reglab/statecodes huggingface dataset:
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 3 - Licensing › Section 12200.5.

12200.5. The commissioner shall classify and license applicants for a proraters license in accordance with the nature of their existing or proposed business and the extent of regulation required thereby in the public interest as follows:
(a) A special proraters license shall be issued to a qualified applicant to engage in business as a business agent.
(b) A general proraters license shall be issued to all other qualified applicants.
Whenever the term “prorater” is used in this division with reference to a licensee it shall be deemed to mean a general prorater unless otherwise provided.
(Added by Stats. 1957, Ch. 498.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 3 - Licensing › Section 12201.

12201. (a) An application for a license shall be in writing, under oath, and in a form prescribed by the commissioner and shall contain the name, and the address both of the residence and place of business, of the applicant and if the applicant is a partnership or association, of every member thereof, and if a corporation, of every officer and director thereof.
(b) Notwithstanding any other law, the commissioner may by rule or order prescribe circumstances under which to accept electronic records or electronic signatures. This section does not require the commissioner to accept electronic records or electronic signatures.
(c) For purposes of this section, the following terms have the following meanings:
(1) “Electronic record” means an initial license application, or material modification of that license application, and any other record created, generated, sent, communicated, received, or stored by electronic means. “Electronic record” also includes, but is not limited to, all of the following:
(A) An application, amendment, supplement, and exhibit, filed for any license, consent, or other authority.
(B) A financial statement, report, or advertising.
(C) An order, license, consent, or other authority.
(D) A notice of public hearing, accusation, and statement of issues in connection with any application, license, consent, or other authority.
(E) A proposed decision of a hearing officer and a decision of the commissioner.
(F) The transcripts of a hearing.
(G) A release, newsletter, interpretive opinion, determination, or specific ruling.
(H) Correspondence between a party and the commissioner directly relating to any document listed in subparagraphs (A) to (G), inclusive.
(2) “Electronic signature” means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record.
(d) The Legislature finds and declares that the Department of Financial Protection and Innovation has continuously implemented methods to accept records filed electronically, and is encouraged to continue to expand its use of electronic filings to the extent feasible, as budget, resources, and equipment are made available to accomplish that goal.
(Amended by Stats. 2022, Ch. 452, Sec. 113. (SB 1498) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 3 - Licensing › Section 12202.

12202. If the business is to be conducted at a specific address or addresses, the address or addresses at which the business is to be conducted shall be included in the application.
(Enacted by Stats. 1951, Ch. 364.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 3 - Licensing › Section 12203.

12203. If the business is to be conducted from a mobile unit, the California state registration number or other identification of such mobile unit and the area in which the applicant proposes to operate such mobile unit shall be included in the application.
(Enacted by Stats. 1951, Ch. 364.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 3 - Licensing › Section 12205.

12205. (a) A licensed bill payer, general prorater, or special prorater who does not qualify to make use of agencies in the conduct of its business at all times shall maintain a surety bond in an amount as required by subdivision (a) of Section 12206 and assets of at least ten thousand dollars ($10,000) in excess of its liabilities, of which assets at least five thousand dollars ($5,000) shall be liquid assets. A licensed bill payer, general prorater, or special prorater is qualified to make use of agencies in the conduct of its business if at all times it shall have capital of at least one hundred thousand dollars ($100,000) and maintain a surety bond in an amount as required by subdivision (a) of Section 12206 and assets, excluding goodwill and other intangible assets, of at least one hundred thousand dollars ($100,000) in excess of its liabilities, of which assets at least twenty-five thousand dollars ($25,000) shall be liquid assets.
(b) A licensed check seller, whether or not qualified to make use of agencies in the conduct of its business, shall at all times have capital of at least five hundred thousand dollars ($500,000) and maintain a surety bond in an amount as required by subdivision (b) of Section 12206 and assets, excluding goodwill and other intangible assets, of at least five hundred thousand dollars ($500,000) in excess of its liabilities, of which assets at least one hundred fifty thousand dollars ($150,000) are liquid assets. In the alternative, a licensed check seller may satisfy the assets and surety bond requirements of this subdivision by assets, excluding goodwill and other intangible assets, of at least one million dollars ($1,000,000) in excess of liabilities, of which assets at least one hundred fifty thousand dollars ($150,000) are liquid assets, and a surety bond, approved by the commissioner, in an amount of one hundred thousand dollars ($100,000).
(c) The commissioner may determine by rule or order what assets are liquid assets within the meaning of this section and may determine by specific ruling that a particular asset is or is not a liquid asset within the meaning of this section.
(d) The commissioner may by order increase the net asset and liquid asset requirements of subdivision (b) for any licensed check seller when, as a result of any examination or report under Section 12307.3, it appears to the commissioner that it is necessary for the safety and soundness of that licensed check seller.
(Amended by Stats. 1992, Ch. 869, Sec. 3. Effective January 1, 1993.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 3 - Licensing › Section 12206.

