BILL NUMBER: AB 971 CHAPTERED
BILL TEXT
CHAPTER 17
FILED WITH SECRETARY OF STATE FEBRUARY 23, 2004
APPROVED BY GOVERNOR FEBRUARY 20, 2004
PASSED THE ASSEMBLY FEBRUARY 19, 2004
PASSED THE SENATE FEBRUARY 17, 2004
AMENDED IN SENATE FEBRUARY 9, 2004
AMENDED IN SENATE FEBRUARY 4, 2004
AMENDED IN SENATE JANUARY 26, 2004
AMENDED IN SENATE JANUARY 12, 2004
AMENDED IN ASSEMBLY MAY 29, 2003
INTRODUCED BY Assembly Member Correa
FEBRUARY 20, 2003
An act to amend Sections 1789.31, 1789.33, and 1789.35 of, to
amend, repeal, and add Sections 1789.30 and 1789.37 of, and to add
and repeal Section 1789.39 of, the Civil Code, and to amend Sections
22050, 23026, 23057, 23100, 23102, and 23104 of, and to add and
repeal Section 23100.1 of, the Financial Code, relating to deferred
deposit transactions, and declaring the urgency thereof, to take
effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 971, Correa. Deferred deposit transactions.
Existing law makes the California Deferred Deposit Transaction
Law, except for specified provisions, operative on March 1, 2004, and
regulates persons engaged in the business of making or negotiating
deferred deposit transactions. Existing law also makes certain
provisions of law regulating check cashers inoperative on March 1,
2004.
This bill would extend the dates on which these provisions become
operative and inoperative to December 31, 2004. However, the bill
would authorize the Governor to issue an executive order to make
these provisions operative and inoperative at a date earlier than
December 31, 2004, if the earlier date is not less than 30 days after
the issuance of the executive order. The bill would make related
changes.
This bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1789.30 of the Civil Code is amended to read:
1789.30. (a) Every check casher, as applicable to the services
provided, shall post a complete, detailed, and unambiguous schedule
of all fees for (1) cashing checks, drafts, money orders, or other
commercial paper serving the same purpose and making any deferred
deposit thereof, (2) the sale or issuance of money orders, and (3)
the initial issuance of any identification card. Each check casher
shall also post a list of valid identification which is acceptable in
lieu of identification provided by the check casher. The
information required by this section shall be clear, legible, and in
letters not less than one-half inch in height. The information shall
be posted in a conspicuous location in the unobstructed view of the
public within the check casher's premises.
(b) This section shall become inoperative on December 31, 2004,
and as of January 1, 2005, is repealed, unless a later enacted
statute that is enacted before January 1, 2005, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 2. Section 1789.30 is added to the Civil Code, to read:
1789.30. (a) Every check casher, as applicable to the services
provided, shall post a complete, detailed, and unambiguous schedule
of all fees for (1) cashing checks, drafts, money orders, or other
commercial paper serving the same purpose, (2) the sale or issuance
of money orders, and (3) the initial issuance of any identification
card. Each check casher shall also post a list of valid
identification which is acceptable in lieu of identification provided
by the check casher. The information required by this section shall
be clear, legible, and in letters not less than one-half inch in
height. The information shall be posted in a conspicuous location in
the unobstructed view of the public within the check casher's
premises.
(b) This section shall become operative December 31, 2004.
SEC. 3. Section 1789.31 of the Civil Code, as amended by Section 2
of Chapter 777 of the Statutes of 2002, is amended to read:
1789.31. (a) As used in this title, a "check casher" means a
person or entity that for compensation engages, in whole or in part,
in the business of cashing checks, warrants, drafts, money orders, or
other commercial paper serving the same purpose. "Check casher"
does not include a state or federally chartered bank, savings
association, credit union, or industrial loan company. "Check casher"
also does not include a retail seller engaged primarily in the
business of selling consumer goods, including consumables, to retail
buyers that cashes checks or issues money orders for a minimum flat
fee not exceeding two dollars ($2) as a service to its customers that
is incidental to its main purpose or business.
