WEEKLY LEGISLATIVE REPORT – February 23, 2007
House to consider return of ‘payday lending’
By Rep. Hugh Floyd
The House Banks & Banking Committee, by a divided 17-11 vote Thursday, favorably reported House Bill 163, known as the Deferred Presentment Services Act, which would provide for the licensing of individuals who provide deferred presentment services.
Payday lending, or cash advance, uses a post-dated check or electronic checking account information as collateral for a short-term loan. To qualify, borrowers need only personal identification, a checking account, and an income from a job or government benefits. The legislature virtually outlawed the concept in 2004.
HB 163 would return the practice of payday lending to Georgia, but in a regulated environment. The bill outlines licensing procedures, and stipulates rules, regulations and penalties for not complying with the act.
Supporters said the bill provides clear guidelines for a service that many Georgians need. Opponents said payday lenders cost American families billions of dollars each year in predatory fees, and that the business should be prohibited in Georgia.
The legislation is scheduled to be considered by the full House soon after we return to session on Tuesday, February 27.
Legislation I have co-sponsored, giving local governments more authority to order property owners to clean up unsightly graffiti, is aimed at ridding the community of buildings being used for criminal activities. HB 479, which would clarify provisions in Georgia law allowing local governments to condemn buildings that are unfit for occupancy, dilapidated or being used in connection with criminal drug activity, is under consideration in the House Judiciary Committee.
The legislation would add the presence of graffiti to the list of reasons local officials could cite for declaring a building unfit for human occupancy. This will augment legislative efforts to reduce gang-related graffiti in our communities, which started with a law I co-sponsored in 2003 that provides for the use of inmate labor to clean up graffiti on private property.
Recent polls show the public is increasingly supportive of tax referendum measures that are designed to raise money to address transportation issues. At least two such proposals are now under consideration by the House of Representatives.
HB 434, targeted to address Atlanta’s traffic problems, would allow two or more counties to introduce regional sales taxes; taxes on Internet, mail-order and out-of-state purchases; or local motor fuel sales to pay for specific transportation construction projects, subject to a popular referendum. HB 442 provides for a statewide 1 percent sales tax for transportation purposes, limited to a 10-year time period.
Supporters of HB 434 – including the Metro Atlanta Chamber of Commerce – said that the measure would be contingent on voter approval at the polls, as would HB 442. They also said Atlanta’s roads can’t handle its exploding population, and the state doesn’t have the funds to fix the problem. HB 434 would let the Georgia Regional Transportation Authority initiate the planning process in the 13-county Atlanta area. Opponents of HB 434 said that the measure would reduce transportation funding for outlying metro Atlanta counties.
The Georgia Department of Transportation is expected to introduce an alternative proposal soon. Lawmakers, DOT members and transportation groups are also reported to be working on a plan to address the state’s broader transpiration needs. Polls show the overall concept of allowing voters to decide on a temporary tax has widespread support among voters.
Legislation that would have put the retirement income of public employees at risk failed to win approval on the House floor, falling four votes short of the necessary 91. HB 318 would increase the percentage of Georgia’s retirement funds that can be invested in foreign countries that do not support child labor laws, minimum wage standards and environmental regulations.
Instead of putting the billions of dollars in our various public retirement systems at risk in shaky and untested foreign investments, the state should instead be investing in Georgia companies and focused on keeping jobs in the state.
- Rep. Hugh Floyd (D-Norcross) represents the 99th District (Gwinnett County) in the Georgia House of Representatives. Contact him at 611 Coverdell Office Building, Atlanta, GA 30334; by phone at 404-656-0314 or by e-mail at hughfloyd@mindspring.com.
