HB52 ENACTS THE UNFAIR HOME IMPROVEMENT LOANS FOR SENIOR CITIZENS ACT.
Sponsor: Scheve, May (98) Effective Date:00/00/0000
CoSponsor: McClelland, Emmy L. (91) LR Number:0291-02
Last Action: COMMITTEE: SENATE FINANCIAL AND GOVERNMENTAL ORGANIZATION
03/29/1999 - Executive Session Held (S)
VOTED DO PASS
HCS HB 52
Next Hearing:Hearing not scheduled
Calendar:Bill currently not on calendar
ACTIONS HEARINGS CALENDAR
BILL SUMMARIES BILL TEXT FISCAL NOTES
HOUSE HOME PAGE BILL SEARCH

Available Bill Summaries for HB52 Copyright(c)
* Perfected * Committee * Introduced

Available Bill Text for HB52
* Perfected * Committee * Introduced *

Available Fiscal Notes for HB52
* House Committee Substitute * Introduced *

BILL SUMMARIES

PERFECTED

HCS HB 52 -- CERTAIN HOME IMPROVEMENT LOANS (Scheve)

This bill outlaws certain unfair or deceptive practices relating
to home improvement loans.  Prohibited are home solicitations
where a home improvement loan is made encumbering the person's
home to pay the loan and where the practice violates the federal
Truth in Lending Act by:

(1)  extending credit under a mortgage for home improvements
without regard for repayment ability;

(2)  paying a contractor from the proceeds of a mortgage in a
way other than the prescribed way; or

(3)  selling or assigning certain mortgages without furnishing
notice that the mortgage is subject to special rules under the
federal Truth in Lending Act.

This bill has penalty provisions.

FISCAL NOTE:  No impact on state funds.


COMMITTEE

HCS HB 52 -- HOME IMPROVEMENT LOANS

SPONSOR:  Schilling (Scheve)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Consumer
Protection and Housing by a vote of 18 to 0.

This substitute outlaws certain unfair or deceptive practices
relating to home improvement loans.  Prohibited are home
solicitations where a home improvement loan is made encumbering
the person's home to pay the loan and where the practice
violates the federal Truth in Lending Act by:

(1)  extending credit under a mortgage for home improvements
without regard for repayment ability;

(2)  paying a contractor from the proceeds of a mortgage in a
way other than the prescribed way; or

(3)  selling or assigning a mortgage without furnishing notice
that the mortgage is subject to special rules under the federal
Truth in Lending Act.

The substitute describes third party liability for unfair and
deceptive practices.  The provisions of the substitute apply to
transactions and contracts entered as of or after August 28,
1999.

This substitute has penalty provisions.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the bill provides consumer
protection from unscrupulous dealers of home remodeling or
improvements.

Testifying for the bill were Representatives Scheve and
McClelland; and American Association of Retired Persons (AARP).

OPPONENTS:  There was no opposition voiced to the committee.

Donna Schlosser, Legislative Analyst


INTRODUCED

HB 52 -- Home Improvement Loans

Co-Sponsors:  Scheve, McClelland

This bill outlaws certain unfair or deceptive practices relating
to home improvement loans to senior citizens or disabled
persons.  The bill prohibits home solicitations where a home
improvement loan is made encumbering the person's home to pay
the loan and where the practice violates the federal Truth in
Lending Act by:

(1)  extending credit under a mortgage for home improvements
without regard for repayment ability;

(2)  paying a contractor from the proceeds of a mortgage in a
way other than the prescribed way; or

(3)  selling or assigning a mortgage without furnishing notice
that the mortgage is subject to special rules under the federal
Truth in Lending Act.

The bill describes third party liability for unfair and
deceptive practices.  The provisions of the bill apply to
transactions and contracts entered as of or after August 28,
1999.

This bill has penalty provisions.


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