California Gov. Gavin Newsom is proposing a state version of the Consumer Financial Protection Bureau (CFPB) as part of his 2020-2021 budget.
According to a report by Los Angeles Times business columnist David Lazarus
, Newsom is proposing the reinvention of California’s Department of Business Oversight and as the Department of Financial Protection and Innovation. The current agency is already engaged in consumer protection via the oversight of state-licensed financial institutions, and its successor agency will continue that work while taking on new regulatory power and enforcement responsibility.
Newsom, a Democrat who was previously the mayor of San Francisco, promised to add “dozens of new staff” to the proposed agency and add state oversight of debt collectors, which is now the exclusive domain of federal regulators.
“As the Trump administration undermines and weakens the rules that protect consumers from predatory businesses, California is filling the void and stepping up to protect families and consumers,” said Newsom in an e-mail to Lazarus.
Newsom did not provide a timeline for when the new agency would go into effect or an estimated operating budget.