Check Sellers, Bill Payers and Proraters Law: exemption: nonprofit community service organizations.
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SB 985 — Check Sellers, Bill Payers and Proraters Law: exemption: nonprofit community service organizations.
Last action — Chaptered by Secretary of State. Chapter 178, Statutes of 2024.
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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✓Passed Senate
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✓Passed Assembly
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced January 29, 2024. Enacted.
Signed by Governor Gavin Newsom (Democratic) on August 19, 2024.
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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1 sponsor
1 primary, 0 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (1 R).
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Cleared a recorded vote
Passed 5 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
The Check Sellers, Bill Payers and Proraters Law (Proraters Law) prohibits, among other things, a person, without first obtaining a license from the Commissioner of Financial Protection and Innovation, from acting as a person who, for compensation, engages in whole or in part in the business of receiving money or evidences thereof for the purpose of distributing the money or evidences thereof among creditors in payment or partial payment of the obligations of the debtor. The Proraters Law exempts from the requirements of the law imposed on proraters a nonprofit community service organization that meets certain criteria, including that the nonprofit community service organization has as its principal functions consumer credit education, counseling on consumer credit problems and family budgets, arranging or administering debt management plans, and arranging or administering debt settlement plans. The Proraters Law also provides as a criteria for exemption that the nonprofit community service organization receives from a debtor no more than certain amounts to offset the organization's actual and necessary expenses for those services, including a one-time sum not to exceed $50 for education and counseling combined in connection with debt management or debt settlement services and, for debt management plans, a sum not to exceed 8% of the money disbursed monthly or $35 per month, whichever is less. The Proraters Law provides as a criteria for exemption that the nonprofit community service organization maintains at all times a surety bond in the amount of $25,000 issued by an insurer licensed in this state. This bill would instead provide as a criteria for exemption from the Proraters Law that the nonprofit community service organization receives from a debtor no more than a one-time sum not to exceed $100 for education and counseling combined in connection with debt management or debt settlement services and, for debt management plans, a sum not to exceed 15% of the money disbursed monthly or $75 per month, whichever is less. The bill would also revise and recast the requirement for exemption from the Proraters Law that a nonprofit community service organization has as one of its principal functions counseling on consumer credit problems and family budgets to specify that the counseling is via in-person, telephone, and virtual communication. The bill would also increase the surety bond requirement described above from $25,000 to $100,000. By narrowing the scope of nonprofit community service organizations that are exempt from the Proraters Law, a willful violation of which is punishable as a misdemeanor, the bill would impose a state-mandated local program. 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.
Bill Text
- Chaptered 08/19/24 - Chaptered Current pdf August 19, 2024
- Enrolled 08/09/24 - Enrolled pdf August 09, 2024
- Introduced 01/29/24 - Introduced pdf January 29, 2024
- SB985 View text html
Action History
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Chaptered by Secretary of State. Chapter 178, Statutes of 2024.
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Approved by the Governor.
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Enrolled and presented to the Governor at 2 p.m.
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In Senate. Ordered to engrossing and enrolling.
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Read third time. Passed. (Ayes 72. Noes 0. Page 6249.) Ordered to the Senate.
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Read second time. Ordered to consent calendar.
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From committee: Do pass. Ordered to consent calendar. (Ayes 15. Noes 0.) (July 2).
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June 26 hearing postponed by committee.
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From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (June 17). Re-referred to Com. on APPR.
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Referred to Com. on B. & F.
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In Assembly. Read first time. Held at Desk.
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Read third time. Passed. (Ayes 39. Noes 0. Page 3672.) Ordered to the Assembly.
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Read second time. Ordered to consent calendar.
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From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar.
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Set for hearing April 15.
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From committee: Do pass and re-refer to Com. on APPR with recommendation: To consent calendar. (Ayes 7. Noes 0. Page 3465.) (April 3). Re-referred to Com. on APPR.
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Set for hearing April 3.
