2004 Legislation
Print Friendly

HOUSE JOINT MEMORIAL NO. 20 – Consumer protection, state enforce

HOUSE JOINT MEMORIAL NO. 20

View Bill Status

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Bill Status



HJM020.....................................................by STATE AFFAIRS
CONSUMER PROTECTION - Stating findings of the Legislature and stating the
commitment of the Legislature to maintain the role of the states in the
enforcement of consumer protection laws and in dual regulation of financial
institutions and opposing any federal rule that undermines this state
authority.
                                                                        
02/17    House intro - 1st rdg - to printing
02/18    Rpt prt - to 2nd rdg
02/19    2nd rdg - to 3rd rdg
02/23    3rd rdg - ADOPTED - voice vote
    Floor Sponsor - Black
    Title apvd - to Senate
02/24    Senate intro - 1st rdg - to St Aff
03/15    Rpt out - rec d/p - to 10th Ord
03/18    10th Ord - ADOPTED - voice vote
    Floor Sponsor - Little
    Title apvd - to House
03/18    To enrol - Rpt enrol - Sp signed
03/19    Pres signed - To Secretary of State

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                HOUSE JOINT MEMORIAL NO. 20
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                   A JOINT MEMORIAL
  2    TO THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED  STATES  IN  CONGRESS
  3        ASSEMBLED,  AND  TO THE CONGRESSIONAL DELEGATION REPRESENTING THE STATE OF
  4        IDAHO IN THE CONGRESS OF THE UNITED STATES.
                                                                        
  5        We, your Memorialists, the House of Representatives and the Senate of  the
  6    State  of  Idaho  assembled in the Second Regular Session of the Fifty-seventh
  7    Idaho Legislature, do hereby respectfully represent that:
                                                                        
  8        WHEREAS, state financial regulators and attorneys general have a long his-
  9    tory of protecting consumers from predatory lending and other lending  abuses;
 10    and
 11        WHEREAS,   state  financial  regulators  aggressively  promote  access  to
 12    healthy, comprehensive, and competitive financial services for their citizens;
 13    and
 14        WHEREAS, on January 7, 2004, the federal Office of the Comptroller of  the
 15    Currency  (OCC)  finalized  rules  that preempt most state consumer protection
 16    laws and enforcement of those laws as they  apply  to  national  banks,  their
 17    operating subsidiaries and agents; and
 18        WHEREAS,  the  sweeping  OCC  rules reach beyond preempting state laws and
 19    enforcement for national banks, and also prohibit the states  from  licensing,
 20    examining  and otherwise regulating state-chartered corporations that are sub-
 21    sidiaries of national banks,  like  mortgage  brokers  and  mortgage  lenders,
 22    finance companies, and other nondepository lending companies; and
 23        WHEREAS,  the OCC has no office in Idaho, is not listed in Idaho telephone
 24    books, and has no other local presence in Idaho,  and  under  the  OCC  rules,
 25    Idaho  consumers with complaints regarding national banks and their subsidiar-
 26    ies would be referred to one OCC office in Texas; and
 27        WHEREAS, the OCC ignored calls from members of Congress, the National Gov-
 28    ernors Association, National Association of Attorneys General,  National  Con-
 29    ference  of  State  Legislatures,  Conference of State Bank Supervisors, North
 30    American Securities Administrators Association, American Association of  Resi-
 31    dential  Mortgage  Regulators,  major  consumer  groups  and  state  financial
 32    regulators, for congressional oversight and review of the impact of the rules,
 33    and finalized the rules while Congress was in recess; and
 34        WHEREAS,  the  OCC  preemption  threatens to undermine the unique American
 35    dual banking system that promotes the strongest banking market  in  the  world
 36    and provides critical fuel to the economy of the United States; and
 37        WHEREAS,  the  OCC's rules radically rewrite the time-honored standard for
 38    federal preemption of state laws as interpreted by courts and intended by Con-
 39    gress; and
 40        WHEREAS, the federalist system is based upon  belief  in  a  decentralized
 41    government, with authority given to the states and the federal government, and
 42    the  OCC's rules centralize regulatory power in the hands of a single individ-
 43    ual - the Comptroller; and
 44        WHEREAS, Congress has authority over this federal regulatory  agency  that
                                                                        
                                       2
                                                                        
  1    is not operating in the best interest of the nation's banking system and econ-
  2    omy; and
  3        WHEREAS,  both  houses of Congress have either held or scheduled oversight
  4    hearings to address the OCC's preemption rules.
  5        NOW, THEREFORE, BE IT RESOLVED by the members of the Second  Regular  Ses-
  6    sion  of the Fifty-seventh Idaho Legislature, the House of Representatives and
  7    the Senate concurring therein, that the  Idaho  Legislature  is  committed  to
  8    maintaining  the role of the states in enforcement of consumer protection laws
  9    and in dual regulation of financial institutions, and it opposes  any  federal
 10    rule   that  undermines  this  state  authority,  including  the  OCC's  rules
 11    preempting state consumer  protection  laws  and  enforcement  that  apply  to
 12    national banks, their operating subsidiaries and agents.
 13        BE  IT  FURTHER  RESOLVED that the Legislature of the State of Idaho urges
 14    Congress to carefully review the actions of the OCC, reestablish a balance  of
 15    power  between  state  and  federal laws in a way that benefits consumers, all
 16    financial institutions and our economy, restore the dual banking  system,  and
 17    reassert its authority over federal banking policy.
 18        BE  IT  FURTHER  RESOLVED that the Chief Clerk of the House of Representa-
 19    tives be, and she is hereby authorized and directed to forward a copy of  this
 20    Memorial to the President of the Senate and the Speaker of the House of Repre-
 21    sentatives  of  Congress,  and  the  congressional delegation representing the
 22    State of Idaho in the Congress of the United States.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 14111

The purpose of this House of Representatives Joint Memorial is to
notify the United States Senate and House of Representatives and
Idaho's congressional delegation that the Legislature of the
State of Idaho is opposed to the rules finalized by the Office of
the Comptroller of the Currency (OCC) that preempt most state
consumer protection laws and enforcement of those laws as they
apply to national banks, their operating subsidiaries and agents. 
Both Houses of Congress have either held or scheduled oversight
hearings to address the OCC's preemption rules.  The joint
memorial urges Congress to carefully review the rules, and act to
reassert its authority over federal banking policy.


                          FISCAL IMPACT
There will be no fiscal impact to the general fund.


Contact
Name: Rep. Max Black 
Phone: 208/332-1000




STATEMENT OF PURPOSE/FISCAL NOTE                     HJM 020