California 2017-2018 Regular Session Status: Enacted

AB 38 — Student loan servicers: licensing and regulation: Student Loan Servicing Act.

Last action — Chaptered by Secretary of State - Chapter 379, Statutes of 2018.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced December 05, 2016. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 3 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

Existing law, operative July 1, 2018, establishes the Student Loan Servicing Act to provide for the licensure, regulation, and oversight of student loan servicers by the Commissioner of Business Oversight, who is the head of the Department of Business Oversight. The act prohibits a person from engaging in the business of servicing a student loan in this state without a license, unless the person falls within certain exceptions. Under the act, a person applying for a license, among other things, is required to pay an application fee, sign the application under penalty of perjury, and submit to a criminal background check by the Department of Justice. The act authorizes the commissioner to deny an application for a license for specified reasons. The act also authorizes the commissioner to promulgate regulations and take various other administrative actions. The act defines various terms for its purposes, and excludes specified entities, including banks, trust companies, and certain nonprofit community service organizations from its provisions. This bill would revise and recast the circumstances under which the commissioner is authorized to deny an application for a license. The bill would require an applicant to appoint the commissioner as the applicant's attorney to receive service of process relating to specified actions and would require the service to include an affidavit of compliance. By expanding the crime of perjury, the bill would impose a state-mandated local program. The bill would redefine the term "student loan" under the act to mean any loan solely for use to finance a postsecondary education and costs of attendance at a postsecondary institution and would redefine "student loan servicers" to exclude debt collectors whose business operations involve collection on defaulted student loans, as specified. In addition to other terms, the bill would define the term "Nationwide Multistate Licensing System & Registry" to mean certain systems of records, created for nondepository, financial services licensing or registration, including student loan servicers, as specified. The bill would exclude from the act a state or nonprofit private institution or organization having an agreement with the United States Secretary of Education, in connection with its responsibilities as a guaranty agency engaged in default aversion, pursuant to specific federal student loan provisions. The bill would also authorize the commissioner to require an applicant for a student loan servicer license or a student loan servicer licensee to make some or all of the required filings with, and to pay assessments to, the commissioner through the Nationwide Multistate Licensing System & Registry. This bill would authorize the commissioner to establish relationships or contracts with the Nationwide Multistate Licensing System & Registry or other designated entities to collect and maintain records and process transaction fees. The bill would authorize the commissioner, for purposes of participating in the licensing system and registry, to waive or modify rules, regulations, orders, and other requirements as reasonably necessary. The bill would permit the commissioner to use the system and registry as a channeling agent for requesting information from the Department of Justice and other sources, and would require the commissioner to establish a process by which applicants and licensees may challenge information entered into the licensing system and registry. Additionally, the bill would specify that any of various federal or state law requirements regarding the privacy or confidentiality of any information provided to the licensing system and registry, or privilege with respect to that information, would continue to apply, and that this information is authorized to be shared under the system without the loss of privilege or confidentiality. The bill would require the commissioner to report violations of the act, as well as other enforcement actions and information to the licensing system and registry to the extent that the information is a public record. The act permits the commissioner to prescribe circumstances under which to accept electronic records, including applications, financial statements, reports, and other specified documents. This bill would include within that category of electronic records a surety bond, rider, or endorsement. Under the act, a licensee is required to respond to a qualified written request by acknowledging receipt of the request within 5 business days, as specified. This bill would extend that timeframe to 10 business days. The bill additionally would authorize the commissioner to require persons who are not expressly excluded from the act to file, under oath or otherwise, special reports or answers in writing to specific questions or requests for information with the commissioner. The bill would provide that in any proceeding under the act, the burden of proving an exemption or an exception from a definition would be on the person claiming it. By increasing the circumstances in which a person may be required to take an oath, the bill would expand the crime of perjury, thereby imposing a state-mandated local program. This bill would make legislative findings in support of its provisions and would also make related and conforming changes to the act. 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. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect.

Bill Text

Action History

  1. Chaptered by Secretary of State - Chapter 379, Statutes of 2018.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 3 p.m.

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 55. Noes 23. Page 6642.).