(b) As used in this title, "deferred deposit" means a transaction
whereby the check casher refrains from depositing a personal check
written by a customer until a specific date, pursuant to a written
agreement, as provided in Section 1789.33.
(c) This section shall become inoperative on December 31, 2004,
and as of January 1, 2005, is repealed, unless a later enacted
statute that is enacted before January 1, 2005, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 4. Section 1789.31 of the Civil Code, as added by Section 3
of Chapter 777 of the Statutes of 2002, is amended to read:
1789.31. (a) As used in this title, a "check casher" means a
person or entity that for compensation engages, in whole or in part,
in the business of cashing checks, warrants, drafts, money orders, or
other commercial paper serving the same purpose. "Check casher"
does not include a state or federally chartered bank, savings
association, credit union, or industrial loan company. "Check casher"
also does not include a retail seller engaged primarily in the
business of selling consumer goods, including consumables, to retail
buyers that cashes checks or issues money orders for a fee not
exceeding two dollars ($2) as a service to its customers that is
incidental to its main purpose or business.
(b) This section shall become operative December 31, 2004.
SEC. 5. Section 1789.33 of the Civil Code is amended to read:
1789.33. (a) A check casher may defer the deposit of a personal
check written by a customer for up to 30 days, pursuant to the
provisions of this section. The face amount of the check shall not
exceed three hundred dollars ($300). Each deferred deposit shall be
made pursuant to a written agreement that has been signed by the
customer and by the check casher or an authorized representative of
the check casher. The written agreement shall contain a statement of
the total amount of any fees charged for the deferred deposit,
expressed both in United States currency and as an annual percentage
rate (APR). The written agreement shall authorize the check casher
to defer deposit of the personal check until a specific date not
later than 30 days from the date the written agreement was signed and
executed. The written agreement shall not permit the check casher
to accept collateral.
(b) A customer who enters into a deferred deposit agreement and
offers a personal check to a check casher pursuant to that agreement
shall not be subject to any criminal penalty for the failure to
comply with the terms of that agreement.
(c) This section shall become inoperative on December 31, 2004,
and as of January 1, 2005, is repealed, unless a later enacted
statute that is enacted before January 1, 2005, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 6. Section 1789.35 of the Civil Code, as amended by Section 5
of Chapter 777 of the Statutes of 2002, is amended to read:
1789.35. (a) A check casher shall not charge a fee for cashing a
payroll check or government check in excess of 3 percent if
identification is provided by the customer, or 3.5 percent without
the provision of identification, of the face amount of the check, or
three dollars ($3), whichever is greater. Identification, for
purposes of this section, is limited to a California driver's
license, a California identification card, or a valid United States
military identification card.
(b) A check casher may charge a fee of no more than ten dollars
($10) to set up an initial account and issue an optional
identification card for providing check cashing services. A
replacement optional identification card may be issued at a cost not
to exceed five dollars ($5).
(c) A check casher shall provide a receipt to the customer for
each transaction.
(d) Subject to the limitations of Section 1789.33, a check casher
may charge a fee for cashing a personal check, as posted pursuant to
Section 1789.30, for immediate deposit in an amount not to exceed 12
percent of the face value of the check or for deferred deposit in an
amount not to exceed 15 percent of the face value of the check.
(e) A check casher shall not enter into an agreement for a
deferred deposit with a customer during the period of time that an
earlier written agreement for a deferred deposit for the same
customer is in effect.
(f) A check casher who enters into a deferred deposit agreement
and accepts a check passed on insufficient funds, or any assignee of
that check casher, shall not be entitled to recover damages in any
action brought pursuant to, or governed by, Section 1719.
