2001 Legislation
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HOUSE BILL NO. 230 – Debt collector, exmpt permit, when

HOUSE BILL NO. 230

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Daily Data Tracking History



H0230...........................................................by BUSINESS
DEBT COLLECTORS - Amends existing law to provide an exemption to the permit
requirements for collection agencies for any person acting as a debt
collector for another person, both of whom are related by common ownership
or affiliated by corporation control, if the person acting as a debt
collector does so only for the  persons to whom related or affiliated and
if the principal business of such person is not the collection of debts.
                                                                        
02/14    House intro - 1st rdg - to printing
02/15    Rpt prt - to Bus

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 230
                                                                        
                                   BY BUSINESS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO COLLECTION AGENCIES; AMENDING SECTION 26-2239, IDAHO CODE, TO PRO-
  3        VIDE AN EXEMPTION TO THE PERMIT REQUIREMENTS FOR ANY PERSON  ACTING  AS  A
  4        DEBT COLLECTOR FOR ANOTHER PERSON, BOTH OF WHOM ARE RELATED BY COMMON OWN-
  5        ERSHIP  OR AFFILIATED BY CORPORATE CONTROL, IF THE PERSON ACTING AS A DEBT
  6        COLLECTOR DOES SO ONLY FOR PERSONS TO WHOM HE IS SO RELATED OR  AFFILIATED
  7        AND  IF  THE  PRINCIPAL  BUSINESS  OF SUCH PERSON IS NOT THE COLLECTION OF
  8        DEBTS.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION 1.  That Section 26-2239, Idaho Code, be, and the same  is  hereby
 11    amended to read as follows:
                                                                        
 12        26-2239.  EXEMPTIONS.  The  provisions  of this chapter shall not apply to
 13    the following:
 14        (1)  Any attorney-at-law duly authorized to practice in this state;
 15        (2)  Any regulated lender as defined in section 28-41-301(37), Idaho Code,
 16    nor any subsidiary, affiliate or agent of  such  a  regulated  lender  to  the
 17    extent  that  the  subsidiary,  affiliate  or agent collects for the regulated
 18    lender;
 19        (3)  Any trust company authorized to do business in this state;
 20        (4)  Any federal, state or local governmental agency or instrumentality;
 21        (5)  Any real estate broker or real estate  salesman  licensed  under  the
 22    laws of and residing within this state when engaged in the regular practice of
 23    a real estate business;
 24        (6)  Any abstract and title companies doing an escrow business;
 25        (7)  Any  mortgage  company  to  the  extent that such mortgage company is
 26    engaged in the regular business of a mortgage company as  defined  in  section
 27    26-2802, Idaho Code;
 28        (8)  Any court appointed trustee, receiver or conservator;
 29        (9)  Any  telephone  corporation, as defined in subsection (10) of section
 30    62-603, Idaho Code, whose initial request for payment on behalf of such  tele-
 31    phone corporation or on behalf of another person is made by the telephone cor-
 32    poration as a part of regular telecommunications billings to its customers and
 33    at  a  time before the account, bill, claim or other indebtedness becomes past
 34    due or delinquent;
 35        (10) Any person acting as a debt collector for  another  person,  both  of
 36    whom  are  related  by common ownership or affiliated by corporate control, if
 37    the person acting as a debt collector does so only for persons to whom  he  is
 38    so  related  or affiliated and if the principal business of such person is not
 39    the collection of debts.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                                
                            RS 10987
                                

This proposed legislation will add a new subsection (10) to Section
26-2239, Idaho Code, to create an exemption for affiliates of
creditors and other companies that service creditors' accounts and
do not operate or hold themselves out as third party collection
agencies.  In addition, this legislation would amend Idaho's law so
that it is parallel with the federal Fair Debt Collection Practices
Act.

Current Idaho law does not include an exception for affiliates of
a creditor.  The change in the current law will eliminate the
burdensome licensing, bonding and trust account requirements for
affiliated companies that do not hold themselves out as collection
agencies.  
                    
                         FISCAL IMPACT
The fiscal impact from exams and annual licensing fees that will
not be collected due to this proposed exemption is not expected to
exceed $1,000.


CONTACT:  Pam Eaton, Idaho Retailers Association
          (208) 342-0010, Ext. 2


STATEMENT OF PURPOSE/FISCAL NOTE                       H 230