HB 2795 Summary

• Creates the Small Loan Community Reinvestment Fund as a special fund in the State Treasury, administered by the Department of Commerce and Economic Opportunity to make grants to not-for-profit organizations.

• Imposes a $1 surcharge on each title-secured loan or small consumer loan made by licensed lenders, payable monthly to the Department of Revenue by the 15th day of the following month.

• Imposes a $1 surcharge on each payday loan made by lenders, with the same monthly reporting and payment requirements to the Department of Revenue.

• Directs 98% of surcharge proceeds to the Small Loan Community Reinvestment Fund and 2% to the Tax Compliance and Administration Fund to cover Department of Revenue administrative costs.

• Targets grant funds primarily to geographic areas with high concentrations of payday loan, title-secured loan, and small consumer loan facilities for educational tutoring, financial literacy, early childhood development, youth mentoring, and senior services.

• Makes failure to file a return or filing a fraudulent return a Class 4 felony for both payday lenders and consumer loan licensees.