  5. In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 25 pursuant to Assembly Rule 77.

  6. Read third time. Passed. Ordered to the Assembly. (Ayes 28. Noes 11. Page 5662.).

  7. Read second time. Ordered to third reading.

  8. Read third time and amended. Ordered to second reading.

  9. Read second time. Ordered to third reading.

  10. From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

  11. Read second time and amended. Re-referred to Com. on APPR.

  12. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 2.) (June 20).

  13. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.I.

  14. In committee: Set, first hearing. Hearing canceled at the request of author.

  15. Re-referred to Com. on B. & F.I.

  16. Re-referred to Com. on RLS.

  17. Withdrawn from committee.

  18. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on I., B. & F.I.

  19. In committee: Set, first hearing. Testimony taken.

  20. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on I., B. & F.I.

  21. Referred to Com. on I., B. & F.I.

  22. In Senate. Read first time. To Com. on RLS. for assignment.

  23. Read third time. Passed. Ordered to the Senate. (Ayes 55. Noes 23. Page 1535.)

  24. Read second time. Ordered to third reading.

  25. From committee: Do pass. (Ayes 12. Noes 5.) (May 10).

  26. From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 3.) (April 24). Re-referred to Com. on APPR.

  27. In committee: Hearing postponed by committee.

  28. In committee: Hearing postponed by committee.

  29. Re-referred to Com. on B. & F.

  30. From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

  31. Referred to Com. on B. & F.

  32. From printer. May be heard in committee January 5.

  33. Read first time. To print.

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 121 not signed on · 8 voted No

Sponsors (1)

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.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 38 STONE Concurrence in Senate Amendments

Passed 55 Yea · 23 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 401800
Democratic 15001
Republican 0501
Total 552302
% of votes cast 69%29%0%3%
How each member voted (80)
Member Party Vote
Acosta — Nay
Bigelow — Nay
Brough — Nay
Harper — Nay
Jones-Sawyer — Yea
Kamlager-Dove — Yea
Maienschein — Yea
Mathis — Nay
Mullin — Yea
Steinorth — Nay
Chu — Yea
Eggman — Yea
Daly — Yea
Friedman — Yea
Gloria — Yea
Burke — Yea
Frazier — Yea
Holden — Yea
Rivas — Yea
Rubio — Yea
Salas — Yea
Gray — Yea
Bloom — Yea
Chau — Yea
Chiu — Yea
Cooper — Yea
Low — Yea
Medina — Yea
Nazarian — Yea
O'Donnell — Yea
Santiago — Yea
Thurmond — Yea
Weber — Yea
Wood — Yea
Gonzalez Fletcher — Yea
Fong — Nay
Kiley — Nay
Levine — Yea
Mayes — Nay
Baker — Nay
Chávez — Nay
Cooley — Yea
Cunningham — Nay
McCarty — Yea
Melendez — Nay
Obernolte — Nay
Quirk — Yea
Rendon — Yea
Rodriguez — Yea
Ting — Yea
Voepel — Nay
Waldron — Nay
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Nay
Mark Stone — Yea
Travis Allen — Nay
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Not Voting
Berman, Marc Democratic Yea
Bonta, Mia Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Chen, Phillip Republican Nay
Choi, Steven S. Republican Not Voting
Dahle, Megan Republican Nay
Flora, Heath Republican Nay
Gallagher, James Republican Nay
Lackey, Tom Republican Nay

Official roll call →

3rd Reading AB38 Mark Stone By Galgiani

Passed 28 Yea · 11 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 231101
Democratic 5000
Total 281101
% of votes cast 70%28%0%3%
How each member voted (40)
Member Party Vote
Anderson — Nay
Bradford — Yea
Hernandez — Yea
Lara — Yea
Morrell — Nay
Wilk — Nay
Dodd — Yea
Fuller — Nay
Galgiani — Yea
Glazer — Yea
Allen — Yea
De León — Yea
Hertzberg — Yea
Cannella — Yea
Portantino — Yea
Atkins — Yea
Mitchell — Yea
Hill — Yea
Hueso — Yea
Leyva — Yea
Chang — Nay
Bates — Nay
Beall — Yea
Delgado — Yea
Monning — Yea
Moorlach — Nay
Nielsen — Nay
Pan — Yea
Roth — Yea
Skinner — Yea
Vidak — Nay
Wieckowski — Yea
Beth Gaines — Nay
Bill Berryhill — Not Voting
Mark Stone — Nay
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Yea
Stern, Henry I. Democratic Yea
Wiener, Scott D. Democratic Yea

