Commissioner Powers Over Commodities

Title 4, Division 4.5, Chapter 5 deals with the powers of the Corporation Commissioner related to commodities in California.

Section 29540 provides that, whenever it appears to the commissioner that any person has engaged, or is about to engage, in any act or practice constituting a violation of any provision of this law or any rule or order under this law, the commissioner may bring an action in the name of the people of the State of California in the superior court to enjoin the acts or practices or to enforce compliance with this law or any rule or order under this law.

Upon a proper showing, a permanent or preliminary injunction, restraining order, or writ of mandate must be granted and a monitor, receiver, conservator, or other designated fiduciary or officer of the court may be appointed for the defendant or the defendant’s assets, or other ancillary relief may be granted as appropriate.

A receiver, monitor, conservator, or other designated fiduciary or officer of the court appointed by the superior court pursuant to this section may, with the approval of the court, exercise all of the powers of the defendant’s officers, directors, partners, trustees, or persons who exercise similar powers and perform similar duties, including the filing of a petition for bankruptcy.

No action at law or in equity may be maintained by any party against the commissioner, or a receiver, monitor, conservator, or other designated fiduciary or officer of the court by reason of their exercising these powers or performing these duties pursuant to the order of, or with the approval of, the superior court.

Section 29541 authorizes the commissioner to make public or private investigations within or outside of this state that the commissioner deems necessary to determine whether any person has violated or is about to violate any provision of this law or any rule or order hereunder, or to aid the enforcement of this law or in the prescribing of rules and forms under this law, and may publish information concerning any violation of this law or a rule or order.

The commissioner or any officer designated by the commissioner may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the commissioner deems relevant or material to the inquiry.

Section 29542 provides that, if in the opinion of the commissioner, any person is engaging or has engaged in any activity in violation of any provision of this law, or rule or order under this law, the commissioner may order the person to desist and refrain from the activity unless and until the activity will not be in violation of any provision of this law or any rule or order under this law.

If after an order has been made a request for hearing is filed in writing within 30 days of the date of service of the order by the person to whom the order was directed, a hearing is to be held in accordance with the Administrative Procedure Act. If that person fails to file a written request for a hearing within 30 days from the date of service of the order, the order is deemed a final order of the commissioner and shall not be subject to review by any court or agency.

Section 29543 authorizes the commissioner to refer the evidence that is available concerning any violation of this law to the Attorney General or the district attorney of the county in which the violation occurred, who may. The commissioner and the commissioner’s counsel, deputies, or assistants may, upon request of the Attorney General or the district attorney, assist the prosecutor in presenting the law or facts at the trial.

Section 29544 states that any person who willfully violates any provision of this law, or who willfully violates any rule or order under this law, is liable for a civil penalty not to exceed $25,000 for each violation, which must be assessed and recovered in a civil action brought in the name of the people of the State of California by the commissioner in any court of competent jurisdiction.

Section 29545 allows the commissioner to take actions that are authorized by the federal Commodity Exchange Act.

Section 29546 allows the commissioner to honor requests from interested parties for interpretive opinions.