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H0587...........................................................by BUSINESS
IDAHO CREDIT CODE - Amends and repeals existing law relating to the Idaho
Credit Code to revise the definition for "regulated lender"; to revise
provisions applicable to willful and knowing violations; to remove language
authorizing the administrator to bring certain civil actions; to repeal
provisions relating to applicability, notification, fees and taxes; to
provide that certain persons are exempt from requirements; to revise
provisions applicable to licenses to make regulated consumer loans; to
revise provisions applicable to records and annual reports; to exempt
certain supervised financial organizations from licensing requirements; to
remove language requiring an investigation fee; to clarify the continuing
nature of certain requirements; and to revise provisions applicable to
payday loan license applications.
02/08 House intro - 1st rdg - to printing
02/09 Rpt prt - to Bus
02/22 Rpt out - rec d/p - to 2nd rdg
02/23 2nd rdg - to 3rd rdg
02/27 3rd rdg - PASSED - 68-0-2
AYES -- Andrus, Barraclough, Barrett, Bastian, Bayer, Bedke, Bell,
Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon,
Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez,
Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen,
Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
Rydalch, Sali(Sali), Sayler, Schaefer, Shepherd(2), Shepherd(8),
Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson,
Trail, Wills, Mr. Speaker
NAYS -- None
Absent and excused -- Anderson, Wood
Floor Sponsor - Rusche
Title apvd - to Senate
02/28 Senate intro - 1st rdg - to Com/HuRes
03/08 Rpt out - rec d/p - to 2nd rdg
03/09 2nd rdg - to 3rd rdg
03/14 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Compton
Title apvd - to House
03/15 To enrol
03/16 Rpt enrol - Sp signed
03/17 Pres signed - To Governor
03/22 Governor signed
Session Law Chapter 122
Effective: 01/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 587
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO COMMERCIAL TRANSACTIONS; AMENDING SECTION 28-41-201, IDAHO CODE,
3 TO REMOVE CODE REFERENCES AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SEC-
4 TION 28-41-301, IDAHO CODE, TO REVISE THE DEFINITION FOR "REGULATED
5 LENDER," TO REVISE A CODE REFERENCE AND TO MAKE TECHNICAL CORRECTIONS;
6 AMENDING SECTION 28-45-401, IDAHO CODE, TO REVISE PROVISIONS APPLICABLE TO
7 WILLFUL AND KNOWING VIOLATIONS; AMENDING SECTION 28-46-108, IDAHO CODE, TO
8 REVISE TERMINOLOGY AND TO REFERENCE PERSONS REQUIRED TO BE LICENSED FOR
9 PURPOSES OF CERTAIN ADMINISTRATIVE ENFORCEMENT ORDERS; AMENDING SECTION
10 28-46-113, IDAHO CODE, TO REMOVE LANGUAGE AUTHORIZING THE ADMINISTRATOR TO
11 BRING CERTAIN CIVIL ACTIONS; REPEALING PART 2, CHAPTER 46, TITLE 28, IDAHO
12 CODE, RELATING TO APPLICABILITY, NOTIFICATION AND FEES AND TAXES; AMENDING
13 SECTION 28-46-301, IDAHO CODE, TO REVISE PROVISIONS APPLICABLE TO THE
14 AUTHORITY TO MAKE REGULATED CONSUMER LOANS; AMENDING SECTION 28-46-302,
15 IDAHO CODE, TO REVISE PROVISIONS APPLICABLE TO LICENSES TO MAKE REGULATED
16 CONSUMER LOANS AND TO REVISE AND REMOVE CODE REFERENCES; AMENDING SECTION
17 28-46-303, IDAHO CODE, TO REFERENCE CONDITIONS EXISTING AT THE TIME OF
18 APPLICATION; AMENDING SECTION 28-46-304, IDAHO CODE, TO REVISE PROVISIONS
19 APPLICABLE TO RECORDS AND ANNUAL REPORTS; AMENDING SECTION 28-46-305,
20 IDAHO CODE, TO PROVIDE THAT THE ADMINISTRATOR MAY EXAMINE RECORDS, TO PRO-
21 VIDE REFERENCES TO REGULATED LENDERS AND TO REMOVE LANGUAGE REQUIRING A
22 FEE FOR INVESTIGATION PURPOSES; AMENDING SECTION 28-46-402, IDAHO CODE, TO
23 EXEMPT CERTAIN SUPERVISED FINANCIAL ORGANIZATIONS FROM LICENSING REQUIRE-
24 MENTS; AMENDING SECTION 28-46-403, IDAHO CODE, TO REMOVE LANGUAGE PROVID-
25 ING FOR THE APPROVAL AUTHORITY OF THE ADMINISTRATOR AND TO CLARIFY THE
26 CONTINUING NATURE OF CERTAIN REQUIREMENTS; AMENDING SECTION 28-46-404,
27 IDAHO CODE, TO REVISE PROVISIONS APPLICABLE TO PAYDAY LOAN LICENSE APPLI-
28 CATIONS; AMENDING SECTION 28-46-407, IDAHO CODE, TO REFERENCE THE FAILURE
29 TO PAY ANY FEES; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICA-
30 TION.
31 Be It Enacted by the Legislature of the State of Idaho:
32 SECTION 1. That Section 28-41-201, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 28-41-201. TERRITORIAL APPLICATION. (1) Except as otherwise provided in
35 this section, this act applies to sales and loans made in this state and to
36 modifications, including refinancings, consolidations, and deferrals, made in
37 this state, of sales and loans, wherever made. For purposes of this act a
38 sale, loan, or modification of a sale or loan is made in this state if:
39 (a) A written agreement evidencing the obligation or offer of the con-
40 sumer is received by the creditor in this state; or
41 (b) A consumer who is a resident of this state enters into the transac-
42 tion with a creditor who has solicited or advertised in this state by any
43 means including, but not limited to, mail, brochure, telephone, print,
2
1 radio, television, internet or any other electronic means.
2 (2) Notwithstanding subsection (1)(b) of this section, unless made sub-
3 ject to this act by agreement of the parties, a sale, loan, or modification of
4 a sale or loan is not made in this state if a resident of this state enters
5 into the transaction while physically present in another state.
6 (3) The part on limitations on creditors' remedies, part 1 of the chapter
7 on remedies and penalties, chapter 45, title 28, Idaho Code, applies to
8 actions or other proceedings brought in this state to enforce rights arising
9 from regulated credit sales or regulated loans, or extortionate extensions of
10 credit, wherever made.
