CA Bill 2524 Passed California State Senate and Sent to CA Governor to be Enacted

Regulatory Update:

On August 28, 2020 the California State Senate passed the heavily amended AB 2524 

“Check Sellers, Bill Payers and Proraters Law: out-of-state activities” Bill. On September 1, 2020, AB 2524 was sent to the California Governor for his signature and therefore the enactment of the Bill.  

AB 2524 was amended significantly in the CA Senate Committee on Banking and Financial Institutions in early July of 2020. The Bill went from being a few pages to merely two paragraphs. The form of AB 2524 that is being sent to the California Governor for his signature is included below in its entirety for your convenience. 

“Check Sellers, Bill Payers and Proraters Law: out-of-state activities. 

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 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. 

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

SECTION 1. Section 12200.1 of the Financial Code is repealed. 

SEC. 2. Section 12200.3 of the Financial Code is repealed.”

If you would like to understand the trajectory this Bill has taken since its inception through its enactment you can find more information here: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB2524

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email