AB 494

Under current law, a person may file an application with the Department of

Financial Institutions (DFI) to be a notary public. If the applicant is an attorney

licensed in this state, the secretary of financial institutions (secretary) must issue to

the applicant a certificate of appointment as a notary public and the applicant's

commission is permanent. If the applicant is not an attorney, the secretary must

satisfy himself or herself that the applicant meets certain qualifications. If the

applicant does, the governor appoints the applicant as a notary public and a

certificate of appointment as a notary public, for a term of four years, is issued to the

applicant.

Under this bill, the secretary, rather than the governor, appoints notaries

public who are not attorneys.

Under current law, a person may not operate as a collection agency unless the

person is licensed as a collection agency by the Division of Banking (division) in DFI.

A "collection agency" is defined as a person engaging in the business of collecting or

receiving for payment for others of any account, bill, or other indebtedness, but the

definition also contains specific exceptions, including those for attorneys, banks and

certain other financial institutions, health care billing companies, insurers, and real

estate brokers and salespersons. A collection agency is subject to regulation by the

division and to certain laws regulating its operations. The division has certain

powers and duties with respect to the collection of accounts, including: 1) to issue

general and special orders to protect the public from certain practices of licensed

collection agencies; 2) to investigate potential violations by licensed collection

agencies, including examination of the books and records of collection agencies and

the taking of testimony; and 3) to appoint advisers from the collection agency

industry to consult and assist the division in the execution of the division's duties,

which advisers receive no compensation but may be reimbursed for their traveling

expenses.

This bill repeals the power and duty described as item 3), above.

Under current law, a person may not engage in the business of a community

currency exchange unless the person has been issued a license by the division. A

"community currency exchange" is defined as any person, except certain financial

institutions, engaged in the business of cashing checks, money orders, and other

evidences of money for a fee, service charge, or other consideration. A community

currency exchange may not accept money for deposit. After an application for a

community currency exchange license has been approved, the applicant must submit

to the division for approval, in a principal sum determined by the division, a policy

or policies of insurance that insures the licensee against loss by burglary, larceny,

robbery, forgery, or embezzlement. With respect to forgery, the policy may carry a

condition that the community currency exchange assumes the first $50 of each claim

under the policy.