(g) For a transaction pursuant to Section 1789.33, a fee not to
exceed fifteen dollars ($15) may be charged for the return of a
dishonored check by a depositary institution. The fee may be
collected by a check casher who holds a valid permit issued pursuant
to Section 1789.37, when acting under the authority of that permit.
(h) No amount in excess of the amounts authorized by this section
shall be directly or indirectly charged by a check casher pursuant to
a deferred deposit agreement.
(i) Any person who violates any provision of this section shall be
liable for a civil penalty not to exceed two thousand dollars
($2,000) for each violation, which shall be assessed and recovered in
a civil action brought in the name of the people of the State of
California by the Attorney General in any court of competent
jurisdiction. Any action brought pursuant to this subdivision shall
be commenced within four years of the date on which the act or
transaction upon which the action is based occurred.
(j) A willful violation of this section is a misdemeanor.
(k) Any person who is injured by any violation of this section may
bring an action for the recovery of damages, an equity proceeding to
restrain and enjoin those violations, or both. The amount awarded
may be up to three times the damages actually incurred, but in no
event less than the amount paid by the aggrieved consumer to a person
subject to this section. If the plaintiff prevails, the plaintiff
shall be awarded reasonable attorney's fees and costs. If a court
determines by clear and convincing evidence that a breach or
violation was willful, the court, in its discretion, may award
punitive damages in addition to the amounts set forth above.
(l) This section shall become inoperative on December 31, 2004,
and as of January 1, 2005, is repealed, unless a later enacted
statute that is enacted before January 1, 2005, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 7. Section 1789.35 of the Civil Code, as added by Section 6
of Chapter 777 of the Statutes of 2002, is amended to read:
1789.35. (a) A check casher shall not charge a fee for cashing a
payroll check or government check in excess of 3 percent if
identification is provided by the customer, or 3.5 percent without
the provision of identification, of the face amount of the check, or
three dollars ($3), whichever is greater. Identification, for
purposes of this section, is limited to a California driver's
license, a California identification card, or a valid United States
military identification card.
(b) (1) A check casher may charge a fee of no more than ten
dollars ($10) to set up an initial account and issue an optional
identification card for providing check cashing services. A
replacement optional identification card may be issued at a cost not
to exceed five dollars ($5).
(2) Notwithstanding the provisions of paragraph (1), commencing
March 15, 2004, no check casher shall charge the fee authorized in
paragraph (1) or any similar or related fee for deferred deposit
transactions.
(c) A check casher shall provide a receipt to the customer for
each transaction.
(d) A check casher may charge a fee for cashing a personal check,
as posted pursuant to Section 1789.30, for immediate deposit in an
amount not to exceed 12 percent of the face value of the check.
(e) Any person who violates any provision of this section shall be
liable for a civil penalty not to exceed two thousand dollars
($2,000) for each violation, which shall be assessed and recovered in
a civil action brought in the name of the people of the State of
California by the Attorney General in any court of competent
jurisdiction. Any action brought pursuant to this subdivision shall
be commenced within four years of the date on which the act or
transaction upon which the action is based occurred.
(f) A willful violation of this section is a misdemeanor.
(g) Any person who is injured by any violation of this section may
bring an action for the recovery of damages, an equity proceeding to
restrain and enjoin those violations, or both. The amount awarded
may be up to three times the damages actually incurred, but in no
event less than the amount paid by the aggrieved consumer to a person
subject to this section. If the plaintiff prevails, the plaintiff
shall be awarded reasonable attorney's fees and costs. If a court
determines by clear and convincing evidence that a breach or
violation was willful, the court, in its discretion, may award
punitive damages in addition to the amounts set forth above.
(h) This section shall become operative December 31, 2004.
SEC. 8. Section 1789.37 of the Civil Code is amended to read:
1789.37. (a) Every owner of a check casher's business shall
obtain a permit from the Department of Justice to conduct a check
casher's business.
