Bill Text: HI SR158 | 2019 | Regular Session | Introduced


Bill Title: Requesting The Auditor To Conduct A Follow-up Analysis To Sunrise Analysis: Check Cashing And Deferred Deposit Agreements (payday Loans), Report No. 05-11.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-18 - Re-Referred to CPH. [SR158 Detail]

Download: Hawaii-2019-SR158-Introduced.html

THE SENATE

S.R. NO.

158

THIRTIETH LEGISLATURE, 2019

 

STATE OF HAWAII

 

 

 

 

 

SENATE RESOLUTION

 

 

REQUESTING THE AUDITOR TO CONDUCT A FOLLOW-up ANALYSIS TO Sunrise analysis: Check cashing and deferred deposit agreements (Payday Loans), Report No. 05-11.

 

 

 


     WHEREAS, the Auditor issued Sunrise Analysis: Check Cashing and Deferred Deposit Agreements (Payday Loans), Report No. 05-11 in December 2005; and

 

     WHEREAS, in Report No. 05-11, the Auditor recommended several legislative changes, including instituting a mandatory registration program for all payday lenders with the Department of Commerce and Consumer Affairs; and

 

     WHEREAS, the recommendations in Report No. 05-11 have not yet been adopted by the Legislature; and

 

     WHEREAS, the data in Report No. 05-11 is over a decade old and studies in other jurisdictions do not include Hawaii consumers or regulations similar to chapter 480F, Hawaii Revised Statutes; and

 

     WHEREAS, persons who act or hold themselves out as check cashers are not presently required to be licensed, certified, registered, or otherwise regulated by the State; and

 

     WHEREAS, section 26H-6, Hawaii Revised Statutes, requires new measures, subjecting unregulated professions and vocations to licensing or other regulatory controls, to be referred to the Auditor for analysis; now, therefore,

 

     BE IT RESOLVED by the Senate of the Thirtieth Legislature of the State of Hawaii, Regular Session of 2019, that the Auditor is requested to conduct a follow-up analysis to Sunrise Analysis: Check Cashing and Deferred Deposit Agreements (Payday Loans), Report No. 05‑11; and

     BE IT FURTHER RESOLVED that the Auditor is requested to:

 

     (1)  Determine the number of storefront and internet companies and locations operating under chapter 480F, Hawaii Revised Statutes;

 

     (2)  Collect data on the use, complaint history, and impact of short-term lending, as allowed under chapter 480F, Hawaii Revised Statutes, on Hawaii consumers;

 

     (3)  Analyze the advantages and disadvantages of licensure and other regulation of short-term lenders and check cashers, including associated expenses;

 

     (4)  Compare regulation of check cashers under chapter 480F, Hawaii Revised Statutes, with regulations in other states;

 

     (5)  Analyze the economic impact on consumers and check cashers of the regulations in other jurisdictions comparing interest rates, fees, repayment period, and annual percentage rates;

 

     (6)  Analyze the availability and cost of alternative credit products to deferred deposits under chapter 480F, Hawaii Revised Statutes;

 

     (7)  Analyze payday lender complaints to the Department of Commerce and Consumer Affairs for the past ten years, including internet payday lenders;

 

     (8)  Analyze the role of short-term lending in the underserved, unbanked credit market in Hawaii and the United States, and the role of credit unions, banks, and community development financial institutions in this market; and

 

     (9)  Recommend compliance, training, and examination standards for federal and state laws and regulations that apply to financial services offered under chapter 480F, Hawaii Revised Statutes; and

     BE IT FURTHER RESOLVED that the Auditor report findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2020; and

 

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Auditor and Director of Commerce and Consumer Affairs.

 

 

 

 

OFFERED BY:

_____________________________

 

 

Report Title:

Auditor Study; Check Cashers; Deferred Deposit Agreements

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