GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	2 

SENATE BILL 377
Banks and Thrift Committee Substitute Adopted 5/4/89

Short Title:  Credit Card Changes.	(Public)
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Sponsors:
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Referred to:  
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March 9, 1989

A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE THE LEGISLATIVE RESEARCH COMMISSION TO STUDY DEREGULATION OF REVOLVING CREDIT AND AUTHORIZATION OF CREDIT CARD BANKS IN NORTH CAROLINA.
The General Assembly of North Carolina enacts:
Whereas, legislation introduced during the 1989 Session of the General Assembly, proposing deregulation of revolving credit and authorization of credit card banks in North Carolina, raised important economic issues for the State; and
Whereas, the North Carolina Commission on Jobs and Economic Growth, after examining identical issues, recommended in its 1988 interim report to the General Assembly that the General Assembly deregulate revolving credit and authorize credit card banks in North Carolina; and
Whereas, North Carolina is one of the leading states in the southeast in the banking business with the credit card business alone having an annual payroll in excess of thirty million dollars ($30,000,000); and
Whereas, restrictive laws in North Carolina have apparently led some banks to move their credit card operations out of the State, with more likely to do the same, resulting in revenue loss for the State; and
Whereas, deregulation is a complex issue that requires deliberate study in order to determine whether it would result in either increased rates for consumers or economic growth for the State, or both;  Now, therefore,
The General Assembly of North Carolina enacts:
Section 1.  The Legislative Research Commission is authorized to study all aspects of deregulation of revolving credit and authorization of credit card banks, with a view toward  determining whether these actions would be in the best interest of North Carolina.  The Commission may consider the potential impact of these actions on North Carolina's consumers, revolving credit industry, job market, and economic growth, as well as other related issues. The Commission's study may include examination of the experiences of states that have already deregulated revolving credit and states that have already authorized credit card banks.
Sec. 2.  The Commission shall make a final report of its findings and recommendations to the 1989 General Assembly, Regular Session 1990.
Sec. 3.  This act is effective upon ratification.