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Referred to Com. on B. & F.I.
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From printer. May be acted upon on or after February 29.
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Introduced. Read first time. To Com. on RLS. for assignment. To print.
Sponsors
- Rosilicie Ochoa Bogh · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 121 not signed on
Sponsors (1)
- Ochoa Bogh, Rosilicie Republican
Co-sponsors (0)
None.
Not signed on (121)
121 members have not signed on to this bill.
Show all 121 →"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 |
|---|---|---|---|---|
| Republican | 14 | 0 | 0 | 0 |
| Democratic | 42 | 0 | 0 | 5 |
| Unaffiliated | 16 | 0 | 0 | 2 |
| Total | 72 | 0 | 0 | 7 |
| % of votes cast | 91% | 0% | 0% | 9% |
How each member voted (79)
| Member | Party | Vote |
|---|---|---|
| Holden | — | Yea |
| Mathis | — | Yea |
| Maienschein | — | Yea |
| Waldron | — | Yea |
| Santiago | — | Yea |
| Rodriguez | — | Yea |
| Villapudua | — | Yea |
| Ting | — | Yea |
| Jones-Sawyer | — | Yea |
| McCarty | — | Yea |
| Rendon | — | Yea |
| Friedman | — | Yea |
| Wood | — | Yea |
| Low | — | Yea |
| Eduardo Garcia | — | Not Voting |
| Jim Patterson | — | Yea |
| Luz Rivas | — | Yea |
| Wendy Carrillo | — | Not Voting |
| Addis, Dawn | Democratic | Yea |
| Aguiar-Curry, Cecilia M. | Democratic | Yea |
| Alvarez, David | Democratic | Yea |
| Arambula, Joaquin | Democratic | Yea |
| Bains, Jasmeet | Democratic | Yea |
| Bauer-Kahan, Rebecca | Democratic | Not Voting |
| Bennett, Steve | Democratic | Yea |
| Berman, Marc | Democratic | Yea |
| Boerner, Tasha | Democratic | Yea |
| Bonta, Mia | Democratic | Not Voting |
| Bryan, Isaac G. | Democratic | Yea |
| Calderon, Lisa | Democratic | Yea |
| Carrillo, Juan | Democratic | Yea |
| Cervantes, Sabrina | Democratic | Yea |
| Connolly, Damon | Democratic | Yea |
| Fong, Mike | Democratic | Yea |
| Gabriel, Jesse | Democratic | Yea |
| Gipson, Mike A. | Democratic | Yea |
| Grayson, Timothy S. | Democratic | Yea |
| Haney, Matt | Democratic | Yea |
| Hart, Gregg | Democratic | Yea |
| Irwin, Jacqui | Democratic | Yea |
| Jackson, Corey A. | Democratic | Yea |
| Kalra, Ash | Democratic | Yea |
| Lee, Alex | Democratic | Yea |
| Lowenthal, Josh | Democratic | Yea |
| McKinnor, Tina | Democratic | Yea |
| Muratsuchi, Al | Democratic | Yea |
| Nguyen, Stephanie | Democratic | Yea |
| Ortega, Liz | Democratic | Yea |
| Pacheco, Blanca | Democratic | Yea |
| Papan, Diane | Democratic | Yea |
| Pellerin, Gail | Democratic | Yea |
| Petrie-Norris, Cottie | Democratic | Not Voting |
| Quirk-Silva, Sharon | Democratic | Yea |
| Ramos, James C. | Democratic | Yea |
| Reyes, Eloise Gómez | Democratic | Yea |
| Rivas, Robert | Democratic | Yea |
| Rubio, Blanca E. | Democratic | Yea |
| Schiavo, Pilar | Democratic | Yea |
| Soria, Esmeralda | Democratic | Yea |
| Valencia, Avelino | Democratic | Not Voting |
| Ward, Christopher M. | Democratic | Yea |
| Weber Pierson, M.D., Akilah | Democratic | Not Voting |
| Wicks, Buffy | Democratic | Yea |
| Wilson, Lori D. | Democratic | Yea |
| Zbur, Rick Chavez | Democratic | Yea |
| Alanis, Juan | Republican | Yea |
| Chen, Phillip | Republican | Yea |
| Dahle, Megan | Republican | Yea |
| Davies, Laurie | Republican | Yea |
| Dixon, Diane | Republican | Yea |
| Essayli, Bill | Republican | Yea |
| Flora, Heath | Republican | Yea |
| Gallagher, James | Republican | Yea |
