SB 546 (2025) — Collection Licensing Act: exceptions: billing agents.

AMENDED IN ASSEMBLY JUNE 11, 2026

AMENDED IN SENATE JANUARY 5, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

SENATE BILLNo. 546

Introduced by Senator Grayson

February 20, 2025

An act to ~~repeal Division 22 (commencing with Section 70000)~~ amend Section 100001 of the Financial Code, relating to ~~financial literacy.~~ debt collection.

Vote: majority Appropriation: no Fiscal committee: yes Local program: no

LEGISLATIVE COUNSEL’S DIGEST

The Debt Collection Licensing Act generally regulates the business of debt collection and prohibits a person from engaging in the business of debt collection in this state without first obtaining a license pursuant to the act. The act provides that it does not apply to certain institutions and persons.

This bill would provide that the act does not apply to billing agents, except as specified.

Existing law establishes the California Financial Literacy Fund in the State Treasury for the purpose of enabling partnerships with the financial services community and governmental and nongovernmental stakeholders to improve financial literacy within the state. Existing law requires the fund to be administered by the Controller, who is authorized, among other things, to deposit private donations into the fund, as specified. Existing law requires those moneys to be made available upon appropriation in the annual Budget Act, and requires the Controller to report annually to the Legislature on the use of those moneys appropriated from the fund, as specified.

This bill would repeal those provisions.

The people of the State of California do enact as follows:

SECTION 1.

Section 100001 of the Financial Code is amended to read:

100001.

(a) No person shall engage in the business of debt collection in this state without first obtaining a license pursuant to this division. To the extent permitted by federal law, a person is acting in this state if the person is located in this state and is seeking to collect from a debtor that resides inside or outside the state, or is located outside of the state and is seeking to collect from a debtor that resides in this state. A license shall be obtained for the licensee’s principal place of business and shall not be transferred or assigned. A separate license is not required for each individual branch office.

(b) (1) Except as provided in paragraph (2), this division shall not apply to a any of the following:

(A) A depository institution, as defined in Section ~~1420, a~~ 1420.

(B) A person licensed pursuant to Division 9 (commencing with Section 22000) or Division 20 (commencing with Section ~~50000), a~~ 50000).

(C) A person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions ~~Code, a~~ Code.

(D) A person who is subject to the Karnette Rental-Purchase Act (Title 2.96 (commencing with Section 1812.620) of Part 4 of Division 3 of the Civil ~~Code), or a~~ Code).

(E) A trustee performing acts in connection with a nonjudicial foreclosure pursuant to Article 1 (commencing with Section 2920) of Chapter 2 of Title 14 of Part 4 of Division 3 of the Civil Code.

(F) A billing agent who calculates, allocates, and delivers consolidated statements for rent, utility services, ancillary property services, amenities, or contractually authorized administrative billing fees arising from a residential or commercial tenancy, provided that the person does not purchase, take assignment of, or independently enforce the underlying obligation. A person is not exempt under this subparagraph if the person engages in any of the following:

(i) Initiating telephone calls or text messages to demand payment of a debt.

(ii) Initiating or threatening to initiate legal action related to a debt.

(iii) Reporting, or threatening to report, past due amounts to a consumer reporting agency or a tenant screening service.

(iv) Referring, assigning, or selling a debt to a third party for purposes of collection.

(v) Representing, directly or indirectly, that nonpayment of a billed amount may result in eviction, lease enforcement, termination of tenancy, or restriction or termination of services.

(vi) Contacting an employer, relative, reference, or other third party for the purpose of inducing payment of a billed amount.

(vii) Recording or enforcing, or threatening to record or enforce, any lien, security interest, or encumbrance because of nonpayment of a billed amount.

(viii) Repossessing, disabling, interrupting restricting, or threatening to restrict access to property, premises, goods, services, or accounts for the purpose of inducing payment of a billed amount.

(2) The commissioner may use the authority described in Section 100005 in connection with a violation of Title 1.6C (commencing with Section 1788) or Title 1.6C.5 (commencing with Section 1788.50) of Part 4 of Division 3 of the Civil Code by a person described in paragraph (1).

(c) This division shall not apply to debt collection regulated pursuant to Division 12.5 (commencing with Section 28100) or to the collection of covered commercial debt or covered commercial credit, as those terms are defined in Title 1.6C (commencing with Section 1788) of Part 4 of Division 3 of the Civil Code.

SECTION 1.
Division 22 (commencing with Section 70000) of the Financial Code is repealed.