Official roll call →

Subjects

finance education
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does AB 38 do?
Existing law, operative July 1, 2018, establishes the Student Loan Servicing Act to provide for the licensure, regulation, and oversight of student loan servicers by the Commissioner of Business Oversight, who is the head of the Department of Business Oversight. The act prohibits a person from engaging in the business of servicing a student loan in this state without a license, unless the person falls within certain exceptions. Under the act, a person applying for a license, among other things, is required to pay an application fee, sign the application under penalty of perjury, and submit to a criminal background check by the Department of Justice. The act authorizes the commissioner to deny an application for a license for specified reasons. The act also authorizes the commissioner to promulgate regulations and take various other administrative actions. The act defines various terms for its purposes, and excludes specified entities, including banks, trust companies, and certain nonprofit community service organizations from its provisions. This bill would revise and recast the circumstances under which the commissioner is authorized to deny an application for a license. The bill would require an applicant to appoint the commissioner as the applicant's attorney to receive service of process relating to specified actions and would require the service to include an affidavit of compliance. By expanding the crime of perjury, the bill would impose a state-mandated local program. The bill would redefine the term "student loan" under the act to mean any loan solely for use to finance a postsecondary education and costs of attendance at a postsecondary institution and would redefine "student loan servicers" to exclude debt collectors whose business operations involve collection on defaulted student loans, as specified. In addition to other terms, the bill would define the term "Nationwide Multistate Licensing System & Registry" to mean certain systems of records, created for nondepository, financial services licensing or registration, including student loan servicers, as specified. The bill would exclude from the act a state or nonprofit private institution or organization having an agreement with the United States Secretary of Education, in connection with its responsibilities as a guaranty agency engaged in default aversion, pursuant to specific federal student loan provisions. The bill would also authorize the commissioner to require an applicant for a student loan servicer license or a student loan servicer licensee to make some or all of the required filings with, and to pay assessments to, the commissioner through the Nationwide Multistate Licensing System & Registry. This bill would authorize the commissioner to establish relationships or contracts with the Nationwide Multistate Licensing System & Registry or other designated entities to collect and maintain records and process transaction fees. The bill would authorize the commissioner, for purposes of participating in the licensing system and registry, to waive or modify rules, regulations, orders, and other requirements as reasonably necessary. The bill would permit the commissioner to use the system and registry as a channeling agent for requesting information from the Department of Justice and other sources, and would require the commissioner to establish a process by which applicants and licensees may challenge information entered into the licensing system and registry. Additionally, the bill would specify that any of various federal or state law requirements regarding the privacy or confidentiality of any information provided to the licensing system and registry, or privilege with respect to that information, would continue to apply, and that this information is authorized to be shared under the system without the loss of privilege or confidentiality. The bill would require the commissioner to report violations of the act, as well as other enforcement actions and information to the licensing system and registry to the extent that the information is a public record. The act permits the commissioner to prescribe circumstances under which to accept electronic records, including applications, financial statements, reports, and other specified documents. This bill would include within that category of electronic records a surety bond, rider, or endorsement. Under the act, a licensee is required to respond to a qualified written request by acknowledging receipt of the request within 5 business days, as specified. This bill would extend that timeframe to 10 business days. The bill additionally would authorize the commissioner to require persons who are not expressly excluded from the act to file, under oath or otherwise, special reports or answers in writing to specific questions or requests for information with the commissioner. The bill would provide that in any proceeding under the act, the burden of proving an exemption or an exception from a definition would be on the person claiming it. By increasing the circumstances in which a person may be required to take an oath, the bill would expand the crime of perjury, thereby imposing a state-mandated local program. This bill would make legislative findings in support of its provisions and would also make related and conforming changes to the act. 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. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect.
Who sponsors AB 38?
AB 38 is sponsored by Mark Stone.
What is the current status of AB 38?
This bill has been enacted into law. Introduced December 05, 2016. Enacted.
Where can I track AB 38?
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