12206. (a) If the applicant is to engage in the business of receiving money for the purpose of paying bills, invoices or accounts of an obligor, the applicant shall file with the commissioner concurrently with its application for a license, a surety bond to be approved by the commissioner, in which the applicant is the principal, in the minimum amount of twenty-five thousand dollars ($25,000). A deposit given instead of the bond required by this section shall not be deemed an asset of the applicant or licensee for the purpose of complying with Section 12205.
(b) If the applicant is to engage in the business of check selling, the applicant shall file with the commissioner concurrently with its application for a license, a surety bond to be approved by the commissioner, in which the applicant is the principal, in the minimum amount of five hundred thousand dollars ($500,000). A deposit given instead of the bond required by this section shall not be deemed an asset of the applicant or licensee for the purpose of complying with Section 12205.
(Amended by Stats. 1992, Ch. 869, Sec. 4. Effective January 1, 1993.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 3 - Licensing › Section 12207.

12207. The bond shall be approved by the commissioner. The bond shall run to the state for the use of the state and of any person who has a cause of action against the principal under the provisions of this division.
(Amended by Stats. 1982, Ch. 517, Sec. 212.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 3 - Licensing › Section 12208.

12208. The bond shall be conditioned that the obligor will faithfully conform to and abide by the provisions of this division and of all rules and regulations made by the commissioner pursuant to this division, and will honestly and faithfully apply all funds received and will faithfully and honestly perform all obligations and undertakings under this division, and will pay to the State and to any person all money that becomes due and owing to the State or to such person from the obligor under the provisions of this division. The surety under such bond may pay the full amount of its liability thereunder to a receiver appointed by a superior court pursuant to Section 12307.2 of this code in lieu of payment to the State or persons having a cause of action against the obligor of the bond, and upon such payment the surety is completely released from further liability under such bond.
(Amended by Stats. 1957, Ch. 186.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 3 - Licensing › Section 12213.

12213. When an action is commenced on the bond of a licensee the commissioner may require the filing of a new bond, and immediately upon the recovery of any action on the bond the licensee shall file a new bond. Failure to file a new bond within 10 days of the recovery on a bond, or within 10 days after notification that a bond is required, constitutes sufficient grounds for the suspension or revocation of a license.
(Enacted by Stats. 1951, Ch. 364.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 3 - Licensing › Section 12214.

12214. (a) An applicant at the time of filing an application for a license under this division shall pay to the commissioner the sum of fifty dollars ($50) as a fee for investigating the application and two hundred dollars ($200) as an application fee. The investigation fee and application fee are not refundable if an application is denied or withdrawn.
(b) (1) Each licensee shall pay to the commissioner its pro rata share of all costs and expenses, reasonably incurred in the administration of this division as estimated by the commissioner for the ensuing year and any deficit actually incurred or anticipated in the administration of the programs in the year in which such assessment is made. The pro rata share shall be the proportion which a licensee’s gross income bears to the aggregate gross income of all licensees as shown by the annual financial reports to the commissioner. The pro rata share shall not include the costs of any examinations provided for in Section 12306, unless they cannot be collected from the licensee examined.
(2) On or before the 30th day of May in each year, the commissioner shall notify each licensee by mail of the amount assessed and levied against it and that amount shall be paid within 20 days thereafter. If payment is not made within 20 days, the commissioner shall assess and collect a penalty in addition to the assessment, of 1 percent of the assessment for each month or part of a month that the payment is delayed or withheld.
(3) In the levying and collection of the assessment, a licensee shall not be assessed for nor be permitted to pay less than one hundred fifty dollars ($150) per year.
(4) If a licensee fails to pay the assessment on or before the 30th day of June following the day upon which payment is due, the commissioner may by order summarily suspend or revoke the certificate issued to such licensee. If, after such an order is made, a request for hearing is filed in writing and a hearing is not held within 60 days thereafter, the order is deemed rescinded as of its effective date. During any period when its certificate is revoked or suspended, a licensee shall not conduct business pursuant to this division except as may be permitted by order of the commissioner; provided, however, that the revocation, suspension or surrender of a certificate shall not affect the powers of the commissioner as provided in this division.
(Amended by Stats. 1980, Ch. 497, Sec. 2.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 3 - Licensing › Section 12216.

