BILL NUMBER: AB 2711	CHAPTERED  09/20/06

	CHAPTER  361
	FILED WITH SECRETARY OF STATE  SEPTEMBER 20, 2006
	APPROVED BY GOVERNOR  SEPTEMBER 20, 2006
	PASSED THE ASSEMBLY  AUGUST 21, 2006
	PASSED THE SENATE  AUGUST 16, 2006
	AMENDED IN SENATE  JUNE 29, 2006
	AMENDED IN SENATE  JUNE 12, 2006
	AMENDED IN ASSEMBLY  APRIL 6, 2006

INTRODUCED BY   Assembly Member Parra

                        FEBRUARY 24, 2006

   An act to amend Sections 1865 and 33521 of the Financial Code,
relating to negotiable instruments.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2711, Parra  Traveler's checks: payment instruments.
   (1) Existing law, the Travelers Checks Act, requires a person to
obtain a license from the Commissioner of Financial Institutions
before engaging in the business of issuing traveler's checks.
Existing law prohibits a licensee from issuing any form of traveler's
check in this state unless a certified copy of the traveler's check
is first filed with the commissioner.
   This bill would instead require traveler's checks that a licensee
issues in this state to meet specified requirements, including that a
traveler's check clearly identify the licensee issuing the check.
The bill would also require that, before a new licensee issues its
first traveler's check for sale in this state, it file a certified
copy of the form of that traveler's check with the commissioner.
   (2) Existing law, the Payment Instruments Law, governs the sale of
payment instruments, as defined. Existing law, among other things,
prohibits a licensee, as defined, or its agents, as defined, from
selling any payment instrument unless the payment instrument is
approved as to form by the Commissioner of Financial Institutions.
Existing law requires the commissioner to approve an application as
to form of a payment instrument to be issued by a licensee if the
commissioner makes specified findings.
   This bill would revise these provisions to remove the requirement
that the commissioner approve those payment instruments as to form.
The bill would prohibit a licensee from selling any payment
instrument unless the payment instrument meets specified
requirements. The bill would also require that, before a new licensee
issues its first payment instrument for sale in this state, it file
a certified copy of the form of that payment instrument with the
commissioner.


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


  SECTION 1.  Section 1865 of the Financial Code is amended to read:

   1865.  (a) No licensee shall issue any form of traveler's check
for sale in this state unless all of the following are satisfied:
   (1) The traveler's check clearly identifies the licensee as the
issuer of the traveler's check.
   (2) The traveler's check is not misleading in any material
respect.
   (3) The traveler's check complies with all applicable laws.
   (b) Before a new licensee issues its first traveler's check for
sale in this state, it shall file a certified copy of the form of
that traveler's check with the commissioner.
  SEC. 2.   Section 33521 of the Financial Code is amended to read:
   33521.  (a) No licensee shall, nor shall any licensee cause or
permit any of its California agents to, sell in this state any
payment instrument issued by the licensee unless all of the following
are satisfied:
   (1) The payment instrument clearly identifies the licensee as the
issuer of the payment instrument.
    (2) The payment instrument is not misleading in any material
respect.
    (3) The payment instrument complies with all applicable laws.
   (b) Before a new licensee issues its first payment instrument for
sale in this state, it shall file a certified copy of the form of
that payment instrument with the commissioner.