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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
]]]] 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 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