Bill Commons

CA AB 866

in committee

Student loan servicing.

California · 2025-2026 Regular Session · lower

Quick answers

Did CA AB 866 pass?

Not yet. CA AB 866 is in committee as of 2025-08-29 and has not come to a final vote. Latest recorded action (2025-08-29): In committee: Held under submission.

What is CA AB 866 about?

Existing law, the Student Loan Servicing Act, prohibits a person from engaging in the business of servicing a student loan in California without first obtaining a license. Existing law commits the administration of these provisions to the Commissioner of Financial Protection and Innovation and grants the commissioner various powers in this regard, including the authority to conduct investigations of applicants and licensees. Existing law, the Unfair Competition Law (UCL) , makes various practices unlawful and makes a person who engages, has engaged, or proposes to engage in unfair competition liable for a civil penalty, as specified. Existing law authorizes actions for relief prosecuted under the UCL to be brought by certain public attorneys and requires the penalty collected from those actions to be paid to the treasurer of the county or city in which the judgment is entered, as specified. This bill would specify that a student loan servicer under the Student Loan Servicing Act, is subject to the UCL. Existing law, the Rosenthal Fair Debt Collection Practices Act, regulates the collection of consumer debts by debt collectors, as defined. Under existing law, a debt collector who violates the act is liable to a debtor for actual damages resulting from the violation, and is subject to additional civil penalties for any willful or knowing violation of the act, and other specified remedies. Existing law also makes certain violations of the act punishable as a crime. The bill would specify that a student loan is a debt that is subject to the Rosenthal Fair Debt Collection Practices Act. The bill would further specify that a transaction giving rise to a student loan is a consumer credit transaction for purposes of the Rosenthal Fair Debt Collection Practices Act. By expanding the scope of an existing crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Who sponsors CA AB 866?

Ortega is the primary sponsor of CA AB 866.

Description

Existing law, the Student Loan Servicing Act, prohibits a person from engaging in the business of servicing a student loan in California without first obtaining a license. Existing law commits the administration of these provisions to the Commissioner of Financial Protection and Innovation and grants the commissioner various powers in this regard, including the authority to conduct investigations of applicants and licensees. Existing law, the Unfair Competition Law (UCL) , makes various practices unlawful and makes a person who engages, has engaged, or proposes to engage in unfair competition liable for a civil penalty, as specified. Existing law authorizes actions for relief prosecuted under the UCL to be brought by certain public attorneys and requires the penalty collected from those actions to be paid to the treasurer of the county or city in which the judgment is entered, as specified. This bill would specify that a student loan servicer under the Student Loan Servicing Act, is subject to the UCL. Existing law, the Rosenthal Fair Debt Collection Practices Act, regulates the collection of consumer debts by debt collectors, as defined. Under existing law, a debt collector who violates the act is liable to a debtor for actual damages resulting from the violation, and is subject to additional civil penalties for any willful or knowing violation of the act, and other specified remedies. Existing law also makes certain violations of the act punishable as a crime. The bill would specify that a student loan is a debt that is subject to the Rosenthal Fair Debt Collection Practices Act. The bill would further specify that a transaction giving rise to a student loan is a consumer credit transaction for purposes of the Rosenthal Fair Debt Collection Practices Act. By expanding the scope of an existing crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Introduced
—
Latest action
2025-08-29 — In committee: Held under submission.
Bill type
bill
Last updated
—

Subjects

Sponsors

  • Ortegaauthor

Committees

Not provided by source.

Action timeline

  1. 2025-02-19

    Read first time. To print.

    reading-1

  2. 2025-02-20

    From printer. May be heard in committee March 22.

  3. 2025-03-10

    Referred to Coms. on B.&F. and JUD.

    referral-committee

  4. 2025-03-13

    Re-referred to Coms. on JUD. and B.&F. pursuant to Assembly Rule 96.

    referral-committee

  5. 2025-04-08

    From committee: Do pass and re-refer to Com. on B. & F. (Ayes 12. Noes 0.) (April 8). Re-referred to Com. on B. & F.

    committee-passage,committee-passage-favorable,referral-committee

  6. 2025-04-28

    Joint Rule 62(a) suspended. (Page 1307.)

  7. 2025-04-29

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (April 28). Re-referred to Com. on APPR.

    committee-passage,committee-passage-favorable,referral-committee

  8. 2025-05-14

    In committee: Set, first hearing. Referred to APPR. suspense file.

    referral-committee

  9. 2025-05-23

    From committee: Do pass. (Ayes 14. Noes 0.) (May 23).

    committee-passage,committee-passage-favorable

  10. 2025-05-27

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  11. 2025-06-02

    Read third time. Passed. Ordered to the Senate. (Ayes 79. Noes 0. Page 1860.)

    passage,reading-1,reading-3

  12. 2025-06-03

    In Senate. Read first time. To Com. on RLS. for assignment.

    reading-1,referral-committee

  13. 2025-06-11

    Referred to Coms. on B. & F.I. and JUD.

    referral-committee

  14. 2025-07-03

    From committee: Do pass and re-refer to Com. on JUD. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (July 2). Re-referred to Com. on JUD.

    committee-passage,committee-passage-favorable,referral-committee

  15. 2025-07-16

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 13. Noes 0.) (July 15). Re-referred to Com. on APPR.

    committee-passage,committee-passage-favorable,referral-committee

  16. 2025-08-18

    In committee: Referred to suspense file.

    referral-committee

  17. 2025-08-29

    In committee: Held under submission.

