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H0449...........................................................by BUSINESS
MORTGAGE LENDERS - Amends existing law to exempt regulated lenders from
licensing requirements in certain situations; to delete dual license
provisions for mortgage lenders; and to revise restrictions on business
locations.
02/01 House intro - 1st rdg - to printing
02/04 Rpt prt - to Bus
02/29 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/06 3rd rdg - PASSED - 67-0-3
AYES -- Anderson, Andrus, Barrett, Bayer, Bell, Bilbao, Block, Bock,
Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez, Chew,
Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart, Harwood,
Henbest, Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour,
Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ringo,
Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(02),
Shepherd(08), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
Stevenson, Thayn, Thomas, Trail, Vander Woude, Wills, Wood(27),
Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- Bedke, Black, Henderson
Floor Sponsor - Hagedorn
Title apvd - to Senate
03/07 Senate intro - 1st rdg - to Com/HuRes
03/19 Rpt out - rec d/p - to 2nd rdg
03/20 2nd rdg - to 3rd rdg
Rls susp - PASSED - 35-0-0
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
Little, Lodge, Malepeai(Sagness), McGee, McKague, McKenzie, Pearce,
Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- None
Floor Sponsor - Broadsword
Title apvd - to House
03/21 To enrol - Rpt enrol - Sp signed
03/24 Pres signed
03/25 To Governor
03/31 Governor signed
Session Law Chapter 312
Effective: 07/01/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 449 BY BUSINESS COMMITTEE 1 AN ACT 2 RELATING TO REGULATED LENDERS; AMENDING SECTION 28-46-301, IDAHO CODE, TO 3 EXEMPT LENDERS FROM LICENSING REQUIREMENTS IN CERTAIN SITUATIONS; AND 4 AMENDING SECTION 28-46-302, IDAHO CODE, TO DELETE A PROVISION REGARDING 5 DUAL LICENSES AND TO REVISE RESTRICTIONS ON BUSINESS LOCATIONS. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Section 28-46-301, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 28-46-301. AUTHORITY TO MAKE REGULATED CONSUMER LOANS. (1) The adminis- 10 trator shall receive and act on all applications for licenses to make regu- 11 lated consumer loans under this act. Applications shall be filed in the manner 12 prescribed by the administrator and shall contain such information as the 13 administrator may reasonably require. Unless a person is exempt under federal 14 law or under this section or has first obtained a license from the administra- 15 tor authorizing him to make regulated consumer loans, he shall not engage in 16 the business of: 17 (a) Making regulated consumer loans; or 18 (b) Taking assignments of and undertaking direct collection of payments 19 from or enforcement of rights against debtors arising from regulated con- 20 sumer loans. 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 (3) Mortgage lenders licensed under the Idaho residential mortgage prac- 29 tices act, chapter 31, title 26, Idaho Code, shall be exempt from the licens- 30 ing requirements of this section as to mortgage lending activities defined in 31 chapter 31, title 26, Idaho Code. 32 SECTION 2. That Section 28-46-302, Idaho Code, be, and the same is hereby 33 amended to read as follows: 34 28-46-302. LICENSE TO MAKE REGULATED CONSUMER LOANS. (1) The administra- 35 tor shall receive and act on all applications for a license to do business as 36 a regulated lender. Applications shall be filed in the manner prescribed by 37 the administrator, shall contain such information as the administrator may 38 reasonably require, shall be updated as necessary to keep the information cur- 39 rent, and shall be accompanied by an application fee of three hundred fifty 40 dollars ($350). When an application for licensure is denied or withdrawn, the 41 administrator shall retain all fees paid by the applicant. The administrator 2 1 may deny an application for a license if the administrator finds that: 2 (a) The financial responsibility, character, and fitness of the appli- 3 cant, and of the officers and directors thereof (if the applicant is a 4 corporation) are not such as to warrant belief that the business will be 5 operated honestly and fairly within the purposes of this act; 6 (b) The applicant does not maintain at least thirty thousand dollars 7 ($30,000) in liquid assets, as determined in accordance with generally 8 accepted accounting principles, available for the purpose of making loans 9 under this chapter; 10 (c) The applicant has had a license, substantially equivalent to a 11 license under this chapter and issued by any state, denied, revoked or 12 suspended under the law of such state; 13 (d) The applicant has filed an application for a license which is false 14 or misleading with respect to any material fact; 15 (e) The application does not contain all of the information required by 16 the administrator; or 17 (f) The application is not accompanied by an application fee of three 18 hundred fifty dollars ($350). 19 (2) A licensee under this chapter shall meet the requirements of subsec- 20 tion (1) of this section at all times while licensed pursuant to this chapter. 21 The administrator is empowered to conduct investigations as he may deem neces- 22 sary, to enable him to determine the existence of the requirements set out in 23 subsection (1) of this section. 24 (3)The director may issue a license under this act to a mortgage lender25licensed under chapter 31, title 26, Idaho Code, and who is engaged in the26business described in subsection (1)(a) or (b) of section 28-46-301, Idaho27Code. All provisions of this act, except subsections (1) and (2) of this sec-28tion, shall apply to persons seeking a license pursuant to this subsection.29(4)Upon written request, the applicant is entitled to a hearing on the 30 question of his qualifications for a license if: 31 (a) The administrator has notified the applicant in writing that his 32 application has been denied, or objections filed; or 33 (b) The administrator has not issued a license within sixty (60) days 34 after the application for the license was filed. 35 If a hearing is held, the applicant and those filing objections shall 36 reimburse, pro rata, the administrator for his reasonable and necessary 37 expenses incurred as a result of the hearing. A request for a hearing may not 38 be made more than fifteen (15) days after the administrator has mailed a writ- 39 ing to the applicant notifying him that the application has been denied and 40 stating in substance the administrator's finding supporting denial of the 41 application or that objections have been filed and the substance thereof. 42 (54) The administrator may issue additional licenses to the same licensee 43 upon application by the licensee, in the manner prescribed by the administra- 44 tor, and payment of the required application fee. A separate license shall be 45 required for each place of business. Each license shall remain in full force 46 and effect unless the licensee does not satisfy the renewal requirements of 47 subsection (87) of this section, or the license is relinquished, suspended or 48 revoked. 49 (65) No licensee shall change the location of any place of business, or 50 consolidate, or close any locations, without giving the administrator at least 51 fifteen (15) days' prior written notice.No licensee shall change the location52of any of his places of business to a location more than five (5) miles from53the original location or outside the original municipality, if any.54 (76) A licensee shall not engage in the business of making regulated con- 55 sumer loans at any place of business for which he does not hold a license nor 3 1 shall he engage in business under any other name than that in the license. 2 (87) On or before May 31 of each year, every licensee under this chapter 3 shall pay a nonrefundable annual license renewal fee of one hundred fifty dol- 4 lars ($150) per licensed location, and shall file with the administrator a 5 renewal form containing such information as the administrator may require.
STATEMENT OF PURPOSE
RS 17342
The purpose of this bill is to amend the Idaho Credit Code to
add a mortgage retail lending exemption for entities solely
engaged in mortgage lending and already licensed under the Idaho
Residential Mortgage Practices Act. This bill would also
eliminate a restrictive and unnecessary limitation on businesses
from relocating more than five miles from their initial licensed
location.
FISCAL NOTE
Based on current dual licensee numbers, the Department estimates
that implementation of this legislative idea would result in an
annual revenue reduction of approximately $145,000.
CONTACT
Name: Michael Larsen
Agency: Finance, Dept. of
Phone: (208) 332-8060
STATEMENT OF PURPOSE/FISCAL NOTE H 449