RULES AND REGULATIONS
Title 10—BANKING AND SECURITIES
DEPARTMENT OF BANKING AND SECURITIES
[ 10 PA. CODE CHS. 19 AND 55 ]
Repeal or Amendment of Assorted Sections
[51 Pa.B. 3447]
[Saturday, June 26, 2021]The Department of Banking and Securities (Department) issues this final-omitted rulemaking to delete portions of its regulations in §§ 19.4 and 55.1—55.3, and amends §§ 19.1 and 19.6 as set forth in Annex A.
Statutory Authority
The Department issues this final-omitted rulemaking under the authority provided in section 506 of the Administrative Code of 1929 (71 P.S. § 186) and section 202(C) of the Department of Banking and Securities Code (code) (71 P.S. § 733-202(C)).
Omission of Proposed Rulemaking
Public notice of intention to amend or rescind regulations under the procedures set forth in sections 201 and 202 of the Commonwealth Documents Law (CDL) (45 P.S. §§ 1201 and 1202) has been omitted for good cause as authorized under section 204(3) of the CDL (45 P.S. § 1204(3)), which permits an agency to omit these procedures based on a finding that the procedures are, under the circumstances, impracticable, unnecessary or contrary to the public interest.
The Department finds that the rescissions and amendments are necessitated by the repeal or amendment of statutes governing the Department that render the affected sections either obsolete or inaccurate.
Purpose
This final-omitted rulemaking deletes or amends selected provisions in the Department's regulations that are obsolete or inaccurate due to subsequent statutory enactments, which make unnecessary the public notice provisions of the CDL.
Summary of the Final-Omitted Rulemaking
This final-omitted rulemaking deletes or amends sections of its regulations as follows:
Chapter 19—Money Transmitters
Two amendments and one rescission are needed due to statutory changes, as follows:
§ 19.1—Definition of ''act.'' This definition is amended to identify the act as the ''Money Transmitter Act,'' as it is called in the Synopsis to Act 129 of 2016, the most recent amendment to the statute. This title conforms to the Pennsylvania Code & Bulletin Style Manual in § 5.1 (relating to Pennsylvania statutes), regarding the naming of an unconsolidated statute that lacks an official short title. The amended definition cites only to sections 1—18, which are the sections of Chapter 53 of Title 7 (7 P.S. §§ 6101—6118) that relate to the business of transmitting money or credit by means of a transmittal instrument for a fee or other consideration. Four additional sections of Chapter 53 (7 P.S. §§ 6121—6122.1) concern the separate subject area of electronic funds transfer systems, and therefore are not being included in the citation for the Money Transmitter Act.
§ 19.4—Securities deposited. Section 6(a) of the Money Transmitter Act (7 P.S. § 6106(a)) provides that, among other things, a bond shall accompany an application for license. Prior to the enactment of Act 129 of 2016, section 6 contained a subsection (b) that allowed for the deposit of securities in lieu of a bond. Section 19.4 of the regulations references section 6(b) and sets forth requirements relating to the deposit of securities in lieu of the bond. Section 19.4 is deleted because Act 129 of 2016 deleted subsection (b), thus eliminating the statutory authority for the deposit of securities in lieu of a bond.
§ 19.6—Advertisements. The agency name ''Department of Banking'' is amended to read ''Department of Banking and Securities,'' as set forth in section 1 of the Money Transmitter Act (7 P.S. § 6101). Act 86 of 2012 changed the agency name in section 2 of the code (71 P.S. § 733-2(A)), and section 1102-A of the code consolidated the regulation of banking and securities (71 P.S. § 733-1102-A).
Chapter 55—Financing Sales of Mobile Homes
This regulation deletes all three sections of Chapter 55 because they are obsolete due to the enactment of the act of November 27, 2013, (P.L. 1081, No. 98) (Act 98) (12 Pa.C.S. §§ 6101—6355). Chapter 55, which was promulgated in 1978, defines ''installment sales contract'' as ''[a] contract for the retail sale of a mobile home executed under the provisions of the act,'' and defines ''act'' as ''[t]he Motor Vehicle Sales Finance Act (MVSFA) (69 P.S. §§ 601—637).'' 10 Pa. Code § 55.1. Chapter 55 is obsolete because Act 98 repealed the MVSFA and created the ''Consumer Credit'' part of Title 12 of the Pennsylvania Consolidated Statutes, incorporating the subject matter of the MVSFA into 12 Pa.C.S. Part V as Chapter 61 and Chapter 62 (relating to general provisions; and motor vehicle sales finance) (12 Pa.C.S. §§ 6101—6275). Section 6262 of 12 Pa.C.S. is entitled ''Procedures for manufactured homes.''
§ 55.1—Definitions. This section defines ''act'' as the MVSFA, a definition that is obsolete because Act 98 repealed the MVSFA. Moreover, this section contains other definitions superseded by those set forth statutorily at 12 Pa.C.S. § 6202 (relating to definitions).