11 (4) If a regulated credit sale or regulated loan, or modification
12 thereof, is made in another state to a person who is a resident of this state
13 when the sale, loan, or modification is made, the following provisions apply
14 as though the transaction occurred in this state:
15 (a) A seller, lender, or assignee of his rights, may not collect charges
16 through actions or other proceedings in excess of those permitted by the
17 chapter on finance charges and related provisions; and
18 (b) A seller, lender, or assignee of his rights, may not enforce rights
19 against the buyer or debtor, with respect to the provisions of agreements
20 which violate the provisions on limitations on agreements and practices,
21 part 3 of chapter 43, title 28, Idaho Code.
22 (5) Except as provided in subsection (3) of this section, a sale, loan,
23 or modification thereof, made in another state to a person who was not a resi-
24 dent of this state when the sale, loan or modification was made is valid and
25 enforceable according to its terms to the extent that it is valid and enforce-
26 able under the laws of the state applicable to the transaction.
27 (6) For the purposes of this act, the residence of a buyer or debtor is
28 the address given by him as his residence in any writing signed by him in con-
29 nection with a credit transaction. Until he notifies the creditor of a new or
30 different address, the given address is presumed to be unchanged.
31 (7) Notwithstanding other provisions of this section:
32 (a) Except as provided in subsection (3) of this section, this act does
33 not apply if the buyer or debtor is not a resident of this state at the
34 time of a credit transaction and the parties then agree that the law of
35 his residence applies; and
36 (b) This act applies if the buyer or debtor is a resident of this state
37 at the time of a credit transaction and the parties then agree that the
38 law of this state applies.
39 (8) Except as provided in subsection (7) of this section, the following
40 agreements by a buyer or debtor are invalid with respect to regulated credit
41 sales, regulated loans, or modifications thereof, to which this act applies:
42 (a) That the law of another state shall apply;
43 (b) That the buyer or debtor consents to the jurisdiction of another
44 state; and
45 (c) That fixes venue.
46 (9) The following provisions of this act specify the applicable law gov-
47 erning certain cases:
48 (a) Applicability, section 28-46-102, Idaho Code, of the part on powers
49 and functions of administrator, part 1, of the chapter on administration,
50 chapter 46, title 28, Idaho Code; and
51 (b) Applicability, section 28-46-201, Idaho Code, of the part on notifi-
52 cation and fees, part 2, of the chapter on administration, chapter 46,
53 title 28, Idaho Code.
54 SECTION 2. That Section 28-41-301, Idaho Code, be, and the same is hereby
3
1 amended to read as follows:
2 28-41-301. GENERAL DEFINITIONS. (1) "Actuarial method" means the method,
3 defined by rules adopted by the administrator, of allocating payments made on
4 a debt between principal or amount financed and loan finance charge or credit
5 service charge pursuant to which a payment is applied first to the accumulated
6 loan finance charge or credit service charge and the balance is applied to the
7 unpaid principal or unpaid amount financed.
8 (2) "Administrator" means the administrator designated in section
9 28-46-103, Idaho Code.
10 (3) "Agreement" means the bargain of the parties in fact as found in
11 their language or by implication from other circumstances including course of
12 dealing or usage of trade or course of performance.
13 (4) "Agricultural purpose" means a purpose related to the production,
14 harvest, exhibition, marketing, transportation, processing, or manufacture of
15 agricultural products by a natural person who cultivates, plants, propagates,
16 or nurtures the agricultural products. "Agricultural products" includes agri-
17 cultural, horticultural, viticultural, and dairy products, livestock, wild-
18 life, poultry, bees, forest products, fish and shellfish, and any products
19 thereof, including processed and manufactured products, and any and all prod-
20 ucts raised or produced on farms and any processed or manufactured products
21 thereof.
22 (5) "Amount financed" means the total of the following items:
23 (a) In the case of a sale, the cash price of the goods, services, or
24 interest in land, less the amount of any down payment made in cash or in
25 property traded in, and the amount actually paid or to be paid by the
26 seller pursuant to an agreement with the buyer to discharge a security
27 interest in, a lien on, or a debt with respect to property traded in;
28 (b) In case of a loan, the net amount paid to, receivable by, or paid or
29 payable for the account of the debtor, plus the amount of any discount
30 excluded from the finance charge, paragraph (b)(iii) of subsection (198);
31 and
32 (c) In the case of a loan, to the extent that payment is, or payments
33 are, deferred and the amount is not otherwise included and is authorized
34 and disclosed to the debtor as required by law, amounts actually paid or
35 to be paid by the creditor for registration, certificate of title, or
36 license fees.
37 (6) "Billing cycle" means the time interval between periodic billing
38 statement dates.
39 (7) "Business purpose" means any purpose except a consumer purpose. For
40 purposes of this act, a credit transaction:
41 (a) Engaged in by a debtor for an agricultural purpose; or
42 (b) Engaged in by a debtor for an investment purpose; or
43 (c) Creating a debt secured by a first mortgage or first deed of trust on
44 real property; or
45 (d) In which the debtor is an organization, rather than a natural person;
46 is considered to be for a business purpose.
47 (8) "Card issuer" means a person who issues a credit card.
48 (9) "Cardholder" means a person to whom a credit card is issued or who
49 has agreed with the card issuer to pay obligations arising from the issuance
50 to or use of the card by another person.
51 (10) "Cash price" means the price of goods, services, or an interest in
52 land at which the goods, services, or interest in land are offered for sale by
53 the seller to cash buyers in the ordinary course of business, except as the
54 administrator may otherwise prescribe by rule, and may include:
4
1 (a) Applicable sales, use, and excise and documentary stamp taxes;
2 (b) The cash price of accessories or related services such as delivery,
3 installation, servicing, repairs, alterations, and improvements; and
4 (c) Amounts actually paid or to be paid by the seller for registration,
5 certificate of title, or license fees.
6 The cash price stated by the seller to the buyer pursuant to the provi-
7 sions on disclosure, part 2 of chapter 43, title 28, Idaho Code, is presumed
8 to be the cash price.
9 (11) "Conspicuous" means a term or clause is conspicuous when it is so
10 written that a reasonable person against whom it is to operate ought to have
11 noticed it. Whether a term or clause is conspicuous or not is for decision by
12 the court.
