BILL NUMBER: AB 545	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Salas

                        FEBRUARY 25, 2009

   An act to add Section 23024.5 to the Financial Code, relating to
deferred deposit transactions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 545, as introduced, Salas. 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, as defined. A willful
violation of the California Deferred Deposit Transaction Law is a
crime.
   This bill would authorize the commissioner, by contract with a
vendor or service provider or otherwise, to develop and implement a
system that enables a licensee to receive specified information
regarding a consumer's history with deferred deposit transactions.
The bill would authorize the commissioner to adopt rules to establish
the system and for the retention, archiving, and deletion of the
information entered into, or stored by, the system. The bill would
authorize the operator of the system to charge licensees a fee, as
specified. The bill would also impose various requirements on
licensees relative to information that would be required to be
reported to the system, if it is developed and implemented. Because a
violation of these requirements by a licensee would be a crime under
the California Deferred Deposit Transaction Law, the 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.
   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 23024.5 is added to the Financial Code, to
read:
   23024.5.  (a) The commissioner may, by contract with a vendor or
service provider or otherwise, develop and implement a system that
enables a licensee to receive the following information regarding a
consumer seeking the licensee's services:
   (1) Whether the consumer has any existing obligations pursuant to
any deferred deposit transactions entered into under this division.
   (2) Whether a consumer has entered into any extensions or
repayment plans for any deferred deposit transactions entered into
under this division.
   (3) Whether a consumer has failed to meet its obligations under a
deferred deposit transaction, extension, or repayment plan.
   (4) The dates on which the consumer entered into any deferred
deposit transaction, extension, or repayment plan described in
paragraphs (1) and (2).
   (b) The commissioner may adopt rules specifying the form and
content of the system described in this section. The system shall, at
a minimum, do the following:
   (1) Make the information entered into, or stored by, the system
accessible to, and useable by, licensees and the commissioner from
any location in the state.
   (2) Secure information in the system against public disclosure,
tampering, theft, or unauthorized acquisition or use.
   (c) A vendor or service provider that operates or administers the
system described in this section may charge licensees a fee for
access to, or use of, the system in amounts approved by the
commissioner.
   (d) (1) If the system described in this section is developed and
implemented, a licensee shall enter or update the information
specified under subdivision (a) within one business day after
conducting a deferred deposit transaction, extension, or repayment
plan.
   (2) If a licensee ceases to make deferred deposit transactions,
the licensee shall continue to enter and update the information
specified under subdivision (a) for those deferred deposit
transactions that are outstanding or have not yet expired.
   (3) Within 10 business days after ceasing to make deferred deposit
transactions, a licensee shall submit an approval plan to the
commissioner for continued compliance with this subdivision. The
commissioner may require a licensee to modify that plan in order to
ensure compliance with this subdivision.
   (e) The commissioner shall adopt rules establishing requirements
for the retention, archiving, and deletion of the information entered
into, or stored by, the system described in this section.
  SEC. 2.  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.