2002 Legislation
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SENATE BILL NO. 1407 – Commercial trnsactn, sale/loan/etc

SENATE BILL NO. 1407

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Daily Data Tracking History



S1407.......................................by COMMERCE AND HUMAN RESOURCES
COMMERCIAL TRANSACTIONS - Amends, repeals and adds to existing law relating
to commercial transactions to revise the list of activities that constitute
a sale, loan or modification of a sale or loan; to revise a definition; to
authorize the director of the Department of Finance to issue certain orders
with respect to unconscionable agreements or fraudulent or unconscionable
conduct; and to strike a prohibition against imposition of certain
statutory civil penalties in regard to unconscionable agreements or
fraudulent or unconscionable conduct; and to provide for the relationship
to other laws.
                                                                        
02/08    Senate intro - 1st rdg - to printing
02/11    Rpt prt - to Com/HuRes
02/20    Rpt out - rec d/p - to 2nd rdg
02/21    2nd rdg - to 3rd rdg
02/26    3rd rdg - PASSED - 32-1-2
      AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Burtenshaw,
      Cameron, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Goedde,
      Hill, Ingram, Ipsen, Keough, King-Barrutia, Little, Lodge, Marley,
      Noh, Richardson, Risch, Sandy, Sims, Sorensen, Stegner, Stennett,
      Thorne, Wheeler, Williams
      NAYS -- Schroeder
      Absent and excused -- Bunderson, Hawkins
    Floor Sponsor - Hill
    Title apvd - to House
02/27    House intro - 1st rdg - to Com/HuRes
03/06    Rpt out - ref'd to Bus
03/08    Rpt out - rec d/p - to 2nd rdg
03/11    2nd rdg - to 3rd rdg
    Rls susp - PASSED - 64-0-6
      AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Block, Boe, Bolz,
      Bradford, Bruneel, Callister, Campbell, Clark, Collins, Cuddy, Deal,
      Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner,
      Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck, Jaquet,
      Jones, Kellogg, Kendell, Kunz, Lake, Langford, Loertscher, Martinez,
      McKague, Meyer, Montgomery, Mortensen, Moyle, Pearce, Pischner,
      Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali, Schaefer,
      Sellman, Shepherd, Smith(33), Smylie, Stevenson, Stone, Tilman,
      Trail, Wheeler, Young, Mr. Speaker
      NAYS -- None
      Absent and excused -- Bieter, Black, Crow, Mader, Smith(23), Wood
    Floor Sponsor - Ellis
    Title apvd - to Senate
03/12    To enrol
03/13    Rpt enrol - Pres signed
    Sp signed
03/14    To Governor
03/26    Governor signed
         Session Law Chapter 301
         Effective: 07/01/02

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1407
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO COMMERCIAL TRANSACTIONS; AMENDING SECTION 28-41-201,  IDAHO  CODE,
  3        TO  REVISE THE LIST OF ACTIVITIES THAT CONSTITUTE A SALE, LOAN, OR MODIFI-
  4        CATION OF A SALE OR LOAN FOR PURPOSES OF APPLICATION OF CHAPTER 41,  TITLE
  5        28,  IDAHO  CODE,  AND  TO  MAKE  A TECHNICAL CORRECTION; AMENDING SECTION
  6        28-41-302, IDAHO CODE, TO REVISE A DEFINITION; AMENDING SECTION 28-45-201,
  7        IDAHO  CODE,  TO  PROVIDE  A  CORRECT  CODE  REFERENCE;  AMENDING  SECTION
  8        28-46-108, IDAHO CODE, TO AUTHORIZE THE  DIRECTOR  OF  THE  DEPARTMENT  OF
  9        FINANCE  TO ISSUE CERTAIN ORDERS WITH RESPECT TO UNCONSCIONABLE AGREEMENTS
 10        OR FRAUDULENT OR UNCONSCIONABLE CONDUCT; AMENDING SECTION 28-46-113, IDAHO
 11        CODE, TO STRIKE A PROHIBITION  AGAINST  IMPOSITION  OF  CERTAIN  STATUTORY
 12        CIVIL  PENALTIES  IN  REGARD TO UNCONSCIONABLE AGREEMENTS OR FRAUDULENT OR
 13        UNCONSCIONABLE CONDUCT AND TO MAKE A TECHNICAL  CORRECTION;  AMENDING  THE
 14        HEADING  TO CHAPTER 49, TITLE 28, IDAHO CODE; REPEALING SECTION 28-49-101,
 15        IDAHO CODE; AMENDING CHAPTER 49, TITLE 28, IDAHO CODE, BY THE ADDITION  OF
 16        A  NEW  SECTION  28-49-101, IDAHO CODE, TO PROVIDE FOR THE RELATIONSHIP TO
 17        OTHER LAWS; AND REPEALING SECTIONS  28-49-102,  28-49-103,  28-49-104  AND
 18        28-49-106, IDAHO CODE.
                                                                        
