SB 77 — Student loans; licensing of qualified education loan servicers, civil penalties, report.
Last action — Enacted, Chapter 1250 (effective - see bill)
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✓Introduced
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✓In Committee
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✓Passed Senate
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✓Passed House of Delegates
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced November 25, 2019. Enacted.
Odds of enactment
High chanceBased on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.
Upgrade to see the exact probability and what's driving it.
A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.
Prognosis
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Enacted
Current position in the legislative process.
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5 sponsors
1 primary, 4 co-sponsors signed on.
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Cleared a recorded vote
Passed 9 recorded votes so far.
Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.
Summary
Qualified education loan servicers. Prohibits any person from acting as a qualified education loan servicer except in accordance with provisions established by this bill. The bill requires a loan servicer to obtain a license from the State Corporation Commission (SCC) and establishes procedures pertaining to such licenses. Banks, savings institutions, credit unions, nonprofit institutions of higher education, and farm credit systems are exempt from the licensing provisions. The servicing of a qualified education loan encompasses (i) receiving any scheduled periodic payments from a qualified education loan borrower or notification of such payments; (ii) applying the payments of principal and interest and such other payments, with respect to the amounts received from a qualified education loan borrower, as may be required pursuant to the terms of a qualified education loan; (iii) during a period when no payment is required on a qualified education loan, maintaining account records and communicating with the qualified education loan borrower; and (iv) interacting with a student loan borrower, including conducting activities to help prevent default. Qualified education loan servicers are prohibited from, among other things, (a) misrepresenting the amount, nature, or terms of any fee or payment due or claimed to be due on a qualified education loan, the terms and conditions of the loan agreement, or the borrower's obligations under the loan; (b) misapplying loan payments to the outstanding balance of a qualified education loan; and (c) failing to report both the favorable and unfavorable payment history of the borrower to a nationally recognized consumer credit bureau at least annually if the loan servicer regularly reports information to such a credit bureau. Violations are subject to a civil penalty not exceeding $2,500 and are prohibited practices under the Virginia Consumer Protection Act. The bill has a delayed effective date of July 1, 2021, but provides that applications shall be accepted, and investigations commenced, by the SCC beginning March 1, 2021. This bill is identical to HB 10.
Bill Text
- Enrolled Reenrolled bill text (SB77ER2) html April 22, 2020
- Acts of Assembly Chapter text (CHAP1250) View text Current html April 22, 2020
- Bill text as passed Senate and House (SB77ER) View text html March 02, 2020
- Impact statement from DPB (SB77H1) View text html February 18, 2020
- Committee Substitute Engrossed by Senate - committee substitute SB77S1 html January 30, 2020
- Committee Substitute Engrossed by Senate - committee substitute SB77S1 html November 25, 2019
Action History
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Enacted, Chapter 1250 (effective - see bill)
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Signed by Speaker as reenrolled
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Signed by President as reenrolled
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Reenrolled bill text (SB77ER2)
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Reenrolled
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Governor's recommendation adopted
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VOTE: (75-Y 16-N 1-A)
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House concurred in Governor's recommendation (75-Y 16-N 1-A)
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Senate concurred in Governor's recommendation (39-Y 1-N)
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Governor's recommendation received by Senate
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Governor's Action Deadline 11:59 p.m., April 11, 2020
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Enrolled Bill Communicated to Governor on March 12, 2020
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Signed by President
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Signed by Speaker
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Impact statement from DPB (SB77ER)
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Enrolled
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House amendments agreed to by Senate (40-Y 0-N)
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VOTE: Passage (85-Y 11-N)
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Passed House with amendments (85-Y 11-N)
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Engrossed by House as amended
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Amendments by Delegate Simon agreed to
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Committee substitute rejected 20108550D-H1
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Read third time
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House committee, floor amendments and substitutes offered
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Read second time
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Impact statement from DPB (SB77H1)
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Committee substitute printed 20108550D-H1
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Reported from Labor and Commerce with substitute (21-Y 0-N)
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Referred to Committee on Labor and Commerce
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Read first time
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Placed on Calendar
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Impact statement from DPB (SB77S1)
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Read third time and passed Senate (40-Y 0-N)
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Engrossed by Senate - committee substitute SB77S1
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Committee substitute agreed to 20107049D-S1
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Reading of substitute waived
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Read second time
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Constitutional reading dispensed (40-Y 0-N)
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Committee substitute printed 20107049D-S1
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Reported from Finance and Appropriations with substitute (16-Y 0-N)
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Rereferred to Finance and Appropriations
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Rereferred from Commerce and Labor (15-Y 0-N)
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Referred to Committee on Commerce and Labor
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Prefiled and ordered printed; offered 01/08/20 20101362D
Sponsors
- Jennifer L. McClellan · Cosponsor
- Scott A. Surovell · Cosponsor
- Karrie K. Delaney · Cosponsor
- Kaye Kory · Cosponsor
- Janet D. Howell · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 4 co-sponsors · 143 not signed on · 17 voted No
Sponsors (1)
Co-sponsors (4)
- Jennifer L. McClellan
- Scott A. Surovell
- Karrie K. Delaney
- Kory, Kaye
Not signed on (143)
143 members have not signed on to this bill.
