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AB-1636 California Finance Lenders Law: California Deferred Deposit Transaction Law.(2017-2018)

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Date Published: 06/21/2017 09:00 PM
AB1636:v98#DOCUMENT

Amended  IN  Senate  June 21, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1636


Introduced by Assembly Member Aguiar-Curry
(Coauthor: Assembly Member Dababneh)

February 17, 2017


An act to amend Section Sections 22715 and 23026 of the Financial Code, relating to deferred deposit transactions. the Department of Business Oversight.


LEGISLATIVE COUNSEL'S DIGEST


AB 1636, as amended, Aguiar-Curry. California Finance Lenders Law: California Deferred Deposit Transaction Law: licensee annual reports. Law.
(1) Existing law, the California Finance Lenders Law, provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Business Oversight.
Existing law requires each finance lender and broker licensee to file an annual report with the commissioner giving relevant information concerning the business and operations conducted by the licensee within the state during the preceding calendar year for each licensed place of business. Existing law authorizes the commissioner to, by order, summarily suspend or revoke the license of any licensee if that person fails to file that report within 10 days after notice by the commissioner that the report is due and not filed.
This bill would authorize the commissioner to impose, by order, a penalty on any licensee who fails to either provide the commissioner with any report required by law or requested by the commissioner or who fails to provide any material information required by the commissioner to be included in a report. The bill would prohibit the penalty from exceeding $100 for each day the report or information is overdue for the first 5 days and thereafter from exceeding $500 for each day the report or information is overdue. The bill would specify the due date for these penalties under specified circumstances. The bill would authorize a licensee ordered to pay the penalty to request in writing a hearing to challenge that order and would require that hearing to be held under specified administrative proceedings.

Existing

(2) Existing law, the California Deferred Deposit Transaction Law, requires each licensee to file a specified annual report with the Commissioner of Business Oversight and requires the report to be kept confidential. Existing law requires the annual consolidated report to be prepared by the commissioner and made available to the public.
This bill would instead require those annual reports to be made available to the public for inspection and would also require the reports to include any other information reasonably required by the commissioner.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 22715 of the Financial Code is amended to read:

22715.
 (a) The commissioner may by order summarily suspend or revoke the license of any licensee if that person fails to file the report required by Section 22159 within 10 days after notice by the commissioner that the report is due and not filed. If, after an order is made, a request for hearing is filed in writing within 30 days and the hearing is not held within 60 days thereafter, the order is deemed rescinded as of its effective date.
(b) (1) The commissioner may impose, by order, a penalty on any licensee who does not do, within the time specified in any written demand of the commissioner, either of the following:
(A) Make and file with the commissioner any report required by law or requested by the commissioner.
(B) Furnish any material information required by the commissioner to be included in any report required by law or requested by the commissioner.
(2) The amount of the penalty imposed pursuant to this subdivision shall not exceed one hundred dollars ($100) for each day for the first five days the report or information is overdue, and thereafter shall not exceed five hundred dollars ($500) for each day the report or information is overdue.
(c) If an order has been made under subdivision (b), and a request for a hearing is filed in writing within 30 days of the date of service of the order by the licensee to whom the order was directed, a hearing shall be held in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. At the hearing, the commissioner shall have all the powers granted under that chapter.
(d) If the licensee fails to file a written request for a hearing within 30 days of the date of service of the order, the order imposing the penalty shall be deemed a final order of the commissioner, and the penalty shall be paid within five business days.
(e) If a hearing is requested, the penalty shall be paid within five business days after the effective date of any decision in the case ordering payment to be made.

SECTION 1.SEC. 2.

 Section 23026 of the Financial Code is amended to read:

23026.
 On or before March 15 of each year, beginning March 2006, each licensee shall file an annual report with the commissioner pursuant to procedures that the commissioner shall establish. The licensee’s annual reports filed pursuant to this section shall be made available to the public for inspection. The annual consolidated report shall be prepared by the commissioner and made available to the public. For the previous calendar year, these reports shall include the following and any other information the commissioner reasonably requires:
(a) The total number and dollar amount of deferred deposit transactions made by the licensee.
(b) The total number of individual customers who entered into deferred deposit transactions.
(c) The minimum, maximum, and average amount of deferred deposit transactions.
(d) The average annual percentage rate of deferred deposits.
(e) The average number of days of deferred deposit transactions.
(f) The total number and dollar amount of returned checks.
(g) The total number and dollar amount of checks recovered.
(h) The total number and dollar amount of checks charged off.