BILL NUMBER: AB 634	CHAPTERED
	BILL TEXT

	CHAPTER  235
	FILED WITH SECRETARY OF STATE  SEPTEMBER 26, 2007
	APPROVED BY GOVERNOR  SEPTEMBER 26, 2007
	PASSED THE SENATE  AUGUST 27, 2007
	PASSED THE ASSEMBLY  AUGUST 30, 2007
	AMENDED IN SENATE  JUNE 25, 2007
	AMENDED IN SENATE  JUNE 11, 2007
	AMENDED IN SENATE  MAY 23, 2007

INTRODUCED BY   Assembly Member Charles Calderon

                        FEBRUARY 21, 2007

   An act to amend Section 23001 of the Financial Code, relating to
deferred deposit transactions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 634, Charles Calderon. Deferred deposit transactions.
   Existing law, the California Deferred Deposit Transaction Law,
provides for the licensure and regulation by the Commissioner of
Corporations of persons engaged in the business of making or
negotiating deferred deposit transactions. Existing law defines
"deferred deposit transaction" for the purpose of that law.
   This bill would modify that definition.


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

  SECTION 1.  Section 23001 of the Financial Code is amended to read:

   23001.  As used in this division, the following terms have the
following meanings:
   (a) "Deferred deposit transaction" means a transaction whereby a
person defers depositing a customer's personal check until a specific
date, pursuant to a written agreement for a fee or other charge, as
provided in Section 23035.
   (b) "Commissioner" means the Commissioner of Corporations.
   (c) "Department" means the Department of Corporations.
   (d) "Licensee" means any person who offers, originates, or makes a
deferred deposit transaction, who arranges a deferred deposit
transaction for a deferred deposit originator, who acts as an agent
for a deferred deposit originator, or who assists a deferred deposit
originator in the origination of a deferred deposit transaction.
However, "licensee" does not include a state or federally chartered
bank, thrift, savings association, industrial loan company, or credit
union. "Licensee" 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 fee not exceeding two dollars ($2) as a service
to its customers that is incidental to its main purpose or business.
"Licensee" also does not include an employee regularly employed by a
licensee at the licensee's place of business. An employee, when
acting under the scope of the employee's employment, shall be exempt
from any other law from which the employee's employer is exempt.
   (e) "Person" means an individual, a corporation, a partnership, a
limited liability company, a joint venture, an association, a joint
stock company, a trust, an unincorporated organization, a government
entity, or a political subdivision of a government entity.
   (f) "Deferred deposit originator" means a person who offers,
originates, or makes a deferred deposit transaction.