 19    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 20        SECTION 1.  That Section 28-41-201, Idaho Code, be, and the same is hereby
 21    amended to read as follows:
                                                                        
 22        28-41-201.  TERRITORIAL  APPLICATION.  (1) Except as otherwise provided in
 23    this section, this act applies to sales and loans made in this  state  and  to
 24    modifications,  including refinancings, consolidations, and deferrals, made in
 25    this state, of sales and loans, wherever made. For  purposes  of  this  act  a
 26    sale, loan, or modification of a sale or loan is made in this state if:
 27        (a)  A  sale  or modification of a sale agreement is made in this state if
 28        the buyer's written agreement evidencing the obligation or offer  to  pur-
 29        chase  or  to modify of the consumer is received by the seller creditor in
 30        this state; and or
 31        (b)  A loan or modification of a loan agreement is made in consumer who is
 32        a resident of this state if a writing signed by the debtor and  evidencing
 33        the  debt is received by the lender in this state enters into the transac-
 34        tion with a creditor who has solicited or advertised in this state by  any
 35        means  including,  but  not  limited to, mail, brochure, telephone, print,
 36        radio, television, internet or any other electronic means.
 37        (2)  With respect to sales made pursuant  to  open-end  credit,  this  act
 38    applies  if the buyer's communication or indication of his intention to estab-
 39    lish the account is received by the seller in this state. If no  communication
 40    or  indication  of intention is given by the buyer before the first sale, this
 41    act applies if the seller's communication notifying the buyer of the privilege
 42    of using the account is mailed or personally delivered in this state  Notwith-
 43    standing subsection (1)(b) of this section, unless made subject to this act by
                                                                        
                                           2
                                                                        
  1    agreement  of  the parties, a sale, loan, or modification of a sale or loan is
  2    not made in this state if a resident of this state enters into the transaction
  3    while physically present in another state.
  4        (3)  With respect to loans made pursuant to a lender credit card or  simi-
  5    lar  arrangement, this act applies if the debtor's communication or indication
  6    of his intention to establish the arrangement with the lender is  received  by
  7    the  lender  in  this state. If no communication or indication of intention is
  8    given by the debtor before the first loan, this act applies  if  the  lender's
  9    communication  notifying  the debtor of the privilege of using the arrangement
 10    is mailed or personally delivered in this state.
 11        (4)  The part on limitations on creditors' remedies, part 1 of the chapter
 12    on remedies and penalties, chapter  45,  title  28,  Idaho  Code,  applies  to
 13    actions  or  other proceedings brought in this state to enforce rights arising
 14    from regulated credit sales or regulated loans, or extortionate extensions  of
 15    credit, wherever made.
 16        (54)  If  a  regulated  credit  sale  or  regulated  loan, or modification
 17    thereof, is made in another state to a person who is a resident of this  state
 18    when  the  sale, loan, or modification is made, the following provisions apply
 19    as though the transaction occurred in this state:
 20        (a)  A seller, lender, or assignee of his rights, may not collect  charges
 21        through  actions  or other proceedings in excess of those permitted by the
 22        chapter on finance charges and related provisions; and
 23        (b)  A seller, lender, or assignee of his rights, may not  enforce  rights
 24        against  the buyer or debtor, with respect to the provisions of agreements
 25        which violate the provisions on limitations on agreements  and  practices,
 26        part 3 of chapter 43, title 28, Idaho Code.
 27        (65)  Except as provided in subsection (43), a sale, loan, or modification
 28    thereof,  made  in  another  state  to a person who was not a resident of this
 29    state when the sale, loan or modification was made is  valid  and  enforceable
 30    according  to  its  terms to the extent that it is valid and enforceable under
 31    the laws of the state applicable to the transaction.
 32        (76)  For the purposes of this act, the residence of a buyer or debtor  is
 33    the address given by him as his residence in any writing signed by him in con-
 34    nection  with a credit transaction. Until he notifies the creditor of a new or
 35    different address, the given address is presumed to be unchanged.
 36        (87)  Notwithstanding other provisions of this section:
 37        (a)  Except as provided in subsection (43), this act does not apply if the
 38        buyer or debtor is not a resident of this state at the time  of  a  credit
 39        transaction  and  the  parties  then  agree  that the law of his residence
 40        applies; and
 41        (b)  This act applies if the buyer or debtor is a resident of  this  state
 42        at  the  time  of a credit transaction and the parties then agree that the
 43        law of this state applies.
 44        (98)  Except as provided in subsection (87), the following agreements by a
 45    buyer or debtor are invalid with respect to regulated credit sales,  regulated
 46    loans, or modifications thereof, to which this act applies:
 47        (a)  That the law of another state shall apply;
 48        (b)  That  the  buyer  or  debtor  consents to the jurisdiction of another
 49        state; and
 50        (c)  That fixes venue.
 51        (109)  The following provisions of this act  specify  the  applicable  law
 52    governing certain cases:
 53        (a)  Applicability,  section  28-46-102, Idaho Code, of the part on powers
 54        and functions of administrator, part 1, of the chapter on  administration,
 55        chapter 46, title 28, Idaho Code; and
                                                                        
