Under existing law, a license is required for any person engaged in the business of deferred presentment services.
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.
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.
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.
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.
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.
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.
Further Consideration
Financial Services first Amendment Offered
Garrett Motion to Carry Over Temporarily adopted Voice Vote
Financial Services first Substitute Offered
Third Reading Carried Over
Read for the second time and placed on the calendar with 1 substitute and 1 amendment
Read for the first time and referred to the House of Representatives committee on Financial Services
Engrossed
Motion to Read a Third Time and Pass adopted Roll Call 515
Orr motion to Table adopted Roll Call 514
Singleton Amendment Offered
Orr motion to Table adopted Roll Call 513
Dial first Substitute Offered
Holtzclaw motion to Adopt adopted Roll Call 512
Holtzclaw Amendment Offered
Third Reading Passed
Marsh motion to Carry Over adopted Voice Vote
Orr motion to Adopt Lost Roll Call 340
Orr Amendment Offered
Third Reading Carried Over
Read for the second time and placed on the calendar
Read for the first time and referred to the Senate committee on Banking and Insurance
Source: Alabama Legislature