BILL NUMBER: SB 1617	CHAPTERED  09/25/02

	CHAPTER  862
	FILED WITH SECRETARY OF STATE  SEPTEMBER 25, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 25, 2002
	PASSED THE SENATE  AUGUST 29, 2002
	PASSED THE ASSEMBLY  AUGUST 24, 2002
	AMENDED IN ASSEMBLY  AUGUST 22, 2002
	AMENDED IN ASSEMBLY  JUNE 30, 2002
	AMENDED IN ASSEMBLY  JUNE 17, 2002
	AMENDED IN SENATE  MAY 8, 2002

INTRODUCED BY   Senator Karnette

                        FEBRUARY 21, 2002

   An act to amend Section 1747.05 of the Civil Code, relating to
credit cards.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1617, Karnette.  Credit cards.
   Existing law provides for the issuance of credit cards, as
specified, and permits a card to be issued as a renewal of, or in
substitution for, an accepted credit card.
   The bill would permit a credit card to be issued in substitution
for an accepted credit card only if the card issuer provides an
activation process whereby the cardholder is required to contact the
card issuer to activate the credit card prior to using the card.  The
bill would state that its provisions do not prohibit the completion
of an overdraft protection advance or recurring-charge transaction
that a cardholder has previously authorized on an accepted credit
card.


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


  SECTION 1.  Section 1747.05 of the Civil Code is amended to read:
   1747.05.  (a) No credit card shall be issued except:
   (1) In response to an oral or written request or application
therefor.
   (2) As a renewal of, or in substitution for, an accepted credit
card whether that card is issued by the same or a successor card
issuer.
   (b) A credit card issued in substitution for an accepted credit
card may be issued only if the card issuer provides an activation
process whereby the cardholder is required to contact the card issuer
to activate the credit card prior to the first use of the credit
card in a credit transaction.
   (c) This section does not prohibit the completion of an overdraft
protection advance or recurring-charge transaction that a cardholder
has previously authorized on an accepted credit card.