Bill Text: CA AB1980 | 2011-2012 | Regular Session | Amended


Bill Title: Loans: disclosures: financial facts label.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-04-24 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB1980 Detail]

Download: California-2011-AB1980-Amended.html
BILL NUMBER: AB 1980	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Roger Hernández

                        FEBRUARY 23, 2012

   An act  relating to deferred deposit transactions
  to amend, repeal, and add Sections 22325, 23019,
23027, and 23035 of, to add and repeal Section 22162.5 of, to add and
repeal Article 7 (commencing with Section 22475) of Chapter 2 of
Division 9 of, and to add and repeal Art   icle 4
(commencing with Section 23028) of Chapter 1 of Division 10 of, the
Financial Code, relating to loans  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1980, as amended, Roger Hernández.  Deferred deposit
transactions.   Loans: disclosures: financial facts
label.  
   Existing law, the California Finance Lenders Law, provides for the
licensure and regulation of finance lenders and brokers by the
Department of Corporations. Existing law, the California Deferred
Deposit Transaction Law, provides for the licensure and regulation of
lenders who make deferred deposit transactions in an amount equal to
or less than $300, as specified. A willful violation of these
provisions is a crime.  
   This bill would require those licensees to, on and after January
1, 2014, and until January 1, 2018, include a financial facts label
with any deferred deposit transaction or an unsecured consumer loan
in a principal amount that is equal to or less than $2,500, as
specified. The bill would further require the financial facts label
to be placed on specified advertising. Because a willful violation of
these provisions would be a crime, 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.  
   Existing law, the California Deferred Deposit Transaction Law,
prohibits a person from offering, originating, or making a deferred
deposit transaction without first obtaining a license from the
Commissioner of Corporations. Existing law authorizes a licensee to
defer the deposit of a customer's personal check for up to 31 days
and prohibits a fee for a deferred deposit transaction from exceeding
15% of the face amount of the check. Existing law makes a willful
violation of these provisions a crime.  
   This bill would state the intent of the Legislature to enact
legislation that would further regulate the making of deferred
deposit transactions. 
   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.    This act shall be known and may be
cited as the Financial Facts Label Act of 2012. 
   SEC. 2.    The Legislature finds and declares all of
the following:  
   (a) Over the past two decades, American consumer debt-to-income
ratios grew by 69 percent, up from .89 in 1983 to 1.49 in 2007. While
the debt levels rose for every income group, low-income families
experienced the sharpest increase. The Federal Reserve Board's Survey
of Consumer Finances reveal that for families in the bottom income
quintile, those making below $21,000, the debt-to-income ratio almost
tripled over the past two decades. In 1983, low-income families owed
88 cents for every dollar that they earned. By 2007, low-income
families owed $2.59 for every dollar earned. The heavy debt burden is
weighing on low-income families. In 2009, the Federal Reserve Board'
s Survey of Consumer Finances reported that while almost all income
groups showed a decrease in debt from 2007, families in the bottom
quintile bucked the trend - they were the only income group that saw
an increase in median debt by 8.9 percent.  
   (b) The federal Food and Drug Administration nutritional facts
label has helped millions of Americans make more informed, healthier
food choices by providing a consistent snapshot of nutritional value.
A similar financial facts label would help low-income and working
poor Californians make more informed, healthier financial choices. By
providing potential payday borrowers and other borrowers of small
loans with a consumer-friendly, recognizable, and consistent label
with facts on the overall quality and affordability of a loan, the
state can empower consumers to make better financial choices and
avoid the treadmill of debt currently caused by payday loans and
other small loans.  
   (c) A 2010 study from the University of Chicago found that
providing consumers with complete information about fees and costs
has a positive impact on financial decisions. Researchers found that
disclosing the quality and affordability of payday loans reduces the
frequency and amount of payday lending. Armed with information,
consumers are 11 percent less likely to take out a payday loan. 

