SB 515, as introduced, Jackson. 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 originating or making deferred deposit transactions, as defined. Existing law requires a licensee to file an annual report with the commissioner, on or before March 15 of each year. Existing law requires the commissioner to prepare an annual consolidated report based upon specified information received from licensees. Existing law authorizes the commissioner to suspend or revoke the license of a license that fails to file the annual report. Existing law makes a willful violation of the California Deferred Deposit Transaction Law a crime.
The Governor’s Reorganization Plan No. 2 of the 2011-12 Regular Session provides that, on and after July 1, 2013, the responsibilities of the Department of Corporations and the Commissioner of Corporations shall be transferred to the Department of Business Oversight and the Deputy Commissioner of Business Oversight for the Division of Corporations.
This bill instead would require a licensee to file the annual report described above by March 20 of each year. The bill would make additional changes to conform with the Governor’s Reorganization Plan No. 2.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 23001 of the Financial Code is amended
2to read:
As used in this division, the following terms have the
4following meanings:
5(a) “Deferred deposit transaction” means a transaction whereby
6a person defers depositing a customer’s personal check until a
7specific date, pursuant to a written agreement for a fee or other
8charge, as provided in Section 23035.
9(b) “Commissioner” means thebegin insert Deputyend insert Commissionerbegin insert of
10Business Oversight for the Divisionend insert of Corporations.
11(c) “Department” means the Department ofbegin delete Corporationsend delete
12begin insert
Business Oversightend insert.
13(d) “Licensee” means any person who offers, originates, or
14makes a deferred deposit transaction, who arranges a deferred
15deposit transaction for a deferred deposit originator, who acts as
16an agent for a deferred deposit originator, or who assists a deferred
17deposit originator in the origination of a deferred deposit
18transaction. However, “licensee” does not include a state or
19federally chartered bank, thrift, savings association, industrial loan
20company, or credit union. “Licensee” also does not include a retail
21seller engaged primarily in the business of selling consumer goods,
22including consumables, to retail buyers that cashes checks or issues
23money orders for a minimum fee not exceeding two dollars ($2)
24as a service to its customers that is incidental to its main purpose
25or business. “Licensee” also does not include an employee regularly
26employed by a licensee at the licensee’s
place of business. An
27employee, when acting under the scope of the employee’s
28employment, shall be exempt from any other law from which the
29employee’s employer is exempt.
30(e) “Person” means an individual, a corporation, a partnership,
31a limited liability company, a joint venture, an association, a joint
32stock company, a trust, an unincorporated organization, a
33government entity, or a political subdivision of a government
34entity.
P3 1(f) “Deferred deposit originator” means a person who offers,
2originates, or makes a deferred deposit transaction.
Section 23026 of the Financial Code is amended to
4read:
On or before Marchbegin delete 15end deletebegin insert 20end insert of each year, beginning
6March 2006, each licensee shall file an annual report with the
7commissioner pursuant to procedures that thebegin insert deputyend insert commissioner
8shall establish. The licensee’s annual report shall be kept
9confidential pursuant to Chapter 3.5 (commencing with Section
106250) of Division 7 of Title 1 of the Government Code and any
11regulations adopted thereunder. The annual consolidated report
12shall be prepared by thebegin insert
deputyend insert commissioner and made available
13to the public. For the previous calendar year, these reports shall
14include the following:
15(a) The total number and dollar amount of deferred deposit
16transactions made by the licensee.
17(b) The total number of individual customers who entered into
18deferred deposit transactions.
19(c) The minimum, maximum, and average amount of deferred
20deposit transactions.
21(d) The average annual percentage rate of deferred deposits.
22(e) The average number of days of deferred deposit transactions.
23(f) The total number and dollar amount of returned checks.
24(g) The total number and dollar amount of checks recovered.
25(h) The total number and dollar amount of checks charged off.
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