In today’s Glendale Star:

As the sunset date for Arizona’s 10-year Payday Loan legislation draws near on July 1, 2010, city council has asked their intergovernmental affairs staff to keep a close watch on any legislation that may extend the licensing deadline.

In November 2008, Proposition 200 was rejected by voters in all 15 Arizona counties with 60 percent voting against extending the licensing of payday loan stores.

The council comments came during a Jan. 19 workshop when Intergovernmental Affairs Programs Director Brent Stoddard and Intergovernmental Programs Administrator Ryan Peters presented the 2010 state legislative agenda and update.

Sahuaro District Councilmember Steve Frate said he has received calls from constituents who were very concerned over payday loan legislation.

“There is no specific legislation, but we will monitor it,” Stoddard said.

[NOTE: HB2161, Andy Tobin's bill that would do away with the payday loan sunset date and allow 400% payday loans to conitnue, had just been introduced and had not yet been assigned to committee when the Glendale City Council met.]

Mayor Elaine Scruggs also had concerns about payday loan stores and has noted in the past at her community conversations with the mayor, payday loan stores were a very hot topic.

“Could you look at the legislation created in 2000 and see if the sunset date stipulates how much time is given for the stores to go away?” Scruggs asked. “I think if the businesses all shut down at once; there could be calls about all the vacant shopping centers. Glendale must have around 100 to 200 stores.”

Stoddard said they would look at the original legislation to see if there was a phase-out period, or if they would just be shut down and out of business.

Prior to the 2000 legislation, payday loan stores did not exist in the state. The stores offer small, short-term loans against a person’s paycheck or other source of income and charge fees that are often equal to an annual percentage of more then 350 percent.

The payday loan industry, which reportedly spent $15 million to try and get Prop. 200 passed in 2008, have now hired former state Attorney General Grant Woods and a lobbying firm, HighGround, to try and help them stay in business.

“My constituents have become more and more educated on the process and are skeptical,” Frate said. “Just talking about payday loans gets people’s attention.”

Previously, the city took steps to try and limit the concentration of the payday loan stores in the city by passing an amendment to the zoning ordinance in October 2006. It restricted their location within a minimum of 1,320 feet from any other payday loan store and said they could not locate within a minimum of 300 feet from any agricultural or residentially zoned property located within the city, or in an adjoining city or county, measured from property lines.

At that time, Scruggs said limiting the payday loan stores was an important issue for former Luke AFB Commander Gen. Robin Rand because the stores tended to gravitate towards military bases and preyed on military personnel.

Scruggs likened the city’s zoning ordinance restrictions to being a band aid.

“The real fix needs to be at the legislative level,” she said.

Reach the reporter at ejackman@star-times.com, or 623-847-4615.