SB91 Alabama 2016 Session

Sponsors

Session

Regular Session 2016

Title

Payday loans, deferred presentment services, expand licensure requirements, further regulate deferred presentment services, penalties for evading licensure requirements, Secs. 5-18A-3, 5-18A-6, 5-18A-12, 5-18A-13 am'd.

Description

<p class="bill_description"> Under existing law, a license is required for any person engaged in the business of deferred presentment services</p><p class="bill_description"> This bill would expand the licensure requirement for persons engaged in the business of deferred presentment services to include services offered by mail, telephone, Internet, mobile device application, or in person</p><p class="bill_description"> This bill would increase the nonrefundable license fee and provide that one half of the increase would be paid to the State Banking Department and one half to the General Fund</p><p class="bill_description"> This bill would provide that a person who attempts to evade the licensure requirement for the business of deferred presentment services would be guilty of a criminal offense and would provide penalties</p><p class="bill_description"> This bill would further regulate the business of deferred presentment services by regulating the fees, interest, number of loans, term of a loan, finance charges, and repayment of a loan</p><p class="bill_description"> Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose</p><p class="bill_description"> The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment</p><p class="bill_entitled_an_act"> To amend Sections 5-18A-3, 5-18A-6, 5-18A-12, and 5-18A-13, Code of Alabama 1975, relating to the business of deferred presentment services; to increase the nonrefundable license fee and provide that one half of the increase would be paid to the State Banking Department and one half to the General Fund; to expand the licensure requirements for any person engaged in the business of deferred presentment services to include services offered by mail, telephone, Internet, mobile device application, or in person; to provide that a person who attempts to evade the licensure requirement for the business of deferred presentment services would be guilty of a criminal offense; to provide penalties; to further regulate the business of deferred presentment services by regulating the fees, interest, number of loans, term of a loan, finance charges, and repayment of a loan; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended. </p>

Subjects

Banks and Banking