BILL NUMBER: AB 1775	CHAPTERED  09/22/03

	CHAPTER  456
	FILED WITH SECRETARY OF STATE  SEPTEMBER 22, 2003
	APPROVED BY GOVERNOR  SEPTEMBER 20, 2003
	PASSED THE SENATE  SEPTEMBER 8, 2003
	PASSED THE ASSEMBLY  MAY 12, 2003
	AMENDED IN ASSEMBLY  APRIL 21, 2003

INTRODUCED BY   Committee on Banking and Finance (Wiggins (Chair),
Calderon, Chan, Chavez, Correa, Montanez, and Vargas)

                        MARCH 13, 2003

   An act to amend Section  1814 of the Financial Code, relating to
money transmitters.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1775, Committee on Banking and Finance.  Money transmitters.
   Existing law provides for the regulation of money transmitters by
the Commissioner of Financial Institutions.  Existing law requires a
licensed money transmitter to maintain tangible shareholders' equity
determined to be adequate by the commissioner of at least $250,000.
A violation of the provisions regulating money transmitters is a
crime.
   This bill would increase that amount to $500,000.  The bill would
authorize the commissioner to extend the time within which a licensee
is required to satisfy the tangible shareholders' equity
requirement.
   Because a violation of this bill's requirements would be a crime,
the bill would impose a state-mandated local program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


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


  SECTION 1.  Section 1814 of the Financial Code is amended to read:

   1814.  (a) Each licensee shall at all times maintain tangible
shareholders' equity determined to be adequate by the commissioner of
at least five hundred thousand dollars ($500,000).  However, with
respect to any licensee licensed as of January 1, 2002, the
commissioner may, for good cause and to avoid undue hardship, extend
the time within which the licensee is required to satisfy this
subdivision.
   (b) "Tangible shareholders' equity" means shareholders' equity
minus intangible assets as determined in accordance with generally
accepted accounting principles.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.