13 (12) "Consumer purpose" means primarily a personal, family or household
14 purpose. For purposes of this act, consumer purpose does not include a credit
15 transaction:
16 (a) Engaged in by a debtor for an agricultural purpose; or
17 (b) Engaged in by a debtor for an investment purpose; or
18 (c) Creating a debt secured by a first mortgage or first deed of trust on
19 real property; or
20 (d) In which the debtor is an organization, rather than a natural person.
21 (13) "Credit" means the right granted by a creditor to a debtor to defer
22 payment of debt, to incur debt and defer its payment, or to purchase property
23 or services and defer payment therefor.
24 (14) "Credit card" means a card or device issued under an arrangement pur-
25 suant to which a card issuer gives to a cardholder the privilege of obtaining
26 credit from the card issuer or other person in purchasing or leasing property
27 or services, obtaining loans, or otherwise. A transaction is "pursuant to a
28 credit card" only if credit is obtained according to the terms of the arrange-
29 ment by transmitting information contained on the card or device orally, in
30 writing, by mechanical or electronic methods, or in any other manner. A trans-
31 action is not "pursuant to a credit card" if the card or device is used solely
32 in that transaction to:
33 (a) Identify the cardholder or evidence his credit-worthiness and credit
34 is not obtained according to the terms of the arrangement;
35 (b) Obtain a guarantee of payment from the cardholder's deposit account,
36 whether or not the payment results in a credit extension to the cardholder
37 by the card issuer; or
38 (c) Effect an immediate transfer of funds from the cardholder's deposit
39 account by electronic or other means, whether or not the transfer results
40 in a credit extension to the cardholder by the card issuer.
41 (15) "Creditor" means the person who grants credit in a regulated credit
42 transaction or, except as otherwise provided, an assignee of a creditor's
43 right to payment, but use of the term does not itself impose on an assignee
44 any obligation of his assignor. In case of credit granted pursuant to a credit
45 card, "creditor" means the card issuer and not another person honoring the
46 credit card.
47 (16) "Debtor" means the person to whom credit is granted in a regulated
48 credit transaction.
49 (17) "Earnings" means compensation paid or payable by an employer to an
50 employee, or for his account, for personal services rendered or to be rendered
51 by him, whether denominated as wages, salary, commission, bonus, or otherwise,
52 and includes periodic payments pursuant to a pension, retirement, or disabil-
53 ity program.
54 (18) "Finance charge":
55 (a) Except as provided in paragraph (b) of this subsection, "finance
5
1 charge" means the sum of any of the following types of charges payable
2 directly or indirectly by the debtor and imposed directly or indirectly by
3 the creditor as an incident to or as a condition of the extension of
4 credit, as applicable:
5 1.(i) Interest or any amount payable under a point, discount, or
6 other system of charges, however denominated;
7 2.(ii) Time-price differential, credit service, service, carrying,
8 or other charge, however denominated;
9 3.(iii) Premium or other charge for any guarantee or insurance pro-
10 tecting the creditor against the debtor's default or other credit
11 loss; and
12 4.(iv) Charges incurred for investigating the collateral or credit-
13 worthiness of the debtor or for commissions or brokerage for obtain-
14 ing the credit, irrespective of the person to whom the charges are
15 paid or payable, unless the creditor had no notice of the charges
16 when the credit was granted.
17 (b) The term does not include:
18 1.(i) Charges as a result of default or delinquency if made for
19 actual unanticipated late payment, delinquency, default, or other
20 like occurrence, unless the parties agree that these charges are
21 finance charges; a charge is not made for actual unanticipated late
22 payment, delinquency, default or other like occurrence if imposed on
23 an account that is or may be debited from time to time for purchases
24 or other debts and, under its terms, payment in full or of a speci-
25 fied amount is required when billed, and in the ordinary course of
26 business the debtor is permitted to continue to have purchases or
27 other debts debited to the account after imposition of the charge;
28 2.(ii) Deferral charges, section 28-42-3032, Idaho Code; or
29 3.(iii) A discount, if a creditor purchases or satisfies obligations
30 of a cardholder pursuant to a credit card and the purchase or satis-
31 faction is made at less than the face amount of the obligation.
32 (19) "Goods" includes goods not in existence at the time the transaction
33 is entered into and merchandise certificates, but excludes money, chattel
34 paper, documents of title, and instruments.
35 (20) "Insurance premium loan" means a regulated consumer loan that:
36 (a) Is made for the sole purpose of financing the payment by or on behalf
37 of an insured of the premium on one (1) or more policies or contracts
38 issued by or on behalf of an insurer;
39 (b) Is secured by an assignment by the insured to the lender of the
40 unearned premium on the policy or contract; and
41 (c) Contains an authorization to cancel the policy or contract financed.
42 (21) "Lender," except as otherwise provided, includes an assignee of a
43 lender's right to payment, but use of the term does not in itself impose on an
44 assignee any obligation of the lender.
45 (22) "Lender credit card" means a credit card issued by a regulated
46 lender.
47 (23) (a) "Loan" means, except as provided in paragraph (b) of this sub-
48 section:
49 1.(i) The creation of debt by the lender's payment of or agreement
50 to pay money to the debtor or to a third person for the account of
51 the debtor;
52 2.(ii) The creation of debt pursuant to a lender credit card in any
53 manner, including a cash advance or the card issuer's honoring a
54 draft or similar order for the payment of money drawn or accepted by
55 the debtor, paying or agreeing to pay the debtor's obligation, or
6
1 purchasing or otherwise acquiring the debtor's obligation from the
2 obligee or his assignees;
3 3.(iii) The creation of debt by a cash advance to a debtor pursuant
4 to a seller credit card;
5 4.(iv) The creation of debt by a credit to an account with the
6 lender upon which the debtor is entitled to draw immediately; and
7 5.(v) The forbearance of debt arising from a loan.
8 (b) "Loan" does not include:
9 1.(i) A card issuer's payment or agreement to pay money to a third
10 person for the account of a debtor if the debt of the debtor arises
11 from a sale and results from use of a seller credit card; or
12 2.(ii) The forbearance of debt arising from a sale.
13 (24) "Merchandise certificate" means a writing not redeemable in cash and
14 usable in its face amount in lieu of cash in exchange for goods or services.
