AUSTIN -- The Texas House gave preliminary approval Thursday to legislation designed to toughen controls on payday lenders. Meanwhile, scores of other bills hung in the balance as the critical midnight deadline approached.
House members seemingly put aside the partisan discord from the past several days to churn out bill after bill in the hopes of beating the cutoff for first-time floor consideration of House bills.Bills that didn't make the cut were headed for the trash heap. One key bill awaiting action in the final crunch was legislation that would give school 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 it.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 called 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 would also set licensing fees and bonding requirements and allow the credit commissioner to revoke 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 said 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 businesses 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," Truitt said.Lawmaker anxieties intensified throughout the chamber as the deadline loomed closer. Rep. Dan Branch, R-Dallas, said 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 racetracks appeared dead for the session.But gambling 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.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
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