Legislative Report
HAPPENINGS IN
MONTGOMERY
The Alabama legislature convened on March 6, 2007 for a legislative session which
will end on June 18. They will meet for a total of 30 days during
this period (without a special session). 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 legislation.
VISIT THE ALABAMA LEGISLATIVE WEB 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 number (i.e., SB501) and click
Get Status. You should see a description of the bill.
Updated
June 20, 2007 -- Scroll down
to read all stories
Legislative Session Is History.
Part II -- June 20, 2007. As a follow-up to our last
report (below) we have posted Michael Sullivan's final legislative
report for the session. Click
here to read all about the punches thrown on the floor of the
Alabama Senate and how it unfolded. Whoever said politics is not a
"blood sport" sure got it wrong on that day! Just ask Senator Barron.
Legislative Session Is History.
It is Over!! -- June 12, 2007. This legislative session
for us now belongs to the history books. What started out with a
bang ended with a "blow."
We clearly dodged the bullets this year thanks to the Senate shut down.
At the beginning of the session, there were three bills which would have
killed title and payday lending. A study group was formed in the
Senate that included the Senators involved, the industry and several
adversary groups. As it turns out, Michael Sullivan, our lobbyist,
met with the study group for several weeks. When Senator Byrne
moved to another job, the momentum for the bills stopped. BUT, they will
continue to meet over the summer. We fully expect them to come back
early next session with similar legislation. But, for now, we have
the green light for several months. Thanks to everyone who
supported us. Your support keeps all of our doors open -- one
legislative session at a time.
Legislative Session Is About
Two-Thirds Over -- May 3, 2007. This legislative
session is almost two-thirds complete (as of next week). So far,
we have done fairly well. We can thank the Alabama Senate, which
has been shut down for most of the session, and our industry lobbying
efforts (Michael Sullivan and others) for this. We are,
however, still sitting on a powder keg. If the Senate begins
working on legislation the bills below are sure to begin to move.
It is almost inconceivable what our situation would be today if we did
not have our representation in Montgomery! We can thank all of our
TPCA members for this effort and we can thank Michael Sullivan for
staying on top of these important issues for us.
HB-769 Has Been Introduced To
Require Pictures On All Pawn Transactions -- May 1, 2007.
HB-769 has been introduced. At the moment we do not have much
information on this legislation other than the bill. You can click
here to read the
bill. We will provide more information on this bill as it becomes
available.
May 1, PM Update. We have not yet been able
to determine who is behind this legislation. The bill was
reassigned to the Banking Committee today. Apparently it was
assigned to Commerce in error. More later.
May 3, PM Update. We now have more
information about the sponsors and the intent of this bill. It
seems the push for this bill is not from our traditional adversaries but
most likely from law enforcement or from someone who wishes to tighten
up on all pawned merchandise. This bill will probably not be heard
in this session.
May 15, Update. Michael Sullivan
reports that the study committee had their final meeting of the session
today. As we reported last week, with Senator Byrne moving to a
new job, the momentum for this bill died. At the moment, we do not
expect any further action during this session.
Don't celebrate quite yet, though. The opponents want to meet over
the summer to discuss the issues which they plan to push for during the
next legislative session. The opponents are
Appleseed and
Alabama Arise. Both are quite strong and potentially lethal
opponents with very deep pockets.
Here are the goals they want to discuss over the summer:
Expect these to be a top priority in the next session.
<<<Back to Top
Three Bills Are Introduced Against
The Industry In The Very First Week Of The Session -- March 10, 2007.
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.
SB119 Barron
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)
SB121 Byrne
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)
SB120 Barron
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)
May 10, Update. Click on
news for the latest good news on this
legislation.
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.
Current
Initiatives
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 and SB164.