15 (25) "Open-end credit" means an arrangement pursuant to which:
16 (a) A creditor may permit a debtor, from time to time, to purchase on
17 credit from the creditor or pursuant to a credit card, or to obtain loans
18 from the creditor or pursuant to a credit card;
19 (b) The amounts financed and the finance and other appropriate charges
20 are debited to an account;
21 (c) The finance charge, if made, is computed on the account periodically;
22 and
23 (d) Either the debtor has the privilege of paying in full or in
24 installments or the creditor periodically imposes charges computed on the
25 account for delaying payment and permits the debtor to continue to pur-
26 chase on credit.
27 (26) "Organization" means a corporation, government or governmental subdi-
28 vision or agency, trust, estate, partnership, cooperative, or association.
29 (27) "Payable in installments" means that payment is required or permitted
30 by agreement to be made in:
31 (a) Two (2) or more periodic payments, excluding a down payment, with
32 respect to a debt arising from a regulated consumer credit sale pursuant
33 to which a finance charge is made;
34 (b) Four (4) or more periodic payments, excluding a down payment, with
35 respect to a debt arising from a regulated consumer credit sale pursuant
36 to which no finance charge is made; or
37 (c) Two (2) or more periodic payments with respect to a debt arising from
38 a regulated consumer loan. If any periodic payment other than the down
39 payment under an agreement requiring or permitting two (2) or more peri-
40 odic payments is more than twice the amount of any other periodic payment,
41 excluding the down payment, the regulated consumer credit sale or regu-
42 lated consumer loan is "payable in installments."
43 (28) "Person" includes a natural person or an individual, and an organiza-
44 tion.
45 (29) "Person related to" with respect to an individual means:
46 (a) The spouse of the individual;
47 (b) A brother, brother-in-law, sister, or sister-in-law of the individ-
48 ual;
49 (c) An ancestor or lineal descendant of the individual or his spouse; and
50 (d) Any other relative, by blood or marriage, of the individual or his
51 spouse who shares the same home with the individual.
52 "Person related to" with respect to an organization means:
53 (a) A person directly or indirectly controlling, controlled by or under
54 common control with the organization;
55 (b) An officer or director of the organization or a person performing
7
1 similar functions with respect to the organization or to a person related
2 to the organization;
3 (c) The spouse of a person related to the organization; and
4 (d) A relative by blood or marriage of a person related to the organiza-
5 tion who shares the same home with him.
6 (30) "Precomputed credit transaction" means a credit transaction in which
7 the debt is a sum comprising the amount financed and the amount of the finance
8 charge computed in advance. A disclosure required by the Federal Consumer
9 Credit Protection Act does not in itself make a finance charge or transaction
10 precomputed.
11 (31) "Presumed" or "presumption" means that the trier of fact must find
12 the existence of the fact presumed unless and until evidence is introduced
13 which would support a finding of its nonexistence.
14 (32) "Regulated consumer credit sale" means a regulated credit sale, sub-
15 section (35) of this section, and for a consumer purpose, subsection (12) of
16 this section.
17 (33) "Regulated consumer credit transaction" means a regulated credit
18 transaction, subsection (36) of this section, and for a consumer purpose, sub-
19 section (12) of this section.
20 (34) "Regulated consumer loan" means a regulated loan, subsection (38) of
21 this section, and for a consumer purpose, subsection (12) of this section.
22 (35) "Regulated credit sale" means a sale of goods, services, or an inter-
23 est in land in which:
24 (a) Credit is granted either pursuant to a seller credit card or by a
25 seller who regularly engages as a seller in credit transactions of the
26 same kind; and
27 (b) The debt is payable in installments or a finance charge is made.
28 A "regulated credit sale" does not include a sale in which the seller
29 allows the buyer to purchase goods or services pursuant to a lender credit
30 card.
31 (36) "Regulated credit transaction" means a regulated credit sale or regu-
32 lated loan or a refinancing or consolidation thereof.
33 (37) "Regulated lender" means a person authorized to make, or take assign-
34 ments of, regulated consumer loans, as a regular business, under a license
35 issued by the administrator, section 28-46-301, et. seq., Idaho Code.
36 (38) "Regulated loan" means a loan made by a creditor regularly engaged in
37 the business of making loans in which the debt is payable in installments or a
38 finance charge is made. A "regulated loan" does not include a sale in which
39 the seller allows the buyer to purchase pursuant to a seller credit card.
40 (39) "Sale of goods" includes an agreement in the form of a bailment or
41 lease of goods if the bailee or lessee pays or agrees to pay as compensation
42 for use a sum substantially equivalent to or in excess of the aggregate value
43 of the goods involved and it is agreed that the bailee or lessee will become,
44 or for no other or a nominal consideration has the option to become, the owner
45 of the goods upon full compliance with the terms of the agreement.
46 (40) "Sale of an interest in land" includes a lease in which the lessee
47 has an option to purchase the interest and all or a substantial part of the
48 rental or other payments previously made by him are applied to the purchase
49 price.
50 (41) "Sale of services" means furnishing or agreeing to furnish services
51 and includes making arrangements to have services furnished by another.
52 (42) "Seller" includes, except as otherwise provided, an assignee of the
53 seller's right to payment, but use of the term does not in itself impose on an
54 assignee any obligation of the seller.
55 (43) "Seller credit card" means either:
8
1 (a) A credit card issued primarily for the purpose of giving the
2 cardholder the privilege of using the card to purchase property or ser-
3 vices from the card issuer, persons related to the card issuer, or persons
4 licensed or franchised to do business under the card issuer's business or
5 trade name or designation, or both from any of these persons and from
6 other persons; or
7 (b) A credit card issued by a person except a regulated lender primarily
8 for the purpose of giving the cardholder the privilege of using the credit
9 card to purchase property or services from at least one hundred (100) per-
10 sons not related to the card issuer.
11 (44) "Services" includes:
12 (a) Work, labor, and other personal services;
13 (b) Privileges with respect to transportation, hotel and restaurant
14 accommodations, education, entertainment, recreation, physical culture,
15 hospital accommodations, funerals, cemetery accommodations, and the like;
16 and
17 (c) Insurance provided by a person other than the insurer.
18 (45) "Supervised financial organization" means a person, except an insur-
19 ance company or other organization primarily engaged in an insurance business:
20 (a) Organized, chartered, or holding an authorization certificate under
21 the laws of this state or of the United States that authorizes the person
22 to make loans and to receive deposits, including a savings, share, certif-
23 icate or deposit account; and
24 (b) Subject to supervision by an official or agency of this state or of
25 the United States.
