Vetoes tossed in special session

June 17, 2009 by senatormcconnell

Lawmakers preserve laws on ports, payday lending

Gov. Mark Sanford’s concerns about 10 new laws were summarily dismissed Tuesday when the Legislature breezed through a special one-day session to overturn his vetoes, including one that will put new regulations on the payday lending industry.

After years of fights over how to regulate the payday lending practices that charge high interest rates on short-term loans, South Carolina borrowers will be limited to one $550 loan at a time and be subject to a cooling-off period between loans. Advocates consider the legislation consumer protection from a predatory industry, but Sanford argued in his veto that the service is needed and using it responsibly is up to the borrower.

Others, including Sen. Gerald Malloy, D-Hartsville, say the legislation falls short of protecting the state’s poor and vulnerable but ultimately see it as a start.

To uphold Sanford’s veto would have been to endorse the industry as it is, Malloy said.

Lenders charge high interest on small, short-term loans that people borrow against future paychecks. The loans aren’t available at banks for people with bad credit.

Borrowers can get stuck in a cycle that forces them to take out new loans to repay old ones.

The bill originally passed the Legislature by a large margin, so House Speaker Bobby Harrell, R-Charleston, said he wasn’t surprised to see the veto overridden.

“I thought that regulating the industry was the right thing to do, that attempts to regulate the industry out of existence would be a mistake,” Harrell said. “I think this bill is good regulation of the industry.”

Sanford press secretary Joel Sawyer said the governor is disappointed but not surprised at the Legislature’s overrides. Sanford was most disappointed with the votes to overturn his veto on a bill that restructures the State Ports Authority and another that deals with regulations and penalties for sex offenders.

Sex offenders who fail to tell the state where they are living will now face a 30-day jail sentence for a first offense, instead of 90 days. The change was made last year, at the request of state solicitors, to help get the cases before a magistrate judge and out of the backlogged circuit court. This year’s bill makes the change immediate, rather than waiting for about nine more months.

Sawyer said it is “unbelievable” that the Legislature would agree to lessen the penalties for sexual predators.

“They refused to fix their mistake,” Sawyer said.

Senate leader Glenn McConnell, R-Charleston, said he did not think that Sanford’s arguments stuck. He also said that the governor’s standing with many legislators diminished this year as the fight over Sanford’s opposition to federal stimulus cash grew ugly and dragged on. The state Supreme Court earlier this month forced Sanford to take the $700 million that he had opposed because the Legislature didn’t apply an equal amount of state dollars toward debt.

“With the stimulus question out of the way, it was refreshing for us to be back, dealing with the merits of some bills,” McConnell said.

The Legislature is not expected to return until January.

Veto overrides

The House and Senate overrode each of Gov. Mark Sanford’s vetoes. The governor had vetoed 10 bills since the Legislature adjourned last month. To read more about the bills, use the bill number to use the Quick Search tool on www.scstatehouse.gov.

Bill no. 3919: Creates the S.C. House Commission to study housing affordability and accessibility. House voted 81-24, Senate 33-11.

3301: Regulates payday lending by limiting loans per customer and establishing a cooling off period between loans. House voted 105-4, Senate 39-3

116: Gives S.C. products and services preference in government contracts. House voted 88-15, Senate 33-10.

351: Restructures the State Ports Authority. House votes 102-2, Senate 35-9.

3087: Allows prosecutors to immediately begin trying sex offenders who fail to register their addresses with the state in magistrate’s court and prohibits local governments from making rules about where sex offenders can live by deferring to state law. House voted 77-38, Senate 29-14.

3018: Gives builders a break on paying property taxes for new homes that have not been sold. House voted 111-1, Senate 42-2.

3762: Creates three new specialty license plates. House voted 91-15, Senate 34-8.

364: Continues a grant program for firefighters. House voted 106-0, Senate 41-1.

453: Limits appeals for livestock and poultry facilities to property owners and residents within a two-mile radius; requires state law, not local regulations, to govern the care and handling of livestock and poultry; addresses fees for runoff and requires pharmacists to sign off on performance-enhancing cocktails for polo horses. House voted 95-10, Senate 36-8.

758: Allows Clarendon County schools to use money from a 1-cent sales tax for academic and art instruction. The local bill only required a vote by the county delegation. House vote 1-0, Senate 1-0.

By Yvonne Wenger
The Post and Courier

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