Amended by Stats. 2024, Ch. 138, Sec. 3. (SB 1519) Effective January 1, 2025.
With regard to a person who has had their application for a license denied by the commission, all of the following shall apply:
(a)Except as provided in subdivision (c), the person shall not be entitled to profit from any investment in any business entity that has applied for or been granted a state license.
(b)The person shall not retain any interest in a business entity described in subdivision (a) beyond that period prescribed by the commission.
(c)The person shall not accept more for their interest in a business entity described in subdivision (a) than they paid for it, or the market
value on the date of the denial of the license or registration, whichever is higher.
(d)Nothing in this section shall be construed as a restriction or limitation on the powers of the commission specified in this chapter.
(e)(1) The commission may, at its discretion, not apply the provisions of this section when the person who has been denied a license was denied that license solely due to the person’s failure to clearly establish eligibility and qualification for licensure as described in subdivision (a) of Section 19859.
(2)Paragraph (1) shall not apply if additional grounds for denial of the license
existed, whether or not those grounds were formally provided as the reason for the denial.
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