2009 California Financial Code - Section 33020-33021 :: Article 2. Legislative Findings And Purposes

33020.  The Legislature finds:
   (a) That large amounts of payment instruments are sold in this
state.
   (b) That persons who purchase payment instruments in this state
use such payment instruments for, among other purposes, the purpose
of paying for the necessities of life.
   (c) That the failure of an issuer of payment instruments sold in
this state to pay such payment instruments when presented for payment
would cause loss to the purchasers or holders of such payment
instruments, would disrupt the payments mechanism in this state,
would undermine public confidence in financial institutions doing
business in this state, and would adversely affect the health,
safety, and general welfare of the people of this state.
   (d) That the business of selling payment instruments in this state
or in any other state of the United States is not regulated by the
United States or by any agency of the United States.
   (e) That, to protect the interests of purchasers and holders of
payment instruments sold in this state, to maintain public confidence
in financial institutions doing business in this state, and to
preserve the health, safety, and general welfare of the people of
this state, it is necessary to regulate the business of selling
payment instruments in this state.
   (f) That only corporations should be permitted to engage in the
business of selling in this state payment instruments issued by them
because, as compared with other types of persons, corporations are
more easily regulated and supervised, have much greater permanency of
existence, and can give better assurance of uninterrupted service.

33021.  (a) The purposes of this division are:
   (1) To protect the interests of purchasers and holders of payment
instruments sold in this state.
   (2) To provide for the safe and sound conduct of the business of
licensees.
   (3) To maintain public confidence in licensees.
   (b) The purposes of this division, as set forth in subdivision
(a), constitute standards which the commissioner shall observe in
administering the provisions of this division.