Bill would bar classifying property managers as third‑party debt collectors pending appeal

Senator Ben Kramer presented SB589, a bill clarifying that property managers are not third‑party debt collectors. He cited a recent circuit court decision and said the attorney general's office nonetheless was pursuing licensing that would require managers to obtain debt‑collector licenses and post bonds. "Property managers manage property... That does not make them third party debt collectors," Kramer said, reading from the court's finding that legislative history does not support treating incidental collectors as debt‑collection agencies.

Committee members discussed the practical consequences. Delegate Adams said judges are throwing out landlord cases when landlords lack a debt‑collector license; Kramer replied that the bill (as amended) would signal legislative intent not to pursue licensing while the appellate process plays out. Kramer said the measure had passed unanimously out of the Finance Committee and was amended to "stay all action pending the outcome of the appellate courts."

Supporters argued the change would reduce courtroom chaos and regulatory burden on property managers; opponents were not recorded in this hearing. The committee concluded the SB589 hearing with the sponsor asking for a favorable report.