MINUTES SENATE COMMITTEE ON ECONOMIC DEVELOPMENT Subcommittee on Consumer Credit Laws Tuesday, April 25, 2000 9:30 a.m. or upon adjournment of the Subcommittee on Private Sector Business Financing Senate Chamber ***** Pursuant to a notice posted in accordance with Senate Rule 11.18, a public hearing of the Senate Committee on Economic Development, Subcommittee on Consumer Credit Laws, was held on Tuesday, April 25, 2000, in the Senate Chamber at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator John Carona, Chairman Senator Troy Fraser Senator David Sibley ***** Chairman Carona called the meeting to order at 10:15 a.m. upon adjournment of the Private Sector Business Financing Subcommittee hearing. The following business was transacted. The Chairman called the first invited witness, Leslie Pettijohn, Consumer Credit Commissioner, who presented an update of information on the subject of payday lending which she had discussed at the subcommittee's first meeting. Ms. Pettijohn provided material to the members regarding recommended rules on payday loans under existing usury statutes, and responded to members' questions. Following Ms. Pettijohn's testimony, Chairman Carona called a panel of invited witnesses to testify before the subcommittee on the effect of the federal Financial Services Modernization Act on consumer credit laws in Texas. The following panelists presented their oral and written testimony and responded to members' questions: Everette Jobe, General Counsel for the Texas Department of Banking Jose Montemayor, Commissioner, Texas Department of Insurance Robert Power, Texas Financial Services Association Karen Neeley, Independent Bankers Association of Texas Upon completion of the panelists' testimony, Chairman Carona advised that the final report will be issued by June 1, 2000. There being no further business, at 11:25 a.m. Chairman Carona moved that the subcommittee be adjourned. Without objection, it was so ordered. __________________________ Senator John Carona, Chairman __________________________ Barbara Henderson, Clerk