VA SB421 | 2020 | Regular Session

Status

Completed Legislative Action
Spectrum: Moderate Partisan Bill (Democrat 10-2)
Status: Passed on April 22 2020 - 100% progression
Action: 2020-04-22 - Governor: Acts of Assembly Chapter text (CHAP1258)
Text: Latest bill text (Chaptered) [HTML]

Summary

Consumer lending. Replaces references to payday loans with the term "short-term loans." The measure caps the interest and fees that may be charged under a short-term loan at an annual rate of 36 percent, plus a maintenance fee; increases the maximum amount of such loans from $500 to $2,500; and sets the duration of such loans at a minimum of four months, subject to exceptions, and a maximum of 24 months. Short-term loan licensees are required to make a reasonable attempt to verify a borrower's income and may not collect fees and charges that exceed 50 percent of the original loan amount if such amount is equal to or less than $1,500 and 60 percent of the original loan amount if such amount is greater than $1,500. The measure amends the requirements for motor vehicle title loans, including requiring licensed lenders to use a database to determine a prospective borrower's eligibility for a loan and prohibiting loans to a borrower who has an outstanding short-term loan. The measure sets a 36-percent annual interest rate cap on open-end credit plans and allows a $50 annual participation fee. A violation of these provisions is made a prohibited practice under the Virginia Consumer Protection Act. The measure amends provisions of the Consumer Finance Act to, among other things, allow licensed lenders to use the services of access partners and establish requirements that loans be between $300 and $35,000; be repayable in substantially equal installment payments; have a term of no fewer than six and no more than 120 months; charge not more than 36 percent annual interest and a loan processing fee; and require licensees to post a bond. The measure prohibits credit service businesses from advertising, offering, or performing other services in connection with an extension of credit that has an annual interest rate exceeding 36 percent, is for less than $5,000, has a term of less than one year, or is provided under an open-end credit plan. The bill has a delayed effective date of January 1, 2021, and requires any person who would be required to be licensed under the provisions of the act to apply for a license by October 1, 2020.

Tracking Information

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Title

Consumer lending; replaces references to payday loans with term "short-term loans."

Sponsors


Roll Calls

2020-05-01 - House - House: VOTE: (52-Y 33-N) (Y: 52 N: 32 NV: 15 Abs: 0) [PASS]
2020-04-22 - Senate - Senate: Senate concurred in Governor's recommendation (22-Y 18-N) (Y: 21 N: 18 NV: 0 Abs: 0) [PASS]
2020-04-22 - Senate - Senate: Reconsideration of Governor's recommendation agreed to (37-Y 0-N) (Y: 36 N: 0 NV: 3 Abs: 0) [PASS]
2020-04-22 - Senate - Senate: Senate rejected Governor's recommendation (19-Y 21-N) (Y: 18 N: 21 NV: 0 Abs: 0) [FAIL]
2020-04-22 - Senate - Senate: Reconsideration of Governor's recommendation agreed to (40-Y 0-N) (Y: 39 N: 0 NV: 0 Abs: 0) [PASS]
2020-04-22 - Senate - Senate: Senate concurred in Governor's recommendation (21-Y 18-N) (Y: 20 N: 18 NV: 1 Abs: 0) [PASS]
2020-02-21 - House - House: VOTE: Passage (61-Y 36-N) (Y: 61 N: 35 NV: 3 Abs: 0) [PASS]
2020-02-18 - House - House: Reported from Labor and Commerce (13-Y 8-N) (Y: 13 N: 8 NV: 1 Abs: 0) [PASS]
2020-02-10 - Senate - Senate: Passed Senate (23-Y 16-N) (Y: 22 N: 16 NV: 1 Abs: 0) [PASS]
2020-02-10 - Senate - Senate: Constitutional reading dispensed (39-Y 0-N) (Y: 38 N: 0 NV: 1 Abs: 0) [PASS]
2020-02-10 - Senate - Senate: Amendment by Senator Norment rejected (18-Y 21-N) (Y: 18 N: 20 NV: 1 Abs: 0) [FAIL]
2020-02-10 - Senate - Senate: Engrossment reconsidered by Senate (39-Y 0-N) (Y: 38 N: 0 NV: 1 Abs: 0) [PASS]
2020-02-05 - Senate - Senate: Constitutional reading dispensed (40-Y 0-N) (Y: 39 N: 0 NV: 0 Abs: 0) [PASS]
2020-02-04 - Senate - Senate: Reported from Finance and Appropriations with amendments (11-Y 5-N) (Y: 11 N: 5 NV: 0 Abs: 0) [PASS]
2020-01-27 - Senate - Senate: Reported from Commerce and Labor with substitute (11-Y 4-N) (Y: 10 N: 4 NV: 0 Abs: 0) [PASS]

