BILL NUMBER: SB 545	CHAPTERED  07/26/99

	CHAPTER   171
	FILED WITH SECRETARY OF STATE   JULY 26, 1999
	APPROVED BY GOVERNOR   JULY 23, 1999
	PASSED THE SENATE   JULY 12, 1999
	PASSED THE ASSEMBLY   JULY 6, 1999
	AMENDED IN ASSEMBLY   JUNE 24, 1999
	AMENDED IN SENATE   MAY 25, 1999
	AMENDED IN SENATE   APRIL 29, 1999

INTRODUCED BY   Senator Dunn

                        FEBRUARY 19, 1999

   An act to add Section 1748.9 to the Civil Code, relating to
credit.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 545, Dunn.  Credit:  notice.
   Existing law requires charge card issuers to make specified
disclosures in any charge card application form or preapproved
written solicitation for a charge card mailed to a consumer who
resides in this state, except as specified.  One of these disclosures
is any fee that may be assessed for an extension of credit by the
charge card issuer to a charge cardholder where the extension of
credit is not a credit sale and where the charge cardholder receives
the extension of credit through the use of a preprinted check, draft,
or similar credit device provided by the charge card issuer to
obtain an extension of credit.
   This bill would, as of July 1, 2000, require any preprinted check
or draft provided by a charge card issuer as an extension of credit
to a cardholder to have an affixed attachment notifying the
cardholder that use of the check or draft constitutes a charge
against the person's credit account, notifying the cardholder of the
annual percentage rate and calculation of finance charges associated
with the use of the check or draft, and notifying the cardholder
whether the finance charges are triggered immediately upon use of the
check or draft.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1748.9 is added to the Civil Code, to read:
   1748.9.  (a) A credit card issuer that extends credit to  a
cardholder through the use of a preprinted check or draft shall
disclose on the front of an attachment that is affixed by perforation
or other means to the preprinted check or draft, in clear and
conspicuous language, all of the following information:
   (1) That "use of the attached check or draft will constitute a
charge against your credit account."
   (2) The annual percentage rate and the calculation of finance
charges, as required by Section 226.16 of Regulation Z of the Code of
Federal Regulations, associated with the use of the attached check
or draft.
   (3) Whether the finance charges are triggered immediately upon the
use of the check or draft.
  SEC. 2.  This act shall become operative on July 1, 2000.