(b) All applications for a permit to conduct a check casher's
business shall be filed with the department in writing, signed by the
applicant if an individual or by a member or officer authorized to
sign if the applicant is a corporation or other entity, and shall
state the name of the business, the type of business engaged in,
whether the applicant intends to enter into deferred deposit
agreements, and the business address. Each applicant shall be
fingerprinted.
(c) Each applicant for a permit to conduct a check casher's
business shall pay a fee not to exceed the cost of processing the
application, fingerprinting the applicant, and checking or obtaining
the criminal record of the applicant, at the time of filing the
application.
(d) Each applicant shall annually, beginning one year from the
date of issuance of a check casher's permit, file an application for
renewal of the permit with the department, along with payment of a
renewal fee not to exceed the cost of processing the application for
renewal and checking or obtaining the criminal record of the
applicant.
(e) The department shall deny an application for a permit to
conduct a check casher's business, or for renewal of a permit, if the
applicant has a felony conviction involving dishonesty, fraud, or
deceit, provided the crime is substantially related to the
qualifications, functions, or duties of a person engaged in the
business of check cashing.
(f) The department shall adopt regulations to implement this
section, and shall determine the amount of the application fees
required by this section. The department shall prescribe forms for
the applications and permit required by this section, which shall be
uniform throughout the state.
(g) In any action brought by a city attorney or district attorney
to enforce a violation of this section, any owner of a check casher's
business who engages in the business of check cashing without
holding a current and valid permit issued by the department pursuant
to this section is subject to a civil penalty, as follows:
(1) For the first offense, not more than one thousand dollars
($1,000).
(2) For the second offense, not more than five thousand dollars
($5,000).
(h) Any person who has twice been found in violation of
subdivision (g) and who, within 10 years of the date of the first
offense, engages in the business of check cashing without holding a
current and valid permit issued by the department pursuant to this
section is guilty of a misdemeanor punishable by imprisonment in the
county jail not exceeding six months, or by a fine not exceeding five
thousand dollars ($5,000), or by both.
(i) All civil penalties, forfeited bail, or fines received by any
court pursuant to this section shall, as soon as practicable after
the receipt thereof, be deposited with the county treasurer of the
county in which the court is situated. Fines and forfeitures so
deposited shall be disbursed pursuant to the Penal Code. Civil
penalties so deposited shall be paid at least once a month as
follows:
(1) Fifty percent to the Treasurer by warrant of the county
auditor drawn upon the requisition of the clerk or judge of the
court, to be deposited in the State Treasury on order of the
Controller.
(2) Fifty percent to the city treasurer of the city, if the
offense occurred in a city, otherwise to the treasurer of the county
in which the prosecution is conducted.
Any money deposited in the State Treasury under this section which
is determined by the Controller to have been erroneously deposited
therein shall be refunded, subject to approval of the State Board of
Control prior to the payment of the refund, out of any money in the
State Treasury which is available by law for that purpose.
(j) This section shall become inoperative on December 31, 2004,
and as of January 1, 2005, is repealed, unless a later enacted
statute that is enacted before January 1, 2005, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 9. Section 1789.37 is added to the Civil Code, to read:
1789.37. (a) Every owner of a check casher's business shall
obtain a permit from the Department of Justice to conduct a check
casher's business.
(b) All applications for a permit to conduct a check casher's
business shall be filed with the department in writing, signed by the
applicant if an individual or by a member or officer authorized to
sign if the applicant is a corporation or other entity, and shall
state the name of the business, the type of business engaged in, and
the business address. Each applicant shall be fingerprinted.
(c) Each applicant for a permit to conduct a check casher's
business shall pay a fee not to exceed the cost of processing the
application, fingerprinting the applicant, and checking or obtaining
the criminal record of the applicant, at the time of filing the
application.
(d) Each applicant shall annually, beginning one year from the
date of issuance of a check casher's permit, file an application for
renewal of the permit with the department, along with payment of a
renewal fee not to exceed the cost of processing the application for
renewal and checking or obtaining the criminal record of the
applicant.
