BILL NUMBER: AB 711 CHAPTERED
BILL TEXT
CHAPTER 369
FILED WITH SECRETARY OF STATE AUGUST 26, 1997
APPROVED BY GOVERNOR AUGUST 26, 1997
PASSED THE ASSEMBLY AUGUST 7, 1997
PASSED THE SENATE AUGUST 4, 1997
AMENDED IN SENATE JULY 8, 1997
AMENDED IN SENATE JUNE 10, 1997
AMENDED IN ASSEMBLY APRIL 28, 1997
INTRODUCED BY Assembly Member Ackerman
FEBRUARY 26, 1997
An act to amend Section 1789.37 of the Civil Code, relating to
check cashers.
LEGISLATIVE COUNSEL'S DIGEST
AB 711, Ackerman. Check cashers: permits.
Existing law requires every owner of a check casher's business to
obtain a permit from the Department of Justice, as specified, and to
renew the permit annually.
This bill would provide that a violation of these provisions of
existing law is punishable by a civil penalty, as specified, for a
first or 2nd offense, or as a misdemeanor, as specified, for a
subsequent offense within 10 years, with any civil penalties or fines
to be apportioned 50% to the State Treasury and 50% to the city or
county treasury, as specified. By creating a new crime, this 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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1789.37 of the Civil Code is amended to read:
1789.37. (a) Every owner of a check casher's business shall
obtain a permit from the Department of Justice to conduct a check
casher's business.
(b) All applications for a permit to conduct a check casher's
business shall be filed with the department in writing, signed by the
applicant if an individual or by a member or officer authorized to
sign if the applicant is a corporation or other entity, and shall
state the name of the business, the type of business engaged in,
whether the applicant intends to enter into deferred deposit
agreements, and the business address. Each applicant shall be
fingerprinted.
(c) Each applicant for a permit to conduct a check casher's
business shall pay a fee not to exceed the cost of processing the
application, fingerprinting the applicant, and checking or obtaining
the criminal record of the applicant, at the time of filing the
application.
(d) Each applicant shall annually, beginning one year from the
date of issuance of a check casher's permit, file an application for
renewal of the permit with the department, along with payment of a
renewal fee not to exceed the cost of processing the application for
renewal and checking or obtaining the criminal record of the
applicant.
(e) The department shall deny an application for a permit to
conduct a check casher's business, or for renewal of a permit, if the
applicant has a felony conviction involving dishonesty, fraud, or
deceit, provided the crime is substantially related to the
qualifications, functions, or duties of a person engaged in the
business of check cashing.
(f) The department shall adopt regulations to implement this
section, and shall determine the amount of the application fees
required by this section. The department shall prescribe forms for
the applications and permit required by this section, which shall be
uniform throughout the state.
(g) In any action brought by a city attorney or district attorney
to enforce a violation of this section, any owner of a check casher's
business who engages in the business of check cashing without
holding a current and valid permit issued by the department pursuant
to this section is subject to a civil penalty, as follows:
(1) For the first offense, not more than one thousand dollars
($1,000).
(2) For the second offense, not more than five thousand dollars
($5,000).
(h) Any person who has twice been found in violation of
subdivision (g) and who, within 10 years of the date of the first
offense, engages in the business of check cashing without holding a
current and valid permit issued by the department pursuant to this
section is guilty of a misdemeanor punishable by imprisonment in the
county jail not exceeding six months, or by a fine not exceeding five
thousand dollars ($5,000), or by both.
(i) All civil penalties, forfeited bail, or fines received by any
court pursuant to this section shall, as soon as practicable after
the receipt thereof, be deposited with the county treasurer of the
county in which the court is situated. Fines and forfeitures so
deposited shall be disbursed pursuant to the Penal Code. Civil
penalties so deposited shall be paid at least once a month as
follows:
(1) Fifty percent to the Treasurer by warrant of the county
auditor drawn upon the requisition of the clerk or judge of the
court, to be deposited in the State Treasury on order of the
Controller.
(2) Fifty percent to the city treasurer of the city, if the
offense occurred in a city, otherwise to the treasurer of the county
in which the prosecution is conducted.
Any money deposited in the State Treasury under this section which
is determined by the Controller to have been erroneously deposited
therein shall be refunded, subject to approval of the State Board of
Control prior to the payment of the refund, out of any money in the
State Treasury which is available by law for that purpose.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.