                                           3
                                                                        
  1        (b)  Applicability,  section 28-46-201, Idaho Code, of the part on notifi-
  2        cation and fees, part 2, of the chapter  on  administration,  chapter  46,
  3        title 28, Idaho Code.
                                                                        
  4        SECTION 2.  That Section 28-41-302, Idaho Code, be, and the same is hereby
  5    amended to read as follows:
                                                                        
  6        28-41-302.  FEDERAL CONSUMER CREDIT PROTECTION ACT -- DEFINED. In this act
  7    "Federal  Consumer Credit Protection Act" means the consumer credit protection
  8    act, Public Law 90-321; 82 Stat. 146, as amended, including,  without  limita-
  9    tion,  as amended by the Truth-in-Lending Simplification and Reform Act, Title
 10    VI of Public Law 96-221, and as the same may be further amended to and includ-
 11    ing January 1, 2002, or a subsequent date  if  so  defined  by  administrative
 12    rule,  and includes regulations issued pursuant to that act, as it has been so
 13    amended by the Truth-in-Lending Simplification and Reform Act and as the  same
 14    may  be further amended to and including January 1, 2002, or a subsequent date
 15    if so defined by administrative rule.
                                                                        
 16        SECTION 3.  That Section 28-45-201, Idaho Code, be, and the same is hereby
 17    amended to read as follows:
                                                                        
 18        28-45-201.  EFFECT OF VIOLATIONS ON RIGHTS OF PARTIES. (1) If  a  creditor
 19    has  violated  any  provision  of this act applying to collection of an excess
 20    charge or  amount  or  enforcement  of  rights,  subsection  (54)  of  section
 21    28-41-201,  Idaho  Code,  authority  to make regulated consumer loans, section
 22    28-46-301, Idaho Code, restrictions on interests in land as security,  section
 23    28-43-309,  Idaho  Code, limitations on the schedule of payments or loan terms
 24    for regulated consumer loans, section 28-43-310, Idaho Code, attorney's  fees,
 25    section  28-43-311, Idaho Code, receipts, statements of account, and evidences
 26    of payment, section 28-43-204, Idaho Code,  form  of  insurance  premium  loan
 27    agreement,   section   28-43-205,  Idaho  Code,  security  in  sales,  section
 28    28-43-301, Idaho Code, no assignments of earnings,  section  28-43-304,  Idaho
 29    Code,  certain  negotiable  instruments  prohibited,  section 28-43-306, Idaho
 30    Code, referral sales, section 28-43-308, Idaho Code,  limitations  on  default
 31    charges,  section  28-45-301,  Idaho  Code,  assignees  subject  to claims and
 32    defenses, subsection (3) of section 28-45-302, Idaho  Code,  or  assurance  of
 33    discontinuance,  section  28-46-109,  Idaho  Code,  the  debtor has a cause of
 34    action to recover actual damages and also a right in an action  other  than  a
 35    class  action,  to  recover from the person violating this act a penalty in an
 36    amount determined by the court not less than one hundred  dollars  ($100)  nor
 37    more  than  one  thousand dollars ($1,000). With respect to violations arising
 38    from consumer credit sales or consumer loans made pursuant to open-end credit,
 39    no action pursuant to this subsection may be brought more than two  (2)  years
 40    after  the  violations occurred. With respect to violations arising from other
 41    regulated consumer credit transactions, no action pursuant to this  subsection
 42    may be brought more than one (1) year after the scheduled or accelerated matu-
 43    rity of the debt.
 44        (2)  A  debtor  is not obligated to pay a charge in excess of that allowed
 45    by this act and has a right of refund of any excess charge paid. A refund  may
 46    be  made  by  reducing  the  debtor's  obligation  by the amount of the excess
 47    charge. If the debtor has paid an amount in excess of  the  lawful  obligation
 48    under  the agreement, the debtor may recover the excess amount from the person
 49    who made the excess charge or from an assignee of  that  person's  rights  who
 50    undertakes direct collection of payments from or enforcement of rights against
 51    debtors arising from the debt.
                                                                        
