BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1113|
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CONSENT
Bill No: AB 1113
Author: Chau (D)
Introduced:2/27/15
Vote: 21
SENATE BANKING & F.I. COMMITTEE: 7-0, 6/17/15
AYES: Block, Vidak, Galgiani, Hall, Hueso, Lara, Morrell
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 78-0, 5/14/15 (Consent) See last page for
vote
SUBJECT: Check Sellers, Bill Payers and Proraters Law
SOURCE: Author
DIGEST: This bill specifies 30 days as the amount of time in
which a person wishing to contest a desist and refrain order
issued under the Check Sellers, Bill Payers and Proraters Law
has in which to request a hearing on the order from the
Commissioner of Business Oversight (commissioner), and 15 days
as the amount of time in which the commissioner has in which to
hold that hearing, as specified.
ANALYSIS:
Existing law:
1)Provides for the Check Sellers, Bill Payers and Proraters Law
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(Financial Code Section 12000 et seq.), administered by the
Department of Business Oversight (DBO).
2)Provides that, whenever in the opinion of the commissioner, any
person is engaged in business as a check seller without a
license from DBO, or any person or licensee is violating any
provision of the Check Sellers, Bill Payers or Proraters Law,
or any rule or order issued pursuant to that law, the
commissioner may order the person or licensee to desist and
refrain from engaging in such business or further violating
the law (Financial Code Section 12103).
3)Provides that if, after a desist and refrain order is issued, a
request for a hearing is filed in writing by the person
receiving the order, and no hearing is held within 30 days
thereafter, the order is deemed rescinded (Financial Code
Section 12103).
This bill:
1)Specifies 30 days as the amount of time in which a person
wishing to contest a desist and refrain order issued under the
Check Sellers, Bill Payers and Proraters Law has in which to
request a hearing on the order from the commissioner.
Provides that the 30-day period begins on the date the person
to whom the order is directed is served with that order.
2)Provides that a desist and refrain order issued under the Check
Sellers, Bill Payers and Proraters Law is rescinded, if a
hearing requested to contest that order is not commenced
within 15 business days after the request for a hearing is
filed, unless the person to whom the order is issued consents
to a later date.
Background
AB 1113 is intended to specify the time frame within which a
person served a desist and refrain order under the Check
Sellers, Bill Payers and Proraters Law must request a hearing to
contest that order. Under the existing Check Sellers, Bill
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Payers and Proraters Law, the commissioner is authorized to
issue a desist and refrain order to an unlicensed person
operating without a needed license or to a licensee operating in
violation of the law. The person to whom the order is issued
may request an administrative hearing to contest the order, but
the law does not specify the time frame within which that
request must be submitted. This lack of specificity creates
uncertainty regarding whether and when an order becomes final.
Unless an order is final, the commissioner cannot enforce it via
a civil action. AB 1113 establishes a 30-day period as the
amount of time in which the person served with a desist and
refrain order has in which to request a hearing in writing on
that order from the commissioner. This bill further clarifies
that, if a hearing is not held within 15 days following the
commissioner's receipt of a request for a hearing, the order is
deemed rescinded.
These time frames are different than those currently observed by
DBO, and more beneficial to persons served with desist and
refrain orders. At present, when DBO issues a desist and
refrain order under the Check Sellers, Bill Payers and Proraters
Law, it sends a cover letter informing the recipient of the
order of the commissioner's authority to issue orders and the
recipient's right to an administrative hearing, if they wish to
challenge the order. The letter notes that any request for a
hearing must be made within 15 days after service of the order.
Comments
Although the provisions of AB 1113 are important to DBO and will
help that department enforce the Check Sellers, Bill Payers and
Proraters Law, the impact of this bill will be felt by very few
licensees. According to DBO, there are only six active
licensees under that law.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
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SUPPORT: (Verified6/29/15)
None received
OPPOSITION: (Verified6/29/15)
None received
ASSEMBLY FLOOR: 78-0, 5/14/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,
Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,
Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,
Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Lopez, Low,
Maienschein, Mathis, Mayes, McCarty, Melendez, Mullin,
Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,
Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,
Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Linder, Medina
Prepared by:Eileen Newhall / B. & F.I. / (916) 651-4102
6/30/15 10:54:56
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