   (d) In 2011, the Mission Asset Fund conducted an experiment to
test the effectiveness of using financial facts labels against actual
loan documents. The pilot test presented participants with copies of
actual loan documents to determine the loan's monthly payment
amount. After writing the answer, the researchers then presented the
financial facts label for the same loan and were asked the same
question. Researchers recorded the time it took to derive each
answer. Researchers did not communicate that the loan document and
financial facts labels were for the same loan. The results: only 23
percent of participants correctly determined the monthly payment
amount from the original loan documents. By contrast, 80 percent of
participants correctly determined the monthly payment from the
financial facts label. Participants were also far faster at
determining the answer from looking at the financial facts label; on
average they took 16 seconds versus 90 seconds with the loan
documents.  
   (e) A financial facts label can empower low-income and working
poor Californians with clear and transparent information that would
save them over $330 million per year in fees from high-cost loans.
 
   (f) The benefits of empowering consumers with clear and
transparent information about loans are undeniable. 
   SEC. 3.    Section 22162.5 is added to the  
Financial Code   , to read:  
   22162.5.  (a) On and after January 1, 2014, no advertisement may
be used that does not comply with Section 22325.
   (b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SEC. 4.    Section 22325 of the   Financial
Code   is amended to read: 
   22325.   (a)    Every licensee shall display
prominently in each licensed place of business a full and accurate
schedule of the charges to be made and the method of computing the
charges. The schedule is subject to the approval of the commissioner.

   (b) In addition to the requirements of subdivision (a), on and
after January 1, 2014, every licensee shall display on every window
advertisement, online advertisement, mailer, flier, brochure, or
pamphlet, a sample financial facts label, as described in Section
22475, the information in which shall be calculated and based upon a
one-thousand-dollar ($1,000) loan amount, for purposes of informing
potential borrowers of the costs related to borrowing a loan in that
amount.  
   (c) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SEC. 5.    Section 22325 is added to the  
Financial Code   , to read:  
   22325.  (a) Every licensee shall display prominently in each
licensed place of business a full and accurate schedule of the
charges to be made and the method of computing the charges. The
schedule is subject to the approval of the commissioner.
   (b) This section shall become operative on January 1, 2018. 
   SEC. 6.    Article 7 (commencing with Section 22475)
is added to Chapter 2 of Division 9 of the   Financial Code
  , to read:  

      Article 7.  Financial Facts Label


   22475.  (a) On and after January 1, 2014, a licensee shall provide
to every consumer who applies for a loan from that licensee a
financial facts label prior to consummation of the loan. The
financial facts label shall contain all of the following information:

   (1) The amount and the number of payments for the loan.
   (2) An average amount per payment to illustrate how monthly
payments are allocated between principal, fees, and interest.
   (3) A "Percent of Monthly Debt Budget" caption to inform the
consumer of how loan payments will affect his or her debt budget and
cashflow pursuant to paragraph (4). This caption shall use the
following formula and contain the following disclosure at the end of
the label by footnote: "Percent of Monthly Debt Budget value is based
on the loan payment divided by the recommended consumer
debt-to-income ratio of 15 percent, using a $3,000 after-tax monthly
income level. Debt budget will vary according to your income level."
   (4) Under the caption described in paragraph (3), the percentage
of the monthly debt budget expected to be used on the loan payment.
   (5) A breakdown of the monthly payment indicating how much will be
paid towards the principal, loan fees, and interest.
   (6) The annual percentage rate (APR): the annualized total cost of
the loan that includes interest and total fees.
   (7) The interest rate used to calculate the loan payments.
   (8) Total monthly fees to be paid on the loan.
   (9) Total monthly interest to be paid on the loan.
   (10) Total monthly payment.
   (11) Late payment amount.
   (b) The department shall, by January 1, 2014, adopt regulations to
implement this article and shall set forth the design of the
financial facts label, in conformity with subdivisions (a) and (b)
and Section 23028. The design of the label shall be based upon the
design of the federal Food and Drug Administration's nutritional
facts label.
   (c) This section shall only apply to an unsecured consumer loan in
a principal amount that is equal to or less than two thousand five
hundred dollars ($2,500).
   22477.  This article shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SEC. 7.    Section 23019 of the   Financial
Code   is amended to read: 
   23019.   (a)    Every licensee shall post a
complete, detailed, and unambiguous schedule of fees. The information
required by this section shall be clear, legible, and in letters not
less than one-half inch in height. The information shall be posted
in a conspicuous location in the unobstructed view of the public
within the licensee's location. 
   (b) In addition to the requirements of subdivision (a), on and
after January 1, 2014, every licensee shall display on every window
advertisement, online advertisement, mailer, flier, brochure, or
pamphlet, a sample financial facts label, as described in Section
23028, the information in which shall be calculated and based upon a
three-hundred-dollar ($300) loan, for purposes of informing potential
borrowers of the costs related to borrowing a loan in that amount.
 
