On July 15, 2020, the Senate Committee on Banking and Financial Institutions amended the “Proraters” Bill, now called the “Check Sellers, Bill Payers and Proraters Law: out-of-state activities.” The Bill has been significantly whittled down from a few pages of text to merely two paragraphs.
The current version of the amended Bill reads as follows:
“AB 2524, as amended, Wicks.
Proraters. Check Sellers, Bill Payers and Proraters Law: out-of-state activities. (1) Existing law, the Check Sellers, Bill Payers and Proraters Law, prohibits a person from engaging 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 without first obtaining a license from the Commissioner of Business Oversight.
Existing law prohibits the commissioner from issuing a license to a corporation that is not organized under the laws of this state for the purpose of
conducting those activities. engaging in the business of selling checks, drafts, or money orders, or of receiving money as an agent of an obligor for the purpose of paying bills, invoices, or accounts of the obligor, or accepting, without direct compensation, money for the purpose of forwarding it to others in payment of utility bills, except in certain circumstances. The law also prohibits a licensee from conducting those activities outside of the state.
This bill would repeal those prohibitions. ”
You can find the Bill in its entirety and the history of amendments made to the Bill here: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB2524
The Senate Committee hearing date scheduled for July 20, 2020 has been postponed, and there is still no new hearing date scheduled. We will continue to keep you apprised of any new amendments, changes, or hearing dates.