Collection Licensing Act: exceptions: billing agents.
SB 546
California Bills
20250SB__054697AMD INTRODUCED 2025-02-20 AMENDED_SENATE 2026-01-05 AMENDED_ASSEMBLY 2026-06-11 2025 SB AMD Introduced by Senator Grayson LEAD_AUTHOR SENATE Grayson
An act to amend
Section of the Financial Code, relating to debt collection. debt collection Collection Licensing Act: exceptions: billing agents. The Debt Collection Licensing Act generally regulates the business of debt collection and prohibits a person from engaging in the business of debt collection in this state without first obtaining a license pursuant to the act. The act provides that it does not apply to certain institutions and persons. This bill would provide that the act does not apply to billing agents, except as specified.
Existing law establishes the California Financial Literacy Fund in the State Treasury for the purpose of enabling partnerships with the financial services community and governmental and nongovernmental stakeholders to improve financial literacy within the state. Existing law requires the fund to be administered by the Controller, who is authorized, among other things, to deposit private donations into the fund, as specified.
Existing law requires those moneys to be made available upon appropriation in the annual Budget Act, and requires the Controller to report annually to the Legislature on the use of those moneys appropriated from the fund, as specified. </xhtml:p><xhtml:p>This bill would repeal those provisions.</xhtml:p>"?> MAJORITY NO YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:
SECTION 1.
Section of the Financial Code is amended to read: 100001. (
a) No person shall engage in the business of debt collection in this state without first obtaining a license pursuant to this division. To the extent permitted by federal law, a person is acting in this state if the person is located in this state and is seeking to collect from a debtor that resides inside or outside the state, or is located outside of the state and is seeking to collect from a debtor that resides in this state. A license shall be obtained for the licensee’s principal place of business and shall not be transferred or assigned. A separate license is not required for each individual branch office. (b)
(1) Except as provided in paragraph (2), this division shall not apply to any of the following: (
A) A depository institution, as defined in
Section 1420. (
B) A person licensed pursuant to Division 9 (commencing with
Section 22000) or Division 20 (commencing with
Section 50000). (
C) A person licensed pursuant to
Part 1 (commencing with
Section 10000) of Division of the Business and Professions Code. (
D) A person who is subject to the Karnette Rental-Purchase Act (Title 2.96 (commencing with
Section 1812.620) of Part of Division of the Civil Code). (
E) A trustee performing acts in connection with a nonjudicial foreclosure pursuant to
Article 1 (commencing with
Section 2920) of
Chapter of Title of Part of Division of the Civil Code. (
F) A billing agent who calculates, allocates, and delivers consolidated statements for rent, utility services, ancillary property services, amenities, or contractually authorized administrative billing fees arising from a residential or commercial tenancy, provided that the person does not purchase, take assignment of, or independently enforce the underlying obligation. A person is not exempt under this subparagraph if the person engages in any of the following: (
i) Initiating telephone calls or text messages to demand payment of a debt. (ii) Initiating or threatening to initiate legal action related to a debt. (iii) Reporting, or threatening to report, past due amounts to a consumer reporting agency or a tenant screening service. (iv) Referring, assigning, or selling a debt to a third party for purposes of collection. (
v) Representing, directly or indirectly, that nonpayment of a billed amount may result in eviction, lease enforcement, termination of tenancy, or restriction or termination of services. (vi) Contacting an employer, relative, reference, or other third party for the purpose of inducing payment of a billed amount. (vii) Recording or enforcing, or threatening to record or enforce, any lien, security interest, or encumbrance because of nonpayment of a billed amount. (viii) Repossessing, disabling, interrupting restricting, or threatening to restrict access to property, premises, goods, services, or accounts for the purpose of inducing payment of a billed amount.
(2) The commissioner may use the authority described in
Section in connection with a violation of Title 1.6C (commencing with
Section 1788) or Title 1.6C.5 (commencing with
Section 1788.50) of Part of Division of the Civil Code by a person described in paragraph (1). (
c) This division shall not apply to debt collection regulated pursuant to Division 12.5 (commencing with
Section 28100) or to the collection of covered commercial debt or covered commercial credit, as those terms are defined in Title 1.6C (commencing with
Section 1788) of Part of Division of the Civil Code. <caml:Num>SECTION 1.</caml:Num><caml:ActionLine action="IS_REPEALED" xlink:href="urn:caml:codes:FIN:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'22.'%5D)" xlink:label="fractionType: LAW_SPREAD||commencingWith: 70000" xlink:type="locator">Division 22 (commencing with