SB 421 — Consumer lending; replaces references to payday loans with term 'short-term loans.'
Last action — Enacted, Chapter 1258 (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 January 07, 2020. Enacted.
Prognosis
Where this bill stands today.
Odds of enactment
HighHow often bills like it became law.
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Enacted
Current position in the legislative process.
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13 sponsors
1 primary, 12 co-sponsors signed on.
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Mixed recorded votes
13 passed, 2 failed in recorded votes so far.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Summary
Consumer lending. Replaces references to payday loans with the term "short-term loans." The measure caps the interest and fees that may be charged under a short-term loan at an annual rate of 36 percent, plus a maintenance fee; increases the maximum amount of such loans from $500 to $2,500; and sets the duration of such loans at a minimum of four months, subject to exceptions, and a maximum of 24 months. Short-term loan licensees are required to make a reasonable attempt to verify a borrower's income and may not collect fees and charges that exceed 50 percent of the original loan amount if such amount is equal to or less than $1,500 and 60 percent of the original loan amount if such amount is greater than $1,500. The measure amends the requirements for motor vehicle title loans, including requiring licensed lenders to use a database to determine a prospective borrower's eligibility for a loan and prohibiting loans to a borrower who has an outstanding short-term loan. The measure sets a 36-percent annual interest rate cap on open-end credit plans and allows a $50 annual participation fee. A violation of these provisions is made a prohibited practice under the Virginia Consumer Protection Act. The measure amends provisions of the Consumer Finance Act to, among other things, allow licensed lenders to use the services of access partners and establish requirements that loans be between $300 and $35,000; be repayable in substantially equal installment payments; have a term of no fewer than six and no more than 120 months; charge not more than 36 percent annual interest and a loan processing fee; and require licensees to post a bond. The measure prohibits credit service businesses from advertising, offering, or performing other services in connection with an extension of credit that has an annual interest rate exceeding 36 percent, is for less than $5,000, has a term of less than one year, or is provided under an open-end credit plan. The bill has a delayed effective date of July 1, 2021, and requires any person who would be required to be licensed under the provisions of the act to apply for a license by April 1, 2021. This bill is identical to HB 789.
Bill Text
- Enrolled Reenrolled bill text (SB421ER2) html April 22, 2020
- Acts of Assembly Chapter text (CHAP1258) View text Current html April 22, 2020
- Bill text as passed Senate and House (SB421ER) View text html March 07, 2020
- Committee Substitute Engrossed by Senate - committee substitute with amendments SB421ES1 html February 06, 2020
- Impact statement from DPB (SB421S1) View text html January 27, 2020
- Impact statement from DPB (SB421) View text html January 07, 2020
Action History
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Enacted, Chapter 1258 (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 (SB421ER2)
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Reenrolled
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Governor's recommendation adopted
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VOTE: (52-Y 33-N)
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House concurred in Governor's recommendation (52-Y 33-N)
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Senate concurred in Governor's recommendation (22-Y 18-N)
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Reconsideration of Governor's recommendation agreed to (37-Y 0-N)
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Senate rejected Governor's recommendation (19-Y 21-N)
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Reconsideration of Governor's recommendation agreed to (40-Y 0-N)
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Senate concurred in Governor's recommendation (21-Y 18-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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Impact statement from DPB (SB421ER)
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Enrolled
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VOTE: Passage (61-Y 36-N)
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Passed House (61-Y 36-N)
