BILL NUMBER: AB 1158	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 21, 2011

INTRODUCED BY   Assembly Member Charles Calderon

                        FEBRUARY 18, 2011

    An act to amend Section 14001 of the Financial Code,
relating to credit unions.   An act to amend Section
23027 of the Financial Code, relating to deferred deposit
transactions. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1158, as amended, Charles Calderon.  Credit unions.
  Deferred deposit transactions: advertising.  

   Existing law, the California Deferred Deposit Transaction Law,
provides for the licensure and regulation by the Commissioner of
Corporations of persons engaged in the business of making or
negotiating deferred deposit transactions, as defined. Existing law
prohibits a licensee from placing an advertisement disseminated
primarily in this state for a deferred deposit transaction unless the
advertisement discloses that the licensee is licensed by the
Department of Corporations. Existing law authorizes the commissioner
to require licensees to maintain a file of all advertising copy for a
period of 90 days from the date of its use and requires the file to
be made available to the commissioner upon request. A willful
violation of the California Deferred Deposit Transaction Law is a
crime.  
   This bill would prohibit a licensee from placing an advertisement
primarily intended to reach California residents, including
advertisements on the Internet, unless the advertisement discloses
that the licensee is licensed by the department, as specified. The
bill would also authorize the commissioner to require licensees to
maintain a file of all advertising copy currently in use and to
retain that advertising copy for a period of 2 years from the date of
its use.  
   Because a willful violation of the these provisions by a licensee
would be a crime under the California Deferred Deposit Transaction
Law, the 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 California Credit Union Law regulates the formation and
operation of credit unions. Existing law sets forth various defined
terms for purposes of the California Credit Union Law. 

   This bill would make a nonsubstantive change to these provisions.

   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


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

   SECTION 1.    Section 23027 of the  
Financial Code   is amended to read: 
   23027.  (a) No licensee shall advertise, print, display, publish,
distribute, or broadcast, or cause or permit to be advertised,
printed, displayed, published, distributed or broadcast, in any
manner, any statement or representation with regard to the business
subject to the provisions of this division, including the rates,
terms, or conditions for making or negotiating deferred deposit
transactions, that is false, misleading, or deceptive, or that omits
material information that is necessary to make the statements not
false, misleading, or deceptive.
   (b) No licensee shall place an advertisement disseminated
primarily in this state for a deferred deposit transaction  or
primarily intended to reach California residents, including
advertisements on the Internet,  unless the licensee 
discloses   ,  in the printed text of the
advertisement ,  or the oral text in the case of a
radio or television advertisement,  that the licensee is
licensed by the department pursuant to this division. 
makes the following disclosure: 


   "Insert name of licensee] is licensed by the Department of
Corporations pursuant to the California Deferred Deposit Transaction
Law." 


   (c) The commissioner may require that rates of charges or fees, if
stated by the licensee, be stated fully and clearly in the manner
that the commissioner deems necessary to give adequate information
to, or to prevent misunderstanding by, prospective customers.
   (d) No advertising copy shall be used after its use has been
disapproved by the commissioner and the licensee is notified in
writing of the disapproval.
   (e) The commissioner may require licensees to maintain a file of
all advertising copy  currently in use and to retain that
advertising copy  for a period of 90 days  
two years  from the date of its use. The file shall be
available to the commissioner upon request.
   SEC. 2.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B 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 XIII B of the
California Constitution.  
  SECTION 1.    Section 14001 of the Financial Code
is amended to read:
   14001.  The definitions provided in this division govern the
construction of this division unless the context otherwise requires.