(e) The department shall deny an application for a permit to
conduct a check casher's business, or for renewal of a permit, if the
applicant has a felony conviction involving dishonesty, fraud, or
deceit, provided the crime is substantially related to the
qualifications, functions, or duties of a person engaged in the
business of check cashing.
(f) The department shall adopt regulations to implement this
section and shall determine the amount of the application fees
required by this section. The department shall prescribe forms for
the applications and permit required by this section, which shall be
uniform throughout the state.
(g) In any action brought by a city attorney or district attorney
to enforce a violation of this section, any owner of a check casher's
business who engages in the business of check cashing without
holding a current and valid permit issued by the department pursuant
to this section is subject to a civil penalty, as follows:
(1) For the first offense, not more than one thousand dollars
($1,000).
(2) For the second offense, not more than five thousand dollars
($5,000).
(h) Any person who has twice been found in violation of
subdivision (g) and who, within 10 years of the date of the first
offense, engages in the business of check cashing without holding a
current and valid permit issued by the department pursuant to this
section is guilty of a misdemeanor punishable by imprisonment in a
county jail not exceeding six months, or by a fine not exceeding five
thousand dollars ($5,000), or by both.
(i) All civil penalties, forfeited bail, or fines received by any
court pursuant to this section shall, as soon as practicable after
the receipt thereof, be deposited with the county treasurer of the
county in which the court is situated. Fines and forfeitures so
deposited shall be disbursed pursuant to the Penal Code. Civil
penalties so deposited shall be paid at least once a month as
follows:
(1) Fifty percent to the Treasurer by warrant of the county
auditor drawn upon the requisition of the clerk or judge of the
court, to be deposited in the State Treasury on order of the
Controller.
(2) Fifty percent to the city treasurer of the city, if the
offense occurred in a city, otherwise to the treasurer of the county
in which the prosecution is conducted. Any money deposited in the
State Treasury under this section which is determined by the
Controller to have been erroneously deposited therein shall be
refunded, subject to approval of the State Board of Control prior to
the payment of the refund, out of any money in the State Treasury
which is available by law for that purpose.
(j) This section shall become operative December 31, 2004.
SEC. 10. Section 1789.39 is added to the Civil Code, to read:
1789.39. (a) Check cashers that hold a valid deferred deposit
permit issued by the Department of Justice with an expiration date of
February 29, 2004, shall have their current permits extended by the
Department of Justice through December 31, 2004, without any fees or
application.
(b) This section shall become inoperative on December 31, 2004,
and as of January 1, 2005, is repealed, unless a later enacted
statute that is enacted before January 1, 2005, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 11. Section 22050 of the Financial Code, as amended by
Section 8 of Chapter 777 of the Statutes of 2002, is amended to read:
22050. (a) This division does not apply to any person doing
business under any law of this state or of the United States relating
to banks, trust companies, savings and loan associations, insurance
premium finance agencies, credit unions, small business investment
companies, California business and industrial development
corporations, or licensed pawnbrokers.
(b) This division does not apply to a broker-dealer acting
pursuant to a certificate, then in effect, issued pursuant to Section
25211 of the Corporations Code.
(c) This division does not apply to a college or university making
a loan for the purpose of permitting a person to pursue a program or
course of study leading to a degree or certificate.
(d) This division does not apply to a check casher who holds a
valid permit issued pursuant to Section 1789.37 of the Civil Code
when acting under the authority of that permit.
(e) This division does not apply to any person who makes no more
than one loan in a 12-month period as long as that loan is a
commercial loan as defined in Section 22502.
(f) This division does not apply to any public corporation as
defined in Section 67510 of the Government Code, any public entity
other than the state as defined in Section 811.2 of the Government
Code, or any agency of any one or more of the foregoing, when making
any loan so long as the public corporation, public entity, or agency
of any one or more of the foregoing complies with all applicable
federal and state laws and regulations.