                                           4
                                                                        
  1        (3)  If  a  creditor  has contracted for or received a charge in excess of
  2    that allowed by this act, or if a debtor is entitled to a refund and a  person
  3    liable  to the debtor  refuses to make a refund within a reasonable time after
  4    demand, the debtor may recover from the creditor or the person  liable  in  an
  5    action  other  than  a  class  action a penalty in an amount determined by the
  6    court not less than one hundred dollars ($100) nor more than one thousand dol-
  7    lars ($1,000). With respect to excess charges  arising  from  consumer  credit
  8    sales  or  consumer loans made pursuant to open-end credit, no action pursuant
  9    to this subsection may be brought more than two (2) years after the  violation
 10    or  passage  of  a  reasonable  time for refund occurs. With respect to excess
 11    charges arising from other regulated consumer credit transactions,  no  action
 12    pursuant  to  this  subsection may be brought more than one (1) year after the
 13    scheduled or accelerated maturity of the debt. For purposes  of  this  subsec-
 14    tion, a reasonable time is presumed to be thirty (30) days.
 15        (4)  Except as otherwise provided, a violation of this act does not impair
 16    rights on a debt.
 17        (5)  If  an employer discharges an employee in violation of the provisions
 18    prohibiting discharge, section 28-45-105,  Idaho  Code,  the  employee  within
 19    ninety  (90)  days  may  bring  a civil action for recovery of wages lost as a
 20    result of the violation and  for  an  order  requiring  reinstatement  of  the
 21    employee. Damages recoverable shall not exceed lost wages for six (6) weeks.
 22        (6)  A creditor is not liable for a penalty under subsection (1) or (3) of
 23    this  section  if  he  notifies  the debtor of a violation before the creditor
 24    receives from the debtor written notice of the violation  or  the  debtor  has
 25    brought  an action under this section, and the creditor corrects the violation
 26    within forty-five (45) days after notifying the debtor. If the violation  con-
 27    sists  of  a  prohibited  agreement, giving the debtor a corrected copy of the
 28    writing containing the violation is sufficient notification and correction. If
 29    the violation consists of an excess charge, correction shall  be  made  by  an
 30    adjustment  or  refund.  The  administrator and any official or agency of this
 31    state having supervisory authority over a  supervised  financial  organization
 32    shall give prompt notice to a creditor of any violation discovered pursuant to
 33    an  examination  or  investigation of the transactions, business, records, and
 34    acts of the creditor, sections 28-46-305, 28-46-105 and 28-46-106, Idaho Code.
 35        (7)  A creditor may not be held liable in an  action  brought  under  this
 36    section  for  a violation of this act if the creditor shows by a preponderance
 37    of evidence that the violation was not intentional and resulted  from  a  bona
 38    fide  error,  notwithstanding the maintenance of procedures reasonably adapted
 39    to avoid the error.
 40        (8)  In an action in which it is found that a creditor has  violated  this
 41    act,  the  court  shall  award  to  the debtor the costs of the action and his
 42    attorney's fees. In determining the attorney's fees, the amount of the  recov-
 43    ery on behalf of the debtor is not controlling.
                                                                        
 44        SECTION 4.  That Section 28-46-108, Idaho Code, be, and the same is hereby
 45    amended to read as follows:
                                                                        
 46        28-46-108.  ADMINISTRATIVE  ENFORCEMENT ORDERS. (1) After notice and hear-
 47    ing the administrator may order a creditor or a person acting in his behalf to
 48    cease and desist from violating this act. A respondent aggrieved by  an  order
 49    of  the administrator may obtain judicial review of the order and the adminis-
 50    trator may obtain an order of the court for enforcement of his  order  in  the
 51    district  court. The proceeding for review or enforcement is initiated by fil-
 52    ing a petition in the court. Copies of the petition shall be served  upon  all
 53    parties of record.
                                                                        
