Assembly panel advances bill to raise small-business small-claims cap to $15,000

Assemblymember Chen presented AB 18 27 to the Assembly Judiciary Committee and asked members to adopt committee amendments and advance the bill. Chen said the proposal ‘‘moderniz[es] the small claim system’’ for businesses by increasing the jurisdictional limit and allowing businesses to bring up to three small-claims actions per year instead of facing costly superior-court litigation.

Supporters told the committee the current $6,250 cap is outdated. Melissa Cortez, speaking "on behalf of the California Association of Collectors," said the state's low small-claims limit leaves a gap for mid-level disputes that are too large for small claims but too small to justify full civil litigation. "This framework leaves a gap for mid level disputes," Cortez said, and the bill's updates "reflect today's economic realities and better serve both small businesses and consumers." She also said sponsors will work with the Judicial Council to address noted concerns.

The measure, as presented, maintains core small-claims safeguards: attorney representation would remain prohibited, procedures would stay simple, and judges would retain discretion and oversight. Committee members voiced support for the bill as a common-sense change that helps small businesses recover legitimate debts without resorting to superior-court filings.

A motion to move AB 18 27 was offered and seconded; on roll call the committee moved the bill to the appropriations committee. The chair announced, "That bill is out." No opposition was recorded during the hearing.

The bill now goes to the Assembly Appropriations Committee for fiscal review and further consideration.