This division is known and may be cited as the Check Sellers, Bill Payers and Proraters Law.
Chapter 1Definitions
Section § 12000
This section names and allows people to refer to the division as the Check Sellers, Bill Payers and Proraters Law.
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Section § 12001
This law section means that whenever you're interpreting the rules in this part of the law, you should use the definitions given in the chapter. Those definitions guide how you understand and apply the rules in this division, unless there's something that clearly changes how they should be understood.
Unless the context otherwise requires, the definitions set forth in this chapter govern the construction of this division.
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Section § 12002
This law defines a check seller as someone who either makes money by selling checks, drafts, money orders, or similar documents, or receives money to pay bills on behalf of someone else. It also includes people who take money to pay utility bills without being compensated directly or acting as a utility company's authorized agent.
A check seller is a person: (a) who, for compensation, engages, in whole or in part, in the business of selling checks, drafts, money orders, or other commercial paper serving the same purpose, or receiving money as agent of an obligor for the purpose of paying to a person other than the check seller bills, invoices, or accounts of such obligor, or (b) who, without direct compensation and not as an authorized agent for a utility company, accepts money for the purpose of forwarding it to others in payment of utility bills.
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Section § 12002.1
This law defines a 'prorater' as someone who, for a fee, handles money on behalf of a debtor to pay their creditors, either fully or partially.
A prorater is a person who, for compensation, engages in whole or in part in the business of receiving money or evidences thereof for the purpose of distributing the money or evidences thereof among creditors in payment or partial payment of the obligations of the debtor.
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Section § 12002.2
This law describes a 'business agent' as someone who operates as a prorater, meaning they help people with investment advice and managing their personal or business matters through a special type of contract. However, their main goal should not be to pay off existing debts.
A business agent, for the purpose of this division is a person who engages in business as a prorater as defined in Section 12002.1 as an incident to the business of advising, counseling, or directing persons in their investments, and in the organization and management of their affairs under an exclusive contract, the primary purpose of which is not the liquidation of existing indebtedness.
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Section § 12003
This section defines who the term "Commissioner" refers to within the context of California's financial regulations. It includes the Commissioner of Financial Protection and Innovation and could also mean any deputies, investigators, auditors, or other employees working for the commissioner.
“Commissioner” means the Commissioner of Financial Protection and Innovation, or any deputy, investigator, auditor, or any other person employed by the commissioner.
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Section § 12004
This law defines who qualifies as a 'licensee' under the financial regulations. A licensee can be an individual or a corporation approved by the commissioner to operate as a business agent. It also includes corporations licensed to sell checks, drafts, or money orders or to handle payments for bills and invoices on behalf of others, except when acting as an authorized agent for a utility company.
“Licensee” means any individual or corporation licensed by the commissioner to engage in the business of a business agent, and any corporation licensed by the commissioner to engage in the business of selling checks, drafts or money orders, or of receiving money as agent of an obligor for the purpose of paying bills, invoices or accounts of such obligor or to accept money in payment of utility bills except as an authorized agent for a utility company pursuant to the provisions of this division.
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Section § 12005
This law section defines a "mobile unit" as any vehicle or similar mobile setup used for selling checks, drafts, or money orders.
“Mobile unit” means a vehicle or other movable means from which the business of selling checks, drafts, or money orders is conducted.
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