Moore allows payday loan bill, other measures to become Md. law without his signature

A bill meant to regulate so-called earned wage access loans for the first time in Maryland will become law without the governor s signature and over the objections of a coalition that strongly opposed it House Bill is one of a handful of bills that Gov Wes Moore D will allow to become law without his signature including a measure to clarify provisions of a clean-energy building standard and another to increase oversight of the Department of Information Mechanism Moore cited beneficial elements for each bill but also pointed to provisions that were potentially troublesome leading him to withhold his signature The bills are the last gasp of a month in which the governor signed almost bills from the General Assembly into law and they come a week after he revealed vetoes of measures including his controversial veto of a bill to create a commission to examination achievable reparations Lawmakers are expected to override that veto if not others In Maryland there is no pocket veto for the governor who must veto a bill to reject it Of the left-over bills the the bulk contentious may have been HB which aims to regulate earned wage access programs that advance workers money they have earned but have not yet received then requires them to pay it back with interest Critics say the bill as drafted exempts app-based lenders from state laws that prohibit lending that is discriminatory is deceptive or carries extremely high interest rates The Center for Responsible Lending mentioned in a announcement that the new law makes it easier for Marylanders to be sucked into financial quicksand because of payday loan apps The bill becoming law but without the governor s signature is indicative of serious widespread concerns about these payday loan apps including from the governor s administration declared Whitney Barkley deputy director of state program and senior protocol counsel for the Center for Responsible Lending The center was part of a coalition of more than three dozen advocates including the NAACP Maryland State Conference that had urged Moore to veto the bill Earned wage access programs typically come in two versions one offered by employers to their employees and another offered by private companies directly to workers The loan is typically paid back through automatic deductions usually with a fee or tip Opponents mentioned the tips are finance charges Often those charges exceed interest higher than the state s limit They commented the new law removes the best defense against predatory lending in Maryland In a letter explaining his decision the governor reported early access to earned wages can provide a tangible benefit to workers with unexpected expenses such as flat tires health copays and veterinarian bills While he commended lawmakers including House Economic Matters Chair Del C T Wilson D-Charles for advancing a path on regulating these products Moore also acknowledged concerns with the bill Roughly residents used wage access apps more than million times between and in transactions totaling about million Nearly one in four accessed the utility every two weeks suggesting habitual use Moore wrote About half pay expedited fees Those who default on the loans tend to be or older earning less than a year and users tend to live in the lowest income communities in the state Moore wrote adding that protections are warranted He called for a cap on amounts that can be borrowed from a single or multiple lenders and mentioned the law should not exempt lenders from existing commercial financial protection laws Eventually soliciting a tip for a loan is inappropriate Moore wrote The governor also took a pass on House Bill which would help clarify key provisions of the Building Potency Performance Standards Specific building owners could receive credits including for generating renewable vigor on-site The bill was requested by the Department of the Atmosphere Moore withheld his signature over changes made by the legislature In a letter explaining his decision Moore cited constrained budget guidance and major operational challenges for the department which must implement the law And overall this bill as amended by the General Assembly undermines the Department s regulatory flexibility to meet the surroundings goals set out in the Setting Solutions Now Act Moore wrote The bill as requested by the department was intended to provide flexibility to building owners who must comply with electrification requirements and reach net-zero greenhouse gas emissions by Failure to do so will upshot in fees chosen as much as for poor performing buildings levied by the Maryland Department of the Atmosphere But lawmakers amended the bill to exempt hospitals and selected manufacturing facilities Also exempted are emissions associated with steam sterilization and back-up generators at anatomical facilities nursing homes and laboratories Moore explained he is also concerned with the assessment requirement included in the bill which calls on the department to analyze other prospective changes to the BEPS campaign The governor commented the amended bill introduces uncertainty into an already complex regulatory effort It is not clear that the expectations of this survey can be met by the department given the fiscal constraints and timeline challenges the law has put in place Moore will also allow House Bill and Senate Bill to become law without his signature The identical bills sponsored by Del Anne Kaiser D-Montgomery and Sens Sens Katie Fry Hester D-Howard and Montgomery and Stephen S Hershey Jr R-Upper Shore aim to refocus the Department of Information Mechanism on major projects and ensure compliance with auditors recommendations The law imposes new oversight and reporting requirements on a department who has come under fire from lawmakers and the Office of Legislative Audits One top lawmaker characterized the agency as a money pit A key part of the bill expands and defines the responsibilities of the department secretary on oversight of major IT projects and it bars the department from contracting for IT services or products that are not consistent with its master plan The law also requires the department secretary to meet quarterly with the chief information officer of agencies or departments with planned or ongoing IT projects It also sets up an expert panel to advise the legislature on IT issues and requires the Senate Budget and Taxation and House Strength and Establishment Operations committees to convene a work group to evaluate the bill and other foreseen changes The work group will determine if other actions are needed to resolve issues raised by the auditor Moore in a three-page letter explained he agreed that changes needed to be made to how major information device projects are overseen But while the bills are well-intended he mentioned plenty of of its provisions recycle ineffective policies from the past mirror reforms that are already underway or are overly prescriptive Source