(a) Inconsistent state law. A state law that is inconsistent with the requirements of the Act and
this part is preempted to the extent of the inconsistency. If a lessor cannot
comply with a state law without violating a provision of this part, the state
law is inconsistent within the meaning of section 186(a) of the Act and is
preempted, unless the state law gives greater protection and benefit to the
consumer. A state, through an official having primary enforcement or
interpretative responsibilities for the state consumer leasing law, may apply
to the Bureau for a preemption determination.
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(b) Exemptions.
(1) Application. A state may apply to the Bureau for an exemption from the requirements
of the Act and this part for any class of lease transactions within the
state. The Bureau will grant such an exemption if the Bureau determines
that:
(i) The class of leasing transactions is subject to state law requirements
substantially similar to the Act and this part or
that lessees
are afforded greater protection under state law; and
(ii) There is adequate provision for state
enforcement.
(2) Enforcement and liability. After an exemption has been granted, the requirements of the applicable
state law (except for additional requirements not imposed by Federal law)
will constitute the requirements of the Act and this part. No exemption will
extend to the civil liability provisions of sections 130, 131, and 185 of the
Act.
