AB 2028
Deferred deposit transactions: assessments.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Sign in to take action- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill changes how fees are calculated and presented for businesses that make deferred deposit transactions in California. Specifically, it requires the Commissioner of Financial Protection and Innovation to include a detailed breakdown of the calculation used to determine the amount owed by each licensee on an invoice or assessment notice. This ensures licensees understand how their fees are determined.
Key provisions
- Licensees must pay a pro rata share of administrative costs.
- The pro rata share is based on the licensee’s total deferred deposit transaction volume compared to all licensees.
- A minimum assessment of $500 per licensed location per year applies.
- Assessments must be mailed to licensees by May 20th.
- Late payments incur a 1% monthly penalty.
- Failure to pay can result in suspension or revocation of a license.
- Assessment notices must include a detailed breakdown of the calculation.
- The commissioner must estimate costs and expenses for the ensuing year.
Who is affected
- Deferred deposit transaction businesses
- California Financial Institutions
- Commissioner of Financial Protection and Innovation
Notable changes
- Requires detailed calculation disclosure on assessment notices.
- Establishes a minimum assessment amount per licensed location.
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AB2028:v99#DOCUMENT
Bill Start
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 2028
| Introduced by Assembly Member Chen |
| February 17, 2026 |
An act to amend Section 23016 of the Financial Code, relating to financial institutions.
LEGISLATIVE COUNSEL'S DIGEST
AB 2028, as introduced, Chen. Deferred deposit transactions: assessments.
The California Deferred Deposit Transaction Law generally provides for the licensure and regulation by the Commissioner of Financial Protection and Innovation of a person who engages in the business of making deferred deposit transactions. The law requires each licensee to pay to the commissioner its pro rata share of all costs and expenses reasonably incurred in the administration of the law, as specified.
This bill would require an invoice or assessment notice issued by the commissioner to a licensee pursuant to the provisions described above to include the pro rata amount calculation used to determine the amount due and payable by the licensee, as specified.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 23016 of the Financial Code is amended to read:
23016.
(a) (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 program in the year in which the assessment is made.
(2) The pro rata share shall be the proportion that a licensee’s total dollar amount of deferred deposit transactions made bears to the aggregate total dollar amount of deferred deposit transactions made by all licensees as shown by the annual reports to the commissioner pursuant to Section 23026.
(3) Notwithstanding paragraph (2), a licensee shall neither be assessed for nor be permitted to pay less than five hundred dollars ($500) per licensed location per year.
(b) On or before the 20th 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 30 days thereafter. If payment is not made within 30 days, the commissioner may 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.
(c) 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 the licensee. If, after an order is made, a request for hearing is filed in writing within 30 days, 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. However, the revocation, suspension, or surrender of a certificate shall not affect the powers of the commissioner as provided in this division.
(d) An invoice or assessment notice issued by the commissioner to a licensee pursuant to this section shall include the pro rata amount calculation used to determine the amount due and payable by the licensee with each component listed as a separate line item, including, but not limited to, all of the following:(1) The total costs and expenses reasonably incurred in the administration of this division, as estimated by the commissioner, for the ensuing year.(2) Any deficit actually incurred or anticipated in the administration of the program in the year in which the assessment is made.(3) The aggregate total dollar amount of deferred deposit transactions made by all licensees.(4) The licensee’s total dollar amount of deferred deposit transactions.(5) The number of license locations operated by the licensee.