Southwest Center for Economic Integrity

Action Alert Legislative Updates

The Arizona Legislative Session began January 14th 2008.

With the 2010 sunset looming in the payday lending industry's future (the special deal the payday lending industry received in the year 2000 that allows them to CIRCUMVENT Arizona's small loan rate cap of 36% APR is set to expire in 2010) expect a lot of policy related activities in the coming session.

Senate Bill 1239 Sponsored by Senator Blendu would extend the 2010 sunset deadline to 2012. In exchange the payday lending industry would be required to file reports with the Department of Financial Institutions detailing lending activities. SB1239 passed out of the Senate Commerce Committee but hasn't moved for a full vote in the Senate as of March 25, 2008.

House Bill 2672 Sponsored by Representative Biggs would carve out another special exemption from Arizona's small loan rate cap of 36% APR. It would allow installment loans ranging from $200.00 up to $3,000.00 for one to two years. The business model, while on the surface is somewhat different from payday lending, still encourages loan flipping at high interest rates once the loan "fees" are also calculated into the loan cost. State's that do allow this type of loan product such as Colorado, report that modest income borrowers fare no better with this type of loan than they do with a payday loan. HB2672 passed on a vote of 35 yes - 25 no and 1 not voting. HB2672 was transmitted to the Senate on March 25th.


	Legislative Updates The Arizona Legislative Session began January 14th 2008. With the 2010 sunset looming in the payday lending industry's future (the special deal the payday lending industry received in the year 2000 that allows them to CIRCUMVENT Arizona's small loan rate cap of 36% APR is set to expire in 2010) expect a lot of policy related activities in the coming session. Senate Bill 1239 Sponsored by Senator Blendu would extend the 2010 sunset deadline to 2012. In exchange the payday lending industry would be required to file reports with the Department of Financial Institutions detailing lending activities. SB1239 passed out of the Senate Commerce Committee but hasn't moved for a full vote in the Senate as of March 25, 2008. House Bill 2672 Sponsored by Representative Biggs would carve out another special exemption from Arizona's small loan rate cap of 36% APR. It would allow installment loans ranging from $200.00 up to $3,000.00 for one to two years. The business model, while on the surface is somewhat different from payday lending, still encourages loan flipping at high interest rates once the loan "fees" are also calculated into the loan cost. State's that do allow this type of loan product such as Colorado, report that modest income borrowers fare no better with this type of loan than they do with a payday loan. HB2672 passed on a vote of 35 yes - 25 no and 1 not voting. HB2672 was transmitted to the Senate on March 25th.	If you wish to contact your State Representative or Senator follow the links below: Arizona Legislature 1 (602) 926-3312 House 1 (602) 926-4326 Senate New Mexico Legislature 1 (505) 986-4751 House 1 (505) 986-4714 Senate Utah Legislature 1 (801) 538-1029 House 1 (801) 538-1035 Senate Nevada Legislature 1 (775)-684-8533 Assembly 1 (775)-684-6500 Senate Read the AZ Daily Star Opinion of HB2672>>>
Home ................................. About Us ................................. Publications ................................. Legislative Updates ................................. Get Involved ................................. What's New ................................. Worker's Corner ................................. Contact Us ................................ Site Map ................................. Initiatives: Gulf Coast Alternative Staffing Initiative Mortgage Lending Payday Lending Day Labor
	SCEI finished conducting research on street corner & brokered day labor in the State of Nevada. Read the full report located on our Publications page. The 2005 New Mexico legislative session passed the Day Laborer Act - HB672. Sponsored by Representative Antonio Lujan This bill provides protections for New Mexico Day Laborers. Measures included in this bill mirrors day labor protections adopted in AZ in 2001. SCEI has offered ongoing research and technical assistance to the coalition that supported this bill. HB672 passed in the New Mexico Legislature and was signed by the Governor into law on April 6, 2005. If you wish to read the Day Laborer Act directly go to the New Mexico Legislative link.

Home : About Us : Publications : Legislative Updates : Get Involved : What's New : Worker's Corner : Contact Us : Site Map © Copyright 2006 Southwest Center for Economic Integrity All Rights Reserved 21 E 15th Street P.O. Box 41972 Tucson, AZ 85717-1972 Web Site Made Possible by the generous support of The Wallace Foundation


	Promoting Ethical Profits and Responsible Commerce