County Council debates payday loans legislation
By Kathleen Folkerth
DOWNTOWN AKRON — Members of Summit County Council agree that payday loan establishments need to be dealt with in the state. But differing opinions on a pending piece of state legislation emerged during a discussion at the Sept. 24 meeting.
Council President Nick Kostandaras (D-District 1) introduced a resolution that would support the Ohio Coalition for Responsible Lending, which is advocating for fair and just lending practices by loan store operators, who typically charge a very high rate of interest for their loans. Ohio state Reps. William Batchelder (R-District 69) and Robert Hagan (D-District 60) are expected to introduce legislation in the General Assembly, and Kostandaras’ resolution states its support.
Batchelder and Hagan’s
legislation would establish a rate cap of 36 percent
for the lenders. That’s where some members of
Council disagreed with Kostandaras’ resolution
of support.
“What Batchelder is trying
to do is tremendous,” said Tim Crawford (D-District
7). “But 36 percent is ridiculous and astronomical.
We cannot as a county justify the state legislature
putting it at 36 percent of interest. Let’s send
Mr. Batchelder a message and tell him what we think
of this.”
Kostandaras said the figures
for the legislation were not arrived at lightly. Crawford
said the annual percentage rate (APR) should be at 18
percent or 24 percent, but Kostandaras said Batchelder
did not want to consider rates that are currently charged
by legitimate credit card companies.
John Schmidt (D-District 2) suggested
that Council remove any reference to a suggested percentage
rate in its legislation. He said the legislation should
instead refer to a “reasonable and fair APR.”
Pete Crossland (D-at large) said
it was important for Council to recognize that the payday
lender issue is a controversial one.
“This is one that looks
like it would be good, but Tim has raised some good
questions,” he said. “Some have said these
[lenders] are the only recourse the poor have.”
The resolution received its first
reading, and Council considered voting on it. After
the discussion, Kostandaras said it would be better
for the legislation to go to the Personnel and Intergovernmental
Committee for discussion at the Oct. 1 meeting.
Also Monday, Council held off
adopting legislation regarding the hiring of a lobbyist
for the county.
The Personnel and Intergovernmental
Committee had recommended adoption of the legislation
at its meeting a week before. But Kostandaras said some
Council members had concerns about the hiring of Mary
Ann Walsh through the Akron law firm of Roetzel and
Andress at a cost of $120,000 for a one-year contract.
Kostandaras said he met
with Walsh before the meeting Monday, and she was fine
with waiting on Council’s adoption.
Some Council members expressed
a desire to move forward on the issue. Ilene Shapiro
(D-at large) said federal budgets would soon be drawn
up.
“We need to get somebody
working on this as soon as possible,” Shapiro
said.
Kostandaras said Walsh told him
she didn’t think waiting a few weeks would jeopardize
the county’s quest for funds.
The contract with Roetzel and
Andress would be paid with county and department funds,
with $60,000 from the general fund, $12,000 from the
department of environmental services, $24,000 from the
engineer’s motor vehicle gas tax and $24,000 from
the sheriff’s law enforcement trust fund.
Council also adopted new contracts
for health insurance for employees in 2008. Medical
insurance and prescriptions will be covered by Medical
Mutual of Ohio at a slightly higher premium than this
year. Vision care will be offered through EyeMed, and
Delta Dental will be the dental provider. Those two
services will cost about the same as they have in the
past.
Council also adopted a resolution
adjusting appropriations in the Council office for $25,000.
The adjustments were necessary because of an increase
in travel expenses, according to Justin Palmer, senior
research analyst for Council. Councilman Jon Poda (D-at
large) voted no.
Prior to its meeting, Council
heard a report on the Summit County Drug Unit. The unit
is a collaboration among the Summit County Sheriff’s
Office, the Akron Police Department and the police departments
from other jurisdictions, including Bath, Copley and
Richfield.
According to Chief Keith Thornton,
of the Summit County Sheriff’s Office, 57
methamphetamine labs were shut
down by the unit in 2006 — a 50 percent decrease
from the prior year, during which the county instituted
a ban on over-the-counter sales of medications containing
pseudoephedrine. He added that Summit County’s
ordinance was used as a basis for the eventual state
law regarding pseudoephedrine products.
Crawford asked Capt. Hylton Baker,
who gave the presentation, if the laws have changed
where meth confiscated locally is coming from. Baker
said the department believes that 99 percent of the
meth it confiscates is still coming from local drug
labs.
Summit County Council is scheduled
to meet for committee meetings Oct. 1 at 4:30 p.m. in
Council Chambers on the seventh floor of the Ohio Building,
175 S. Main St.
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