BILL NUMBER: AB 2156	CHAPTERED  08/25/04

	CHAPTER  312
	FILED WITH SECRETARY OF STATE  AUGUST 25, 2004
	APPROVED BY GOVERNOR  AUGUST 25, 2004
	PASSED THE SENATE  AUGUST 9, 2004
	PASSED THE ASSEMBLY  MAY 6, 2004
	AMENDED IN ASSEMBLY  MARCH 26, 2004

INTRODUCED BY   Assembly Member Reyes

                        FEBRUARY 18, 2004

   An act to amend Section 23057 of the Financial Code, relating to
deferred deposit transactions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2156, Reyes.  Deferred deposit transactions:  advertisements.
   Existing law requires the Commissioner of Corporations to report
to the Governor and the Legislature, on December 1, 2007, on the
implementation of the California Deferral Deposit Transaction Law,
which regulates the activities of people who conduct deferred deposit
transactions, as defined, prohibits advertisements regarding
deferred deposit transactions which are false, misleading, or
deceptive, and permits the commissioner to establish requirements
regarding statements of rates and charges in connection with deferred
deposit transactions.
   This bill would require the commissioner's report to the Governor
and Legislature to include specified information on the advertising
practices of the deferred deposit transactions industry and
recommendations regarding additional regulation of these practices.



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


  SECTION 1.  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, the advertising practices of the
industry, including any violations of Section 23027, 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, additional
regulation of advertising practices, 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.