Legislature passes payday loan and resign-to-run measures
TALLAHASSEE — The Florida House passed measures late Wednesday to revamp regulations for the payday-loan industry and to expand the state’s resign-torun election law, sending the bills to Gov. Rick Scott.
House members voted 106-9 to approve the payday loan bill (SB 920), which also easily cleared the Senate on Saturday. The industrybacked measure would allow payday lenders to make larger loans for longer periods of time.
A short time later Wednesday, the House voted 87-27 to approve the resignto-run bill (SB 186), which passed the Senate in January. If signed by Scott, it would extend resign-to-run requirements to state and local officials who run for congressional seats.
The bill would allow the businesses to make “installment” loans up to $1,000, with repayment over 60 to 90 days. Current law limits the high-interest loans to $500 for periods of seven to 31 days. Supporters say the bill was prompted by potential changes in federal regulations that could affect the types of smaller-dollar, shorter-term loans made by payday lenders in Florida. Also, supporters contend that payday loans play a key role for many low-income people who don’t have access to other types of credit.
Among the key backers of the bill has been Tampabased Amscot Financial, Inc., whose roster of lobbyists includes former Con-gressman and state Sen. Kendrick Meek and former state Rep. Joe Gibbons. Opponents of the measure, however, have argued that payday loans can lead to consumers falling into a “debt trap.”
The resign-to-run bill, meanwhile, would expand a requirement that already applies to state and local elected officials who decide to run for other state or local offices. If the terms of the offices overlap, the officials must submit resignations at least 10 days before qualifying to run, with the resignations effective when the officials would take new offices or when their successors would take office. Under the bill, the same requirements would apply to state or local officials who run for Congress.