HB681 Alabama 2012 Session

Under existing law, title pawns and loans are regulated under the Alabama Pawnshop Act

This bill would create the Alabama Title Pledge Act to regulate the title loan business

This bill would require the Supervisor of the Bureau of Loans of the State Banking Department to establish a title pledge transaction form for the purpose of recording certain information concerning a title pledge agreement

This bill would require the title pledge lender to maintain records of all transactions concerning pledged property

This bill would allow the pledgor the right to redeem pledged property and provide the lenders right to the property if the pledgor fails to redeem

This bill would limit the service charge a lender may receive for a title pledge service

This bill would establish rules for title pledge lenders, require licensure of lenders and offices, provide grounds for suspension, and provide for license, fees, and penalties

This bill would allow the Banking Department to adopt further rules

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment

To license and regulate the title loan business; to provide definitions; to require licensure of title pledge lenders and offices and to provide for charges, interest, and fees concerning title pledge loans; to provide for fines, penalties, and enforcement for violations; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.