Versions

Documents

Votes

  • Do pass and be re-referred to the Committee on [Banking and Finance]

    2025-04-08 · pass · 12-0

    Member-level votes (12)
    • Dixon: yes
    • Tangipa: yes
    • Zbur: yes
    • Kalra: yes
    • Papan: yes
    • Bryan: yes
    • Pacheco: yes
    • Connolly: yes
    • Harabedian: yes
    • Sanchez: yes
    • Wicks: yes
    • Stefani: yes

  • Do pass and be re-referred to the Committee on [Appropriations]

    2025-04-28 · pass · 9-0

    Member-level votes (9)
    • Michelle Rodriguez: yes
    • Blanca Rubio: yes
    • Valencia: yes
    • Schiavo: yes
    • Soria: yes
    • Krell: yes
    • Dixon: yes
    • Chen: yes
    • Fong: yes

  • Do pass.

    2025-05-23 · pass · 14-0

    Member-level votes (15)
    • Calderon: yes
    • Elhawary: yes
    • Dixon: yes
    • Hart: yes
    • Mark González: yes
    • Arambula: yes
    • Pacheco: yes
    • Solache: yes
    • Ta: yes
    • Caloza: yes
    • Wicks: yes
    • Pellerin: yes
    • Fong: yes
    • Tangipa: yes
    • Sanchez: other

  • AB 866 Ortega Assembly Third Reading

    2025-06-02 · pass · 79-0

    Member-level votes (79)
    • Rivas: yes
    • Rogers: yes
    • Wicks: yes
    • Irwin: yes
    • Arambula: yes
    • Caloza: yes
    • Ward: yes
    • Nguyen: yes
    • Patel: yes
    • Solache: yes
    • Chen: yes
    • Bonta: yes
    • McKinnor: yes
    • Pacheco: yes
    • DeMaio: yes
    • Celeste Rodriguez: yes
    • Castillo: yes
    • Sanchez: yes
    • Schultz: yes
    • Hadwick: yes
    • Lee: yes
    • Bryan: yes
    • Michelle Rodriguez: yes
    • Mark González: yes
    • Patterson: yes
    • Carrillo: yes
    • Muratsuchi: yes
    • Papan: yes
    • Jeff Gonzalez: yes
    • Ransom: yes
    • Wallis: yes
    • Elhawary: yes
    • Davies: yes
    • Macedo: yes
    • Sharp-Collins: yes
    • Berman: yes
    • Jackson: yes
    • Wilson: yes
    • Lackey: yes
    • Bennett: yes
    • Petrie-Norris: yes
    • Harabedian: yes
    • Ellis: yes
    • Aguiar-Curry: yes
    • Connolly: yes
    • Quirk-Silva: yes
    • Soria: yes
    • Tangipa: yes
    • Gipson: yes
    • Alvarez: yes
    • Hoover: yes
    • Ta: yes
    • Zbur: yes
    • Flora: yes
    • Valencia: yes
    • Addis: yes
    • Garcia: yes
    • Gallagher: yes
    • Krell: yes
    • Ahrens: yes
    • Stefani: yes
    • Calderon: yes
    • Blanca Rubio: yes
    • Lowenthal: yes
    • Schiavo: yes
    • Gabriel: yes
    • Dixon: yes
    • Ávila Farías: yes
    • Fong: yes
    • Ramos: yes
    • Pellerin: yes
    • Kalra: yes
    • Alanis: yes
    • Haney: yes
    • Hart: yes
    • Boerner: yes
    • Bauer-Kahan: yes
    • Ortega: yes
    • Bains: yes

  • Do pass, but first be re-referred to the Committee on [Judiciary] with the recommendation: To Consent Calendar

    2025-07-02 · pass · 7-0

    Member-level votes (7)
    • Hurtado: yes
    • Niello: yes
    • Strickland: yes
    • Limón: yes
    • Richardson: yes
    • Grayson: yes
    • Cervantes: yes

  • Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar

    2025-07-15 · pass · 13-0

    Member-level votes (13)
    • Caballero: yes
    • Niello: yes
    • Ashby: yes
    • Wahab: yes
    • Laird: yes
    • Umberg: yes
    • Weber Pierson: yes
    • Wiener: yes
    • Stern: yes
    • Valladares: yes
    • Allen: yes
    • Arreguín: yes
    • Durazo: yes

  • Placed on suspense file

    2025-08-18 · pass · 7-0

    Member-level votes (7)
    • Richardson: yes
    • Seyarto: yes
    • Caballero: yes
    • Cabaldon: yes
    • Dahle: yes
    • Wahab: yes
    • Grayson: yes

Related bills

No related bills recorded for this bill.

Official source

http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB866

Attribution

Data from openstates_bulk_csv, retrieved 2026-07-24T01:34:27.960412Z

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