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Read third time
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Motion to reconsider pass by for the day agreed to
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Passed by for the day
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Read second time
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Reported from Labor and Commerce (13-Y 8-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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Passed Senate (23-Y 16-N)
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Constitutional reading dispensed (39-Y 0-N)
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Reengrossed by Senate as amended SB421ES1
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Amendment by Senator Norment rejected (18-Y 21-N)
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Reading of amendment waived
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Engrossment reconsidered by Senate (39-Y 0-N)
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Impact statement from DPB (SB421ES1)
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Passed by for the day
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Printed as engrossed 20106645D-ES1
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Engrossed by Senate - committee substitute with amendments SB421ES1
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Committee amendments agreed to
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Reading of amendments waived
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Committee substitute agreed to 20106645D-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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Reported from Finance and Appropriations with amendments (11-Y 5-N)
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Impact statement from DPB (SB421S1)
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Rereferred to Finance and Appropriations
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Committee substitute printed 20106645D-S1
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Incorporates SB38 (Surovell)
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Incorporates SB37 (Surovell)
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Reported from Commerce and Labor with substitute (11-Y 4-N)
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Impact statement from DPB (SB421)
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Referred to Committee on Commerce and Labor
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Prefiled and ordered printed; offered 01/08/20 20104657D
Sponsors
- Mamie E. Locke · Primary
- Barbara A. Favola · Cosponsor
- Jennifer L. McClellan · Cosponsor
- Scott A. Surovell · Cosponsor
- L. Louise Lucas · Cosponsor
- Jeremy S. McPike · Cosponsor
- Joseph D. Morrissey · Cosponsor
- Sr. Lionell Spruill · Cosponsor
- Jennifer B. Boysko · Cosponsor
- Sam Rasoul · Cosponsor
- Cosgrove, John A., Jr. · Cosponsor
- John J. Bell · Cosponsor
- Jill Holtzman Vogel · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 12 co-sponsors · 135 not signed on · 66 voted No
Sponsors (1)
- Mamie E. Locke Voted No
Co-sponsors (12)
- Barbara A. Favola Voted No
- Jennifer L. McClellan
- Scott A. Surovell Voted No
- L. Louise Lucas Voted No
- Jeremy S. McPike Voted No
- Joseph D. Morrissey
- Lionell Spruill, Sr.
- Jennifer B. Boysko
- Sam Rasoul
- Cosgrove, John A., Jr. Voted No
- Bell, John J. Voted No
- Vogel, Jill Holtzman Voted No
Not signed on (135)
135 members have not signed on to this bill.
Show all 135 →"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 | 21 | 18 | 0 | 1 |
| Total | 21 | 18 | 0 | 1 |
| % of votes cast | 53% | 45% | 0% | 3% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 51 | 33 | 0 | 15 |
| Total | 51 | 33 | 0 | 15 |
| % of votes cast | 52% | 33% | 0% | 15% |
How each member voted (99)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 22 | 18 | 0 | 0 |
| Total | 22 | 18 | 0 | 0 |
| % of votes cast | 55% | 45% | 0% | 0% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 37 | 0 | 0 | 3 |
| Total | 37 | 0 | 0 | 3 |
| % of votes cast | 93% | 0% | 0% | 8% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 19 | 21 | 0 | 0 |
| Total | 19 | 21 | 0 | 0 |
| % of votes cast | 48% | 53% | 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 | 60 | 36 | 0 | 3 |
| Total | 60 | 36 | 0 | 3 |
| % of votes cast | 61% | 36% | 0% | 3% |
How each member voted (99)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 13 | 8 | 0 | 1 |
| Total | 13 | 8 | 0 | 1 |
| % of votes cast | 59% | 36% | 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. | — | Nay |
| Christopher T. Head | — | Not Voting |
| Gooditis, Wendy W. | — | Yea |
| Guzman, Elizabeth R. | — | Yea |
