Deferred deposit transactions: recipients of unemployment benefits.

Existing law, the California Deferred Deposit Transaction Law, prohibits a person from offering, originating, making, or arranging 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 the face amount of the check from exceeding $300. Existing law prohibits a fee for a deferred deposit transaction from exceeding 15% of the face amount of the check and prohibits a licensee from directly or indirectly charging other fees, except as specified. Existing law makes a willful violation of these provisions a crime. This bill would prohibit a licensee from offering, originating, or making a deferred deposit transaction, arranging a deferred deposit transaction for, or acting as an agent for, a deferred deposit originator, or, making, offering, brokering, or assisting a deferred deposit originator or customer in the origination of a deferred deposit transaction in California to a person who is receiving unemployment benefits, as defined, unless the interest charged on the deferred deposit transaction, when calculated as an annual percentage rate, does not exceed 36%. Because a willful violation of these provisions would be 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.