To: All House Members

From: Representatives William G. Batchelder and Bob Hagan

Date: September 18, 2007

Regarding: Co-Sponsor Request

In the near future we plan to introduce legislation that will address important reforms to the payday lending industry in Ohio.

In June, a briefing was held for all members and we were very pleased that over 1/3 of house members or their staff were present. We discussed payday lending and heard an overview from the Ohio Coalition for Responsible Lending, learned the mechanics of payday lending and current law, and heard a personal experience from someone who had been a customer of the payday lenders. It was apparent at this time there was a great concern from not only the public, but also from many of you, that the current payday lending system needed to be looked at more closely.

Since that time, there have been numerous phone calls, letters, and newspaper articles from throughout the state sharing those same sentiments we saw at the briefing, and we share those concerns. The problems we have heard over the last several months led us to believe that a change was needed with the industry’s business model. The negative economic, social, and psychological impacts caused by the payday lending cycle of debt, in which the interest rates of such loans are around 391%, made us look at this problem in a practical, moral and philosophical way.

As we considered possible solutions, discussions took place with numerous agencies, organizations and people, including the Governor’s office, Treasurer of State, the Attorney General, banks and credit unions throughout the state, consumer advocacy groups, and those who had fallen into the debt trap. From these investigations and discussions we were able to come to certain conclusions:

• The high interest rate charged by payday lender’s put those that take out a loan at a great economic disadvantage.
• The payday lending business receives the majority of its revenue from trapped borrowers.
• The demand for small loans can be met by other private sector businesses on far more equitable terms.
• There is need for a greater emphasis on financial literacy and education.

With these thoughts in mind, we looked to create legislation that addressed these concerns and issues. Specifically, the legislation will do all of the following:

• Prohibit the annual percentage rate for loans up to $800 from being greater than 36%.
• Prohibit a check-cashing business from making a loan to a borrower who has an outstanding loan with any check-cashing licensee.
• Establish the maximum number of loans per customer that are allowed within one calendar year or other designated time period.
• Create a statewide database of loans made by check-cashing licensees.
• Create a linked deposit program that will provide banks financial incentives to make small loans as described by the FDIC’s Affordable Small Loan Guidelines.
• Provide greater incentives for companies licensed under Ohio’s Small Loan Act to offer small cash installment loans of less than $800 as an alternative to payday lending.
• Expand the responsibilities of the consumer finance education board to promote small loan counseling and education for borrowers.
• Require internet lenders who make small loans to a customer within the state to be properly licensed under Ohio’s lending guidelines.

A call for payday lending reform has been overwhelming, currently there are over 168 organizations throughout the state that have expressed their support for this change. This broad coalition includes faith-based organizations, housing advocates, anti-poverty organizations, consumer protection organizations, and civic & labor organizations.

If you wish to co-sponsor this legislation or have any questions, please feel free to contact Chad Hawley at 466-8118 or Gregg Paul at 466-9435 by Thursday, September 27.

Additionally, we would be happy to meet with any of you to further discuss this issue.

State Rep. Calls Development The “Future For Job Creation” In Ohio

Columbus – State Representative Bob Hagan (D-Youngstown) today urged local and state economic development leaders to offer their full support to the investment in renewable energy technologies for Ohio.

A recent report produced for the Apollo Alliance concluded that Ohio is well-positioned to benefit from  national development of renewable energy systems.

The report, entitled  “Ohio’s Road to Energy Independence,” says Ohio stands to receive nearly 23,000 new jobs and $3.6 billion of investment in manufacturing components to supply the national development of renewable energies including wind, solar, geothermal and biomass.

“The development of renewable energy technologies here in Ohio is vital to our state’s economic recovery and growth,” Rep. Hagan said.  “The enormous potential for job creation cannot be overlooked or ignored by state and local leaders.”

Rep. Hagan has also introduced Renewable Portfolio  Standard (RPS) legislation (House Bill 76) that would require electric utility companies operating in Ohio to produce at least 20 percent of their  electric energy from renewable energy by 2023.  Similar RPS requirements have been adopted in over a dozen states.

“Technology-forcing statutes, with appropriate  government incentives, will help to spur creation and innovation in the electric utility industry,” Rep Hagan explained. “This will finally move Ohio forward and provide our residents with the clean, reliable and affordable energy they desire.”

Office Of Representative Bob Hagan For Immediate Release:  Sept. 13th, 2007 Contact: Gregg Paul, Legislative Aide, (614) 466-9435

Without objection, the Ohio Senate passed Senator Robert F. Hagan's amendment to Substitute Senate Bill 260, Ohio's version of "Jessica's Law."