History

DateChamberAction
2020-04-22 Governor: Acts of Assembly Chapter text (CHAP1258)
2020-04-22HouseEnacted, Chapter 1258 (effective - see bill)
2020-04-22HouseSigned by Speaker as reenrolled
2020-04-22SenateSigned by President as reenrolled
2020-04-22SenateReenrolled bill text (SB421ER2)
2020-04-22SenateReenrolled
2020-04-22 Governor: Governor's recommendation adopted
2020-04-22HouseVOTE: (52-Y 33-N)
2020-04-22HouseHouse concurred in Governor's recommendation (52-Y 33-N)
2020-04-22SenateSenate concurred in Governor's recommendation (22-Y 18-N)
2020-04-22SenateReconsideration of Governor's recommendation agreed to (37-Y 0-N)
2020-04-22SenateSenate rejected Governor's recommendation (19-Y 21-N)
2020-04-22SenateReconsideration of Governor's recommendation agreed to (40-Y 0-N)
2020-04-22SenateSenate concurred in Governor's recommendation (21-Y 18-N)
2020-04-11SenateGovernor's recommendation received by Senate
2020-03-12 Governor: Governor's Action Deadline 11:59 p.m., April 11, 2020
2020-03-12SenateEnrolled Bill Communicated to Governor on March 12, 2020
2020-03-07SenateBill text as passed Senate and House (SB421ER)
2020-03-07SenateEnrolled
2020-02-21HouseVOTE: Passage (61-Y 36-N)
2020-02-21HousePassed House (61-Y 36-N)
2020-02-21HouseRead third time
2020-02-21HouseMotion to reconsider pass by for the day agreed to
2020-02-21HousePassed by for the day
2020-02-20HouseRead second time
2020-02-18HouseReported from Labor and Commerce (13-Y 8-N)
2020-02-13HouseReferred to Committee on Labor and Commerce
2020-02-13HouseRead first time
2020-02-13HousePlaced on Calendar
2020-02-10SenatePassed Senate (23-Y 16-N)
2020-02-10SenateConstitutional reading dispensed (39-Y 0-N)
2020-02-10SenateReengrossed by Senate as amended SB421ES1
2020-02-10SenateAmendment by Senator Norment rejected (18-Y 21-N)
2020-02-10SenateReading of amendment waived
2020-02-10SenateEngrossment reconsidered by Senate (39-Y 0-N)
2020-02-07SenatePassed by for the day
2020-02-06SenatePrinted as engrossed 20106645D-ES1
2020-02-06SenateEngrossed by Senate - committee substitute with amendments SB421ES1
2020-02-06SenateCommittee amendments agreed to
2020-02-06SenateReading of amendments waived
2020-02-06SenateCommittee substitute agreed to 20106645D-S1
2020-02-06SenateReading of substitute waived
2020-02-06SenateRead second time
2020-02-05SenateConstitutional reading dispensed (40-Y 0-N)
2020-02-04SenateReported from Finance and Appropriations with amendments (11-Y 5-N)
2020-01-27SenateRereferred to Finance and Appropriations
2020-01-27SenateCommittee substitute printed 20106645D-S1
2020-01-27SenateIncorporates SB38 (Surovell)
2020-01-27SenateIncorporates SB37 (Surovell)
2020-01-27SenateReported from Commerce and Labor with substitute (11-Y 4-N)
2020-01-07SenateReferred to Committee on Commerce and Labor
2020-01-07SenatePrefiled and ordered printed; offered 01/08/20 20104657D

