BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1548
                                                                  Page  1

          Date of Hearing:   May 4, 2009

                      ASSEMBLY COMMITTEE ON BANKING AND FINANCE
                                  Pedro Nava, Chair
             AB 1548 (Banking & Finance) - As Introduced:  March 9, 2009
           
          SUBJECT  :   Payment Instruments

           SUMMARY  :   Defines the term "authorized delegate," for purposes  
          of the Payment Instruments Law, to mean a person that a licensee  
          designates to provide money transmission services on behalf of  
          the licensee.

           EXISTING LAW 

          1)Provides for the licensing and regulation by the Commissioner  
            of the Department of Financial Institutions (DFI) entities  
            engaged in the business of issuing payment instruments.   
            (Financial Code, Section 33000 et seq.)

          2)Provides for the licensing and regulation by the Commissioner  
            of DFI entities engaged in the business of money transmittal  
            that receive money in the state and transmit it to foreign  
            countries.  (Financial Code Section 1800 et seq.)

           FISCAL EFFECT  :   None

           COMMENTS  : 

          This bill adds a technical definition to the payment instruments  
          law to provide for clarity in cases in which a payment  
          instruments licensee has delegated authority under the money  
          transmitters law for an employee to engage in money  
          transmission.  Typically, those entities that engage in money  
          transmission services also are licensed to issue payment  
          instruments such as money orders.  This bill clarifies that a  
          business that holds both licenses may delegate authority under  
          the money transmitters law.

           REGISTERED SUPPORT / OPPOSITION  :   
          
          Support 

            None on file.









                                                                  AB 1548
                                                                  Page  2

           Opposition  

              None on file.


          Analysis Prepared by  :    Mark Farouk / B. & F. / (916) 319-3081