Wednesday was a difficult day for The American Independent News Network, which is the larger entity that operates The Iowa Independent. Our chief executive and founder announced two of our sister sites would close and their content would be moved to The American Independent.
A recently introduced bill could have far-reaching impact on the U.S. sugar industry, including American Crystal Sugar, a farmer-owned cooperative that locked out 1,300 Midwest workers on Aug. 1.
The chairman for Herman Cain’s Iowa effort says the campaign “relied more on the word of farmers than Washington regulators” in deciding to run an ad containing claims the Environmental Protection Agency says are false.
The Iowa Senate will remain under the control of a slim 26-25 Democratic majority when it reconvenes in January 2012.
Legislation that would cap interest rates on payday loans at 36 percent is unlikely to become law in Iowa this legislative session. But a coalition of groups advocating for the bill hope Senate Democrats, who have a majority in their chamber, will pass the bill before the next funnel deadline in order to keep it alive for next year.
Friday’s deadline is one of several legislative “funnels” to weed out bills that aren’t advancing. It requires most policy bills to have cleared either the House or the Senate and a committee of the other chamber to remain eligible for consideration. Earlier this month the Iowa Senate Human Resources Committee advanced a version of the payday loan bill, now known as Senate File 388, on a 9 to 3 vote. However, instead of moving to the full Senate, the bill was placed in the Iowa Senate Commerce Committee, where it remains.
Mike McCarthy, a member of one of the coalition’s member organizations — Iowa Citizens for Community Improvement – called the failure of the Senate to act disappointing.
“I believe never before has there been so much support for payday lending reform, both inside and outside of the Statehouse,” he said.
The bill has the support of an unusual coalition of groups, ranging from social conservative organizations like The Family Leader and the Iowa Faith & Freedom Coalition to labor unions like the Iowa Federation of Labor AFL-CIO. A poll released last month by Iowa CCI found 69 percent of respondents in support of lowering the maximum annual interest rates payday lenders could charge.
In general, a payday loan is a low, single payment loan customers repay when a paycheck is received. Payday loan amounts typically range from $100 to $500. The Iowa Division of Banking reported that in 2009, the average annual interest rate on a payday loan was 292 percent.
The proposed cap of 36 percent on interest rates is the same maximum banks and credit unions are allowed to charge.
Supporters are calling on Senate Majority Leader Mike Gronstal (D-Council Bluffs) to push hard for the bill to pass.
“The fact that Senate leadership is scuttling this bill is unconscionable,” said Matthew Covington of Iowa CCI. “Why they would choose to serve these corporate interests over everyday Iowans doesn’t make sense. I hope it’s not because of campaign contributions from the payday loan industry, because it isn’t even that much money.”
Gronstal’s office did not respond to a request for comment.
While the Republican controlled Iowa House is unlikely to pass the bill, Democrats did unite in that chamber to push for an amendment to a banking bill capping interest rates on payday loans. It was defeated on a 56-40 party-line vote.
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