26 SECTION 3. That Section 28-45-401, Idaho Code, be, and the same is hereby
27 amended to read as follows:
28 28-45-401. WILLFUL AND KNOWING VIOLATIONS. (1) A regulated lender who
29 willfully and knowingly makes charges in excess of those permitted by the
30 chapter on finance charges and related provisions, chapter 42, title 28, Idaho
31 Code, applying to regulated consumer loans is guilty of a misdemeanor and upon
32 conviction may be sentenced to pay a fine not exceeding five hundred dollars
33 ($500) or to imprisonment not exceeding one (1) year, or both.
34 (2) A person who, in violation of the provisions of this act applying to
35 authority to make regulated consumer loans, section 28-46-301, Idaho Code,
36 willfully and knowingly engages without a license in the business of making
37 regulated consumer loans, or of taking assignments of and undertaking direct
38 collection of payments from and enforcement of rights against debtors arising
39 from regulated consumer loans, is guilty of a misdemeanor and upon conviction
40 may be sentenced to pay a fine not exceeding five hundred dollars ($500), or
41 to imprisonment not exceeding one (1) year, or both.
42 (3) A person who willfully and knowingly engages in the business of
43 entering into regulated consumer credit transactions, or of taking assignments
44 of rights against debtors arising therefrom and undertaking direct collection
45 of payments or enforcement of these rights, without complying with the provi-
46 sions of this act concerning notification, section 28-46-202, Idaho Code, or
47 payment of fees, section 28-46-203, Idaho Code, is guilty of a misdemeanor and
48 upon conviction may be sentenced to pay a fine not exceeding five hundred dol-
49 lars ($500).
50 SECTION 4. That Section 28-46-108, Idaho Code, be, and the same is hereby
51 amended to read as follows:
9
1 28-46-108. ADMINISTRATIVE ENFORCEMENT ORDERS. (1) After notice and hear-
2 ing the administrator may order a creditor or a person acting in his behalf to
3 cease and desist from violating this act. A respondent aggrieved by an order
4 of the administrator may obtain judicial review of the order and the adminis-
5 trator may obtain an order of the court for enforcement of his order in the
6 district court. The proceeding for review or enforcement is initiated by fil-
7 ing a petition in the court. Copies of the petition shall be served upon all
8 parties of record.
9 (2) Within thirty (30) days after service of the petition for review upon
10 the administrator, or within any further time the court allows, the adminis-
11 trator shall transmit to the court the original or a certified copy of the
12 entire record upon which the order is based, including any transcript of tes-
13 timony, which need not be printed. By stipulation of all parties to the review
14 proceeding, the record may be shortened. After hearing, the court may:
15 (a) Reverse or modify the order if the findings of fact of the adminis-
16 trator are clearly erroneous in view of the reliable, probative, and sub-
17 stantial evidence on the whole record;
18 (b) Grant temporary relief or restraining order it deems just; and
19 (c) Enter an order enforcing, modifying and enforcing as modified, or
20 setting aside in whole or in part the order of the administrator, or
21 remanding the case to the administrator for further proceedings.
22 (3) An objection not urged at the hearing shall not be considered by the
23 court unless the failure to urge the objection is excused for good cause
24 shown. A party may move the court to remand the case to the administrator in
25 the interest of justice for the purpose of adducing additional specified and
26 material evidence and seeking findings thereon upon good cause shown for the
27 failure to adduce this evidence before the administrator.
28 (4) The jurisdiction of the court shall be exclusive and its final judg-
29 ment or decree is subject to review by the supreme court in the same manner
30 and form and with the same effect as in appeals from a final judgment or
31 decree. The administrator's copy of the testimony shall be available at rea-
32 sonable times to all parties for examination without cost.
33 (5) A proceeding for review under this section shall be initiated within
34 thirty (30) days after a copy of the order of the administrator is received.
35 If no proceeding is so initiated, the administrator may obtain an order of the
36 court for enforcement of his order upon showing that his order was issued in
37 compliance with this section, that no proceeding for review was initiated
38 within thirty (30) days after a copy of the order was received, and that the
39 respondent is subject to the jurisdiction of the court.
40 (6) With respect to unconscionable agreements or fraudulent or unconscio-
41 nable conduct by persons licensed to make regulated consumer loans a regulated
42 lender, the administrator may not issue an order pursuant to this section but
43 may bring a civil action for an injunction, section 28-46-111, Idaho Code, or
44 any other action which the administrator is authorized to bring under this
45 act.
46 (7) With respect to unconscionable agreements or fraudulent or unconscio-
47 nable conduct by an unlicensed person who is required to be licensed under
48 section 28-46-301, Idaho Code, the administrator may issue a cease and desist
49 order without prior notice or hearing, and may bring a civil action for an
50 injunction, or any other action which the administrator is authorized to bring
51 under this act.
52 SECTION 5. That Section 28-46-113, Idaho Code, be, and the same is hereby
53 amended to read as follows:
10
1 28-46-113. CIVIL ACTIONS BY ADMINISTRATOR. (1) After demand, the adminis-
2 trator may bring a civil action against a creditor to recover actual damages
3 sustained and excess charges paid by one (1) or more debtors who have a right
4 to recover explicitly granted by this act. In a civil action under this sub-
5 section, penalties may not be recovered by the administrator. The court shall
6 order amounts recovered under this subsection to be paid to each debtor or set
7 off against his obligation. A debtor's action, except a class action, takes
8 precedence over a prior or subsequent action by the administrator with respect
9 to the claim of that debtor. A debtor's class action takes precedence over a
10 subsequent action by the administrator with respect to claims common to both
11 actions, but the administrator may intervene. An administrator's action on
12 behalf of a class of debtors takes precedence over a debtor's subsequent class
13 action with respect to claims common to both actions. Whenever an action takes
14 precedence over another action under this subsection, the latter action may be
15 stayed to the extent appropriate while the precedent action is pending and
16 dismissed if the precedent action is dismissed with prejudice or results in a
17 final judgment granting or denying the claim asserted in the precedent action.
18 A defense available to a creditor in a civil action brought by a debtor is
19 available to him in a civil action brought under this subsection.
20 (2) The administrator may bring a civil action against a creditor or a
21 person acting in his behalf to recover a civil penalty of no more than five
22 thousand dollars ($5,000) for repeatedly and intentionally violating this act.