(g) This section shall become inoperative on December 31, 2004,
and as of January 1, 2005, is repealed, unless a later enacted
statute that is enacted before January 1, 2005, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 12. Section 22050 of the Financial Code, as added by Section
9 of Chapter 777 of the Statutes of 2002, is amended to read:
22050. (a) This division does not apply to any person doing
business under any law of this state or of the United States relating
to banks, trust companies, savings and loan associations, insurance
premium finance agencies, credit unions, small business investment
companies, California business and industrial development
corporations, or licensed pawnbrokers.
(b) This division does not apply to a check casher who holds a
valid permit issued pursuant to Section 1789.37 of the Civil Code
when acting under the authority of that permit, and shall not apply
to a person holding a valid license issued pursuant to Section 23005
of the Financial Code when acting under the authority of that
license.
(c) This division does not apply to a college or university making
a loan for the purpose of permitting a person to pursue a program or
course of study leading to a degree or certificate.
(d) This division does not apply to a broker-dealer acting
pursuant to a certificate then in effect and issued pursuant to
Section 25211 of the Corporations Code.
(e) This division does not apply to any person who makes no more
than one loan in a 12-month period as long as that loan is a
commercial loan as defined in Section 22502.
(f) This division does not apply to any public corporation as
defined in Section 67510 of the Government Code, any public entity
other than the state as defined in Section 811.2 of the Government
Code, or any agency of any one or more of the foregoing, when making
any loan so long as the public corporation, public entity, or agency
of any one or more of the foregoing complies with all applicable
federal and state laws and regulations.
(g) This section shall become operative December 31, 2004.
SEC. 13. Section 23100.1 is added to the Financial Code, to read:
23100.1. (a) Check cashers that hold a valid deferred deposit
permit issued by the Department of Justice with an expiration date of
February 29, 2004, shall have their current permits extended by the
Department of Justice through December 31, 2004, without any fees or
application.
(b) This section shall become inoperative on December 31, 2004,
and as of January 1, 2005, is repealed, unless a later enacted
statute that is enacted before January 1, 2005, deletes or extends
the dates on which it becomes inoperative and is repealed.
SEC. 14. Section 23026 of the Financial Code is amended to read:
23026. On or before March 15 of each year, beginning March 2006,
each licensee shall file an annual report with the commissioner
pursuant to procedures that the commissioner shall establish. The
licensee's annual report shall be kept confidential pursuant to
Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code and any regulations adopted thereunder. The
annual consolidated report shall be prepared by the commissioner and
made available to the public. For the previous calendar year, these
reports shall include the following:
(a) The total number and dollar amount of deferred deposit
transactions made by the licensee.
(b) The total number of individual customers who entered into
deferred deposit transactions.
(c) The minimum, maximum, and average amount of deferred deposit
transactions.
(d) The average annual percentage rate of deferred deposits.
(e) The average number of days of deferred deposit transactions.
(f) The total number and dollar amount of returned checks.
(g) The total number and dollar amount of checks recovered.
(h) The total number and dollar amount of checks charged off.
SEC. 15. Section 23057 of the Financial Code is amended to read:
23057. On December 1, 2007, the commissioner shall report to the
Governor and the Legislature on its implementation of this division.
The report shall include, at a minimum, information regarding the
demand for deferred deposit transactions, the growth and trends in
the industry, common practices for conducting the business of
deferred deposit transactions and any other information the
commissioner deems necessary to inform the Governor and the
Legislature regarding potential legislation that may be necessary to
protect the people of the State of California. The commissioner's
recommendations for future action may include, but are not limited
to, changes in the fees charged to consumers, specifications
regarding the length of time for deferred deposit transactions,
maximum amount provided to consumers and the implementation of an
installment loan product in lieu of a deferred deposit transaction as
described in this division.
