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SB-539 Credit sales: annual statements.(1995-1996)

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SB539:v94#DOCUMENT

Senate Bill No. 539
CHAPTER 693

An act to repeal and add Section 1810.11 of the Civil Code, relating to credit.

[ Filed with Secretary of State  October 10, 1995. Approved by Governor  October 09, 1995. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 539, Hughes. Credit sales: annual statements.
Existing law requires specified retail sellers to provide to each buyer an annual written statement of all finance charges which the seller has charged the buyer or which the buyer has paid to the seller during the preceding year. Existing law provides that any person who willfully violates specified provisions concerning retail installment accounts is guilty of a misdemeanor.
This bill would repeal that provision and instead require a seller to inform the buyer of the total amount of finance charges assessed on the account during the preceding calendar year upon request from the buyer, and no more than once a year. The bill would require the seller to provide this information to the buyer within 30 days of receiving the request, without charge. The bill would permit the seller to provide this information along with the periodic billing or periodic statement of account, as specified. Because the bill would create a new crime, it 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 Section 1810.11 of the Civil Code is repealed.

SEC. 2.

 Section 1810.11 is added to the Civil Code, to read:

1810.11.
 The buyer may request, not more frequently than once a year, that the seller inform the buyer of the total amount of finance charges assessed on the account during the preceding calendar year and the seller shall provide that information to the buyer within 30 days of receiving the request, without charge.
If the buyer’s request for the information is made in writing, the seller shall provide the information in writing, provided, however, that if the seller is required to furnish the buyer with a periodic billing or periodic statement of account or furnishes the billing or statement of account, the requested statement of finance charges may be furnished along with the periodic billing or periodic statement of account.
“Seller,” for the purposes of this section, means a person engaged in the business of selling goods or furnishing services to retail buyers whose annual sales pursuant to retail installment accounts in California have exceeded one hundred fifty million dollars ($150,000,000) in the seller’s last two consecutive years.

SEC. 3.

 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.
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.