23 A civil penalty pursuant to this subsection may not be imposed for a violation
24 of this act occurring more than two (2) years before the action is brought.
25 (3) The administrator may bring a civil action against a creditor for
26 failure to file notification in accordance with the provisions on notifica-
27 tion, section 28-46-202, Idaho Code, or to pay fees in accordance with the
28 provisions on fees, section 28-46-203, Idaho Code, to recover the fees the
29 defendant has failed to pay and a civil penalty in an amount determined by the
30 court not exceeding the greater of three (3) times the amount of fees the
31 defendant has failed to pay or one thousand dollars ($1,000), plus the
32 administrator's costs and attorney's fees.
33 SECTION 6. That Part 2, Chapter 46, Title 28, Idaho Code, be, and the
34 same is hereby repealed.
35 SECTION 7. That Section 28-46-301, Idaho Code, be, and the same is hereby
36 amended to read as follows:
37 28-46-301. AUTHORITY TO MAKE REGULATED CONSUMER LOANS. (1) The adminis-
38 trator shall receive and act on all applications for licenses to make reg-
39 ulated consumer loans under this act. Applications shall be filed in the man-
40 ner prescribed by the administrator, and shall contain such information as the
41 administrator may reasonably require, and shall be accompanied by the fee
42 required by subsection (5) of section 28-46-305, Idaho Code. Unless a person
43 is exempt under federal law or under this section or has first obtained a
44 license from the administrator authorizing him to make regulated consumer
45 loans, he shall not engage in the business of:
46 (1a) Making regulated consumer loans; or
47 (2b) Taking assignments of and undertaking direct collection of payments
48 from or enforcement of rights against debtors arising from regulated con-
49 sumer loans.
50 (2) Any "supervised financial organization," as defined in section
51 28-41-301(45), Idaho Code, or any person organized, chartered, or holding an
52 authorization certificate under the laws of another state to engage in making
11
1 loans and receiving deposits, including a savings, share, certificate, or
2 deposit account and who is subject to supervision by an official or agency of
3 the other state, shall be exempt from the licensing requirements of this sec-
4 tion.
5 SECTION 8. That Section 28-46-302, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 28-46-302. LICENSE TO MAKE REGULATED CONSUMER LOANS. (1) No application
8 The administrator shall receive and act on all applications for a license
9 shall be denied to do business as a regulated lender. Applications shall be
10 filed in the manner prescribed by the administrator, shall contain such infor-
11 mation as the administrator may reasonably require, shall be updated as neces-
12 sary to keep the information current, and shall be accompanied by an applica-
13 tion fee of three hundred fifty dollars ($350). When an application for licen-
14 sure is denied or withdrawn, the administrator shall retain all fees paid by
15 the applicant. The administrator may deny an application for a license if the
16 administrator finds that:
17 (a) The financial responsibility, character, and fitness of the appli-
18 cant, and of the officers and directors thereof (if the applicant is a
19 corporation) are not such as to warrant belief that the business will be
20 operated honestly and fairly within the purposes of this act; and
21 (b) The applicant has does not maintain at least thirty thousand dollars
22 ($30,000) in liquid assets, as determined in accordance with generally
23 accepted accounting principles, available for the purpose of making loans
24 under this chapter;
25 (c) The applicant has had a license, substantially equivalent to a
26 license under this chapter and issued by any state, denied, revoked or
27 suspended under the law of such state;
28 (d) The applicant has filed an application for a license which is false
29 or misleading with respect to any material fact;
30 (e) The application does not contain all of the information required by
31 the administrator; or
32 (f) The application is not accompanied by an application fee of three
33 hundred fifty dollars ($350).
34 (2) A licensee under this chapter shall meet the requirements of subsec-
35 tion (1) of this section at all times while licensed pursuant to this chapter.
36 The administrator is empowered to conduct investigations as he may deem neces-
37 sary, to enable him to determine the existence of the requirements set out in
38 subsections (1)(a) and (1)(b) of this section.
39 (3) The director may issue a license under this act to a mortgage lender
40 licensed under chapter 31, title 26, Idaho Code, and who is engaged in the
41 business described in subsection (1)(a) or (2b) of section 28-46-301, Idaho
42 Code. All provisions of this act, except subsections (1) and (2) of this sec-
43 tion, and subsection (5) of section 28-46-305, Idaho Code, shall apply to per-
44 sons seeking a license pursuant to this subsection.
45 (4) Upon written request, the applicant is entitled to a hearing on the
46 question of his qualifications for a license if:
47 (a) The administrator has notified the applicant in writing that his
48 application has been denied, or objections filed; or
49 (b) The administrator has not issued a license within sixty (60) days
50 after the application for the license was filed.
51 If a hearing is held, the applicant and those filing objections shall
52 reimburse, pro rata, the administrator for his reasonable and necessary
53 expenses incurred as a result of the hearing. A request for a hearing may not
12
1 be made more than fifteen (15) days after the administrator has mailed a writ-
2 ing to the applicant notifying him that the application has been denied and
3 stating in substance the administrator's finding supporting denial of the
4 application or that objections have been filed and the substance thereof.
5 (5) The administrator may issue additional licenses to the same licensee
6 upon notification application by the licensee, in the manner prescribed by the
7 administrator, and payment of the required application fee. A separate license
8 shall be required for each place of business. Each license shall remain in
9 full force and effect until surrendered unless the licensee does not satisfy
10 the renewal requirements of subsection (8) of this section, or the license is
11 relinquished, suspended or revoked.
12 (6) No licensee shall change the location of any place of business, or
13 consolidate, or close any locations, without giving the administrator at least
14 fifteen (15) days' prior written notice. No licensee shall change the location
15 of any of his places of business to a location more than five (5) miles from
16 the original location or outside the original municipality, if any.
17 (7) A licensee shall not engage in the business of making regulated con-
18 sumer loans at any place of business for which he does not hold a license nor
19 shall he engage in business under any other name than that in the license.
20 (8) On or before May 31 of each year, every licensee under this chapter
21 shall pay a nonrefundable annual license renewal fee of one hundred fifty dol-
22 lars ($150) per licensed location, and shall file with the administrator a
23 renewal form containing such information as the administrator may require.