   (c) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SEC. 8.   Section 23019 is added to the  
Financial Code   , to read:  
   23019.  (a) Every licensee shall post a complete, detailed, and
unambiguous schedule of fees. The information required by this
section shall be clear, legible, and in letters not less than
one-half inch in height. The information shall be posted in a
conspicuous location in the unobstructed view of the public within
the licensee's location.
   (b) This section shall become operative on January 1, 2018. 
   SEC. 9.    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 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.

   (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) On and after January 1, 2014, no advertisement may be used
that does not comply with Section 23019.  
   (e) 
    (f)  The commissioner may require licensees to maintain
a file of all advertising copy for a period of 90 days from the date
of its use. The file shall be available to the commissioner upon
request. 
   (g) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SEC. 10.    Section 23027 is added to the  
Financial Code   , 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 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.

   (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 for a period of 90 days from the date of its
use. The file shall be available to the commissioner upon request.
   (f) This section shall become operative on January 1, 2018. 
   SEC. 11.    Article 4 (commencing with Section 23028)
is added to Chapter 1 of Division 10 of the   Financial
Code   , to read:  

      Article 4.  Financial Facts Label


   23028.  (a) On and after January 1, 2014, a licensee shall provide
to every consumer who applies for a loan from that licensee a
financial facts label prior to consummation of the loan. The
financial facts label shall contain all of the following information:

   (1) The amount and the number of payments for the loan.
   (2) An average amount per payment to illustrate how monthly
payments are allocated between principal, fees, and interest.
   (3) A "Percent of Monthly Debt Budget" caption to inform the
consumer of how loan payments will affect his or her debt budget and
cashflow pursuant to paragraph (4). This caption shall use the
following formula and contain the following disclosure at the end of
the label by footnote: "Percent of Monthly Debt Budget value is based
on the loan payment divided by the recommended consumer
debt-to-income ratio of 15 percent, using a $3,000 after-tax monthly
income level. Debt budget will vary according to your income level."
   (4) Under the caption described in paragraph (3), the percentage
of the monthly debt budget expected to be used on the loan payment.
   (5) A breakdown of the monthly payment indicating how much will be
paid towards the principal, loan fees, and interest.
   (6) The annual percentage rate (APR): the annualized total cost of
the loan that includes interest and total fees.
   (7) The interest rate used to calculate the loan payments.
   (8) Total monthly fees to be paid on the loan.
   (9) Total monthly interest to be paid on the loan.
   (10) Total monthly payment.
   (11) Late payment amount.
   (b) The department shall, by January 1, 2014, adopt regulations to
implement this article and shall set forth the design of the
financial facts label, in conformity with subdivisions (a) and (b)
and Section 22475. The design of the label shall be based upon the
design of the federal Food and Drug Administration's nutritional
facts label.
   23029.  This article shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SEC. 12.    Section 23035 of the   Financial
Code   is amended to read: 
   23035.  (a) A licensee may defer the deposit of a customer's
personal check for up to 31 days, pursuant to the provisions of this
section. The face amount of the check shall not exceed three hundred
dollars ($300). Each deferred deposit transaction shall be made
pursuant to a written agreement as described in subdivision (e) that
has been signed by the customer and by the licensee or an authorized
representative of the licensee.
   (b) A customer who enters into a deferred deposit transaction and
offers a personal check to a licensee pursuant to an agreement shall
not be subject to any criminal penalty for the failure to comply with
the terms of that agreement.
   (c) Before entering into a deferred deposit transaction, licensees
shall distribute to customers a notice that shall include, but not
be limited to, the following:
   (1) Information about charges for deferred deposit transactions.
   (2) That if the customer's check is returned unpaid, the customer
may be charged an additional fee of up to fifteen dollars ($15).
   (3) That the customer cannot be prosecuted in a criminal action in
conjunction with a deferred deposit transaction for a returned check
or be threatened with prosecution.
   (4) The department's toll-free telephone number for receiving
calls regarding customer complaints and concerns.
   (5) That the licensee may not accept any collateral in conjunction
with a deferred deposit transaction.
   (6) That the check is being negotiated as part of a deferred
deposit transaction made pursuant to  Section 23035 of the
Financial Code   this section  and is not subject
to the provisions of Section 1719 of the Civil Code. No customer may
be required to pay treble damages if this check does not clear.
   (d) The following notices shall be clearly and conspicuously
posted in the unobstructed view of the public by all licensees in
each location of a business providing deferred deposit transactions
in letters not less than one-half inch in height:
   (1) The licensee cannot use the criminal process against a
consumer to collect any deferred deposit transaction.
   (2) The schedule of all charges and fees to be charged on those
deferred deposit transactions with an example of all charges and fees
that would be charged on at least a one-hundred-dollar ($100) and a
two-hundred-dollar ($200) deferred deposit transaction, payable in 14
days and 30 days, respectively, giving the corresponding annual
percentage rate. The information may be provided in a chart as
follows:
Amount           Amount of
Provided  Fee    Check         14-day APR 30-day APR
$100      XX     XXX           XXX        XXX
$200      XX     XXX           XXX        XXX


