Bill description: HB 400 amends Chapter 46, Title 28, Idaho code related to the administration of regulated consumer credit transactions.
Does it give government any new, additional, or expanded power to prohibit, restrict, or regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in the market?
HB 400 amends several sections of code to insert language requiring that applications for a license to do business as a regulated lender be filed through the "nationwide mortgage licensing system and registry" or "NMLSR" rather than "in a manner prescribed by the administrator" in the Idaho Department of Finance. This change places Idahoans working in this industry under the jurisdiction of an entity not under the control or purview of the Idaho legislature.
Does it increase barriers to entry into the market? Examples include occupational licensure, the minimum wage, and restrictions on home businesses. Conversely, does it remove barriers to entry into the market?
HB 400 adds language to Idaho code that allows the administrator to take punitive actions against a "person subject to the Idaho credit code" if that person is "about to violate" or "about to engage" in a violation of the code. Such preemptive enforcement based on perception rather than actual prohibited action runs counter to the cause of justice.
HB 400 changes and adds to the list of reasons why the license of a person licensed to make regulated consumer loans may be revoked or suspended. Existing law requires that a licensee "repeatedly and willfully" violate the act, but the change requires only a single—and not necessarily willful—violation.
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