§ 55.2—Disclosures to installment buyers. Regulatory requirements for disclosures are superseded by the requirements of 12 Pa.C.S., Part V, Chapters 61 and 62. See, for example, 12 Pa.C.S. §§ 6103(b), 6221, 6228, 6254, and 6259.
§ 55.3—Contractual provisions. Regulatory requirements about prepayment, attorney fees and waiver are superseded by 12 Pa.C.S. §§ 6246, 6253(b) and 6234(a) (relating to refund for prepayment of contract; legal proceedings; and waiver of statutory protection prohibited), respectively.
Persons Likely to be Affected
The rescissions or amendments to the regulations will not affect any group or entity. The continuing presence of obsolete or inaccurate regulations serves no purpose and may cause confusion.
Fiscal Impact
Because this final-omitted rulemaking only repeals or amends obsolete or inaccurate regulations, there will be no fiscal impact.
Paperwork Requirements
This final-omitted rulemaking will not result in an increase in paperwork for any individuals or entities.
Effective Date
The final-omitted rulemaking will be effective upon final publication in the Pennsylvania Bulletin.
Public Comment Period
Public notice of intention to repeal or amend the regulations under the procedures set forth in sections 201 and 202 of the CDL (45 P.S. §§ 1201 and 1202) is omitted for good cause under section 204(3) of the CDL (45 P.S. § 1204(3)) because the Department finds that these procedures are, under the circumstances, unnecessary. The repeal or amendment of the regulations is based on statutes enacted subsequent to the promulgation of the regulations and that supersede them.
Contact Person
Individuals interested in further information may contact Stefanie Hamilton, Chief Counsel, Department of Banking and Securities, 17 North Second Street, Suite 1300, Harrisburg, PA 17101, (717) 787-1471, shamilton@pa.gov.
Regulatory Review
Under section 5.1(c) of the Regulatory Review Act (71 P.S. § 745.5a(c)), on April 7, 2021, the Department submitted a copy of the final-omitted rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC), the Chairpersons of the Senate Banking and Insurance Committee and the House Commerce Committee. On the same date, the regulations were submitted to the Office of Attorney General for review and approval under the Commonwealth Attorneys Act (71 P.S. §§ 732-101—732-506).
Under section 5.1(j.2) of the Regulatory Review Act (71 P.S. § 745.5a(j.2)), on May 19, 2021, the final-omitted rulemaking was deemed approved by the House and Senate Committees. Under section 5.1(e) of the Regulatory Review Act (71 P.S. § 745.5a (e)), IRRC met on May 20, 2021, and approved the final-omitted rulemaking.
Findings
The Department finds that:
(1) Public notice of the Department's intention to repeal or amend its regulations under the procedures in sections 201 and 202 of the CDL (45 P.S. §§ 1201 and 1202) has been omitted for good cause as authorized under section 204(3) of the CDL because the Department finds that these procedures are, under the circumstances, unnecessary.
(2) The deletion or amendment of the Department's regulations in the manner provided in this order is necessary and appropriate.
Order
The Department, acting under its authorizing statutes, orders that:
(a) The regulations of the Department, 10 Pa. Code are amended by deleting §§ 19.4 and 55.1—55.3, and amending §§ 19.1 and 19.6 to read as set forth in Annex A.
(b) The Department shall submit this final-omitted regulation to the Office of General Counsel and OAG for approval as to form and legality as required by law.
(c) The Department shall submit this final-omitted regulation to IRRC and the House and Senate Committees as required by law.
(d) The Department shall certify this final-omitted regulation and deposit them with the Legislative Reference Bureau as required by law.
(e) This final-omitted regulation shall take effect upon publication in the Pennsylvania Bulletin.
RICHARD VAGUE,
SecretaryFiscal Note: 3-57. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 10. BANKING AND SECURITIES
PART II. BUREAU OF BANKS
CHAPTER 19. MONEY TRANSMITTERS § 19.1. Definition of ''act.''
The term act, when used in this chapter, shall mean the act of September 2, 1965 (P.L. 490, No. 249) (7 P.S. §§ 6101—6118), referred to as the Money Transmission Business Licensing Law and commonly known as the Money Transmitter Act.
* * * * * § 19.4. (Reserved).
§ 19.6. Advertisements.
(a) Licensees may advertise their activities in such form as they desire, but in no instance shall any reference to supervision or licensing be made other than by the following phrase: ''Transmit Money By Check, Draft or Money Order By The Department of Banking and Securities, Commonwealth of Pennsylvania.''
(b) Agents and subagents shall clearly indicate the name of the licensee in a sign publicly displayed in the place of business issuing and selling transmittal instruments.
PART IV. BUREAU OF CONSUMER CREDIT AGENCIES
CHAPTER 55. (Reserved) §§ 55.1—55.3. (Reserved).
[Pa.B. Doc. No. 21-987. Filed for public inspection June 25, 2021, 9:00 a.m.]
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