SECTIONS 23005-23014 - California Statutes

FINANCIAL CODE

SECTION 23005-23014

23005. (a) No person shall offer, originate, or make a deferred
deposit transaction, arrange a deferred deposit transaction for a
deferred deposit originator, act as an agent for a deferred deposit
originator, or assist a deferred deposit originator in the
origination of a deferred deposit transaction without first obtaining
a license from the commissioner and complying with the provisions of
this division. The requirements of this subdivision shall not apply
to persons or entities that are excluded from the definition of
"licensee" as set forth in Section 23001. Nothing in this division
shall be construed to require the commissioner to create separate
classes of licenses.
(b) An application for a license under this division shall be in
the form and contain the information that the commissioner may by
rule require and shall be filed upon payment of the fee specified in
Section 23006.
(c) A licensee with one or more licensed locations seeking an
additional location license may file a short form license application
as may be established by the commissioner pursuant to subdivision
(b) of this section.

23006. At the time of filing the application, the applicant shall
pay to the commissioner the sum of one hundred dollars ($100) as a
fee for investigating the application, the sum of two hundred dollars
($200) as an application fee, and the cost of fingerprint
processing. The investigation fee and application fee are not
refundable if an application is denied or withdrawn.

23007. The applicant shall file with the application financial
statements prepared in accordance with generally accepted accounting
principles and acceptable to the commissioner that indicate a net
worth of at least twenty-five thousand dollars ($25,000). A licensee,
regardless of the number of licensed locations, shall maintain a net
worth of at least twenty-five thousand dollars ($25,000) at all
times.

23008. Upon the filing of an application pursuant to Section 23005
and the payment of fees pursuant to Section 23006, the commissioner
shall investigate the applicant, and its general partners and persons
owning or controlling, directly or indirectly, 10 percent or more of
the outstanding interests if the applicant is a partnership. If the
applicant is a corporation, trust, or association, including an
unincorporated organization, the commissioner shall investigate its
officers, directors, and persons owning or controlling, directly or
indirectly, 10 percent or more of the outstanding equity securities.
If the commissioner determines that the applicant has satisfied this
division and does not find facts constituting reasons for denial
under Section 23011, the commissioner shall issue and deliver a
license to the applicant.

23009. The license shall state the name of the licensee, and if the
licensee is a partnership, the names of its general partners, and if
a corporation or an association, the date and place of its
incorporation or organization, and the address of the licensee's
principal business location. On the approval and licensing of a
location pursuant to Section 23008, the commissioner shall issue an
original license endorsed to show the address of the authorized
location.

23010. The commissioner may by regulation require licensees to
file, at the times that the commissioner may specify, the information
that the commissioner may reasonably require regarding any changes
in the information provided in any application filed pursuant to this
division.

23011. (a) Upon reasonable notice and the opportunity to be heard,
the commissioner may deny the application for any of the following
reasons:
(1) Any false statement of material fact has been made in the
application.
(2) Any officer, director, general partner, or person owning or
controlling, directly or indirectly, 10 percent or more of the
outstanding interests or equity securities of the applicant has,
within the last 10 years (A) been convicted of or pleaded nolo
contendere to a crime, or (B) committed any act involving dishonesty,
fraud, or deceit, if the crime or act is substantially related to
the qualifications, functions, or duties of a person engaged in
business in accordance with this division.
(3) The applicant or any officer, director, or general partner, or
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.
(b) The application shall be considered withdrawn within the
meaning of this section if the applicant fails to respond to a
written notification of a deficiency in the application within 90
days of the date of the notification.
(c) The commissioner shall, within 60 days from the filing of a
full and complete application for a license and the payment of
required fees, either issue a license or file a statement of issues
prepared in accordance with Chapter 5 (commencing with Section 11500)
of Part 1 of Division 3 of Title 2 of the Government Code.

23011.5. (a) The commissioner may, after appropriate notice and
opportunity for hearing, by order, censure or suspend for a period
not exceeding 12 months, or bar from any position of employment,
management, or control any deferred deposit originator, or any other
person, if the commissioner finds either of the following:
(1) That the censure, suspension, or bar is in the public interest
and that the person has committed or caused a violation of this
division or rule or order of the commissioner, which violation was
either known or should have been known by the person committing or
causing it or has caused material damage to the deferred deposit
originator, or to the public.
(2) That the person has been convicted of or pleaded nolo
contendere to any crime, or has been held liable in any civil action
by final judgment, or any administrative judgment by any public
agency, if that crime or civil or administrative judgment involved
any offense involving dishonesty, fraud, or deceit, or any other
offense reasonably related to the qualifications, functions, or
duties of a person engaged in the business in accordance with the
provisions of this division.
(b) Within 15 days from the date of a notice of intention to issue
an order pursuant to subdivision (a), the person may request a
hearing under the Administrative Procedure Act (Chapter 4.5
(commencing with Section 11400) of Division 3 of Title 2 of the
Government Code). Upon receipt of a request, the matter shall be set
for hearing to commence within 30 days after such receipt unless the
person subject to this division consents to a later date. If no
hearing is requested within 15 days after the mailing or service of
such notice and none is ordered by the commissioner, the failure to
request a hearing shall constitute a waiver of the right to a
hearing.
(c) Upon receipt of a notice of intention to issue an order
pursuant to this section, the person who is the subject of the
proposed order is immediately prohibited from engaging in any
activities subject to licensure under the law.
(d) Persons suspended or barred under this section are prohibited
from participating in any business activity of a deferred deposit
originator and from engaging in any business activity on the premises
where a deferred deposit originator is conducting business.

23012. The proceedings for denial of a license shall be conducted
in accordance with Chapter 5 (commencing with Section 11500) of Part
1 of Division 3 of Title 2 of the Government Code, and the
commissioner has all the powers granted therein.

23013. (a) A licensee shall maintain a surety bond in accordance
with this subdivision in the amount of twenty-five thousand dollars
($25,000). The bond shall be payable to the commissioner and issued
by an insurer authorized to do business in this state. A copy of the
bond, including any and all riders and endorsements executed
subsequent to the effective date of the bond, shall be filed with the
commissioner for review and approval within 10 days of execution.
For licensees with multiple licensed locations, only one surety bond
in the amount of twenty-five thousand dollars ($25,000) is required.
The bond shall be used for the recovery of expenses, fines, and fees
levied by the commissioner in accordance with this division or for
losses or damages incurred by consumers as the result of a licensee's
noncompliance with the requirements of this division.
(b) When an action is commenced on a licensee's bond, the
commissioner may require the filing of a new bond. Immediately upon
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 by the commissioner that a
new bond is required, constitutes sufficient grounds for the
suspension or revocation of the license.

23014. In any proceeding under this division, the burden of proving
an exemption or exception is upon the person claiming it.