BILL NUMBER: AB 1528	CHAPTERED  10/09/07

	CHAPTER  363
	FILED WITH SECRETARY OF STATE  OCTOBER 9, 2007
	APPROVED BY GOVERNOR  OCTOBER 9, 2007
	PASSED THE SENATE  SEPTEMBER 10, 2007
	PASSED THE ASSEMBLY  SEPTEMBER 12, 2007
	AMENDED IN SENATE  SEPTEMBER 4, 2007
	AMENDED IN SENATE  JULY 16, 2007
	AMENDED IN SENATE  JULY 2, 2007
	AMENDED IN ASSEMBLY  APRIL 18, 2007
	AMENDED IN ASSEMBLY  APRIL 11, 2007

INTRODUCED BY   Committee on Banking and Finance (Lieu (Chair),
Gaines (Vice Chair), Coto, Mendoza, Parra, Swanson, Torrico, and
Wolk)

                        FEBRUARY 23, 2007

   An act to add Section 823.5 to the Military and Veterans Code,
relating to military service.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1528, Committee on Banking and Finance. Military service.
   Existing law provides certain protections for members of the Armed
Forces of the United States, National Guard, and Reserves.
   This bill would prohibit any person or entity licensed under
specified codes to market financial services or products to a service
member or former service member, as defined, or the spouse of a
service member or former service member, in a misleading or deceptive
manner that suggests that the person or entity marketing the
financial service or product is either acting on behalf of or as an
affiliate of one or more branches of the United States military or
the United States Department of Veterans Affairs, or that the product
or financial service is being offered on behalf of one or more
branches of the United States military or the United States
Department of Veterans Affairs. This bill would also provide that if
a person who violates this provision is licensed under any state
licensing law, a violation of this provision shall be deemed a
violation of the laws under which that person is licensed. This bill
would provide that these provisions shall not apply to any bank, as
defined, or any credit union, as defined.


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

  SECTION 1.  Section 823.5 is added to the Military and Veterans
Code, to read:
   823.5.  (a) No person or entity licensed under the Business and
Professions Code, Corporations Code, Financial Code, or Insurance
Code shall market financial services or products to a service member
or former service member, or the spouse of a service member or former
service member, in a misleading or deceptive manner that suggests
any of the following:
   (1) That the person or entity marketing the financial service or
product is acting on behalf of one or more branches of the United
States military or the United States Department of Veterans Affairs.
   (2) That the person or entity marketing the financial service or
product is an affiliate of one or more branches of the United States
military or the United States Department of Veterans Affairs.
   (3) That the financial service or product is being offered on
behalf of one or more branches of the United States military or the
United States Department of Veterans Affairs.
   (b) If a person who violates this section is licensed under any
state licensing law, a violation of this section shall be deemed a
violation of the laws under which that person is licensed.
   (c) This section shall not apply to either of the following:
   (1) Any bank as defined in Section 102 of the Financial Code.
   (2) Any credit union as defined in Section 14002 of the Financial
Code.
   (d) For purposes of this section:
   (1) "Service member" means any of the following:
   (A) An active duty member of the Armed Forces of the United
States.
   (B) An officer or enlisted member of the National Guard called or
ordered into active state service by the Governor pursuant to Section
143 or 146, or into active federal service by the President of the
United States, pursuant to Title 10 or 32 of the United States Code,
for a period of 30 days or more.
   (C) A reservist of the United States Military Reserve who has been
called to full-time active duty for a period of 30 days or more.
   (2) "Former service member" means a veteran as defined by Section
980.