12216. (a) Upon the filing of the application and the payment of the fees and the approval of the bond, the commissioner shall investigate and examine the following:
(1) The background and experience of the applicant and of the partners or members thereof if the applicant is a partnership or association, and of the officers and directors thereof if the applicant is a corporation, and of any organizers, incorporators, managers, or stockholders.
(2) The plan of business of the applicant. The plan of business should include, but not be limited to: (A) a feasibility and market study; (B) pro forma financial statements, including all underlying assumptions; (C) a description of the geographical area to be served by agents; (D) a description of the accounting system to be used; (E) a description of the internal control procedures for the operations of the proposed business, and for its agents; and (F) plans for future expansion of business operations.
(3) Any other factors and circumstances bearing on the applicant or any proposed facility that in the opinion of the commissioner may be relevant.
(b) If the commissioner determines that the applicant has satisfied the provisions of this division and does not find facts constituting reasons for denial as specified in Section 12221, the commissioner shall issue and deliver a license to the applicant to engage in business in accordance with the provisions of this division.
(Amended by Stats. 1992, Ch. 869, Sec. 5. Effective January 1, 1993.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 3 - Licensing › Section 12217.

12217. Each license shall state the following:
(a) The name of the licensee, and if the licensee is a partnership or association the names of the members, or if the licensee is a corporation the date and place of its incorporation.
(b) The address at which such business is to be conducted.
(c) The type of business licensed.
(Amended by Stats. 1953, Ch. 642.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 3 - Licensing › Section 12220.

12220. The commissioner may by regulation require licensees to file at such times as he may specify such information as the commissioner may reasonably require regarding any changes in the information provided in any application filed pursuant to this division.
(Repealed and added by Stats. 1968, Ch. 869.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 3 - Licensing › Section 12221.

12221. Upon reasonable notice and opportunity to be heard, the commissioner may deny the application for the license for any of the following reasons:
(a) A false statement of a material fact has been made in the application for license.
(b) Any officer, director, or member of the applicant has, within the last 10 years, been (1) convicted of or pleaded nolo contendere to a crime, or (2) committed any act involving dishonesty, fraud, or deceit, which crime or act is substantially related to the qualifications, functions, or duties of a person engaged in business in accordance with the provisions of this division.
(c) The applicant, any officer, director, general partner, or member of the applicant, or any person owning or controlling, directly or indirectly, 10 percent or more of the outstanding interests or equity securities of the applicant has violated any provision of this division or the rules thereunder or any similar regulatory scheme of the State of California or a foreign jurisdiction.
(d) The applicant has not complied with all the applicable provisions of this division.
(e) The proposed officers and directors do not have sufficient check selling, bill paying, prorating, or other experience to afford reasonable promise of successful operation.
(f) The plan of business does not demonstrate that the proposed business will have a reasonable chance for a successful operation.
(g) The proposed business is being formed for a purpose other than the legitimate objectives contemplated by this division.
(h) The proposed capital structure is inadequate.
(Amended by Stats. 2003, Ch. 473, Sec. 15. Effective January 1, 2004.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 3 - Licensing › Section 12223.

