Colorado Payday loan bill heads for Governor's desk

DENVER - With just days remaining in the 2010 legislative session, lawmakers took action Tuesday on some of the more controversial bills that remained on the calendar.

House Bill 1351, a controversial measure to cap interest on payday loans, is on its way to Gov. Bill Ritter's desk after the House gave final approval to the changes the Senate made to the measure.

Currently, short-term loan operations can charge customers up to 300 percent interest on loans, which has trapped hundreds of hard-working Coloradans in a "viscous cycle of debt," according to the bill sponsor, Rep. Mark Ferrandino, D-Denver.

Ferrandino initially wanted to cap those interest rates at 37 percent, but settled on a 45 percent cap as a cost of doing legislative business. The bill passed both the House and Senate, and then, Tuesday, the House again, by just a one-vote margin.

The Senate also amended the bill to include provisions to benefit the payday lenders, which had argued that the new law would effectively kill their business model. The final version allows loans to be paid off over six months -- right now, the average term was 19 days -- and for lenders to charge higher fees on loans that go unpaid.

Tuition flexibility proposal passes initial Senate vote
Senate Bill 3, a late-session effort to help Colorado's colleges and universities stay afloat amidst ongoing revenue shortfalls by allowing them to raise tuition up to nine percent a year, passed the Senate on second reading Tuesday and could head to the House as soon as Wednesday after a third and final vote.

Both the Senate Majority and Minority leaders are co-sponsors of the legislation, which will have to be fast-tracked once it gets to the House if it stands a chance of surviving the session, which now is just days away from being wrapped up.

"We're at a point where doing nothing is not an option," said Senate Majority Leader John Morse, D- Colorado Springs. "This is about helping Colorado's economy, Colorado's businesses and, most importantly, Colorado's students and their families. We need to keep the system going to make sure college is accessible to all kids in Colorado who want to go, regardless of their parents' income."

"It's unacceptable to allow higher ed. to wither on the vine," said Senate Minority Leader Josh Penry, R-Grand Junction. "We need to give our institutions the flexibility to keep their doors open during these difficult times, and we're doing it without asking for higher taxes from the citizens."


Zipper-lane bill moves ahead

Another bill, this one already through the Senate, passed a House committee Tuesday as lawmakers unanimously approved a plan to encourage CDOT to consider using "zipper lanes" to ease weekend ski traffic congestion on Interstate 70 between Denver and the high country.

The bill asks CDOT to move ahead with a feasibility study, under which the state would install movable barriers to establish three westbound lanes of traffic during peak hours, and then reverse the flow with three eastbound lanes to bring travelers back to the Front Range after a visit to the high country, while protecting just one lane of traffic going in the opposite direction.

"Colorado's tourism industry is a cornerstone of our mountain economies and it is imperative that we do all we can to ensure easy accessibility," said Rep. Christine Scanlan, D-Summit County. "People from the Front Range want to enjoy the mountains and people in the mountains understand how important tourism is to their economies. The prospect of a four-hour drive ends up costing our state more than just time."