SB301 Alabama 2016 Session

Under existing law, title loan lenders are not licensed

This bill would provide for the licensure and regulation of title loan lenders by the State Banking Department

This bill would prescribe maximum annual interest rates for title loans

This bill would prescribe procedures when there is a default of a title loan

This bill would prohibit the issuance of a title loan to a person under the age of 19 years

This bill would provide for the enforcement of the act by fines and criminal penalties

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

Relating to title loans; to provide for the licensure and regulation of title loan lenders by the State Banking Department; to prescribe maximum annual interest rates for title loans; to prescribe procedures when there is a default of a title loan; to prohibit the issuance of a title loan to a person under the age of 19 years; to provide for the enforcement of the act by fines and criminal penalties; 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.