BILL NUMBER: AB 7 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Members Lieu and Saldana
DECEMBER 4, 2006
An act to add Sections 22345 and 23038 to the Financial Code,
relating to consumer loans.
LEGISLATIVE COUNSEL'S DIGEST
AB 7, as introduced, Lieu. Armed service members: consumer loans.
The California Finance Lenders Law provides, among other things,
for the licensure and regulation by the Commissioner of Corporations
of persons engaged in the business of making consumer loans and
governs the terms that may be included in those loans. The California
Deferred Deposit Transaction Law provides for the licensure and
regulation by the commissioner of persons engaged in the business of
making or negotiating deferred deposit transactions, which are
transactions in which the lender defers depositing a consumer's
personal check until a specified date pursuant to a written
agreement. A willful violation of either the California Finance
Lenders Law or the California Deferred Deposit Transaction Law is a
crime.
This bill would make it unlawful under the California Finance
Lenders Law and the California Deferred Deposit Transaction Law to
violate specified provisions of the John Warner National Defense
Deposit Authorization Act for Fiscal Year 2007, relating to the Armed
Forces. Because this bill would make a willful violation of those
provisions a crime, it would impose a state-mandated local program.
Existing law provides that any person who violates specified
provisions prohibiting discrimination against a member of the
military or naval forces of this state or the United States,
including discrimination with respect to the terms of a loan or
financing based on that person's membership in the military or naval
forces of this state or of the United States, is guilty of a
misdemeanor.
This bill would exempt from the discrimination provisions any
person who does not market or extend consumer loans to armed services
members and any licensee under the California Deferred Deposit
Transaction Law who does not market deferred deposit transactions to,
or enter into such transactions with, armed services members.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 22345 is added to the Financial Code, to read:
22345. (a) Any person who violates any provision of Section 670
of the John Warner National Defense Authorization Act for Fiscal Year
2007 (Public Law 109-364) or any regulation promulgated thereunder,
violates this chapter.
(b) A person that does not market consumer loans to, or does not
extend those loans to, armed services members, shall not be in
violation of Section 394 of the Military and Veterans Code.
SEC. 2. Section 23038 is added to the Financial Code, to read:
23038. (a) Any person who violates any provision of Section 670
of the John Warner National Defense Authorization Act for 2007
(Public Law 109-364) or any regulation promulgated thereunder,
violates this division.
(b) A licensee that does not market deferred transactions to, or
does not enter into those transactions with, armed services members,
shall not be in violation of Section 394 of the Military and Veterans
Code.
SEC. 3. 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.