| Hoover, Josh | Republican | Yea |
| Lackey, Tom | Republican | Yea |
| Patterson, Joe | Republican | Yea |
| Sanchez, Kate | Republican | Yea |
| Ta, Tri | Republican | Yea |
| Wallis, Greg | Republican | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Democratic | 9 | 0 | 0 | 0 |
| Republican | 3 | 0 | 0 | 0 |
| Unaffiliated | 3 | 0 | 0 | 0 |
| Total | 15 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (15)
| Member | Party | Vote |
|---|---|---|
| Villapudua | — | Yea |
| Jim Patterson | — | Yea |
| Wendy Carrillo | — | Yea |
| Arambula, Joaquin | Democratic | Yea |
| Bryan, Isaac G. | Democratic | Yea |
| Calderon, Lisa | Democratic | Yea |
| Fong, Mike | Democratic | Yea |
| Grayson, Timothy S. | Democratic | Yea |
| Haney, Matt | Democratic | Yea |
| Hart, Gregg | Democratic | Yea |
| Pellerin, Gail | Democratic | Yea |
| Wicks, Buffy | Democratic | Yea |
| Dixon, Diane | Republican | Yea |
| Sanchez, Kate | Republican | Yea |
| Ta, Tri | Republican | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 1 | 0 | 0 | 0 |
| Democratic | 6 | 0 | 0 | 0 |
| Republican | 1 | 0 | 0 | 1 |
| Total | 8 | 0 | 0 | 1 |
| % of votes cast | 89% | 0% | 0% | 11% |
How each member voted (9)
| Member | Party | Vote |
|---|---|---|
| Maienschein | — | Yea |
| Cervantes, Sabrina | Democratic | Yea |
| Fong, Mike | Democratic | Yea |
| Grayson, Timothy S. | Democratic | Yea |
| Petrie-Norris, Cottie | Democratic | Yea |
| Rubio, Blanca E. | Democratic | Yea |
| Soria, Esmeralda | Democratic | Yea |
| Chen, Phillip | Republican | Not Voting |
| Dixon, Diane | Republican | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 11 | 0 | 0 | 0 |
| Democratic | 21 | 0 | 0 | 1 |
| Republican | 7 | 0 | 0 | 0 |
| Total | 39 | 0 | 0 | 1 |
| % of votes cast | 98% | 0% | 0% | 3% |
How each member voted (40)
| Member | Party | Vote |
|---|---|---|
| Roth | — | Yea |
| Atkins | — | Yea |
| Portantino | — | Yea |
| Newman | — | Yea |
| Min | — | Yea |
| Wilk | — | Yea |
| Eggman | — | Yea |
| Glazer | — | Yea |
| Dodd | — | Yea |
| Bradford | — | Yea |
| Skinner | — | Yea |
| Allen, Benjamin | Democratic | Yea |
| Archuleta, Bob | Democratic | Yea |
| Ashby, Angelique V. | Democratic | Yea |
| Becker, Josh | Democratic | Yea |
| Blakespear, Catherine S. | Democratic | Yea |
| Caballero, Anna M. | Democratic | Yea |
| Cortese, Dave | Democratic | Yea |
| Durazo, Maria Elena | Democratic | Yea |
| Gonzalez, Lena A. | Democratic | Yea |
| Hurtado, Melissa | Democratic | Not Voting |
| Laird, John | Democratic | Yea |
| Limón, Monique | Democratic | Yea |
| McGuire, Mike | Democratic | Yea |
| Menjivar, Caroline | Democratic | Yea |
| Nguyen, Stephanie | Democratic | Yea |
| Padilla, Stephen C. | Democratic | Yea |
| Rubio, Susan | Democratic | Yea |
| Smallwood-Cuevas, Lola | Democratic | Yea |
| Stern, Henry I. | Democratic | Yea |
| Umberg, Thomas J. | Democratic | Yea |
| Wahab, Aisha | Democratic | Yea |
| Wiener, Scott D. | Democratic | Yea |
| Alvarado-Gil, Marie | Republican | Yea |
| Dahle, Megan | Republican | Yea |
| Grove, Shannon | Republican | Yea |
| Jones, Brian W. | Republican | Yea |
| Niello, Roger W. | Republican | Yea |
| Ochoa Bogh, Rosilicie | Republican | Yea |
| Seyarto, Kelly | Republican | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Democratic | 4 | 0 | 0 | 0 |
| Unaffiliated | 2 | 0 | 0 | 0 |
| Republican | 1 | 0 | 0 | 0 |
| Total | 7 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (7)
