FORTY-THIRD LEGISLATURE FIRST SESSION, 1997 HB 238/a March 12, 1997 Mr. President: Your CORPORATIONS & TRANSPORTATION COMMITTEE, to whom has been referred HOUSE BILL 238, as amended has had it under consideration and reports same with recommendation that it DO PASS, amended as follows: 1. On page 1, line 23, after "or" insert "insurance agent, solicitor or broker". 2. On page 2, line 7, strike "and". 3. On page 2, line 10, strike "its" and insert in lieu thereof "a". 4. On page 2, line 13, strike the period, insert in lieu thereof a semicolon and between lines 13 and 14, insert the following new paragraphs: "(4) "sell" means to engage in the solicitation, sale and placement of insurance and such other related activities conducted by an agent, solicitor or broker pursuant to the Insurance Code; (5) "service contract" means a contract issued on consumer products pursuant to which the vendor or manufacturer bears the cost of the repair or replacement of the consumer product; (6) "insurance premium finance agreement" means an agreement by which an insured or a prospective insured promises to pay to any person engaged in the business of premium financing, the amount advanced or to be advanced under the agreement to an insurer or to an insurance agent or broker in payment of premiums on an insurance contract; and (7) "loan transaction" and any other reference to lending or extension of credit does not include loans made by broker-dealers registered in accordance with applicable state and federal securities laws that are wholly collateralized by securities.". 5. On page 3, line 5, before the semicolon insert: ", and when providing insurance coverage to a borrower or co- borrower or both, the following insurance products: accidental death and dismemberment, accidental disability and any other accidental casualty insurance product". 6. On page 3, line 9, strike "and". 7. On page 3, line 11, strike the period, insert a semicolon and between lines 11 and 12, insert the following new paragraphs: "(4) annuities; (5) service contracts; (6) insurance premium finance agreements; and (7) travel accident or baggage insurance.". 8. On page 3, line 16, after "agent" insert ", solicitor". 9. On page 3, line 21, after "agent" insert ", solicitor". 10. On page 3, line 24, after "agent" insert ", solicitor". 11. On page 4, line 1, after "agent" insert ", solicitor". 12. On page 4, line 3, strike "broker or" and after "agent" insert ", solicitor or broker". 13. On page 4, line 6, after "institution" insert ", except an institution that does not accept deposits that are federally insured,". 14. On page 4, line 24, after "agent" insert ", solicitor". 15. On page 5, line 3, strike "promotion and". 16. On page 5, line 4, after "institution" insert ", except an institution that does not accept deposits that are federally insured,". 17. On page 5, line 7, strike "promotional" and insert in lieu thereof "sales". 18. On page 5, line 9, strike "promotional" and insert in lieu thereof "sales". 19. On page 5, line 23, after "not" strike the remainder of the line, strike line 24 and strike line 25 through "or". 20. On page 6, line 1, after "sale" strike the remainder of the line and strike line 2 through "purchase". 21. On page 6, line 17, after the period insert: "Notwithstanding any provision in this section to the contrary, compliance with Section 603 of the federal Fair Credit Reporting Act by a lending institution shall be deemed to be full compliance with this subsection. Nonpublic customer information does not include material excluded from the definition of "consumer report" by Section 603(d)(2)(A) of the federal Fair Credit Reporting Act.". 22. On page 6, strike lines 18 and 19. 23. Reletter the succeeding subsections accordingly. 24. On page 6, line 20, strike "transactions" and insert in lieu thereof "sales". 25. On page 7, line 2, after "institution" insert "or with the institution's resident agent, solicitor or broker". 26. On page 7, line 7, after "state" insert "or in the office of the institution's resident agent, solicitor or broker". 27. On page 7, line 11, strike "agent" and insert in lieu thereof "agent's, solicitor's". 28. On page 7, line 16, after "agent" insert ", solicitor or broker". 29. On page 7, line 16, strike "held" and insert in lieu thereof "holds". 30. On page 7, line 17, strike "agent". 31. On page 7, line 18, strike "was" and insert in lieu thereof "is". 32. On page 7, line 19, strike "was" and insert in lieu thereof "is". 33. On page 8, line 13, after the period insert: "This subsection shall not apply when a lending institution contacts a customer in the course of direct or mass marketing to a group of persons in a manner that bears no relation to the customer's loan application or credit decision.". 34. On page 8, strike lines 14 through 25, and insert in lieu thereof: "R. The sale of insurance by a lending institution, credit union, sales financing company, insurance institution, independent company, any institution granting or arranging consumer credit or any institution soliciting or making loans in the state of New Mexico, except a broker or dealer registered under the Securities Exchange Act of 1934, may be conducted by a person whose responsibilities include loan transactions or other transactions involving the extension of credit so long as the person who is primarily responsible for making the specific loan or extension of credit is not the same person engaged in the sale of insurance for that same transaction." 35. On page 9, line 6, before the period insert ", which may be evidenced by compliance with the federal Truth in Lending Act". 36. On page 9, line 9, after "the" insert "lending". 37. On page 9, line 18, strike "place of solicitation or" and insert in lieu thereof "location for the". 38. On page 9, line 18, strike "by" and insert in lieu thereof "on the premises of". 39. On page 9, line 19, after "institution" insert ", except an institution that does not accept deposits that are federally insured,". 40. On page 9, line 21, strike "banking" and insert in lieu thereof "lending". 41. On page 9, line 24, strike "banking" and insert in lieu thereof "lending". 42. On page 10, line 7, strike "an" and insert in lieu thereof "a lending". 43. On page 10, line 15, strike the closing quotation mark and between lines 15 and 16, insert the following new subsection: "Z. If any of the provisions of this section are preempted by federal law, then those preempted provisions shall not apply to any person or lending institution subject to the provisions of this section."". Respectfully submitted, __________________________________ Roman M. Maes, III, Chairman Adopted_______________________ Not Adopted_______________________ (Chief Clerk) (Chief Clerk) Date ________________________ The roll call vote was 5 For 2 Against Yes: 5 No: Kidd, McKibben Excused: Fidel, Griego, Howes Absent: None H0238CT1 .118651.1/a