REGULATORY LOAN ACT
Senate Bill 489 (Substitute H-1)
Sponsor: Sen. Bill Bullard, Jr.
Addendum to SFA Analysis (10-18-01)
Senate Committee: Banking and Financial Institutions
House Committee: Insurance and Financial Services
ADDENDUM TO SENATE FISCAL AGENCY ANALYSIS OF SB 489 DATED 7-12-01:
HOUSE COMMITTEE ACTION:
The Insurance and Financial Services Committee adopted a substitute that incorporated several committee amendments. The amendments would:
· Delete a provision that allows an applicant for a license under the Regulatory Loan Act who applies after June 30 to pay the investigation fee and one-half of the annual operating fee.
· Increase the investigation fee required by license applicants from not less than $200 or more than $600 to not less than $250 or more than $1,000.
· Increase the fee for amending a license from not less than $25 or more than $75 to not less than $50 or more than $100.
· Increase the penalty for late filing of a required annual report detailing the licensee's volume and type of business activities for the preceding year. Penalties would be increased from $25 per day the report was late or $1,000, whichever was less, to a penalty of $50 per day or $5,000, whichever was less.
· Allow either the attorney general or commissioner of the Office of Insurance and Financial Services to bring an action against a licensee for false advertising and to be able to petition a court for recovery of a civil penalty.
· Require a licensee to notify a borrower within 30 days -- instead of "within a reasonable time" -- of any sums advanced (and any additional charges, changes in the payment schedule, etc.) under a provision that would allow a licensee to pay for the performance of certain duties on behalf of a borrower if the borrower failed to perform those duties.
POSITIONS:
The Michigan Financial Services Association supports the bill. (10-17-01)
The Office of Financial and Insurance Services (OFIS) does not oppose the bill. (10-17-01)
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This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.