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DFPI seeks statutory fee increases to avoid insolvency; LAO recommends time‑limited approval and reporting
Summary
DFPI told the Assembly budget subcommittee that decades‑old licensing and exam fees are insufficient and an independent analysis shows the agency risks insolvency without fee increases; DFPI proposed trailer‑bill authority to raise selected fees effective July 1, 2025.
The Department of Financial Protection and Innovation (DFPI) told the Assembly Budget Subcommittee 5 that decades‑old licensing and examination fees have not kept pace with operating costs and that an independent Crowe LLP review found the department risks insolvency without fee adjustments. DFPI requested trailer‑bill authority to raise fees for selected programs and to allow the commissioner to set hourly exam rates tied to average costs.
DFPI officials told the committee that some program fees date to 1959 and many had no increases since 2013 (and earlier), and that new statutory mandates (for example, the Debt Collection Licensing Act, the California Consumer Financial Protection Law and the Digital Financial Assets Law) have added startup and operating costs that are not yet covered by program revenues. DFPI said it…
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