AN ACT RELATING TO FINANCIAL INSTITUTIONS -- LICENSED ACTIVITIES

HB 5042 repeals the state law that permitted "payday lenders" to operate by removing authorization for "deferred-deposit transactions" (commonly known as payday loans). This directly affects payday lenders, who will no longer be legally allowed to offer short-term loans secured by a customer's check or bank account debit, as the definition of such transactions is deleted from the law. The bill eliminates the specific legal framework enabling these loans, meaning payday lenders can no longer conduct this business under current state law. It does not create new licensing requirements but effectively bans the practice by removing the enabling statute.