BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       AB 1113|
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                                      CONSENT 


          Bill No:  AB 1113
          Author:   Chau (D)
          Introduced:2/27/15  
          Vote:     21  

           SENATE BANKING & F.I. COMMITTEE:  7-0, 6/17/15
           AYES:  Block, Vidak, Galgiani, Hall, Hueso, Lara, Morrell

          SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  78-0, 5/14/15 (Consent)  See last page for  
            vote

           SUBJECT:   Check Sellers, Bill Payers and Proraters Law


          SOURCE:    Author


          DIGEST:  This bill specifies 30 days as the amount of time in  
          which a person wishing to contest a desist and refrain order  
          issued under the Check Sellers, Bill Payers and Proraters Law  
          has in which to request a hearing on the order from the  
          Commissioner of Business Oversight (commissioner), and 15 days  
          as the amount of time in which the commissioner has in which to  
          hold that hearing, as specified.   


          ANALYSIS:   


          Existing law:


         1)Provides for the Check Sellers, Bill Payers and Proraters Law  








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            (Financial Code Section 12000 et seq.), administered by the  
            Department of Business Oversight (DBO).  

         2)Provides that, whenever in the opinion of the commissioner, any  
            person is engaged in business as a check seller without a  
            license from DBO, or any person or licensee is violating any  
            provision of the Check Sellers, Bill Payers or Proraters Law,  
            or any rule or order issued pursuant to that law, the  
            commissioner may order the person or licensee to desist and  
            refrain from engaging in such business or further violating  
            the law (Financial Code Section 12103).

         3)Provides that if, after a desist and refrain order is issued, a  
            request for a hearing is filed in writing by the person  
            receiving the order, and no hearing is held within 30 days  
            thereafter, the order is deemed rescinded (Financial Code  
            Section 12103).

          This bill:


         1)Specifies 30 days as the amount of time in which a person  
            wishing to contest a desist and refrain order issued under the  
            Check Sellers, Bill Payers and Proraters Law has in which to  
            request a hearing on the order from the commissioner.    
            Provides that the 30-day period begins on the date the person  
            to whom the order is directed is served with that order.  

         2)Provides that a desist and refrain order issued under the Check  
            Sellers, Bill Payers and Proraters Law is rescinded, if a  
            hearing requested to contest that order is not commenced  
            within 15 business days after the request for a hearing is  
            filed, unless the person to whom the order is issued consents  
            to a later date. 

          Background


          AB 1113 is intended to specify the time frame within which a  
          person served a desist and refrain order under the Check  
          Sellers, Bill Payers and Proraters Law must request a hearing to  
          contest that order.  Under the existing Check Sellers, Bill  








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                                                                    Page  3



          Payers and Proraters Law, the commissioner is authorized to  
          issue a desist and refrain order to an unlicensed person  
          operating without a needed license or to a licensee operating in  
          violation of the law.  The person to whom the order is issued  
          may request an administrative hearing to contest the order, but  
          the law does not specify the time frame within which that  
          request must be submitted.  This lack of specificity creates  
          uncertainty regarding whether and when an order becomes final.   
          Unless an order is final, the commissioner cannot enforce it via  
          a civil action.  AB 1113 establishes a 30-day period as the  
          amount of time in which the person served with a desist and  
          refrain order has in which to request a hearing in writing on  
          that order from the commissioner.  This bill further clarifies  
          that, if a hearing is not held within 15 days following the  
          commissioner's receipt of a request for a hearing, the order is  
          deemed rescinded. 



          These time frames are different than those currently observed by  
          DBO, and more beneficial to persons served with desist and  
          refrain orders.  At present, when DBO issues a desist and  
          refrain order under the Check Sellers, Bill Payers and Proraters  
          Law, it sends a cover letter informing the recipient of the  
          order of the commissioner's authority to issue orders and the  
          recipient's right to an administrative hearing, if they wish to  
          challenge the order.  The letter notes that any request for a  
          hearing must be made within 15 days after service of the order.   

          Comments


          Although the provisions of AB 1113 are important to DBO and will  
          help that department enforce the Check Sellers, Bill Payers and  
          Proraters Law, the impact of this bill will be felt by very few  
          licensees.  According to DBO, there are only six active  
          licensees under that law.  


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No









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          SUPPORT:   (Verified6/29/15)


          None received


          OPPOSITION:   (Verified6/29/15)


          None received

          ASSEMBLY FLOOR:  78-0, 5/14/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,  
            Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,  
            Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Melendez, Mullin,  
            Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  
            Wilk, Williams, Wood, Atkins
          NO VOTE RECORDED:  Linder, Medina


          Prepared by:Eileen Newhall / B. & F.I. / (916) 651-4102
          6/30/15 10:54:56


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