(By Delegates R. M. Thompson, Beach, Butcher, Canterbury, Faircloth, Foster, Hamilton, Hartman, Hrutkay, Iaquinta, Morgan, Perry, Pino, Spencer, Webster, H. White and G. White)

(Originating in the Committee on Banking and Insurance)

[February 28, 2003]

Requesting the Joint Committee on Government Finance to conduct a study on payday advances and lending.

Whereas, Certain financial service associations and institutions offer payday advances to customers; and
Whereas, This practice is commonly referred to as payday lending; and
Whereas, Certain states regulate payday lending; and
Whereas, The federal government regulates payday lending through institutions which are subject to federal regulation; and
Whereas, The citizens and financial institutions of West Virginia would benefit from a study to determine if the State of West Virginia should regulate payday lending and thereby allow certain state financial institutions to offer this service; and
Whereas, To determine the most effective means of regulating this industry and the impact of regulation upon West Virginia financial institutions and citizens, it is necessary to study the regulation of the practice of payday lending by other states and federal agencies; therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance is hereby directed to conduct a study of payday lending; and, be it
Further Resolved, That the Joint Committee on Government and Finance report its findings and recommendations resulting from the study to the regular session of Legislature, 2004, together with drafts of any proposed legislation necessary to effectuate such recommendations; and, be it
Further Resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.