12223. The commissioner may require a licensee, in addition to the bond provided in Section 12206, to obtain an adequate fidelity bond for each officer, employee, agent, or any person having access to funds collected by or for the licensee or having authority to draw against such funds if in the commissioner’s opinion such a bond is necessary for the protection of the public. The bond shall be for the protection of the public against loss suffered through embezzlement by any person having access to funds collected by or for the licensee or having authority to draw against such funds, or from mysterious disappearance, theft, holdup or burglary. A deposit given instead of the bond required by this section shall not be deemed an asset of the licensee for the purpose of complying with Section 12205.
(Amended by Stats. 1982, Ch. 517, Sec. 215.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 3 - Licensing › Section 12225.

12225. The commissioner may issue a duplicate of a license that has been lost, stolen, or destroyed, or for a certificate which the licensee desires to replace, upon satisfactory proof of such loss, theft, or destruction, or upon surrender of a certificate for replacement and the payment of a fee of two dollars ($2).
(Added by Stats. 1955, Ch. 339.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12300.1.

12300.1. Licensees shall observe reasonable precautions against theft or alteration of checks, drafts or money orders, and against burglary or holdup.
(Added by Stats. 1963, Ch. 1817.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12300.2.

12300.2. Every person engaging in the business of a check seller shall conduct the business under his or her true name unless he or she has complied with Chapter 5 (commencing with Section 17900) of Part 3 of Division 7 of the Business and Professions Code.
(Amended by Stats. 1983, Ch. 660, Sec. 9.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12300.4.

12300.4. Prior to such separation and transmittal to the licensee or deposit by its agent such funds received by said agent may be used by said agent for the sole purpose only of the making of change or cashing of checks in the normal course of its business. All such funds received by said agent to the date of deposit or transmittal as required below or an amount equal to such funds must be separated from those of the agent and transmitted to, or deposited in the trust account of, the licensee not less than every third business day. If an agent owns or operates, either directly or indirectly, more than two locations for the sale of checks, drafts, money orders, or other commercial paper serving the same purpose and/or for the receipt of money for the purpose of paying bills, invoices or accounts of an obligor, and handles trust funds in any three-day period equal to or in excess of securities to be deposited as provided in Section 12223, said agent shall transmit to, or deposit in the trust account of, the licensee directly from each such location of such agent such funds not later than the end of the next business day following receipt; such funds to be in form of cash or checks cashed in the normal course of business only.
Where the total amount of such funds held by an agent does not exceed one thousand dollars ($1,000) in a calendar week, the commissioner may, in his discretion, by written order permit the agent to transmit or deposit such funds in periods in excess of 3 days but not more than 10 days.
If, after reasonable notice from licensee, an agent shall fail to transmit or deposit the funds, or an amount equal thereto, or to report to the licensee, as herein provided without just cause, or if an agent shall use any of such funds, directly or indirectly, for any purpose other than is permitted herein, licensee shall immediately terminate such agency and within five (5) days thereafter notify the commissioner in writing of the reason for such termination, setting forth the name and address of the agency location. No agent so terminated shall be permitted to become an agent of the licensee or any other licensee except as provided in Section 12301.4 of the Financial Code.
(Added by Stats. 1963, Ch. 1817.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12300.5.

12300.5. An amount equal to all such funds received by a licensee shall be separated from the funds of the licensee and deposited in its trust account not later than the end of the next business day following receipt by such licensee. All such funds shall thereafter remain in such trust account and may be used for no purpose other than paying bills of said persons, or paying checks, drafts, money orders, or other commercial paper sold by the licensee except as otherwise provided in Section 12300.6.
(Added by Stats. 1963, Ch. 1817.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12300.6.

12300.6. Prior to separation and deposit by the licensee such funds may only be used by the licensee for the making of change or the cashing of checks in the normal course of its business, and then only to the extent of the amount of the bond which has been filed under Section 12206.
After separation and deposit such funds also may be used by a licensee for the cashing of checks in the normal course of its business, and then only to the extent of the amount of the bond which has been filed with the commissioner containing the provisions and conditions set forth in Sections 12207 through 12213, inclusive, of this code.
(Added by Stats. 1963, Ch. 1817.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12301.

