BILL NUMBER: SB 1188	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 13, 2010
	AMENDED IN SENATE  MARCH 25, 2010

INTRODUCED BY   Senator Wright

                        FEBRUARY 18, 2010

    An act to add Division 24 (commencing with Section 90000)
to the Financial Code, relating to debt settlement.  
An act to add Section 3049 to the Family Code, relating to child
custody. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1188, as amended, Wright.  Debt settlement
organizations.   Child custody: disabled parent. 

   Existing law requires a court to award custody of a child
according to the best interest of the child, and further requires a
court to grant reasonable visitation rights to a parent unless it is
shown that the visitation would be detrimental to the best interest
of the child. Existing law requires a court, when determining the
best interest of the child, to consider the health, safety, and
welfare of the child, among other factors.  
   This bill would provide that there is a rebuttable presumption
affecting the burden of proof that a parent's disability may not form
the basis for an order granting child custody or visitation to
another party, or for an order imposing a condition or limitation on
custody or visitation, as specified, unless that other party
establishes by clear and convincing evidence that an award of custody
or visitation to, or a condition or limitation on custody or
visitation by, the disabled parent would be detrimental to the
health, safety, and welfare of the child, as specified. 

   Existing law, the Check Sellers, Bill Payers and Proraters Law,
provides for licensure and regulation by the Commissioner of
Corporations of persons engaged in, among other activities, the
business of receiving money as an agent of the obligor for the
purpose of paying bills, invoices, or accounts for the obligor.
 
   This bill would make it unlawful for a person to provide debt
settlement services, as defined, unless it, among other things,
obtains and maintains insurance coverage, as specified, and files a
form establishing proof of this required insurance coverage with the
Commissioner of Corporations along with a filing fee, to be
established by the commissioner. The bill would require a debt
settlement organization, prior to providing debt settlement services,
to enter into a specified written contract with an individual,
including, but not limited to, a full and detailed description of the
debt settlement services to be performed by the debt settlement
organization as well as the estimated date or length of time by which
the services are to be performed, and a notice of the right to
cancel. The bill would prohibit a debt settlement organization from,
among other things, imposing any fees or charges or receiving any
money for debt settlement services until the individual agrees in
writing to those fees or charges and the plan, as defined. The bill
would also specify how those fees or charges are to be determined and
when they may be collected. The bill would exempt various entities
from these provisions. The bill would specify that a violation of
these provisions would constitute unfair competition and would
authorize any injured individual to bring an action to enjoin and
restrain any violation of these provisions and to recover damages.
The bill would make these provisions operative on January 1, 2012.

   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . State-mandated local program: no.


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

   SECTION 1.    Section 3049 is added to the  
Family Code   , to read:  
   3049.  In any proceeding to determine child custody or visitation
under this part, in which at least one parent is disabled as defined
by the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101
et seq.), there is a rebuttable presumption affecting the burden of
proof that the disability of that parent may not form the basis for
an order granting custody or visitation to another party, or for an
order for imposing any condition or limitation on an award of custody
to or visitation by the disabled parent, unless that other party
establishes by clear and convincing evidence that a grant of custody
or visitation to, or a condition or limitation on custody or
visitation by, the disabled parent would be detrimental to the
health, safety, and welfare of the child. This section applies to any
proceeding regarding custody or visitation, including, but not
limited to, a request for a modification of an existing order for
custody or visitation.  All matter omitted in this version of
the bill appears in the bill as amended in the Senate, March 25,
2010. (JR11)