To enact section 1.63 of the Revised Code to state the intent of the General Assembly on the relationship of state and local laws regarding the regulation of loans and other forms of credit, and to establish the Predatory Lending Study Committee to report to the General Assembly about predatory lending practices in mortgage lending or origination.

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

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

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

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

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

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

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

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

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

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

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

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

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

Section 4. (A) There is hereby created the Predatory Lending Study Committee, which shall conduct a thorough investigation of the impact of predatory lending practices on the citizens and communities of Ohio. These predatory lending practices include, but are not limited to, loan flipping, balloon payments, origination fees, prepayment penalties, single premium credit insurance, packing unnecessary insurance coverages, lending without due regard to ability to pay, lending without due regard to tangible benefits to consumers, payments to home improvement contractors, foreclosure rates, appropriateness of subprime loans for customer populations, collusion among occupations related to real estate loans, and equity stripping. As part of its investigation, the Study Committee shall identify and evaluate current state and federal laws, rules, and regulations that address fraud, misrepresentation, and other deceptive practices in mortgage lending or origination. The Study Committee also shall evaluate the effectiveness of Am. Sub. S.B. 76 of the 124th General Assembly in deterring these practices and shall make recommendations it determines necessary to achieve that deterrence.

(B) The Study Committee shall consist of thirteen members as follows:

(1) Three members of the Senate appointed by the President of the Senate, two of whom are members of the majority party, and one of whom is a member of the minority party;

(2) Three members of the House of Representatives appointed by the Speaker of the House of Representatives, two of whom are members of the majority party, and one of whom is a member of the minority party;

(3) The Director of the Department of Commerce or the Director's designee;

(4) Three members representing consumer advocacy organizations, two of whom shall be appointed by the President of the Senate, and one of whom shall be appointed by the Speaker of the House of Representatives;

(5) Three members representing the lending community, two of whom shall be appointed by the Speaker of the House of Representatives, and one of whom shall be appointed by the President of the Senate.

(C) (1) The Director of the Department of Commerce or the Director's designee on the Study Committee shall serve as chairperson of the Study Committee.

(2) Members of the Study Committee shall serve without compensation or reimbursement.

(3) Vacancies on the Study Committee shall be filled in the same manner as the original appointment.

(D) The Department of Commerce shall provide necessary staff, facilities, supplies, and services to the Study Committee.

(E) The Study Committee shall meet initially within sixty days after the appointments to the Study Committee at the call of the chairperson and shall meet at least every ninety days thereafter at the call of the chairperson until the Study Committee submits the report described in division (F) of this section. The chairperson shall consider holding some regional public hearings to ensure that perspectives from throughout the state are presented to the Study Committee.

(F) The Study Committee shall publish its findings in a report and submit the report to the Governor, the Speaker and the Minority Leader of the House of Representatives, and the President and Minority Leader of the Senate not later than December 31, 2003. Included in the report shall be recommendations on legislation related to predatory lending to be enacted by the General Assembly. Upon submission of the report, the Study Committee shall cease to exist.