Senate Concurrent Resolution 104 PAG LIN 1 1 SENATE CONCURRENT RESOLUTION NO. 1 2 BY BOLKCOM 1 3 A Concurrent Resolution providing for the establishment 1 4 of a committee by the legislative council to conduct 1 5 a study of predatory or subprime lending practices. 1 6 WHEREAS, the loosening of federal banking and other 1 7 financial regulations since the 1980s has led to the 1 8 development of "fringe banking" services such as 1 9 "payday" lenders that often exploit consumers with 1 10 limited resources, low credit ratings, and short=term 1 11 cash flow problems by lending small dollar amounts at 1 12 high rates of interest, until the borrower receives a 1 13 paycheck; and 1 14 WHEREAS, every year more citizens of Iowa are 1 15 deceived by unconscionable mortgage practices, auto 1 16 loan and rent=to=own agreements, and misleading 1 17 promises of rapid refund tax advances; and 1 18 WHEREAS, an increasing number of states, including 1 19 Iowa, are considering the enactment of additional 1 20 financial regulations regarding abuses of consumers by 1 21 these fringe banking services; NOW THEREFORE, 1 22 BE IT RESOLVED BY THE SENATE, THE HOUSE OF 1 23 REPRESENTATIVES CONCURRING, That the legislative 1 24 council is requested to appoint an interim study 1 25 committee to conduct a comprehensive study of certain 1 26 alternative consumer lending practices and businesses 1 27 including, but not limited to, check cashing outlets, 1 28 payday loan companies, high=cost first and second 1 29 mortgages, subprime auto loans, rapid refund income 1 30 tax advances, rent=to=own companies, and other short= 2 1 term lending practices utilizing excessive fees and 2 2 rates of interest; and 2 3 BE IT FURTHER RESOLVED, That the interim study 2 4 committee shall be composed of 10 members consisting 2 5 of members from both political parties and both houses 2 6 of the general assembly; and 2 7 BE IT FURTHER RESOLVED, That the interim committee 2 8 is authorized to meet on five days and at least one of 2 9 these days shall be set aside for the purpose of 2 10 holding a public hearing to receive oral or written 2 11 testimony from the general public regarding consumer 2 12 lending practices; and 2 13 BE IT FURTHER RESOLVED, That the committee shall be 2 14 staffed by the legislative services agency and any 2 15 other state agency shall provide such information and 2 16 assistance as deemed necessary by the committee. The 2 17 committee should begin its deliberations following the 2 18 adjournment of the 2004 regular session of the general 2 19 assembly and shall issue its findings and 2 20 recommendations in a final report delivered to the 2 21 general assembly no later than November 15, 2004. 2 22 LSB 5862SS 80 2 23 kk/sh/8