“Unwritten, Arbitrary, and Capricious Policies”

While I just praised the Board of Equalization for doing something smart, it’s time for a dose of reality in dealing with the world of California bureaucracy. A gentleman named Aaron Greenspan developed a product called FaceCash. California has a statute regarding money transmission businesses, which is what FaceCash does. Mr. Greenspan desired to make sure that he complied with the law. If only it were like applying for a license (which it should be).

The whole saga is noted in an open letter to Governor Brown, a response from a senior advisor to Governor Brown, and various emails back and forth. Mr. Greenspan found that the state agencies had “…unwritten, arbitrary and capricious policies…” and that the experience reminded him of a novel by Kafka. Having read The Trial many years ago, it’s an apt comparison. For those who haven’t read Kafka, another comparison is to Lucy and Charlie Brown. Remember how Charlie Brown would try to kick the football, and every time she’d pull the football out so that Charlie Brown fell down? Well, Lucy is like the bureaucracy in California, making it impossible for an entrepreneur (Charlie Brown) to succeed.

If you want a taste of what it is like to deal with the bureaucracy in Sacramento, read Mr. Greenspan’s letter and the back and forth replies that follow. It’s worth your time.

Mr. Greenspan has asked for a response to his complaints by November 2nd. If not, “[Mr. Greenspan] will bury the [California Department of Financial Institutions] in formal complaints….” Burying a bureaucracy in paperwork? This should be interesting!

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One Response to ““Unwritten, Arbitrary, and Capricious Policies””

  1. […] Last month I wrote about the Kafka-esque saga of Aaron Greenspan and California. I received an update this evening that Mr. Greenspan has filed a civil case against the state alleging that California’s actions violate the federal constitution (the interstate commerce clause) and that the state’s actions have been capricious in their administrative functions. Mr. Greenspan is asking for an injunction against the state and for monetary damages. […]