required by ruleadopted pursuant to subdivision (c) of Section 25230.1 is twenty-fivedollars ($25).25608.2.  Commencing July 1, 2000, the fee provisions of subdivision(c) of Section 25608, as they apply to the fee for filing a noticepursuant to paragraph (4) of subdivision (f) of Section 25102, andthe fee provisions of subdivisions (a), (b), and (c) of Section25608.1, shall be the maximum fees that may be levied on a noticefiling under subdivision (b) of Section 25100.1, subdivision (f) ofSection 25102, and subdivisions (a), (c), and (d) of Section 25102.1.The commissioner, however, may set the notice filing fee undersubdivision (c) of Section 25608, as it relates to a notice filingunder subdivision (f) of Section 25102, and the notice filing feesunder subdivisions (a), (b), and (c) of Section 25608.1, at amountsbelow the maximum fees set forth in those sections. The commissionershall set the notice filing fees under those sections for theupcoming fiscal year on or about June 1 of each year. If thecommissioner fails to set the notice filing fees for the upcomingfiscal year, then the filing fees shall be the maximum fees that maybe levied under those sections for the upcoming fiscal year.25608.3.  (a) Notwithstanding Sections 25608 and 25608.1, thecommissioner may set any fee under those sections at an amount belowthe maximum fee set forth in those sections. The commissioner shallset the fee for the upcoming fiscal year on or about June 1 of eachyear, except that for the six-month period of January 1, 2002,through June 30, 2002, and for the 2002-03 fiscal year, thecommissioner, on January 1, 2002, shall, in a reasonable and prudentmanner, reduce any fee under Sections 25608 and 25608.1 by an amountbelow the maximum fee set forth in those sections. For the fiscalyear commencing on July 1, 2003, and thereafter, the commissionershall establish the level of fees adequate to cover anticipatedcosts, including the maintenance of a prudent reserve, but not toexceed the maximum fees that may be levied under Sections 25608 and25608.1. If, for the fiscal year commencing on July 1, 2003, orthereafter, the commissioner fails to set the fee for the upcomingfiscal year on or before June 1, then the fee for the next fiscalyear shall be the fee that was in effect for the current fiscal year. (b) In carrying out this section, the commissioner shall reduce orsuspend fees to achieve no more than a 25-percent fund balance inthe State Corporations Fund by June 30, 2007, and thereafter. (c) The department shall report by February 1, 2002, to the Chairof the Joint Legislative Budget Committee and the chairs of thebudget committees on the fees to be reduced and the projected revenueand fund balance impact on the State Corporations Fund through the2006-07 fiscal year. Each year from 2002 through 2007, the departmentshall submit a status update report by November 1 on the feesreduced, the revenue and fund balance impact in the prior fiscalyear, and the projected revenue and fund balance impact through the2006-07 fiscal year.25609.  Every final order, decision, license, or other official actof the commissioner is subject to judicial review in accordance withlaw.25610.  The commissioner may from time to time make, amend andrescind such rules, forms, and orders as are necessary to carry outthe provisions of this law, including rules and forms governingapplications and reports, and defining any terms, whether or not usedin this law, insofar as the definitions are not inconsistent withthe provisions of this law. For the purpose of rules and forms, thecommissioner may classify securities, persons, and matters within hisjurisdiction, and may prescribe different requirements for differentclasses. The commissioner may in his discretion waive anyrequirement of any rule or form in situations where in his opinionsuch requirement is not necessary in the public interest or for theprotection of investors.25611.  The commissioner may prepare and make available tointerested persons lists of persons whose securities are qualifiedfor trading purposes in this state, are exempt from qualification, orare not subject to qualification as the commissioner may determineto be necessary or desirable, and the commissioner may makereasonable charges for those lists to defray the expenses ofpreparation and dissemination.25612.  No rule, form or order may be made, amended, or rescindedunless the commissioner finds that the action is necessary orappropriate in the public interest or for the protection of investorsand consistent with the purposes fairly intended by the policy andprovisions of this law.25612.3.  Unless otherwise provided by rule, the commissioner shallrequire the use of the following forms: (a) Form BD (Uniform Application for Broker-Dealer Registration)for a broker-dealer application. (b) Form ADV (Uniform Application for Investment AdviserRegistration) for an investment adviser application. (c) Form BDW (Uniform Request for Broker-Dealer Withdrawal) forwithdrawing from licensure as a broker-dealer. (d) Form ADV-W (Notice of Withdrawal from Registration asInvestment Adviser) for withdrawing from licensure as an investmentadviser. (e) Form U-4 (Uniform Application for Securities IndustryRegistration or Transfer) for the reporting of an agent of abroker-dealer or an investment adviser representative or associatedperson of an investment adviser. (f) Form U-5 (Uniform Termination Notice for Securities IndustryRegistration) for the reporting of the termination of an agent of abroker-dealer or an investment adviser representative or associatedperson of an investment adviser.25612.5.  (a) To encourage uniform interpretation and administrationof this law and the Franchise Investment Law (Division 5 (commencingwith Section 31000)) and effective securities and franchiseregulation and enforcement, the commissioner may cooperate with thesecurities agencies or administrators of one or more states, Canadianprovinces or territories, or other countries, the Securities andExchange Commission, the Commodity Futures Trading Commission, theSecurities Investor Protection Corporation, any self-regulatoryorganization, any national or international organization orsecurities officials or agencies, and any governmental lawenforcement or regulatory agency. (b) The cooperation authorized by subdivision (a) includes, but isnot limited to, the following actions: (1) Prescribing rules and forms with a view to achieving maximumuniformity in the form and content of registration statements,applications, and reports wherever practicable. (2) Participating in a nationwide central depository forqualification or registration of securities under this law and fordocuments or records required or allowed to be maintained under thislaw. (3) Participating in the Central Registration Depository, or anysuccessor or alternative nationwide or regional depository, for theregistering, certifying, or licensing of broker-dealers or agents, orboth. (4) Participating in the Investment Adviser RegistrationDepository, or any successor or alternative nationwide or regionaldepository, for the registering, certifying, or licensing ofinvestment advisers or investment adviser representatives, or both. (5) Cooperating in any regulatory activity necessary in theadministration of the Uniting and Strengthening America by ProvidingAppropriate Tools Required to Intercept and Obstruct Terrorism Act of2001 (Public Law 107-56; USA Patriot Act), consistent with statelaw. (c) Notwithstanding any other provision of law, any applicationfor qualification, amendment to the application or related securitiesqualification or registration document or notice under Sections25100.1, 25101.1, 25102, 25102.1, 25110, 25120, 25130, and 25230.1 orrecord otherwise required to be signed that is filed in this stateas an electronic record pursuant to a nationwide central depositoryfor qualification or registration of securities, or any electronicrecord filed through the Central Registration Depository or theInvestment Adviser Registration Depository, shall be deemed to be avalid original document upon reproduction to paper form by theDepartment of Corporations. (d) For purposes of this section, "electronic record" has the samemeaning as in subdivision (g) of Section 1633.2 of the Civil Code.25613.  The commissioner may by rule or order prescribe (1) the formand content of financial statements required under this law, (2) thecircumstances under which consolidated financial statements shall befiled, and (3) the circumstances under which financial statementsshall be audited by independent certified public accountants orpublic accountants.25614.  All rules of the commissioner (other than those relatingsolely to the internal administration of the Department ofCorporations) shall be made, amended or rescinded in accordance withthe provisions of the Administrative Procedure Act, Chapter 4(commencing with Section 11370) of Part 1 of Division 3 of Title 2 ofthe Government Code. Rules may be adopted prior to the effectivedate of this law to become effective upon its effective date.25615.  A document is filed when it is received by the commissioner;but no qualification of the sale of securities shall becomeeffective until the appropriate fee has been paid.25616.  The commissioner shall keep an index of all qualificationswhich are or have ever been effective, all denial, suspension, orrevocation orders which have been entered and all permits andcertificates which have been issued by him under this law.25617.  Upon request and at such reasonable charges as he prescribesby rule, the commissioner shall furnish to any person photostatic orother copies (certified under his seal of office if requested) ofany document which is retained as a matter of public record, exceptthat he shall not charge or collect any fee for photostatic or othercopies of any document furnished to public officers for use in theirofficial capacity. In any judicial proceeding or prosecution, anycopy so certified is prima facie evidence of the contents of thedocument certified.25618.  The commissioner in his discretion may honor requests frominterested persons for interpretive opinions.25619.  (a) The commissioner may destroy any applications, notices,orders, permits, and revoked or surrendered certificates, togetherwith the files and folders, as useless or obsolete, four years afterthe date of filing or issuance, with the approval of the Departmentof General Services; provided, that a permanent record shall bemaintained of any disciplinary action taken by the commissioner. (b) When acting as escrow holder for securities, the commissionermay destroy any certificates evidencing securities of any corporationwhich has been dissolved or whose charter has been suspended for aperiod of not less than two years for nonpayment of taxes orpenalties and may destroy any other records pertaining to the escrowof the securities destroyed, and he or she shall have no furtherliability or accountability therefor; provided, that the commissionershall maintain a permanent record containing such information as heor she may by rule prescribe relating to the certificates and recordsso destroyed. (c) Copies on microfilm or in other form which may be retained bythe commissioner in his discretion of any records destroyed underthis section shall be accepted for all purposes as equivalent to theoriginal when certified by the commissioner.25620.  (a) Notwithstanding any other provision of law, thecommissioner may by rule or order prescribe circumstances under whichto accept electronic records or electronic signatures. However,nothing in this section requires the commissioner to acceptelectronic records or electronic signatures. (b) For purposes of this section, the following terms have thefollowing meanings: (1) "Electronic record" means a record created, generated, sent,communicated, received, or stored by electronic means, and includes arecord transmitted by means of facsimile machine or other telephonetransceiving equipment. (2) "Electronic signature" means an electronic sound, symbol, orprocess attached to or logically associated with an electronic recordand executed or adopted by a person with the intent to sign theelectronic record. (c) The Legislature hereby finds and declares that the Departmentof Corporations has continuously implemented methods to file recordselectronically, including broker-dealer and investment adviserapplications, and is encouraged to continue to expand its use ofelectronic filings to the extent feasible, as budget, resources, andequipment are made available to accomplish that goal.