   (e) An agreement to enter into a deferred deposit transaction
shall be in writing and shall be provided by the licensee to the
customer. The written agreement shall authorize the licensee to defer
deposit of the personal check, shall be signed by the customer, and
shall include all of the following:
   (1) A full disclosure of the total amount of any fees charged for
the deferred deposit transaction, expressed both in United States
currency and as an APR as required under the Federal Truth In Lending
Act and its regulations.
   (2) A clear description of the customer's payment obligations as
required under the  Federal   federal 
Truth In Lending Act and its regulations.
   (3) The name, address, and telephone number of the licensee.
   (4) The customer's name and address.
   (5) The date to which deposit of check has been deferred (due
date).
   (6) The payment plan, or extension, if applicable as allowed under
subdivision (c) of Section 23036.
   (7) An itemization of the amount financed as required under the
 Federal   federal  Truth In Lending Act
and its regulations.
   (8) Disclosure of any returned check charges.
   (9) That the customer cannot be prosecuted or threatened with
prosecution to collect.
   (10) That the licensee cannot accept collateral in connection with
the transaction.
   (11) That the licensee cannot make a deferred deposit transaction
contingent on the purchase of another product or service.
   (12) Signature space for the customer and signature of the
licensee or authorized representative of the licensee and date of the
transaction.
   (13) Any other information that the commissioner shall deem
necessary by regulation.
   (f) The notice required by subdivision (c) shall be written and
available in the same language principally used in any oral
discussions or negotiations leading to execution of the deferred
deposit agreement and shall be in at least 10-point type.
   (g) The written agreement required by subdivision (e) shall be
written in the same language principally used in any oral discussions
or negotiations leading to execution of the deferred deposit
agreement  ;   ,  shall not be vague,
unclear, or misleading  ,  and shall be in at least 10-point
type.
   (h) Under no circumstances shall a deferred deposit transaction
agreement include any of the following:
   (1) A hold harmless clause.
   (2) A confession of judgment clause or power of attorney.
   (3) Any assignment of or order for payment of wages or other
compensation for services.
   (4) Any acceleration provision.
   (5) Any unconscionable provision.
   (i) If the licensee sells or otherwise transfers the debt at a
later date, the licensee shall clearly disclose in a written
agreement that any debt or checks held or transferred pursuant to a
deferred deposit transaction made pursuant to  Section 23035
  this section  are not subject to the provisions
of Section 1719 of the Civil Code and that no customer may be
required to pay treble damages if the check or checks are dishonored.