Hagan's amendment strengthens Ohio's Electronic Sex Offender Registration and Notification (eSORN) system by requiring the Department of Rehabilitation and Correction to notify the Bureau of Criminal Investigation and Identification and the sex offender's home county sheriff's office upon the offender's release from prison and also requires them to immediately publish the offender's name, address and photograph in eSORN.

For the nearly ten years since eSORN’s inception in Ohio, it has been up to the sex offenders to register themselves after their release from incarceration.  Senator Hagan’s amendment fixes that huge problem.

The Youngstown Democrat won support for the amendment after sharing the story of Kelly Childers, a young girl with special needs who was raped by an illegal immigrant in Columbus three years ago.  Kelly’s mother, Debbie Childers, visited the Statehouse yesterday to share her story with others and explain how Hagan’s amendment will help other families.  She said, “To look at eSORN and see my daughter’s offender’s name, address and photograph missing from the database was scary.  This amendment to SB 260 will help victims and their families access important information on eSORN without relying on the sex offenders to register themselves first.

Senator Hagan was pleased with SB 260’s passage.  “I’m happy to help the Childers family, as well as other families who rely on eSORN to stay informed and help keep their communities safe.”

Text of Hagan’s amendment (Ohio revised code section 2950.14:)

Sec. 2950.14.  (A) Prior to releasing an offender who is under the custody and control of the department of rehabilitation and correction and who has been convicted of or pleaded guilty to committing, either prior to, on, or after January 1, 1997, any sexually oriented offense that is not a registration-exempt sexually oriented offense or any child-victim oriented offense, the department of rehabilitation and correction shall provide all of the information described in division (B) of this section of to the bureau of criminal identification and investigation regarding the offender and to the sheriff of the county in which the offender’s anticipated future residence is located.  Prior to releasing a delinquent child who is in the custody of the department of youth services who has been adjudicated a delinquent child for committing on or after January 1, 2002, any sexually oriented offense that is not a registration-exempt sexually oriented offense or any child-victim oriented offense, and who has been classified a juvenile offender registrant based on that adjudication, the department of youth services shall provide all of the information described in division (B) of this section to the bureau of criminal identification and investigation regarding the delinquent child.

(B) The department of rehabilitation and correction and the department of youth services shall provide all of the following information to the bureau of criminal identification and investigation regarding an offender or delinquent child described in division (A) of this section:

1.  The offender's or delinquent child's name and any aliases used by the offender or delinquent child;

2.  All identifying factors concerning the offender or delinquent child;

3.  The offender or delinquent child’s anticipated future residence;

4.  The offense and delinquency history of the offender or delinquent child;

5.  Whether the offender or delinquent child was treated for a mental abnormality or personality disorder while under the custody and control of the department;

6.  Any other information that the bureau indicates and that the department possesses.

(C)  Upon receipt of the information described in division (B) of this section regarding an offender or delinquent child, the bureau immediately shall enter the information into the state registry of sex offenders and child-victim offenders that the bureau maintains pursuant to section 2950.13 of the Revised Code and into the records that the bureau maintains pursuant to division (A) of section 109.57 of the Revised Code.  Upon receipt of that information regarding an offender, the bureau immediately shall enter the information on the sex offender and child-victim offender database it establishes and operates on the internet pursuant to division (A) (11) of section 2950.13 of the revised code.

(D)  Upon receipt of the information described in division (B) of this section regarding an offender, a sheriff who has established on the internet a sex offender and child-victim offender database for the public dissemination of information regarding such offenders shall enter that information regarding such offenders shall enter that information on the database.

Ohio is one of the states at the forefront of the puppy mill business, and State Senator Bob Hagan has introduced legislation to put a stop to it.

Most people turn to pet shops to buy puppies.  What they don't know is that the puppies available at most pet shops have come from puppy mills, which are large commercial breeding establishments that mass-produce dogs for resale.  Puppies raised at such establishments usually live in cramped, filthy, unhealthy conditions.

Puppy mills are breeding grounds for many diseases and illnesses, and no measures are take to ensure that a puppy that ultimately finds its way into someone's home is healthy.  These puppies often have worms as well as a wide range of other infections, some of which can be transmitted to humans.

Senator Hagan's legislation calls for providing enough inspectors to visit places suspected of operating unhealthy puppy mills.  He suggests that such inspections, both announced and unannounced, would help to curtail such practices.

You may view a video story on this subject, which includes an interview with Senator Hagan, from Cleveland's WKYC TV.  You should also visit the site of the Companion Animal Protection Society for more information.