SENATE CONCURRENT RESOLUTION NO. 82
(By Senators Minard, Jenkins, Chafin, Fanning, Foster, Helmick, Kessler, Prezioso, Sharpe, Deem, Facemyer, Guills, Lanham and Minear)

[Originating in the Committee on Banking and Insurance]

Requesting the Joint Committee on Government and Finance study payday lending.

Whereas, Certain financial service associations and institutions offer payday advances to customers, commonly referred to as payday lending; and

Whereas, The federal government regulates payday lending through institutions which are subject to federal regulation; and

Whereas, Some states regulate payday lending, while other states prohibit the practice; and

Whereas, The citizens and financial institutions of West Virginia would benefit from a study to determine whether the State of West Virginia should regulate payday lending, thereby allowing certain state financial institutions to offer this service, or whether the State of West Virginia should prohibit the service entirely; and

Whereas, There have been changes in this industry from a national perspective in the last several years and the Legislature would benefit from studying the effect of such changes on the citizens of West Virginia; and

Whereas, To determine the most effective means of regulating or prohibiting this industry, as well as the impact of such action 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 requested to study payday lending; and, be it

Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2007, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its 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.