HAPPENINGS IN MONTGOMERY
Updated March 10, 2007 -- Scroll
down to read all stories
The legislature convened on March 6, 2007 for a legislative session which will end
on June 18. While the legislature is in session we will post
information regarding legislation activities that might affect our
industry. Also, be sure to check the
News page for more up to date information on pending bills or
VISIT THE LEGISLATIVE SITE TO SEE BILLS
You can visit the Alabama Legislative
System for an update of all bills by following these instructions:
1) Click here.
2) Next, click on Bills in the upper left
corner. 3) Then, click on Status under Bills and put in the bill
(i.e., SB501) and click Get Status. You should see a
description of the bill.
Three Bills Are Introduced
Against The Industry In The Very First Week -- March 10, 2006
Three bills were introduced in the first week of this session:
SB229, SB121 & SB120. SB121 & SB120 will eliminate
the payday and title industry in Alabama. Below is a summary
of the bills. If you wish to see the bills, see the
instructions above to visit the Alabama Legislative System. We
expect there may be more bills in the weeks ahead.
Deferred presentment services, payday loans, consumer authorized to
rescind loan transaction, rollover loans, extended payment plans,
deferred presentment services transaction prohibited for military
personnel, Secs. 5-18A-12, 5-18A-13 (reform proposals)
Loans, based on borrower giving post-dated check, Deferred
Presentment Services Act repealed, transactions regulated under
Small Loan Act, Secs. 5-18A-1 to 5-18A-22, inclusive, repealed
(regulated under the small loan act)
Motor vehicles, title loan business regulated under Small Loan Act,
removed from Pawnshop Act, Sec. 5-19A-2. (regulate title pawn under
the small loan act)
2006 Legislative Session Is
Now History -- May 18, 2006
It is over! During this session we had one bill introduced
(see SB501 below) that would have been devastating to us.
Michael Sullivan, our lobbyist, was quick to respond. It is
probably not dead and we may very well see it again next session.
Our motor vehicle revenue bill died. (below HB191 &
SB164 below). We need this bill and we pushed hard, but there
were a few legislators who were adamant this bill would not pass.
Why? Because we are the title loan industry (predatory, etc.) and
because it is an election year and they could pull it off.
SB501 -- State-wide database
and new fees - March 25, 2006. Among other things,
this bill would create a state-wide title database, require
reporting by title pawn operators of every title loan transaction
and impose fees on title loans.
HB531 & SB322 -- Allow pawn
operators to sell "Auto Club" Memberships - March 25, 2006.
This is a change to the insurance statute that will allow title pawn
operators to sell auto club memberships (similar to AAA).
Designated Agent Status For
Title Pawn Operators - March 25, 2006. The
Department of Motor Vehicles will not establish title loan operators
as Designated Agents. This status is helpful in processing
titles and allows access to the state-wide title database. We
have had discussions with the State and they have agreed to
reconsider this prohibition later in the year when the new and
improved online title information database has been implemented.
HB191 & SB164 -- Motor Vehicle
Revenue Bill - January 21,
2006. This bill, which we are promoting,
provides our industry with the same rights as banks and consumer
finance companies when selling a repossessed vehicle. The bill
will clear up the ambiguity that some at the State interpret to mean
we are required to have a Motor Vehicle Regulatory license in order
to sell or dispose of a vehicle. There are companion bills HB191