| Member | Party | Vote |
|---|---|---|
| Portantino | — | Yea |
| Bradford | — | Yea |
| Caballero, Anna M. | Democratic | Yea |
| Limón, Monique | Democratic | Yea |
| Menjivar, Caroline | Democratic | Yea |
| Nguyen, Stephanie | Democratic | Yea |
| Niello, Roger W. | Republican | Yea |
Subjects
Frequently asked questions
- What does SB 985 do?
- The Check Sellers, Bill Payers and Proraters Law (Proraters Law) prohibits, among other things, a person, without first obtaining a license from the Commissioner of Financial Protection and Innovation, from acting as a person who, for compensation, engages in whole or in part in the business of receiving money or evidences thereof for the purpose of distributing the money or evidences thereof among creditors in payment or partial payment of the obligations of the debtor. The Proraters Law exempts from the requirements of the law imposed on proraters a nonprofit community service organization that meets certain criteria, including that the nonprofit community service organization has as its principal functions consumer credit education, counseling on consumer credit problems and family budgets, arranging or administering debt management plans, and arranging or administering debt settlement plans. The Proraters Law also provides as a criteria for exemption that the nonprofit community service organization receives from a debtor no more than certain amounts to offset the organization's actual and necessary expenses for those services, including a one-time sum not to exceed $50 for education and counseling combined in connection with debt management or debt settlement services and, for debt management plans, a sum not to exceed 8% of the money disbursed monthly or $35 per month, whichever is less. The Proraters Law provides as a criteria for exemption that the nonprofit community service organization maintains at all times a surety bond in the amount of $25,000 issued by an insurer licensed in this state. This bill would instead provide as a criteria for exemption from the Proraters Law that the nonprofit community service organization receives from a debtor no more than a one-time sum not to exceed $100 for education and counseling combined in connection with debt management or debt settlement services and, for debt management plans, a sum not to exceed 15% of the money disbursed monthly or $75 per month, whichever is less. The bill would also revise and recast the requirement for exemption from the Proraters Law that a nonprofit community service organization has as one of its principal functions counseling on consumer credit problems and family budgets to specify that the counseling is via in-person, telephone, and virtual communication. The bill would also increase the surety bond requirement described above from $25,000 to $100,000. By narrowing the scope of nonprofit community service organizations that are exempt from the Proraters Law, a willful violation of which is punishable as a misdemeanor, the bill would impose a state-mandated local program. 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.
- Who sponsors SB 985?
- SB 985 is sponsored by Ochoa Bogh, Rosilicie (Republican).
- What is the current status of SB 985?
- This bill has been enacted into law. Introduced January 29, 2024. Enacted.
- Where can I track SB 985?
- Track SB 985 free on One Click Politics — get push/email alerts when it moves.
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