BILL NUMBER: SB 930	CHAPTERED
	BILL TEXT

	CHAPTER   423
	FILED WITH SECRETARY OF STATE   SEPTEMBER 16, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 16, 1999
	PASSED THE SENATE   AUGUST 31, 1999
	PASSED THE ASSEMBLY   AUGUST 23, 1999
	AMENDED IN ASSEMBLY   AUGUST 19, 1999
	AMENDED IN ASSEMBLY   JUNE 21, 1999
	AMENDED IN SENATE   MAY 19, 1999
	AMENDED IN SENATE   APRIL 22, 1999

INTRODUCED BY   Senator Hughes
   (Coauthor:  Senator Solis)
   (Coauthor:  Assembly Member Thomson)

                        FEBRUARY 25, 1999

   An act to add Sections 1747.06 and 1747.9 to the Civil Code,
relating to credit cards.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 930, Hughes.  Credit cards.
   Existing law prohibits issuance of a credit card except in
response to an oral or written request or application, or as a
renewal of, or in substitution for, an accepted credit card.
Existing law requires a cardholder to be liable for the unauthorized
use of a credit card only if specified conditions are met, including
the condition that the unauthorized use occurs before the card issuer
has been notified that an unauthorized use of the credit card has
occurred or may occur as the result of loss, theft, or otherwise.
   This bill would require a credit card issuer that mails an offer
or solicitation to receive a credit card and, in response, receives a
completed application for a credit card that lists an address that
is different from the address on the offer or solicitation or
receives a change of address request and a request for an additional
card, as specified, to verify the change of address as specified.
The bill would provide that the consumer to whom the offer or
solicitation is made would not be liable for the unauthorized use of
the credit card if the credit card issuer does not verify the change
of address prior to the issuance of the credit card, except as
specified.  The bill would provide for these provisions to become
operative on July 1, 2000.
   This bill would also, after certain dates, prohibit a person who
accepts credit cards for the transaction of business from printing
more than the last 5 digits of the credit card account number or the
expiration date upon any receipt provided to the cardholder, subject
to an exception.


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


  SECTION 1.  Section 1747.06 is added to the Civil Code, to read:
   1747.06.  (a) A credit card issuer that mails an offer or
solicitation to receive a credit card and, in response, receives a
completed application for a credit card that lists an address that is
different from the address on the offer or solicitation shall verify
the change of address by contacting the person to whom the
solicitation or offer was mailed.
   (b) Notwithstanding any other provision of law, a person to whom
an offer or solicitation to receive a credit card is made shall not
be liable for the unauthorized use of a credit card issued in
response to that offer or solicitation if the credit card issuer does
not verify the change of address pursuant to subdivision (a) prior
to the issuance of the credit card, unless the credit card issuer
proves that this person actually incurred the charge on the credit
card.
   (c) When a credit card issuer receives a written or oral request
for a change of the cardholder's billing address and then receives a
written or oral request for an additional credit card within 10 days
after the requested address change, the credit card issuer shall not
mail the requested additional credit card to the new address or,
alternatively, activate the requested additional credit card, unless
the credit card issuer has verified the change of address.
   (d) This section shall become operative on July 1, 2000.
  SEC. 2.  Section 1747.9 is added to the Civil Code, to read:
   1747.9.  (a) Except as provided in this section, no person, firm,
partnership, association, corporation, or limited liability company
that accepts credit cards for the transaction of business shall print
more than the last five digits of the credit card account number or
the expiration date upon any receipt provided to the cardholder.
   (b) This section shall apply only to receipts that are
electronically printed and shall not apply to transactions in which
the sole means of recording the person's credit card number is by
handwriting or by an imprint or copy of the credit card.
   (c) This section shall become operative on January 1, 2004, with
respect to any cash register or other machine or device that
electronically prints receipts for credit card transactions that is
in use before January 1, 2001.
   (d) This section shall become operative on January 1, 2001, with
respect to any cash register or other machine or device that
electronically prints receipts for credit card transactions that is
first put into use on or after January 1, 2001.