Under current law, a person may not operate as a collection agency unless the
person is licensed as a collection agency by the Division of Banking in the
Department of Financial Institutions (division). A "collection agency" is defined as
a person engaging in the business of collecting or receiving for payment for others
of any account, bill, or other indebtedness, but the definition also contains specific
exceptions, including those for attorneys, banks, express companies, insurers, and
real estate brokers and salespersons. A collection agency is subject to regulation by
the division and to certain laws regulating its operations.

This bill creates an exception from the definition of "collection agency" for
health care billing companies. As a result, health care billing companies are not
regulated as collection agencies by the division and are not subject to laws governing
collection agencies.