BILL NUMBER: AB 2845	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 22, 2008

INTRODUCED BY   Assembly Members Jones, Bass, and Feuer
    (   Principal coauthor:   Senator 
 Perata   ) 
    (   Coauthor:   Assembly Member  
DeSaulnier   ) 

                        FEBRUARY 22, 2008

    An act to amend Sections 23001, 23005, 23035, and 23036
of, and to add Section 23039 to, the Financial Code, relating to
deferred deposit   An act relating to deferred deposit
 transactions.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2845, as amended, Jones. Deferred deposit transactions.
   Existing law, the California Deferred Deposit Transaction Law,
prohibits a person from offering, originating, or making a deferred
deposit transaction without first obtaining a license from the
Commissioner of Corporations.  Existing law authorizes a
licensee to defer the deposit of a customer's personal check for up
to 31 days and prohibits the face amount of the check from exceeding
$300. Existing law requires deferred deposit transactions to be made
pursuant to a written agreement meeting certain requirements,
including requiring an agreement to disclose the total amount of any
fees charged for the deferred deposit transaction and to provide a
specified informational notice. Existing law prohibits a fee for a
deferred deposit transaction from exceeding 15% of the face amount of
the check and prohibits a licensee from directly or indirectly
charging other fees, except as specified. Existing law makes a
willful violation of these provisions a crime.  
   This bill would instead prohibit the interest for a deferred
deposit transaction from exceeding an annual percentage rate of 36%.
The bill would require the informational notice and written agreement
for a deferred deposit transaction to include information relative
to the limitation of the amount of the interest for the transaction.
The bill would prohibit a person from engaging in any device or
subterfuge to evade these requirements.  
   Because a willful violation of the bill's provisions would be a
crime, this 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.  
   This bill would state the intent of the Legislature to enact and
implement changes to the California Deferred Deposit Transaction Law
that include recommendations made by the Department of Corporations,
as specified. 
   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . State-mandated local program:  yes
  no  .


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

   SECTION 1.    It is the intent of the Legislature to
enact and implement changes to the California Deferred Deposit
Transaction Law that include, but are not limited to, the
recommendations and options found in the Department of Corporations'
reports entitled "California Deferred Deposit Transaction Law,
California Department of Corporations, December 2007" and "2007
Department of Corporations Payday Loan Study, December 2007." 
All matter omitted in this version of the bill appears in the bill as
introduced in Assembly, February 22, 2008 (JR11)