12301. A licensee may establish branch offices or agencies if it is qualified under the provisions of Section 12205 and if it expressly assumes responsibility for the acts of any person selling checks, drafts, or money orders for the licensee or accepting money in its name or on its behalf at such place of business. There shall be posted in a prominent place in each branch office or agency a sign stating that the place of business is a branch office or agency of the licensee. The licensee is responsible for the acts of any person selling checks, drafts, or money orders or accepting money in its name or on its behalf.
(Amended by Stats. 1983, Ch. 660, Sec. 10.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12301.1.

12301.1. A licensee within 10 days after establishing a mobile unit, a branch office or agency location shall notify the commissioner in writing and shall furnish the commissioner with the name and address of each such branch office or agency location and the California state registration number or other identification of the mobile unit and the area in which it proposes to operate such mobile unit and such other information as the commissioner may require so that he may be continuously advised of every location at which checks, drafts, or money orders of the licensee are being sold or issued. Within five days after the termination of a mobile unit, a branch office or agency location a licensee shall inform the commissioner of the name and address of the branch office or agency location terminated and the California state registration number or other identification of the mobile unit terminated, together with a statement of the reasons for the termination.
(Amended by Stats. 1963, Ch. 1817.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12301.2.

12301.2. A check, draft, or money order sold by a licensee shall be drawn on an account of a licensee maintained at a bank authorized to do business in the State of California.
(Added by Stats. 1953, Ch. 632.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12301.3.

12301.3. A licensee shall not permit any officer, employee, or agent to sell any check, draft, or money order unless the signature of the person signing the same is on file with the bank on which the check, draft, or money order is drawn or the licensee shall have filed with the bank and the commissioner written authorization to said bank to pay any checks, drafts, or money orders presented for payment on a form of the licensee as described in the authorization except as to items as to which licensee has filed a stop payment notice with said bank.
(Added by Stats. 1953, Ch. 632.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12301.4.

12301.4. A licensee shall terminate and cancel any agency immediately upon instruction from the commissioner and when it has been established (a) that the agent has refused to permit the examination of its books, accounts, records, and files; (b) that an examination has revealed a shortage in its accounts relating to the sale of checks; (c) that the agent after specific instruction to do so has failed to remit to the licensee or deposit in its trust account within the time specified in Section 12300.4 funds received from the sale of checks, drafts, money orders, or other commercial paper serving the same purpose or funds received for the purpose of paying bills, invoices, or accounts of an obligor; (d) that the agency has violated any provision of this chapter. No agency terminated and canceled by a licensee pursuant to or for the reasons set forth in this section shall be re-established by said licensee or established by any other licensee until after the written consent of the commissioner is given to the establishment or re-establishment of such agency. If the licensee or the agent requests a hearing with respect to such termination, the commissioner shall thereupon hold a hearing within 10 days after receiving such request. If the commissioner finds that the violations were purely technical and do not substantially affect the agent’s ability to perform his duties as such agent, or if the commissioner finds that such violations did not occur, the commissioner shall issue an order vacating his said notice to the licensee.
(Added by Stats. 1963, Ch. 1817.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12301.5.

12301.5. No agent of a licensee shall issue or cause to be issued any check, draft, or money order, or other commercial paper serving the same purpose which is drawn upon the trust account of a licensee without concurrently receiving in full, in cash, or by check, draft, or money order from a third party believed to be valid, the principal amount thereof.
(Added by Stats. 1963, Ch. 1817.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12302.

12302. Whenever a licensee desires to change his place of business to a street address other than that designated in his license or desires to change the place or area of doing business in the case of a mobile unit, he shall give written notice to the commissioner of the desired change.
(Amended by Stats. 1953, Ch. 807.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12303.

12303. Every licensee shall keep and use in his business books, accounts and records in accordance with good accounting practice and which will enable the commissioner to determine whether such licensee has violated the provisions of this division or the rules and regulations made by the commissioner. Every licensee shall preserve such books, accounts and records for at least four years after making the final entry on each transaction recorded therein. Such books, accounts and records shall be kept current, shall be maintained at the main office of the licensee and shall be available for inspection by the commissioner on demand during regular business hours.
Nothing in this section shall be construed to require any licensee to keep an individual record of each individual fee charged in each transaction but the licensee shall be required to keep a record of the total charges made for any accounting period.
(Amended by Stats. 1955, Ch. 339.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12305.