As the commissioner conducts this study, licensees shall be
required to supply all information the commissioner deems necessary.
The study shall be made public and may not include any proprietary
information.
SEC. 16. Section 23100 of the Financial Code is amended to read:
23100. (a) Check cashers that hold a valid permit prior to
January 1, 2003, issued pursuant to Section 1789.37 of the Civil
Code, and that have been making deferred deposits prior to January 1,
2003, shall do the following prior to engaging in the business of
deferred deposits on or after December 31, 2004:
(1) Pay the assessment on or before May 15, 2003, pursuant to the
provisions of this division for the 2003-04 fiscal year. The fees
and assessments paid pursuant to this subdivision shall be
nonrefundable.
(2) On or before May 15, 2003, submit a license application and
pay a license fee pursuant to Article 2 (commencing with Section
23005).
(b) Any person that intends to engage in the business of deferred
deposits after December 31, 2004, and that holds a check cashing
permit from the Attorney General on or before January 2003 and fails
to submit a license application or pay a license fee as provided in
this subdivision, shall upon the request of the commissioner and
applying for a license forfeit to the people of the state a sum of
twenty-five dollars ($25) for every day or part of a day that the
submission or payment is delayed or withheld. Applications will be
processed in the order of the date received by the commissioner.
Applications submitted prior to December 31, 2004, shall not be
subject to subdivision (c) of Section 23011.
(c) The commissioner shall issue a license to a licensee under
this division upon receiving payment of the assessment for the
2003-04 fiscal year, the license application, and fee and any
additional information the commissioner may require in the
application to demonstrate compliance with provisions of this
division. The amount collected shall be deposited in the State
Corporations Fund and shall be subject to appropriation by the
Legislature for the 2003-04 fiscal year.
SEC. 17. Section 23102 of the Financial Code is amended to read:
23102. The deferred deposits made pursuant to a permit issued
under Section 1789.37 of the Civil Code prior to December 31, 2004,
shall be subject to and enforced to the extent valid under Sections
1789.30 to 1789.37, inclusive, of the Civil Code, as if those
sections were not repealed. Any regulation, order, or other action
adopted, prescribed, taken, or performed by the Department of Justice
or by an officer of that department in connection with deferred
deposit transactions made prior to December 31, 2004, shall continue
to apply to those transactions. No suit, action, or other proceeding
lawfully commenced by or against the Department of Justice or any
other officer of the state in relation to deferred deposit
transactions made prior to December 31, 2004, shall abate by reason
of the transfer of authority concerning deferred deposit transactions
to the Department of Corporations pursuant to Section 23071.
SEC. 18. Section 23104 of the Financial Code is amended to read:
23104. Except as provided in this article, the provisions of this
division shall become effective on January 1, 2003, and shall become
operative on December 31, 2004. However, the commissioner shall
have the power and authority to implement the provisions of this
division prior to December 31, 2004.
SEC. 19. It is the intent of the Legislature that the Department
of Corporations fully and rapidly implement the provisions of the
California Deferred Deposit Transaction Law. The Legislature finds
and declares that the California Deferred Deposit Transaction Law
contains numerous, important consumer protections that must be fully
and fairly implemented as rapidly as possible. The Legislature also
finds and declares that some 1800 businesses have filed applications
to obtain the license required by the California Deferred Deposit
Transaction Law and have paid the required fees for the processing of
their applications. Therefore, the Department of Corporations and
all other agencies shall expend all necessary resources, including
existing resources that may be redirected, to guarantee comprehensive
implementation of the law at the earliest practicable date.
SEC. 20. Notwithstanding the December 31, 2004 operative and
inoperative dates specified in this act, the provisions of this act
may become operative and inoperative on an earlier date established
by an executive order issued by the Governor if that date is not less
than 30 days after the issuance of the executive order.
SEC. 21. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order to provide adequate time for the provisions of this act
to be implemented, it is necessary that this act take effect
immediately.