Same As/Similar To

HB789 (Same As) 2020-04-22 - Governor: Acts of Assembly Chapter text (CHAP1215)

Code Citations

ChapterArticleSectionCitation TypeStatute Text
591200(n/a)See Bill Text
591335.5(n/a)See Bill Text
621500(n/a)See Bill Text
621501(n/a)See Bill Text
621507(n/a)See Bill Text
621520(n/a)See Bill Text
621523(n/a)See Bill Text
621523.1(n/a)See Bill Text
621523.2(n/a)See Bill Text
621532.3(n/a)See Bill Text
621800(n/a)See Bill Text
621801(n/a)See Bill Text
621803(n/a)See Bill Text
621804(n/a)See Bill Text
621807(n/a)See Bill Text
621809(n/a)See Bill Text
621810(n/a)See Bill Text
621811(n/a)See Bill Text
621816(n/a)See Bill Text
621816.1(n/a)See Bill Text
621817(n/a)See Bill Text
621817.1(n/a)See Bill Text
621818(n/a)See Bill Text
621818.1(n/a)See Bill Text
621818.4(n/a)See Bill Text
621819(n/a)See Bill Text
621820(n/a)See Bill Text
621827(n/a)See Bill Text
621828(n/a)See Bill Text
622200(n/a)See Bill Text
622201(n/a)See Bill Text
622203(n/a)See Bill Text
622204(n/a)See Bill Text
622207(n/a)See Bill Text
622209.1(n/a)See Bill Text
622210(n/a)See Bill Text
622215(n/a)See Bill Text
622215.1(n/a)See Bill Text
622216(n/a)See Bill Text
622216.1(n/a)See Bill Text
622216.5(n/a)See Bill Text
622217(n/a)See Bill Text
622218.1(n/a)See Bill Text
622224(n/a)See Bill Text
622225(n/a)See Bill Text
622226(n/a)See Bill Text
62303(n/a)See Bill Text
62312(n/a)See Bill Text
62435(n/a)See Bill Text

Virginia State Sources

TypeSource
Summaryhttps://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+SB421&201+sum+SB421
Texthttp://lis.virginia.gov/cgi-bin/legp604.exe?201+ful+SB421+hil
Texthttp://lis.virginia.gov/cgi-bin/legp604.exe?201+ful+SB421S1+hil
Texthttp://lis.virginia.gov/cgi-bin/legp604.exe?201+ful+SB421ES1+hil
Texthttp://lis.virginia.gov/cgi-bin/legp604.exe?201+ful+SB421ER+hil
Texthttp://lis.virginia.gov/cgi-bin/legp604.exe?201+ful+SB421ER2+hil
Texthttp://lis.virginia.gov/cgi-bin/legp604.exe?201+ful+CHAP1258+hil
Roll Callhttp://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+S02V0042+SB0421
Roll Callhttp://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+S05V0155+SB0421
Roll Callhttp://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+SV0357SB0421+SB0421
Roll Callhttp://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+SV0420SB0421+SB0421
Roll Callhttp://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+SV0421SB0421+SB0421
Roll Callhttp://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+SV0422SB0421+SB0421
Roll Callhttp://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+SV0423SB0421+SB0421
Roll Callhttp://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+H14V0265+SB0421
Roll Callhttp://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+HV1148+SB0421
Roll Callhttp://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+SV1975SB0421+SB0421
Roll Callhttp://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+SV1997SB0421+SB0421
Roll Callhttp://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+SV1998SB0421+SB0421
Roll Callhttp://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+SV2004SB0421+SB0421
Roll Callhttp://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+SV2005SB0421+SB0421
Roll Callhttp://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+HV2253+SB0421

Bill Comments

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