California Senate Bill 1286
Session 20232024
Rosenthal Fair Debt Collection Practices Act: covered debt: commercial debts.
Active
Passed Assembly on Aug 29, 2024
Origin Chamber
Senate
Type
Bill
Bill Number
1286
State
California
Session
20232024
Dave Min
grade
Author
Motion Text
Unfinished Business SB1286 Min Concurrence
Senate Roll Call Votes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Limón
Yes
Yes
Other
Yes
Summary
Existing law, the Rosenthal Fair Debt Collection Practices Act, prohibits debt collectors from engaging in unfair or deceptive acts or practices in the collection of consumer debts and requires debtors to act fairly in entering into and honoring those debts. Existing law defines "debt collection" as any act or practice in connection with the collection of consumer debts. Existing law defines "consumer debt" for these purposes to mean money, property, or their equivalent, due or owing, or alleged to be due or owing, from a natural person by reason of a consumer credit transaction. Existing law also defines "consumer debt" to include a mortgage debt.
This bill would recast those provisions to expand the scope of those provisions to additionally prohibit debt collectors from engaging in unfair or deceptive acts or practices in the collection of covered commercial debts, as defined, entered into, renewed, sold, or assigned on or after July 1, 2025, and to make conforming changes.
For all delinquent debt sold or assigned on or after July 1, 2022, existing law requires a debt collector to which delinquent debt has been assigned to provide the debtor, upon the debtor's written request, a statement that includes specified information. For purposes of these provisions, existing law defines "delinquent debt" as a consumer debt, other than a mortgage debt, as specified.
This bill would revise the definition of "delinquent debt" to mean a covered debt, other than a mortgage debt, as specified, and would specify that these provisions apply to all delinquent covered commercial debt sold or assigned on or after July 1, 2025.
Existing law prohibits a debt collector from collecting or attempting to collect a consumer debt, other than one reduced to judgment, by means of judicial proceedings in a county other than the county in which the debtor has incurred the consumer debt or the county in which the debtor resides at the time those proceedings are instituted, or resided at the time the debt was incurred.
This bill would authorize a debt collector to collect or attempt to collect covered commercial debt by means of a judicial proceeding in the county in which the nonnatural person for whose purpose the commercial debt was incurred is located, as specified. The bill would also specify that the provisions related to judicial proceedings apply to all delinquent covered commercial debt sold or assigned on or after July 1, 2025.
Existing law makes it a crime, with respect to attempted collection of a consumer debt, for a debt collector, creditor, or an attorney to send a communication that simulates legal or judicial process or that gives the appearance of being authorized, issued, or approved by a governmental agency or attorney if it is not.
This bill would expand that provision to make it a crime to engage in those acts with respect to the collection of a covered debt. By expanding the scope of this crime, the bill would impose a state-mandated local program.
Existing law requires a debt collector to stop collecting a consumer debt when an alleged debtor provides the debt collector with certain information, including information relating to the debtor's status as an alleged victim of identity theft. This information may also include a specified written statement that certifies that the representations are true, correct, and contain no material omissions of fact. A person submitting the certification who declares as true a material matter that the person knows to be false is guilty of a misdemeanor.
This bill would expand those provisions to also apply in the case of collection of a covered debt. By expanding the scope of this crime, this bill would impose a state-mandated local program.
Existing law, the Debt Collection Licensing Act, prohibits a person from engaging in the business of debt collection, as defined, in California without first obtaining a license, as specified. Existing law provides various exceptions to this licensing requirement.
This bill would specify, with respect to the collection of covered commercial debt or covered commercial credit, that the Rosenthal Fair Debt Collection Practices Act does not intend to create or impose any additional licensing requirement on a debt collector.
This bill would incorporate additional changes to Section 1788.14 of the Civil Code proposed by SB 1061 to be operative only if this bill and SB 1061 are enacted and this bill is enacted last.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
02/15/24 - Introduced
February 15, 2024
03/18/24 - Amended Senate
March 18, 2024
04/25/24 - Amended Senate
April 25, 2024
07/03/24 - Amended Assembly
July 3, 2024
08/23/24 - Amended Assembly
August 23, 2024
09/05/24 - Enrolled
September 5, 2024
04/15/24- Senate Banking and Financial Institutions
April 15, 2024
04/19/24- Senate Judiciary
April 19, 2024
05/14/24- Sen. Floor Analyses
May 14, 2024
06/28/24- Assembly Banking and Finance
June 28, 2024
06/28/24- Assembly Judiciary
June 28, 2024
08/05/24- Assembly Appropriations
August 5, 2024
08/19/24- ASSEMBLY FLOOR ANALYSIS
August 19, 2024
08/23/24- ASSEMBLY FLOOR ANALYSIS
August 23, 2024
08/29/24- Sen. Floor Analyses
August 29, 2024
Sort by most recent
09/11/2024
California State Legislature
Enrolled and presented to the Governor at 3 p.m.
08/31/2024
Senate
Assembly amendments concurred in. (Ayes 30. Noes 9.) Ordered to engrossing and enrolling.
08/30/2024
Senate
In Senate. Concurrence in Assembly amendments pending.
08/29/2024
Assembly
Read third time. Passed. (Ayes 49. Noes 17. Page 6891.) Ordered to the Senate.
08/23/2024
Assembly
Ordered to third reading.
08/23/2024
Assembly
Read third time and amended.
08/19/2024
Assembly
Read second time. Ordered to third reading.
08/15/2024
Assembly
From committee: Do pass. (Ayes 11. Noes 3.) (August 15).
08/07/2024
Assembly
August 7 set for first hearing. Placed on suspense file.
07/03/2024
Assembly
Read second time and amended. Re-referred to Com. on APPR.
07/02/2024
Assembly
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 2.) (July 2).
07/02/2024
Assembly
From committee: Do pass and re-refer to Com. on JUD. (Ayes 6. Noes 2.) (July 1). Re-referred to Com. on JUD.
06/24/2024
Assembly
Assembly Rule 56 suspended.
06/03/2024
Assembly
Referred to Coms. on B. & F. and JUD.
05/22/2024
Assembly
In Assembly. Read first time. Held at Desk.
05/21/2024
Senate
Read third time. Passed. (Ayes 28. Noes 9. Page 4057.) Ordered to the Assembly.
05/14/2024
Senate
Read second time. Ordered to third reading.
05/13/2024
Senate
From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
05/03/2024
Senate
Set for hearing May 13.
04/25/2024
Senate
Read second time and amended. Re-referred to Com. on APPR.
04/24/2024
Senate
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 2. Page 3726.) (April 23).
04/17/2024
Senate
From committee: Do pass and re-refer to Com. on JUD. (Ayes 4. Noes 2. Page 3658.) (April 17). Re-referred to Com. on JUD.
04/09/2024
Senate
Set for hearing April 23 in JUD. pending receipt.
04/05/2024
Senate
Set for hearing April 17.
04/03/2024
Senate
Re-referred to Coms. on B. & F.I. and JUD.
03/18/2024
Senate
From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
02/29/2024
Senate
Referred to Com. on RLS.
02/16/2024
Senate
From printer. May be acted upon on or after March 17.
02/15/2024
Senate
Introduced. Read first time. To Com. on RLS. for assignment. To print.
Sources
Record Created
Feb 16, 2024 9:24:40 PM
Record Updated
Sep 25, 2024 12:30:21 PM