12305. For the purpose of discovering violations of this division the commissioner may at any time investigate the business and examine the books, accounts, records, and files used therein, of any licensee, of any agent, and of any person who the commissioner has reason to believe is engaging in the business defined in this division.
(Amended by Stats. 1963, Ch. 1817.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12306.

12306. The cost of every examination of a licensee or other person subject to this division shall be paid to the commissioner by the licensee or person examined, and the commissioner may maintain an action for the recovery of these costs in any court of competent jurisdiction. In determining the cost of an examination, the commissioner may use the estimated average hourly cost for all persons performing examinations of licensees or other persons subject to this division for the fiscal year. For the purposes of this section only, no person other than a licensee shall be deemed to be a person subject to this division unless and until the person is determined to be a person subject to this division by an administrative hearing in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code or by a judicial hearing in any court of competent jurisdiction.
(Amended by Stats. 1981, Ch. 946, Sec. 1.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12307.1.

12307.1. The commissioner may commence and prosecute actions and proceedings to enjoin violations of this division or violations of orders or decisions of the commissioner rendered pursuant to this division, and for the enforcement of any and all civil penalties provided for by this division.
(Added by Stats. 1953, Ch. 1031.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12307.2.

12307.2. If the commissioner finds as a result of an examination or report that a licensee is insolvent or has been insolvent or is conducting or has conducted business in such an unsafe or injurious manner as to render its further operations hazardous to the public, the commissioner may forthwith by an order addressed to and served on the licensee by registered mail and on any other person having funds of the licensee or its customers in their possession, direct discontinuance of the disbursement of such funds and the further conduct of business by the licensee. The order shall be conditioned to remain in effect unless the commissioner fails to hold a hearing within 15 days after receipt of a written request by the licensee, until set aside by the commissioner in whole or in part, until the licensee is the subject of an order for relief in bankruptcy, or pursuant to a petition filed by the commissioner or other interested person a receiver has been appointed by a court of competent jurisdiction.
(Amended by Stats. 2022, Ch. 188, Sec. 8. (AB 2433) Effective January 1, 2023.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12307.3.

12307.3. Whenever as a result of an examination or report it appears to the commissioner that:
(a) The capital of any licensee is impaired;
(b) Any licensee is conducting its business in such an unsafe or injurious manner as to render its further operations hazardous to the public;
(c) Any licensee has suspended payment of its trust obligations;
(d) Any licensee has refused to submit its books, papers, and affairs to the inspection of an examiner of the Division of Corporations;
(e) Any officer of any licensee refuses to be examined under oath touching the concerns of such licensee;
(f) Any licensee neglects or refuses to comply with any order of the commissioner made pursuant to this division unless the enforcement of such order is restrained in a proceeding brought by such licensee; the commissioner may forthwith take possession of the property and business of such licensee and retain possession until such licensee resumes business or its affairs be finally liquidated as herein provided. Such licensee, with the consent of the commissioner, may resume business upon such terms as he may prescribe.
(Added by Stats. 1963, Ch. 1817.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12307.4.

12307.4. Whenever the commissioner has taken possession of the property and business of a licensee the commissioner may petition the superior court for the appointment of a receiver to liquidate the affairs of the licensee. During the time that the commissioner retains possession of the property and business of a licensee the commissioner shall have the same powers and authority with reference to the licensee as are vested in the Commissioner of Financial Institutions with respect to banks pursuant to Chapter 17 (commencing with Section 3100) of Division 1 and the licensee shall likewise have the same rights to hearings and judicial review as are granted to banks. While in possession of the property and business of a check seller, a receiver shall have the same powers and authority as are vested in the Commissioner of Financial Institutions while in possession of the property and business of a bank.
(Amended by Stats. 2000, Ch. 1015, Sec. 50. Effective September 30, 2000.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12307.5.

