Money Exchange Houses - - CA Business And Professions

Section § 22515

This section defines key terms related to money exchange businesses. A 'money exchange house' refers to any person or business that exchanges currency, except for banks, savings associations, and credit unions, which are regulated differently. 'Currency' includes any legally authorized money in the form of coins or paper that can be used for purchases. 'Buying dollars' is when foreign money is exchanged for U.S. dollars, while 'selling dollars' is the opposite—exchanging U.S. dollars for foreign money.

As used in this chapter, the following definitions are applicable:

(a) “Money exchange house” means any individual or business engaged in the business of exchanging or dealing in the currency of the United States, Mexico, or any other country. It does not include any bank, savings association, or credit union chartered under the laws of this state or the United States or to any other business or entity regulated by the Financial Code.

(b) “Currency” means any coined money, banknotes, or other paper money as are authorized by law which circulates from hand to hand as the medium of exchange.

(d) “Selling dollars” means a transaction exchanging the currency of the United States for foreign currency.

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(Added by Stats. 1988, Ch. 433, Sec. 1.)

Section § 22516

This law section mandates that money exchange businesses must clearly display the exchange rates for buying and selling dollars on all their signs and advertisements. Window and exterior signs should show these rates, while interior signs and ads also need to include any commission and fees. Additionally, these details must be provided in English on clearly visible interior signs at every exchange point.

(a) All window and exterior signs concerning the rates of exchange at a money exchange house shall clearly state the rate of exchange for both the buying and selling of dollars.

(b) All interior signs and all advertising, if rates are quoted, shall clearly state the rates of exchange for both buying and selling of dollars and shall state all commissions and fees charged on all transactions.

(c) An interior sign containing all information regarding rates of exchange and fees shall be printed in English and posted in clear view of customers at each point of exchange.

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(Added by Stats. 1988, Ch. 433, Sec. 1.)

Section § 22517

This law makes it illegal for currency exchange businesses to claim they don't charge a commission if they actually do. Basically, they have to be honest about any fees or charges when promoting their services.

It is unlawful for a money exchange house to advertise “no commission” when, in fact, a commission or fee is charged.

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(Added by Stats. 1988, Ch. 433, Sec. 1.)

Section § 22518

This law requires that customers receive a detailed receipt for currency exchange transactions. The receipt must clearly show the exchange rate, any commissions or fees charged, and the final amount after these charges. It should also indicate both the total amount given by the customer and the total amount received back.

A receipt shall be presented to each customer for each exchange, clearly stating the rate of exchange for the particular transaction, the amount of commission or fees, and the net exchange after all fees and commissions have been deducted. The receipt shall also state the total amount of currency presented by the customer and the total amount returned to the customer.

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(Added by Stats. 1988, Ch. 433, Sec. 1.)

Section § 22519

If you break the rules in this chapter, you'll have to pay a fine. The first time you get caught, it’s at least $100. If you do it again, it’s at least $500 each time.

A violation of this chapter is an infraction punishable by a fine of not less than one hundred dollars ($100) for the first offense, and a fine of not less than five hundred dollars ($500) for each subsequent offense.

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(Added by Stats. 1988, Ch. 433, Sec. 1.)

Section § 22519.5

This section makes it clear that the rules in this chapter don't interfere with any other state or local laws about money exchange businesses. This includes rules about permits, fees, advertising, receipts, and penalties.

Nothing in this chapter shall be construed to limit the effect of any other state law or any local ordinance governing money exchange house permit applications, permit denials, permit renewals, permit revocations, regulatory fees, regulations on advertising or signs, receipt requirements, or penalties for violations thereof.

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(Added by renumbering Section 22520 (as added by Stats. 1988, Ch. 433) by Stats. 1990, Ch. 216, Sec. 4.)