                                           5
                                                                        
  1        (2)  Within thirty (30) days after service of the petition for review upon
  2    the  administrator,  or within any further time the court allows, the adminis-
  3    trator shall transmit  to the court the original or a certified  copy  of  the
  4    entire  record upon which the order is based, including any transcript of tes-
  5    timony, which need not be printed. By stipulation of all parties to the review
  6    proceeding, the record may be shortened. After hearing, the court may:
  7        (a)  Reverse or modify the order if the findings of fact of  the  adminis-
  8        trator  are clearly erroneous in view of the reliable, probative, and sub-
  9        stantial evidence on the whole record;
 10        (b)  Grant temporary relief or restraining order it deems just; and
 11        (c)  Enter an order enforcing, modifying and  enforcing  as  modified,  or
 12        setting  aside  in  whole  or  in  part the order of the administrator, or
 13        remanding the case to the administrator for further proceedings.
 14        (3)  An objection not urged at the hearing shall not be considered by  the
 15    court  unless  the  failure  to  urge  the objection is excused for good cause
 16    shown. A party may move the court to remand the case to the  administrator  in
 17    the  interest  of justice for the purpose of adducing additional specified and
 18    material evidence and seeking findings thereon upon good cause shown  for  the
 19    failure to adduce this evidence before the administrator.
 20        (4)  The  jurisdiction of the court shall be exclusive and its final judg-
 21    ment or decree is subject to review by the supreme court in  the  same  manner
 22    and  form  and  with  the  same  effect as in appeals from a final judgment or
 23    decree. The administrator's copy of the testimony shall be available  at  rea-
 24    sonable times to all parties for examination without cost.
 25        (5)  A  proceeding for review under this section shall be initiated within
 26    thirty (30) days after a copy of the order of the administrator  is  received.
 27    If no proceeding is so initiated, the administrator may obtain an order of the
 28    court  for  enforcement of his order upon showing that his order was issued in
 29    compliance with this section, that no  proceeding  for  review  was  initiated
 30    within  thirty  (30) days after a copy of the order was received, and that the
 31    respondent is subject to the jurisdiction of the court.
 32        (6)  With respect to unconscionable agreements or fraudulent or unconscio-
 33    nable conduct by the respondent persons licensed to  make  regulated  consumer
 34    loans,  the  administrator may not issue an order pursuant to this section but
 35    may bring a civil action for an injunction, section 28-46-111, Idaho Code,  or
 36    any  other  action  which  the administrator is authorized to bring under this
 37    act.
 38        (7)  With respect to unconscionable agreements or fraudulent or unconscio-
 39    nable conduct by an unlicensed person, the administrator may issue a cease and
 40    desist order without prior notice or hearing, and may bring a civil action for
 41    an injunction, or any other action which the administrator  is  authorized  to
 42    bring under this act.
                                                                        
 43        SECTION 5.  That Section 28-46-113, Idaho Code, be, and the same is hereby
 44    amended to read as follows:
                                                                        
 45        28-46-113.  CIVIL ACTIONS BY ADMINISTRATOR. (1) After demand, the adminis-
 46    trator  may  bring a civil action against a creditor to recover actual damages
 47    sustained and excess charges paid by one (1) or more debtors who have a  right
 48    to  recover  explicitly granted by this act. In a civil action under this sub-
 49    section, penalties may not be recovered by the administrator. The court  shall
 50    order amounts recovered under this subsection to be paid to each debtor or set
 51    off  against  his  obligation. A debtor's action, except a class action, takes
 52    precedence over a prior or subsequent action by the administrator with respect
 53    to the claim of that debtor. A debtor's class action takes precedence  over  a
                                                                        
