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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
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-sixth Legislature First Regular Session - 2001IN 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 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