SENATE BILL REPORT

SB 6833

BYSenators von Reichbauer, Moore, Sellar and Fleming

Changing the penalty for certain violations by industrial loan companies.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 2, 1990

Senate Staff:Benson Porter (786-7470)

AS OF FEBRUARY 1, 1990

BACKGROUND:

State laws governing industrial loan companies provide that a person is guilty of a misdemeanor if that person violates, or knowingly aids or abets a violation of any provision of the industrial loan company laws when the provision does not prescribe a penalty.  Similarly, a person is guilty of a misdemeanor if he or she fails to perform any statutory duty for which no penalty is specifically prescribed.

SUMMARY:

The standards for the application of certain criminal penalties are modified.

A person is guilty of a misdemeanor if that person willfully and knowingly violates, or willfully and knowingly aids or abets a violation of certain provisions of the industrial loan company laws.  The subject provisions concern the corporate powers, open-end loans, or prohibited acts provisions of the code.

In addition, a person is guilty of a misdemeanor if he or she willfully and knowingly fails to perform a duty set forth in the corporate powers, open-end loans, or prohibited activities provisions of the industrial loan company laws.

Appropriation:  none

Revenue:   none

Fiscal Note:    none requested