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After hours of debate, House passes SB 113 on financial services; amendments to cap fees fail
Summary
First substitute Senate Bill 113 (financial services amendments) passed the House 43-27 on March 3, 1999 after extended debate over deregulation of late charges and return-check fees; proposed amendments to cap fees failed and floor speakers warned of consumer impact and job risks.
The Utah House passed first substitute Senate Bill 113, a set of financial-services amendments largely affecting industrial loan corporations and related fees, after an extended and often contentious floor debate on March 3.
Representatives on both sides argued the bill's likely effects. Representative Hogue, urging defeat of amendments that would gut the bill, framed the debate around consumer protection and local jobs: "What we're being asked to do is to remove some institutions from state regulation... I don't have any doubt... they can adapt." He warned that stripping state oversight of late charges, return-check fees and related items could shift costs onto consumers and risk local employment.
Representative Gladwell, one of the bill's floor proponents, said the measure would maintain a credit environment that has attracted institutions and jobs to Utah. He emphasized the bill's supporters argued deregulation could preserve and grow economic activity in the state.
Two amendments (amendment number 2 and amendment number 3 under Representative Hoch's name) were put to the House and failed in recorded votes. After debate and the failed amendment votes, the House recorded final passage of the first substitute Senate Bill 113: 43 yes, 27 no; the bill was returned to the Senate for further consideration.
Why it matters: the debate focused on whether state regulations on certain fees should be loosened for some lending institutions; sponsors said easing the regulatory environment supports economic development and competitiveness, while opponents argued the change reduces consumer protections and may shift costs to Utah residents.
Details from the floor record: floor participants repeatedly referenced late charges, return-check fees and exemptions for institutions and leadership categories as central to the Senate-amended text; the House considered and rejected two floor amendments that would have limited aspects of deregulatory language. The transcript contains multiple direct arguments from Representatives Hogue, Gladwell, King and others representing both sides of the issue.
What happens next: SB 113 was transmitted to the Senate for further action; any regulatory or supervisory changes will require agency implementation and possibly further statutory clarification.
