Appendix B to Part 1026 - State Exemptions
12:9.0.1.1.1.9.1.1.2 : Appendix B
Appendix B to Part 1026 - State Exemptions Application
Any state may apply to the Bureau for a determination that a
class of transactions subject to state law is exempt from the
requirements of the Act and this part. An application shall be in
writing and addressed to the Executive Secretary, Bureau of
Consumer Financial Protection, 1700 G Street, NW., Washington, DC
20006, and shall be signed by the appropriate state official. The
application shall be made pursuant to the procedures herein.
Supporting Documents
An application shall be accompanied by:
(1) The text of the state statute or regulation that is the
subject of the application, and any other statute, regulation, or
judicial or administrative opinion that implements, interprets, or
applies it.
(2) A comparison of the state law with the corresponding
provisions of the Federal law.
(3) The text of the state statute or regulation that provides
for civil and criminal liability and administrative enforcement of
the state law.
(4) A statement of the provisions for enforcement, including an
identification of the state office that administers the relevant
law, information on the funding and the number and qualifications
of personnel engaged in enforcement, and a description of the
enforcement procedures to be followed, including information on
examination procedures, practices, and policies. If an exemption
application extends to federally chartered institutions, the
applicant must furnish evidence that arrangements have been made
with the appropriate Federal agencies to ensure adequate
enforcement of state law in regard to such creditors.
(5) A statement of reasons to support the applicant's claim that
an exemption should be granted.
Public Notice of Application
Notice of an application will be published, with an opportunity
for public comment, in the Federal Register, unless the Bureau
finds that notice and opportunity for comment would be
impracticable, unnecessary, or contrary to the public interest and
publishes its reasons for such decision.
Subject to the Bureau's rules on Disclosure of Records and
Information (12 CFR Part 1070), all applications made, including
any documents and other material submitted in support of the
applications, will be made available for public inspection and
copying.
Favorable Determination
If the Bureau determines on the basis of the information before
it that an exemption should be granted, notice of the exemption
will be published in the Federal Register, and a copy furnished to
the applicant and to each Federal official responsible for
administrative enforcement.
The appropriate state official shall inform the Bureau within 30
days of any change in its relevant law or regulations. The official
shall file with the Bureau such periodic reports as the Bureau may
require.
The Bureau will inform the appropriate state official of any
subsequent amendments to the Federal law, regulation,
interpretations, or enforcement policies that might require an
amendment to state law, regulation, interpretations, or enforcement
procedures.
Adverse Determination
If the Bureau makes an initial determination that an exemption
should not be granted, the Bureau will afford the applicant a
reasonable opportunity to demonstrate further that an exemption is
proper. If the Bureau ultimately finds that an exemption should not
be granted, notice of an adverse determination will be published in
the Federal Register and a copy furnished to the applicant.
Revocation of Exemption
The Bureau reserves the right to revoke an exemption if at any
time it determines that the standards required for an exemption are
not met.
Before taking such action, the Bureau will notify the
appropriate state official of its intent, and will afford the
official such opportunity as it deems appropriate in the
circumstances to demonstrate that revocation is improper. If the
Bureau ultimately finds that revocation is proper, notice of the
Bureau's intention to revoke such exemption will be published in
the Federal Register with a reasonable period of time for
interested persons to comment.
Notice of revocation of an exemption will be published in the
Federal Register. A copy of such notice will be furnished to the
appropriate state official and to the Federal officials responsible
for enforcement. Upon revocation of an exemption, creditors in that
state shall then be subject to the requirements of the Federal
law.