| Heretick, Steve E. | — | Yea |
| Israel D. O'Quinn | — | Nay |
| Jeion A. Ward | — | Yea |
| Keam, Mark L. | — | Yea |
| Kory, Kaye | — | Yea |
| Lamont Bagby | — | Yea |
| Marshall, Daniel W., III | — | Nay |
| Michael J. Webert | — | Nay |
| Mullin, Michael P. | — | Yea |
| R. Lee Ware | — | Nay |
| Ransone, Margaret B. | — | Nay |
| Richard C. "Rip" Sullivan, Jr. | — | Yea |
| Terry G. Kilgore | — | Nay |
| Tony O. Wilt | — | Nay |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 39 | 0 | 0 | 1 |
| Total | 39 | 0 | 0 | 1 |
| % of votes cast | 98% | 0% | 0% | 3% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 23 | 16 | 0 | 1 |
| Total | 23 | 16 | 0 | 1 |
| % of votes cast | 58% | 40% | 0% | 3% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 39 | 0 | 0 | 1 |
| Total | 39 | 0 | 0 | 1 |
| % of votes cast | 98% | 0% | 0% | 3% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 18 | 21 | 0 | 1 |
| Total | 18 | 21 | 0 | 1 |
| % of votes cast | 45% | 53% | 0% | 3% |
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 | 11 | 5 | 0 | 0 |
| Total | 11 | 5 | 0 | 0 |
| % of votes cast | 69% | 31% | 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. | — | Nay |
| Howell, Janet D. | — | Yea |
| L. Louise Lucas | — | Yea |
| Mamie E. Locke | — | Yea |
| Newman, Stephen D. | — | Nay |
| Norment, Thomas K., Jr. | — | Nay |
| Petersen, J. Chapman | — | Yea |
| R. Creigh Deeds | — | Yea |
| Ruff, Frank M., Jr. | — | Nay |
| Saslaw, Richard L. | — | Nay |
| Vogel, Jill Holtzman | — | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 11 | 4 | 0 | 0 |
| Total | 11 | 4 | 0 | 0 |
| % of votes cast | 73% | 27% | 0% | 0% |
How each member voted (15)
| Member | Party | Vote |
|---|---|---|
| Saslaw, Richard L. | — | Nay |
| Norment, Thomas K., Jr. | — | Nay |
| Spruill, Lionell, Sr. | — | Yea |
| Newman, Stephen D. | — | Nay |
| 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 | — | Nay |
| R. Creigh Deeds | — | Yea |
| Scott A. Surovell | — | Yea |
Subjects
Frequently asked questions
- What does SB 421 do?
- Consumer lending. Replaces references to payday loans with the term "short-term loans." The measure caps the interest and fees that may be charged under a short-term loan at an annual rate of 36 percent, plus a maintenance fee; increases the maximum amount of such loans from $500 to $2,500; and sets the duration of such loans at a minimum of four months, subject to exceptions, and a maximum of 24 months. Short-term loan licensees are required to make a reasonable attempt to verify a borrower's income and may not collect fees and charges that exceed 50 percent of the original loan amount if such amount is equal to or less than $1,500 and 60 percent of the original loan amount if such amount is greater than $1,500. The measure amends the requirements for motor vehicle title loans, including requiring licensed lenders to use a database to determine a prospective borrower's eligibility for a loan and prohibiting loans to a borrower who has an outstanding short-term loan. The measure sets a 36-percent annual interest rate cap on open-end credit plans and allows a $50 annual participation fee. A violation of these provisions is made a prohibited practice under the Virginia Consumer Protection Act. The measure amends provisions of the Consumer Finance Act to, among other things, allow licensed lenders to use the services of access partners and establish requirements that loans be between $300 and $35,000; be repayable in substantially equal installment payments; have a term of no fewer than six and no more than 120 months; charge not more than 36 percent annual interest and a loan processing fee; and require licensees to post a bond. The measure prohibits credit service businesses from advertising, offering, or performing other services in connection with an extension of credit that has an annual interest rate exceeding 36 percent, is for less than $5,000, has a term of less than one year, or is provided under an open-end credit plan. The bill has a delayed effective date of July 1, 2021, and requires any person who would be required to be licensed under the provisions of the act to apply for a license by April 1, 2021. This bill is identical to HB 789.
- Who sponsors SB 421?
- SB 421 is sponsored by Mamie E. Locke, Barbara A. Favola, Jennifer L. McClellan, Scott A. Surovell, L. Louise Lucas, Jeremy S. McPike, Joseph D. Morrissey, Lionell Spruill, Sr., Jennifer B. Boysko, Sam Rasoul, Cosgrove, John A., Jr., Bell, John J., and Vogel, Jill Holtzman.
- What is the current status of SB 421?
- This bill has been enacted into law. Introduced January 07, 2020. Enacted.
- Where can I track SB 421?
- Track SB 421 free on One Click Politics — get push/email alerts when it moves.
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