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

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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.

Under this bill, the policy or policies of insurance must be filed with, and
approved by, the division before the division may issue the community currency
exchange license or, thereafter, renew the community currency exchange license.
Also under the bill, rather than specify that the policy may carry a condition that the
community currency exchange assumes the first $50 of each forgery claim, the
division has the authority to determine not only the principal sum under such a
policy, but deductibles as well.