Bill Text: HI HCR66 | 2020 | Regular Session | Introduced

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Bill Title: Requesting The Auditor To Conduct A Follow-up Analysis To Report No. 05-11 On Payday Loans.

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Introduced - Dead) 2020-03-16 - This measure has been deleted from the meeting scheduled on Wednesday 03-18-20 10:45AM in conference room 309. [HCR66 Detail]

Download: Hawaii-2020-HCR66-Introduced.html

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HOUSE OF REPRESENTATIVES	H.C.R. NO.	66
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

 

 

REQUESTING THE AUDITOR TO CONDUCT A FOLLOW-up ANALYSIS TO Report No. 05-11 on payday loans.

 

 

 

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

 

     WHEREAS, in Report No. 05-11, the Auditor recommended several changes to strengthen Chapter 480F, Hawaii Revised Statutes, the law regulating payday lending, 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 fourteen years 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, S.B. No. 2587, introduced during the Regular Session of 2020, proposes to require the licensure of small dollar lenders; 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 House of Representatives of the Thirtieth Legislature of the State of Hawaii, Regular Session of 2020, the Senate concurring, that the Auditor is requested to conduct a follow-up analysis to Report No. 05‑11; and

    

BE IT FURTHER RESOLVED that, as part of the analysis, the Auditor is requested to:

 

     (1)  Determine the number of storefront and internet check cashing 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 forms of 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 is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2021; and

 

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

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

Payday Loans; Sunrise Analysis; Auditor