                                           6
                                                                        
  1    subsequent  action  by the administrator with respect to claims common to both
  2    actions, but the administrator may intervene.  An  administrator's  action  on
  3    behalf of a class of debtors takes precedence over a debtor's subsequent class
  4    action with respect to claims common to both actions. Whenever an action takes
  5    precedence over another action under this subsection, the latter action may be
  6    stayed  to  the  extent  appropriate while the precedent action is pending and
  7    dismissed if the precedent action is dismissed with prejudice or results in  a
  8    final judgment granting or denying the claim asserted in the precedent action.
  9    A defense available to a creditor in a civil action brought  by  a  debtor  is
 10    available to him in a civil action brought under this subsection.
 11        (2)  The  administrator  may  bring a civil action against a creditor or a
 12    person acting in his behalf to recover a civil penalty of no  more  than  five
 13    thousand dollars ($5,000) for repeatedly and intentionally violating this act.
 14    A civil penalty pursuant to this subsection may not be imposed for a violation
 15    of this act occurring more than two (2) years before the action is brought. or
 16    for  making unconscionable agreements or engaging in a course of fraudulent or
 17    unconscionable conduct.
 18        (3)  The administrator may bring a civil action  against  a  creditor  for
 19    failure  to  file  notification in accordance with the provisions on notifica-
 20    tion, section 28-46-202, Idaho Code, or to pay fees  in  accordance  with  the
 21    provisions  on  fees,  section  28-46-203, Idaho Code, to recover the fees the
 22    defendant has failed to pay and a civil penalty in an amount determined by the
 23    court not exceeding the greater of three (3) times  the  amount  of  fees  the
 24    defendant  has  failed  to  pay  or  one  thousand  dollars ($1,000), plus the
 25    administrator's costs and attorney's fees.
                                                                        
 26        SECTION 6.  That the heading for Chapter 49, Title 28, Idaho Code, be, and
 27    the same is hereby amended to read as follows:
                                                                        
 28                                      CHAPTER 49
 29                RELATIONSHIP TO OTHER LAWS, EFFECTIVE DATE, REPEALER,
 30                          AND OVERRIDE OF FEDERAL PREEMPTION
                                                                        
 31        SECTION 7.  That Section 28-49-101, Idaho Code, be, and the same is hereby
 32    repealed.
                                                                        
 33        SECTION 8.  That Chapter 49, Title 28, Idaho Code, be,  and  the  same  is
 34    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 35    ignated as Section 28-49-101, Idaho Code, and to read as follows:
                                                                        
 36        28-49-101.  RELATIONSHIP TO OTHER LAWS. (1) All political subdivisions  of
 37    this state shall be prohibited from enacting and enforcing ordinances, resolu-
 38    tions  and  regulations  pertaining  to the financial or lending activities of
 39    persons who:
 40        (a)  Are subject to the jurisdiction of the department of finance  of  the
 41        state of Idaho, including activities subject to this chapter;
 42        (b)  Are  subject  to  the  jurisdiction  or regulatory supervision of the
 43        board of governors of the federal reserve system, the office of the  comp-
 44        troller  of  the  currency, the office of thrift supervision, the national
 45        credit union administration, the federal  deposit  insurance  corporation,
 46        the  federal  trade  commission or the United States department of housing
 47        and urban development; or
 48        (c)  Originate, purchase, sell, assign,  securitize  or  service  property
 49        interests  or obligations created by financial transactions or loans made,
 50        executed or originated by persons referred  to  in  subsection  (1)(a)  or
                                                                        
                                           7
                                                                        
  1        (1)(b) of this section or assist or facilitate such transactions.
  2        (2)  The requirements of this section shall apply to all ordinances, reso-
  3    lutions and regulations pertaining to financial or lending activities, includ-
  4    ing  any  ordinances,  resolutions  or  regulations disqualifying persons from
  5    doing business with a political subdivision based upon  financial  or  lending
  6    activities  or  imposing  reporting requirements or any other obligations upon
  7    persons regarding financial or lending activities.
                                                                        
  8        SECTION 9.  That Sections 28-49-102, 28-49-103, 28-49-104  and  28-49-106,
  9    Idaho Code, be, and the same are hereby repealed.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                            RS 12020

The purposes of this legislation are to (1) expand the
jurisdiction of the Idaho Credit Code to lenders who solicit or
advertise in Idaho, thereby providing the Code's protections to
Idaho residents who enter into loans with out-of-state companies;
(2)enable the Department to issue Cease and Desist Orders to
address unconscionable conduct; and (3) enable the Department to
request fines for unconscionable conduct in actions brought in
District Court.
                          FISCAL IMPACT

There is no fiscal impact to the General Fund.

Contact
Name: Mary E. Hughes, Finance, Dept. of 
Phone: 208-332-8060




STATEMENT OF PURPOSE/FISCAL NOTE                        S 1407