   (j) In addition to the separate disclosure requirements under this
section, a licensee shall comply with the requirements under Section
23028, if applicable to that licensee.  
   (k) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SEC. 13.    Section 23035 is added to the  
Financial Code   , to read:  
   23035.  (a) A licensee may defer the deposit of a customer's
personal check for up to 31 days, pursuant to the provisions of this
section. The face amount of the check shall not exceed three hundred
dollars ($300). Each deferred deposit transaction shall be made
pursuant to a written agreement as described in subdivision (e) that
has been signed by the customer and by the licensee or an authorized
representative of the licensee.
   (b) A customer who enters into a deferred deposit transaction and
offers a personal check to a licensee pursuant to an agreement shall
not be subject to any criminal penalty for the failure to comply with
the terms of that agreement.
   (c) Before entering into a deferred deposit transaction, licensees
shall distribute to customers a notice that shall include, but not
be limited to, the following:
   (1) Information about charges for deferred deposit transactions.
   (2) That if the customer's check is returned unpaid, the customer
may be charged an additional fee of up to fifteen dollars ($15).
   (3) That the customer cannot be prosecuted in a criminal action in
conjunction with a deferred deposit transaction for a returned check
or be threatened with prosecution.
   (4) The department's toll-free telephone number for receiving
calls regarding customer complaints and concerns.
   (5) That the licensee may not accept any collateral in conjunction
with a deferred deposit transaction.
   (6) That the check is being negotiated as part of a deferred
deposit transaction made pursuant to this section and is not subject
to the provisions of Section 1719 of the Civil Code. No customer may
be required to pay treble damages if this check does not clear.
   (d) The following notices shall be clearly and conspicuously
posted in the unobstructed view of the public by all licensees in
each location of a business providing deferred deposit transactions
in letters not less than one-half inch in height:
   (1) The licensee cannot use the criminal process against a
consumer to collect any deferred deposit transaction.
   (2) The schedule of all charges and fees to be charged on those
deferred deposit transactions with an example of all charges and fees
that would be charged on at least a one-hundred-dollar ($100) and a
two-hundred-dollar ($200) deferred deposit transaction, payable in 14
days and 30 days, respectively, giving the corresponding annual
percentage rate. The information may be provided in a chart as
follows: 
 Amount           Amount of 
 Provided  Fee    Check         14-day APR 30-day APR 
 $100      XX     XXX           XXX        XXX 
 $200      XX     XXX           XXX        XXX 
                                                           

   (e) An agreement to enter into a deferred deposit transaction
shall be in writing and shall be provided by the licensee to the
customer. The written agreement shall authorize the licensee to defer
deposit of the personal check, shall be signed by the customer, and
shall include all of the following:
   (1) A full disclosure of the total amount of any fees charged for
the deferred deposit transaction, expressed both in United States
currency and as an APR as required under the federal Truth In Lending
Act and its regulations.
   (2) A clear description of the customer's payment obligations as
required under the federal Truth In Lending Act and its regulations.
   (3) The name, address, and telephone number of the licensee.
   (4) The customer's name and address.
   (5) The date to which deposit of check has been deferred (due
date).
   (6) The payment plan, or extension, if applicable as allowed under
subdivision (c) of Section 23036.
   (7) An itemization of the amount financed as required under the
federal Truth In Lending Act and its regulations.
   (8) Disclosure of any returned check charges.
   (9) That the customer cannot be prosecuted or threatened with
prosecution to collect.
   (10) That the licensee cannot accept collateral in connection with
the transaction.
   (11) That the licensee cannot make a deferred deposit transaction
contingent on the purchase of another product or service.
   (12) Signature space for the customer and signature of the
licensee or authorized representative of the licensee and date of the
transaction.
   (13) Any other information that the commissioner shall deem
necessary by regulation.
   (f) The notice required by subdivision (c) shall be written and
available in the same language principally used in any oral
discussions or negotiations leading to execution of the deferred
deposit agreement and shall be in at least 10-point type.
   (g) The written agreement required by subdivision (e) shall be
written in the same language principally used in any oral discussions
or negotiations leading to execution of the deferred deposit
agreement, shall not be vague, unclear, or misleading, and shall be
in at least 10-point type.
   (h) Under no circumstances shall a deferred deposit transaction
agreement include any of the following:
   (1) A hold harmless clause.
   (2) A confession of judgment clause or power of attorney.
   (3) Any assignment of or order for payment of wages or other
compensation for services.
   (4) Any acceleration provision.
   (5) Any unconscionable provision.
   (i) If the licensee sells or otherwise transfers the debt at a
later date, the licensee shall clearly disclose in a written
agreement that any debt or checks held or transferred pursuant to a
deferred deposit transaction made pursuant to this section are not
subject to the provisions of Section 1719 of the Civil Code and that
no customer may be required to pay treble damages if the check or
checks are dishonored.
   (j) This section shall become operative on January 1, 2018. 
   SEC. 14.    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.    It is the intent of the Legislature
to enact legislation that would further regulate the making of
deferred deposit transactions. 
                    
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