24 SECTION 9. That Section 28-46-303, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 28-46-303. REVOCATION OR SUSPENSION OF LICENSE. (1) The administrator may
27 issue to a person licensed to make regulated consumer loans an order to show
28 cause why his license should not be revoked or suspended for a period not in
29 excess of six (6) months. The order shall state the place for a hearing and
30 set a time for the hearing that is no less than ten (10) days from the date of
31 the order. After the hearing, the administrator shall revoke or suspend the
32 license if he finds that:
33 (a) The licensee has repeatedly and willfully violated this act or any
34 rule or order lawfully made pursuant to this act; or
35 (b) Facts or conditions exist which would clearly have justified the
36 administrator in refusing to grant a license had these facts or conditions
37 existed or been known to exist at the time the application for the license
38 was made.
39 (2) No revocation or suspension of a license is lawful unless prior to
40 institution of revocation or suspension proceedings by the administrator,
41 notice is given to the licensee of the facts or conduct which warrant the
42 intended action, and the licensee is given an opportunity to show compliance
43 with all lawful requirements for retention of the license.
44 (3) If the administrator finds that probable cause for revocation of a
45 license exists and that enforcement of this act requires immediate suspension
46 of the license pending investigation, he may, after a hearing upon five (5)
47 days' written notice, enter an order suspending the license for not more than
48 thirty (30) days.
49 (4) Whenever the administrator revokes or suspends a license, he shall
50 enter an order to that effect and forthwith notify the licensee of the revoca-
51 tion or suspension. Within five (5) days after the entry of the order, he
52 shall deliver to the licensee a copy of the order and the findings supporting
53 the order.
13
1 (5) Any person holding a license to make regulated consumer loans may
2 relinquish the license by notifying the administrator in writing of its relin-
3 quishment, but this relinquishment shall not affect his liability for acts
4 previously committed.
5 (6) No revocation, suspension, or relinquishment of a license shall
6 impair or affect the obligation of any preexisting lawful contract between the
7 licensee and any debtor.
8 (7) The administrator may reinstate a license, terminate a suspension, or
9 grant a new license to a person whose license has been revoked or suspended if
10 no fact or condition then exists which clearly would have justified the admin-
11 istrator in refusing to grant a license.
12 SECTION 10. That Section 28-46-304, Idaho Code, be, and the same is
13 hereby amended to read as follows:
14 28-46-304. RECORDS -- ANNUAL REPORTS. (1) Every licensee regulated lender
15 shall maintain records in conformity with generally accepted accounting prin-
16 ciples and practices in a manner that will enable the administrator to deter-
17 mine whether the licensee regulated lender is complying with the provisions of
18 this act. The recordkeeping system of a licensee regulated lender shall be
19 sufficient if he makes the required information reasonably available. The
20 records need not be kept in the place of business where regulated consumer
21 loans are made, if the administrator is given free access to the records wher-
22 ever located. The records pertaining to any loan need not be preserved for
23 more than two (2) years after making the final entry relating to the loan, but
24 in the case of an open-end account, the two (2) years is measured from the
25 date of each entry.
26 (2) Concurrent with license renewal, oOn or before May 31 of each year,
27 every licensee shall file with the administrator a composite annual report for
28 the prior calendar year in the form prescribed by the administrator relating
29 to all regulated consumer loans made by him. Information contained in annual
30 reports shall be subject to disclosure according to chapter 3, title 9, Idaho
31 Code, and may be published only in composite form.
32 SECTION 11. That Section 28-46-305, Idaho Code, be, and the same is
33 hereby amended to read as follows:
34 28-46-305. EXAMINATIONS AND INVESTIGATIONS. (1) The administrator shall
35 may examine periodically at intervals he deems appropriate, the loans and
36 business records of every regulated lender. In addition, for the purpose of
37 discovering violations of this act or securing information lawfully required,
38 the administrator may at any time investigate the loans, business, and records
39 of any regulated lender. For these purposes, he shall have free and reasonable
40 access to the offices, places of business, and records of the lender. The
41 administrator, for purposes of examination of licensees herein, shall be paid
42 the cost of examination by the licensee, within thirty (30) days of demand for
43 payment. The administrator shall, on July 1 of each year, fix such per diem
44 examination cost.
45 (2) If the regulated lender's records are located outside this state, the
46 regulated lender, at his option, shall make them available to the administra-
47 tor at a convenient location within this state, or pay the reasonable and nec-
48 essary expenses for the administrator or his representative to examine them at
49 the place where they are maintained. The administrator may designate represen-
50 tatives, including comparable officials of the state in which the records are
51 located, to inspect them on his behalf.
14
1 (3) For the purposes of this section, the administrator may administer
2 oaths or affirmations, and upon his own motion or upon request of any party,
3 may subpoena witnesses, compel their attendance, adduce evidence, and require
4 the production of any matter which is relevant to the investigation, including
5 the existence, description, nature, custody, condition, and location of any
6 books, documents, or other tangible things and the identity and location of
7 persons having knowledge of relevant facts, or any other matter reasonably
8 calculated to lead to the discovery of admissible evidence.
9 (4) Upon failure without lawful excuse to obey a subpoena or to give tes-
10 timony and upon reasonable notice to all persons affected thereby, the admin-
11 istrator may apply to the district court for an order compelling compliance.
12 (5) For purposes of investigation herein, each regulated lender applicant
13 shall submit with his application the sum of one hundred dollars ($100).
14 SECTION 12. That Section 28-46-402, Idaho Code, be, and the same is
15 hereby amended to read as follows:
16 28-46-402. LICENSE REQUIRED. (1) No person shall engage in the business
17 of payday loans, offer or make a payday loan, or arrange a payday loan for a
18 third party lender in a payday loan transaction without having first obtained
19 a license under this chapter. A separate license shall be required for each
20 location from which such business is conducted.
21 (2) Any "supervised financial organization," as defined in section
22 28-41-301(45), Idaho Code, or any person organized, chartered, or holding an
23 authorization certificate under the laws of another state to engage in making
24 loans and receiving deposits, including a savings, share, certificate, or
25 deposit account and who is subject to supervision by an official or agency of
26 the other state, shall be exempt from the licensing requirements of this sec-
27 tion.
