Section 12068 - Decisions Requiring Resignation or DivestitureWhen an application is denied or conditions, limitations, or restrictions are imposed under the Act or this chapter and that decision is final under Section 12066, any requirements set forth in the decision must be complied with, and the following will apply to the extent not inconsistent with the decision, as applicable:
(a)(1) If the denied applicant is an officer, director, employee, agent, representative, or independent contractor of a corporation licensed, registered, or found suitable by the Commission, the denied applicant must resign according to the date specified in the Commission's decision and must notify the Commission in writing.(2) If the denied applicant is an officer or director of a corporation that is licensed, registered, or found suitable by the Commission, the corporation must remove that person from office according to the date specified in the Commission's decision and must notify the Commission in writing.(3) If the denied applicant is an employee, agent, representative, or independent contractor of a corporation licensed, registered, or found suitable by the Commission, the corporation must terminate its relationship with that person pursuant to the date specified in the decision and must notify the Commission in writing.(4) Any denied applicant subject to paragraphs (1) or (2) of this subsection and the corporation licensed, registered, or found suitable by the Commission, must comply with Business and Professions Code section 19882, if applicable.(b)(1) If the denied applicant is an officer, director, manager, member, employee, agent, representative, or independent contractor of a limited liability company licensed, registered, or found suitable by the Commission, the denied applicant must resign according to the date specified in the Commission's decision and must notify the Commission in writing.(2) If the denied applicant is an officer, director, manager or member of a limited liability company that is licensed, registered, or found suitable by the Commission, the limited liability company must remove that person from office according to the date specified in the Commission's decision and must notify the Commission in writing.(3) If the denied applicant is an employee, agent, representative, or independent contractor of a limited liability company licensed, registered, or found suitable by the Commission, the limited liability company must terminate its relationship with that person pursuant to the date specified in the decision and must notify the Commission in writing.(4) Any denied applicant subject to paragraphs (1) or (2) of this subsection and the limited liability company that is licensed, registered, or found suitable by the Commission, must comply with Business and Professions Code section 19892, if applicable.(c)(1) If the denied applicant is a general or limited partner in a general or limited partnership licensed, registered, or found suitable by the Commission, the denied applicant must resign as a partner according to the date specified in the Commission's decision and must notify the Commission in writing.(2) If the denied applicant is an owner or holder of an interest in a limited partnership licensed, registered, or found suitable by the Commission, the denied applicant and the limited partnership must comply with Business and Professions Code section 19892 and must notify the Commission in writing.(d) If the denied applicant is a principal in a business entity not otherwise described above that is licensed, registered, or found suitable by the Commission: (1) The denied applicant must resign his or her position within that entity and divest whatever interest is held in that entity pursuant to the timelines and instructions specified in the Commission's decision, and must notify the Commission in writing.(2) The business entity must remove the denied applicant from any principal role in the business entity and must notify the Commission in writing.(e) Where the decision does not specify a time for removal and there is no other controlling statutory or regulatory timeframe under paragraph (2) of subsection (a), paragraph (2) of subsection (b), or paragraph (2) of subsection (d), the specified person must be removed no later than 60 days after the effective date of the decision.Cal. Code Regs. Tit. 4, § 12068
1. New section filed 11-25-2014; operative 1-1-2015 (Register 2014, No. 48).
2. Amendment filed 1-22-2020; operative 4-1-2020 (Register 2020, No. 4). Note: Authority cited: Sections 19811, 19823, 19824, 19840 and 19841, Business and Professions Code. Reference: Sections 19823, 19824, 19825, 19870, 19871, 19876, 19882, 19883 and 19892, Business and Professions Code.
1. New section filed 11-25-2014; operative 1/1/2015 (Register 2014, No. 48).
2. Amendment filed 1-22-2020; operative 4/1/2020 (Register 2020, No. 4).