12307.5. (a) For any licensee, a disciplinary action taken by the State of California, another state, an agency of the federal government, or another country for an action substantially related to the activity regulated under this division may be grounds for disciplinary action by the commissioner. A certified copy of the record of the disciplinary action taken against the licensee by the State of California, other state, agency of the federal government, or other country shall be conclusive evidence of the events related therein.
(b) Nothing in this section shall preclude the commissioner from applying a specific statutory provision in this division providing for discipline against a licensee as a result of disciplinary action taken against a licensee by the State of California, another state, an agency of the federal government, or another country.
(Added by Stats. 2003, Ch. 473, Sec. 16. Effective January 1, 2004.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12309.

12309. (a) A schedule of the fees charged by a licensee shall be posted in a conspicuous place in the place of business of the licensee and its agents. A licensee and its agents shall not charge fees in excess of the posted fees.
(b) Each licensee and its agents shall prominently post on the premises of each office of the licensee and on the premises of each agent, a notice clearly stating that checks or money orders issued by the licensee or its agents are not insured by the federal government, the state government, or any other public or private entity. This notice shall be printed in English and in the same language principally used by the licensee or any agent of the licensee to advertise, solicit, or negotiate, either orally or in writing, with respect to the purchase of checks or money orders. The information required in this notice shall be clear, legible, and in letters not less than one-half inch in height. The notice shall be posted in a conspicuous location in the unobstructed view of the public within the premises. In those locations operated by an agent of the licensee, the agent, and not the licensee, shall be responsible for the failure to properly post the required notice.
(Amended by Stats. 1992, Ch. 869, Sec. 8. Effective January 1, 1993.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12310.

12310. A licensee under this division shall not sell checks payable to bearer, to cash, or to the purchaser, but a licensee may sell a check in which the name of the payee is not designated in any way if the check does not exceed one hundred fifty dollars ($150) in amount.
(Amended by Stats. 1955, Ch. 774.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12311.

12311. 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 whatsoever, any statement or representation which is false, misleading, or deceptive, or which omits to state material information, or which refers to the supervision of such licensee by the State of California or any department or official thereof. The commissioner may order any licensee to desist from any conduct which he shall find to be a violation of the foregoing provisions.
(Added by Stats. 1951, Ch. 257.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12312.

12312. An agreement between one licensed to engage in the business of selling checks, drafts, money orders, or other commercial paper serving the same purpose, and one undertaking to act in that business as an agent of the licensee, shall be in writing.
Such a licensee shall not pay such an agent any compensation as consideration for becoming an agent, other than that specified in their written agency agreement, in any manner, directly or indirectly, or by any method, practice or device whatsoever.
The commissioner may order any licensee to desist from any conduct which the commissioner shall find to be a violation of the foregoing provisions of this section.
(Amended by Stats. 1983, Ch. 660, Sec. 11.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12313.5.

12313.5. Nothing in this chapter shall be construed as authorizing the examination, inspection or auditing of the books and records of any client of a business agent while such books and records are in the possession of the business agent without the express consent of the client.
(Added by Stats. 1957, Ch. 498.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12314.

12314. The total charges received by a prorater, or any other person for the prorater’s services, may not exceed in the aggregate twelve percent (12%) for the first three thousand dollars ($3,000), eleven percent (11%) for the next two thousand dollars ($2,000), and ten percent (10%) for any of the remaining payments distributed by a prorater to the creditors of a debtor, except for payments made on recurrent obligations. Recurring obligations shall be defined for the purpose of this section as follows: current rent payments, current utility payments, current telephone bills, current alimony payments, current monthly insurance premium payments, and payments made on obligations which are secured by a first mortgage or first deed of trust on real property.
(a) Notwithstanding the provisions of Section 12315, upon compliance with the provisions of Sections 12315.1, and 12320, an origination fee of a sum not to exceed fifty dollars ($50) may be charged;
(b) A fee not to exceed four dollars ($4) per disbursement on recurring obligations, consisting of current rent payments or obligations which are secured by a first mortgage or first trust deed on real property, may be charged.
(c) A fee not to exceed one dollar ($1) on other recurring obligations.
When a debtor has not canceled or defaulted on the performance of his contract with the prorater within 12 months after execution of the prorate contract, the prorater shall refund any origination fee charged to the debtor. At least once each month the prorater shall pay not less than 70 percent of all funds received from the debtor to the creditors of the debtor.
(Amended by Stats. 1972, Ch. 999.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12315.

