AUSTIN - The Texas House on Thursday gave preliminary approval to legislation designed to toughen controls on payday lenders as scores of other bills hung in the balance with the approach of a critical midnight deadline.
House members seemingly put aside partisan discord from the past several days to churn out bill after bill in the hopes of beating the cut-off for first-time floor consideration of House bills.Those bills that didn't make the cut headed for the trash heap. One key bill awaiting action in the final crunch was teacher-opposed legislation that would give administrators more flexibility to lay-off personnel and adjust salaries.The Republican-controlled House approved the payday lending bill after a testy exchange between Rep. Vicki Truitt, R-Keller, the bill's sponsor, and Rep. Gary Elkins, R-Houston, a payday lender who opposed the bill.Truitt, who chairs the House Pensions, Investments and Financial Services Committee, accused Elkins of a conflict-of-interest and "blatantly" using his elective office to protect his business interests."This is not about my business," Elkins responded, declaring that Truitt's bill "is nothing more than an expansion of government to try to solve a problem that just doesn't exist."Truitt also drew opposition from former House Speaker Tom Craddick, R-Midland, who sponsored a more restrictive measure to regulate the industry. Craddick, who rarely engages in lengthy debates, said Truitt's bill "is wrong - it doesn't fix anything."The bill, HB2594, was one of three bills Truitt crafted in what she said was an effort to weed out abuses by "bad actors" without forcing businesses to leave the state.HB2594 would license so-called credit access businesses with the Consumer Credit Commissioner. It also sets licensing fees and bonding requirements and allows the credit commissioner to revokes licenses for violating the requirements.HB2593, which got hung up on an opposition point of order, would limit the number of loan renewals by payday lenders. HB2592, which has passed the House, toughens requirements for customer disclosures..Truitt told lawmakers that she felt obligated to engage in the issue because of her position as committee chairman, saying her legislative package emerged from hours of negotiations between business and consumer groups.Consumers who have testified in legislative hearings said interests and fees on the short-term payday and car title loans subjected them to a deepening cycle of debt."The horror stories that are happening to Texas consumers continue to grow and continue to mount, and it's irresponsible for this Legislature to ignore it again," Truitt said.Lawmaker anxieties intensified throughout the chamber as the deadline loomed closer."They'll be a surge of activity all the way to midnight," observed Rep. Dan Branch, R-Dallas, saying that members were worried that pet bills could "turn into pumpkins" if they failed to beat the deadline.A key committee chairman acknowledged that a House measure allowing slot machines at Lone Star Park and other horse race tracks appeared dead for the session."We just didn't get the votes for it," said Rep. Mike Hamilton, R-Mauriceville, chairman of the House Licensing and Administrative Procedures Committee.But gaming proponents were nevertheless heartened by the appointment of a Senate subcommittee to consider gambling legislation, even with time running out before the May 30 adjournment."We're not going to be overly confident but there does seem to be some progress," said Jeremy Warren, an aide to Sen. Rodney Ellis, D-Houston, who is sponsoring a proposed state constitutional amendment to legalize casinos in Texas.Lawmakers resurrected and tentatively passed a previously defeated corporal punishment bill that would allow individual parents to petition school districts from paddling their children. Rep. Barbara Nash, R-Arlington, was a leading co-sponsor.Rep. Rob Orr, R-Burleson, won approval of a proposed constitutional amendment that would facilitate the transfer of millions of dollars from a state endowment into public schools. If approved by the Senate, the proposal would go before voters Nov. 8.Legislation that would alter the way the Texas Higher Education Coordinating Board recommends funding for state-supported colleges and universities received preliminary approval. The framework for recommending funding would be extended beyond enrollment to include factors such as graduation rates, at-risk students and critical skill needs."This bill is about having more students at commencement ceremonies as opposed to just being in the classroom," said Branch, the bill's sponsor.Dave Montgomery is the Star-Telegram's Austin bureau chief. 512-476-4294
