Legal Seminar, Denver, CO

State Legislative and Regulatory Financial Services Proposals and Enactments Update June 30, 2018

This report will continue to note general trends in state proposals and build a list of final enactments. To provide our members with one comprehensive listing of enactments, new law and rule additions will be noted in red each month.

June Highlights:

• New York Commissioner of Banking issues memorandum on provision of financial services to medical marijuana and industrial hemp-related businesses in New York • Online Notary Acts enacted in Minnesota and Tennessee • California enacts broad Consumer Privacy Act • New York Commissioner of Banking to register and supervise credit reporting agencies

Consumer Finance Loans/Payday Loans

Enactments:

Florida (Ch 17) Amendments made regarding consumer finance loans include: (1) elimination of the requirement that all loans must be repaid in monthly installments. Installments may be due every two weeks, semimonthly, or monthly. The maximum delinquency charges are now set differently depending upon whether the loan payments are due monthly, semimonthly, or every two weeks. [Effective July 1, 2018] Florida (Ch 26) Amends the payday loan statute to create a “deferred presentment installment transaction.” The transaction must be fully amortizing and repayable in consecutive installments, may not be less than 60 days or more than 90 days, and the time between installment payments must be at least 13 days but not greater than 1 calendar month. The maximum face amount of a check taken for a deferred presentment installment transaction may not exceed $1,000, exclusive of fees (non-installment deferred presentment loans may not exceed $500). [Effective July 1, 2019] Indiana (HR 53) Requests a legislative study committee to review and modernize the Uniform Consumer Credit Code with input from lenders, consumers, the Department of Financial Institutions and other stakeholders. Louisiana (Act 235) Changes the ownership interest amount that requires approval from the Commissioner to acquire or control a consumer loan licensee from 50 percent to 25 percent or more and eliminates the requirement that any person who acquires or anticipates acquiring a 75 percent interest in a licensee file for a new license prior to the acquisition. [Effective May 15, 2018] Maryland (Ch. 790) Provides that loans under $25,000 (was $6,000) are now subject to the small loan lending requirements in the state and that such loans made by an unlicensed (or exempt) person will be void and unenforceable. [Effective January 1, 2019]