Administrative Rule Review Report         # AR11-032

Legislative Service Office

13-Jul-11

AGENCY: Department of Audit

DATE SUBMITTED: 7/12/2011

SUBJECT: Chapter 2, Disclosure and Advertising.

NATURE OF RULES:                        Legislative

STATUTORY AUTHORITY:            W.S. 40-14-102(b)(vi), 40-14-222(f), 40-14-320(e) and 40-14-604(b) and (c).

DETERMINATION OF PROCEDURAL COMPLIANCE BASED UPON INFORMATION SUBMITTED BY THE AGENCY TO LSO: 

Apparently complete to date.  The agency received no written comments on the proposed rule amendments. 

SUMMARY OF RULES:

Section 2 is amended to adopt the most current version of Federal Reserve Board Regulation Z which provides consumer credit and loan protections.

Section 3 is amended to delete paragraph (a)(i), which established a modification to Federal Reserve Board Regulation Z.  Previously, paragraph (a)(i) modified Regulation Z to comply with W.S. 40-14-204, which defines consumer credit sales where the amount financed does not exceed $50,000, and W.S 40-14-304, which defines a consumer loan where the principal does not exceed $50,000.  Regulation Z no longer needs modified because, effective July 21, 2011, the Dodd-Frank Act requires that the protections of the Truth-in-Lending Act apply to consumer credit transactions up to $50,000.

FINDINGS:     The rules appear to be within the scope of statutory authority and legislative intent.  Compliance with federal law has not been determined as it is assumed the Attorney General has provided such review.

STAFF RECOMMENDATION:  That the rules be placed on the Consent List and be approved by the Council as submitted by the Agency.

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Ian Shaw

Staff Attorney

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Lynda G. Cook

Staff Attorney