BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1113| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 AB 1113 Page 2 (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in writing by the person receiving the order, and no hearing is held within 30 days thereafter, the order is deemed rescinded (Financial Code Section 12103).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that order. 2)Provides that a desist and refrain order issued under the Check Sellers, Bill Payers and Proraters Law is rescinded, if a hearing requested to contest that order is not commenced within 15 business days after the request for a hearing is filed, unless the person to whom the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 AB 1113 Page 3 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 AB 1113 Page 4 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 **** END ****