Show all 143 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 74 | 16 | 0 | 9 |
| Total | 74 | 16 | 0 | 9 |
| % of votes cast | 75% | 16% | 0% | 9% |
How each member voted (99)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 39 | 1 | 0 | 0 |
| Total | 39 | 1 | 0 | 0 |
| % of votes cast | 98% | 3% | 0% | 0% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 40 | 0 | 0 | 0 |
| Total | 40 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 84 | 11 | 0 | 4 |
| Total | 84 | 11 | 0 | 4 |
| % of votes cast | 85% | 11% | 0% | 4% |
How each member voted (99)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 21 | 0 | 0 | 1 |
| Total | 21 | 0 | 0 | 1 |
| % of votes cast | 95% | 0% | 0% | 5% |
How each member voted (22)
| Member | Party | Vote |
|---|---|---|
| Lindsey, Joseph C. | — | Yea |
| Alfonso H. Lopez | — | Yea |
| Ayala, Hala S. | — | Yea |
| Bourne, Jeffrey M. | — | Yea |
| Byron, Kathy J. | — | Yea |
| Christopher T. Head | — | Yea |
| Gooditis, Wendy W. | — | Yea |
| Guzman, Elizabeth R. | — | Yea |
| Heretick, Steve E. | — | Yea |
| Israel D. O'Quinn | — | Yea |
| Jeion A. Ward | — | Yea |
| Keam, Mark L. | — | Yea |
| Kory, Kaye | — | Yea |
| Lamont Bagby | — | Yea |
| Marshall, Daniel W., III | — | Yea |
| Michael J. Webert | — | Yea |
| Mullin, Michael P. | — | Yea |
| R. Lee Ware | — | Yea |
| Ransone, Margaret B. | — | Yea |
| Richard C. "Rip" Sullivan, Jr. | — | Not Voting |
| Terry G. Kilgore | — | Yea |
| Tony O. Wilt | — | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 40 | 0 | 0 | 0 |
| Total | 40 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 40 | 0 | 0 | 0 |
| Total | 40 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 16 | 0 | 0 | 0 |
| Total | 16 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (16)
| Member | Party | Vote |
|---|---|---|
| McClellan, Jennifer L. | — | Yea |
| Barker, George L. | — | Yea |
| David W. Marsden | — | Yea |
| Ebbin, Adam P. | — | Yea |
| Edwards, John S. | — | Yea |
| Hanger, Emmett W., Jr. | — | Yea |
| Howell, Janet D. | — | Yea |
| L. Louise Lucas | — | Yea |
| Mamie E. Locke | — | Yea |
| Newman, Stephen D. | — | Yea |
| Norment, Thomas K., Jr. | — | Yea |
| Petersen, J. Chapman | — | Yea |
| R. Creigh Deeds | — | Yea |
| Ruff, Frank M., Jr. | — | Yea |
| Saslaw, Richard L. | — | Yea |
| Vogel, Jill Holtzman | — | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 15 | 0 | 0 | 0 |
| Total | 15 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (15)
| Member | Party | Vote |
|---|---|---|
| Saslaw, Richard L. | — | Yea |
| Norment, Thomas K., Jr. | — | Yea |
| Spruill, Lionell, Sr. | — | Yea |
| Newman, Stephen D. | — | Yea |
| Edwards, John S. | — | Yea |
| Barker, George L. | — | Yea |
| Lewis, Lynwood W., Jr. | — | Yea |
| Mason, T. Montgomery "Monty" | — | Yea |
| Bell, John J. | — | Yea |
| Adam P. Ebbin | — | Yea |
| David W. Marsden | — | Yea |
| L. Louise Lucas | — | Yea |
| Mark D. Obenshain | — | Yea |
| R. Creigh Deeds | — | Yea |
| Scott A. Surovell | — | Yea |
Subjects
Frequently asked questions
- What does SB 77 do?
- Qualified education loan servicers. Prohibits any person from acting as a qualified education loan servicer except in accordance with provisions established by this bill. The bill requires a loan servicer to obtain a license from the State Corporation Commission (SCC) and establishes procedures pertaining to such licenses. Banks, savings institutions, credit unions, nonprofit institutions of higher education, and farm credit systems are exempt from the licensing provisions. The servicing of a qualified education loan encompasses (i) receiving any scheduled periodic payments from a qualified education loan borrower or notification of such payments; (ii) applying the payments of principal and interest and such other payments, with respect to the amounts received from a qualified education loan borrower, as may be required pursuant to the terms of a qualified education loan; (iii) during a period when no payment is required on a qualified education loan, maintaining account records and communicating with the qualified education loan borrower; and (iv) interacting with a student loan borrower, including conducting activities to help prevent default. Qualified education loan servicers are prohibited from, among other things, (a) misrepresenting the amount, nature, or terms of any fee or payment due or claimed to be due on a qualified education loan, the terms and conditions of the loan agreement, or the borrower's obligations under the loan; (b) misapplying loan payments to the outstanding balance of a qualified education loan; and (c) failing to report both the favorable and unfavorable payment history of the borrower to a nationally recognized consumer credit bureau at least annually if the loan servicer regularly reports information to such a credit bureau. Violations are subject to a civil penalty not exceeding $2,500 and are prohibited practices under the Virginia Consumer Protection Act. The bill has a delayed effective date of July 1, 2021, but provides that applications shall be accepted, and investigations commenced, by the SCC beginning March 1, 2021. This bill is identical to HB 10.
- Who sponsors SB 77?
- SB 77 is sponsored by Jennifer L. McClellan, Scott A. Surovell, Karrie K. Delaney, Kory, Kaye, and Howell, Janet D..
- What is the current status of SB 77?
- This bill has been enacted into law. Introduced November 25, 2019. Enacted.
- Where can I track SB 77?
- Track SB 77 free on One Click Politics — get push/email alerts when it moves.
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