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92_HJ0020 LRB9208515JSpc 1 HOUSE JOINT RESOLUTION 2 WHEREAS, Public Act 91-698, effective May 6, 2000, 3 amended the Sales Finance Agency Act (205 ILCS 660) and the 4 Consumer Installment Loan Act (205 ILCS 670) to authorize the 5 Department of Financial Institutions to adopt rules necessary 6 for the protection of consumers in Illinois; and 7 WHEREAS, The Department of Financial Institutions 8 proposed rules titled "Consumer Installment Loan Act" (38 Ill 9 Adm Code 110) on August 11, 2000 at 24 Ill. Reg. 11717 10 regulating loans with annual interest rates exceeding 36% for 11 periods of less than 60 days, if secured by an automobile 12 title, or for periods of less than 30 days, if not secured by 13 a title; and 14 WHEREAS, Among other provisions, the Department's rules 15 limit lenders of these short-term loans to simple interest, 16 require lenders to provide applicants and debtors with 17 information about debt management services, require release 18 of any liens within 24 hours after a short-term loan is 19 repaid, and require lenders to verify that a borrower has not 20 received another short-term loan within the previous 15 days; 21 and 22 WHEREAS, The Department of Financial Institutions 23 submitted its proposed rules on October 17, 2000 to the Joint 24 Committee on Administrative Rules, which reviewed the rules 25 and issued a Statement of Objection; and 26 WHEREAS, The Joint Committee on Administrative Rules 27 found that the proposed rules constitute a serious threat to 28 public interest, safety, or welfare, and the filing 29 prohibition gives the agency an opportunity to revisit those 30 provisions and consider less onerous alternatives; and 31 WHEREAS, Citing public comment, the Joint Committee on -2- LRB9208515JSpc 1 Administrative Rules noted that the proposed rules present an 2 unreasonable economic burden to small lenders, which in turn 3 may diminish the availability of financial resources for 4 consumers with limited options; and 5 WHEREAS, Based on this determination, the Joint Committee 6 on Administrative Rules prohibited the above-cited rulemaking 7 at its meeting on November 29, 2000; and 8 WHEREAS, Because Section 5-115 of the Illinois 9 Administrative Procedure Act states that a Prohibition of an 10 agency's proposed rule is effective for a period of at least 11 180 days, the Prohibition issued by JCAR commenced November 12 30, 2000 and will terminate on May 28, 2001, unless continued 13 by adoption of this Joint Resolution by both houses of the 14 General Assembly as provided by Section 5-125(c) of the 15 Illinois Administrative Procedure Act; and 16 WHEREAS, The General Assembly may permanently prohibit 17 filing of these rules by joint resolution before the 18 conclusion of that 180-day period, as further provided in 19 Section 5-115 of the Illinois Administrative Procedure Act; 20 therefore, be it 21 RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE 22 NINETY-SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE 23 SENATE CONCURRING HEREIN, that the Prohibition by the Joint 24 Committee on Administrative Rules of the rules proposed by 25 the Department of Financial Institutions under Public Act 26 91-698 and initially published in the Illinois Register on 27 August 11, 2000 be continued; and be it further 28 RESOLVED, That copies of this resolution be forwarded to 29 the Executive Director of the Joint Committee on 30 Administrative Rules and the Director of Financial 31 Institutions.
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