12315. A prorater shall not receive any fee unless he has the consent of at least 51 percent of the total amount of indebtedness and of the number of creditors listed in the prorater’s contract with the debtor, or such like number of creditors have accepted a distribution of payment.
(Added by Stats. 1957, Ch. 498.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12315.1.

12315.1. A prorater shall notify, in writing, all creditors listed in the prorate contract of the debtors desire to engage the services of the prorater within five days of the effective date of the contract as defined in Section 12320. The notification shall include a notice as to the proposed monthly payment to be made to the creditor. Every contract between a prorater and a debtor shall list every debt to be prorated with the creditor’s name, and disclose the total of all such debts.
(Added by Stats. 1972, Ch. 999.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12316.

12316. If a prorater contracts for, receives or makes any charge in excess of the maximum permitted by this division, except as the result of an accidental and bona fide error, the prorater’s contract with the debtor shall be void and the prorater shall return to the debtor all charges received from the debtor.
(Added by Stats. 1957, Ch. 498.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12318.

12318. A prorater shall not take:
(a) Any contract, promise to pay, or other instrument which has any blank spaces when signed by a debtor;
(b) Any negotiable instrument for the prorater’s charges;
(c) Any note, wage assignment, real estate or chattel mortgage, or other security to secure the prorater’s charges;
(d) Any confession of judgment or power of attorney to confess judgment against the debtor or to appear for the debtor in a judicial proceeding.
(e) Concurrent with the signing of the contract or as part of the contract or as part of the application for the contract a release of any obligation to be performed on the part of the prorater.
(Added by Stats. 1957, Ch. 498.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12319.

12319. Every contract between a prorater and a debtor shall:
(a) List every debt to be prorated with the creditor’s name and disclose the total of all such debts;
(b) Provide payments reasonably within the ability of the debtor to pay in precise terms;
(c) Disclose in precise terms the rate and amount of the prorater’s charge;
(d) Disclose the approximate number and amount of installments required to pay the debts in full;
(e) Disclose the name and address of the prorater and of the debtor;
(f) Contain such other provision or disclosures as the commissioner shall determine is necessary for the protection of the debtor and the proper conduct of business by a prorater.
(Added by Stats. 1957, Ch. 498.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12320.

12320. A prorater shall deliver a copy of any contract or agreement between the prorater and a debtor to the debtor immediately after the debtor executes it, and the debtor’s copy shall be executed by the prorater. A contract shall not be effective until a debtor has made a payment to the prorater for distribution to his creditors.
(Added by Stats. 1957, Ch. 498.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12321.

12321. Unless paid by check or money order a prorater shall deliver a receipt to a debtor for each payment within five (5) days after receipt of a payment.
(Added by Stats. 1957, Ch. 498.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12322.

12322. At least once in each six (6) months, the prorater shall render an accounting to the debtor which shall itemize the total amount received from the debtor, the total amount paid to each creditor, the total amount which any creditor has agreed to accept as payment in full on any debt owed him by the debtor, the amount of charges deducted, and any amount held in reserve. A prorater shall in addition render such an account to a debtor within seven days after written demand.
(Added by Stats. 1957, Ch. 498.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12324.

12324. A prorater shall not:
(a) Offer, pay, or give any cash, fee, gift, bonus, premium, reward, or other compensation to any person for referring any prospective customer to the prorater;
(b) Receive any cash, fee, gift, bonus, premium, reward, or other compensation from any person other than the debtor in connection with his activities as a prorater.
(Added by Stats. 1957, Ch. 498.)
2023 California Code › Financial Code - FIN › DIVISION 3 - CHECK SELLERS, BILL PAYERS, AND PRORATERS › CHAPTER 4 - Licensee Regulations › Section 12326.

12326. A special prorater shall not advertise in any manner or otherwise hold himself out to the public as a general prorater or as qualified to do business as a general prorater unless he holds a valid unrevoked general proraters license.
(Added by Stats. 1957, Ch. 498.)