REPRESENTATIVES Blasdel, Salerno, Carmichael, DeWine, Raga, Hoops, Metelsky, Schaffer, G. Smith, Allen, Webster, Collier, Reidelbach, Seitz, Ogg, Olman, Schmidt, Carano, Roman, Hagan, Latell, Schneider, Jolivette, Faber, Lendrum, White, Calvert

To enact section 1.63 of the Revised Code to state the

1

intent of the General Assembly on the relationship

2

of state and local laws regarding the regulation of

3

loans and other forms of credit.

4

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 1.63 of the Revised Code be enacted	5
to read as follows:	6

Sec. 1.63. (A) The state solely shall regulate the business	7
of originating, granting, servicing, and collecting loans and	8
other forms of credit in the state and the manner in which any	9
such business is conducted, and this regulation shall be in lieu	10
of all other regulation of such activities by any municipal	11
corporation or other political subdivision.	12

(B) Any ordinance, resolution, regulation, or other action	13
by a municipal corporation or other political subdivision to	14
regulate, directly or indirectly, the origination, granting,	15
servicing, or collection of loans or other forms of credit	16
constitutes a conflict with the Revised Code, including, but not	17
limited to, Titles XI, XIII, XVII, and XLVII, and with the uniform	18
operation throughout the state of lending and other credit	19
provisions, and is preempted.	20

(C) Any ordinance, resolution, regulation, or other action	21
by a municipal corporation or other political subdivision	22
constitutes a conflict with the Revised Code, including, but not	23
limited to, Titles XI, XIII, XVII, and XLVII, and is preempted, if	24
the ordinance, resolution, regulation, or other action does either	25
of the following:	26

(1) Disqualifies a person, or its subsidiaries or	27
affiliates, from doing business with such municipal corporation or	28
other political subdivision based upon the acts or practices of	29
such person, or its subsidiaries or affiliates, as an originator,	30
grantor, servicer, or collector of loans or other forms of credit;	31

(2) Imposes reporting requirements or other obligations upon	32
a person, or its subsidiaries or affiliates, based upon such	33
person's, or its subsidiaries' or affiliates', acts or practices	34
as an originator, grantor, servicer, or collector of loans or	35
other forms of credit.	36

(D) If any provision of this section, or any application of	37
any provision of this section, is for any reason held to be	38
illegal or invalid, the illegality or invalidity shall not affect	39
any legal and valid provision or application of this section, and	40
the provisions and applications of this section shall be	41
severable.	42

Section 2. (A) The provisions of the Revised Code, including,	43
but not limited to, Titles XI, XIII, XVII, and XLVII, relating to	44
the origination, granting, servicing, and collection of loans and	45
other forms of credit prescribe rules of conduct upon citizens	46
generally, comprise a comprehensive regulatory framework intended	47
to operate uniformly throughout the state under the same	48
circumstances and conditions, and constitute general laws within	49
the meaning of Section 3 of Article XVIII of the Ohio	50
Constitution.	51

(B) The provisions of the Revised Code, including, but not	52
limited to, Titles XI, XIII, XVII, and XLVII, relating to the	53
origination, granting, servicing, and collection of loans and	54
other forms of credit have been enacted in furtherance of the	55
police powers of the state.	56

(C) Silence in the Revised Code, including, but not limited	57
to, Titles XI, XIII, XVII, and XLVII, with respect to any act or	58
practice in the origination, granting, servicing, or collection of	59
loans or other forms of credit shall not be interpreted to mean	60
that the state has not completely occupied the field or has only	61
set minimum standards in its regulation of lending and other	62
credit activities.	63

(D) It is the intent of the General Assembly to entirely	64
preempt municipal corporations and other political subdivisions	65
from the regulation and licensing of lending and other credit	66
activities.	67

Section 3. (A) The enactment of section 1.63 of the Revised	68
Code by this act is intended as a clarification of existing law	69
and not as a substantive change in the law.	70

(B) The enactment of section 1.63 of the Revised Code by this	71
act expresses the legislative intent of the General Assembly	72
currently and at the time of the original enactment of the	73
provisions of the Revised Code, including, but not limited to,	74
Titles XI, XIII, XVII, and XLVII, relating to the origination,	75
granting, servicing, and collection of loans and other forms of	76
credit.	77