28 SECTION 13. That Section 28-46-403, Idaho Code, be, and the same is
29 hereby amended to read as follows:
30 28-46-403. QUALIFICATIONS FOR PAYDAY LOAN LICENSE. (1) To qualify for a
31 license, an applicant shall satisfy the following requirements:
32 (a) The applicant shall have liquid assets of at least thirty thousand
33 dollars ($30,000) determined in accordance with generally accepted
34 accounting principles, provided that applicants seeking to engage in the
35 business of payday loans at more than one (1) location in the state shall
36 have liquid assets of at least an additional five thousand dollars
37 ($5,000) for each additional location in the state up to a maximum of sev-
38 enty-five thousand dollars ($75,000) for all locations in the state; and
39 (b) The financial responsibility, financial condition, business experi-
40 ence, character and general fitness of the applicant shall reasonably
41 warrant the administrator's belief that the applicant's business will be
42 conducted lawfully and fairly. In determining whether this qualification
43 has been met, and for the purpose of investigating compliance with this
44 act, the administrator may review: and approve:
45 (i) The relevant business records and the capital adequacy of the
46 applicant;
47 (ii) The competence, experience, integrity and financial ability of
48 any applicant, and if the applicant is an entity, of any person who
49 is a member, partner, director, senior officer or twenty-five percent
50 (25%) or more equity owner of the applicant; and
51 (iii) Any record of conviction, on the part of the applicant, or any
15
1 person referred to in subparagraph (ii) of this paragraph, of any
2 criminal activity; any fraud or other act of personal dishonesty; any
3 act, omission or practice which constitutes a breach of a fiduciary
4 duty; or any suspension, revocation, removal or administrative action
5 by any agency or department of the United States or any state, from
6 participation in the conduct of any business.
7 (2) The requirements set forth in subsection (1) of this section are con-
8 tinuing in nature. and may be reviewed periodically by the administrator A
9 licensee shall meet the requirements of this section at all times while
10 licensed pursuant to this part 4.
11 SECTION 14. That Section 28-46-404, Idaho Code, be, and the same is
12 hereby amended to read as follows:
13 28-46-404. APPLICATION FOR PAYDAY LOAN LICENSE. (1) Each application for
14 a license shall be in writing and under oath to the administrator, in a form
15 prescribed by the administrator, and shall include at least the following:
16 (a) The legal name, residence and business address of the applicant and,
17 if the applicant is an entity, of every member, partner, director, senior
18 officer or twenty-five percent (25%) or more equity owner of the appli-
19 cant;
20 (b) The location at which the principal place of business of the appli-
21 cant is located; and
22 (c) Other data and information the administrator may require with respect
23 to the applicant, and if the applicant is an entity, such data and infor-
24 mation of its members, partners, directors, senior officers, or twenty-
25 five percent (25%) or more equity owners of the applicant.
26 (2) Each application for a license shall be accompanied by an application
27 and investigation fee in an the amount prescribed by the administrator of
28 three hundred fifty dollars ($350). Such fee shall not be subject to refund.
29 (3) The fee set forth in subsection (2) of this section shall be required
30 for each location for which an application is submitted.
31 (4) Within sixty (60) days of the filing of an application in a form pre-
32 scribed by the administrator, accompanied by the fee required in subsection
33 (2) of this section, the administrator shall investigate to ascertain whether
34 the qualifications prescribed by subsection (1) of section 28-46-403, Idaho
35 Code, have been satisfied. If the administrator finds that the qualifications
36 have been satisfied and approves the documents, the administrator shall issue
37 to the applicant a license to engage in the payday loan business.
38 (5) A license issued pursuant to this section shall remain in full force
39 and effect through the remainder of the calendar year after its date of issu-
40 ance unless earlier surrendered the licensee does not satisfy the renewal
41 requirements of subsection (6) of this section, or the license is
42 relinquished, suspended or revoked pursuant to this act.
43 (6) On or before May 31 of each year, every licensee under this part 4
44 shall pay a nonrefundable annual license renewal fee of one hundred fifty dol-
45 lars ($150) per licensed location, and shall file with the administrator a
46 renewal form containing such information as the administrator may require.
47 SECTION 15. That Section 28-46-407, Idaho Code, be, and the same is
48 hereby amended to read as follows:
49 28-46-407. SUSPENSION OR REVOCATION OF LICENSE. (1) The administrator
50 may, after notice and hearing, suspend or revoke any license if the adminis-
51 trator finds that the licensee:
16
1 (a) Has knowingly or through the lack of due care failed to pay the
2 annual fee imposed by this act, or any examination fee imposed by the
3 administrator under the authority of this act;
4 (b) Has committed any fraud, engaged in any dishonest activities or made
5 any misrepresentations;
6 (c) Has violated any provision of this act or any rule or order lawfully
7 made pursuant to this act or has violated any other law in the course of
8 the licensee's dealing as a licensee;
9 (d) Has made a materially false statement in the application for the
10 license or failed to give a true reply to a question in the application;
11 or
12 (e) Has demonstrated incompetence or untrustworthiness to act as a licen-
13 see.
14 (2) If the reason for revocation or suspension of a licensee's license at
15 any one (1) location is of general application to all locations operated by a
16 licensee, the administrator may revoke or suspend all licenses issued to a
17 licensee.
18 SECTION 16. An emergency existing therefor, which emergency is hereby
19 declared to exist, this act shall be in full force and effect on and after its
20 passage and approval, and retroactively to January 1, 2006.
STATEMENT OF PURPOSE
RS 15445C1
The purpose of this bill is to amend Idaho law to simplify
compliance and promote uniformity of annual renewal requirements
for businesses offering consumer credit in Idaho under the Idaho
Credit Code. The proposal substitutes an outdated and cumbersome
tax and fee system with a straightforward licensing requirement.
The proposal also eliminates duplication of regulatory oversight
of state chartered depository financial institutions.
FISCAL NOTE
Based upon fiscal 2005 revenue figures, it is estimated that
the Department's proposal will result in a net revenue reduction
of approximately $ 233,225.00, calculated as follows:
The Department estimates that repeal of the Idaho Credit
Code notification, tax, and fee requirements will result in
revenue reduction of approximately $700,225.00. The Department
estimates that the proposed home and branch office regulated
lender license application and renewal fees will result in new
revenues of approximately $467,000.00 in the first year after
implementation. Thereafter, regulated lender licensing revenues
will increase or decrease annually based on the number of
existing licensees under the Idaho Credit Code. Even with the
estimated $233,225.00 net reduction in the Department's revenue,
the Department is still projecting revenues over its budget and
statutory reserve requirement in excess of $3,000,000.00.
CONTACT
Name: Mike Larsen
Agency: Finance, Dept. of
Phone: 332-8060
STATEMENT OF PURPOSE/FISCAL NOTE H 587