(Austin, TX) // Today, Senator Rodney Ellis (D-Houston) and Representative Dwayne Bohac (R-Houston) held a press conference to discuss SB 426 and HB 1087, companion bills to expand Texas’ sales tax holiday.
“It’s time to bring the sales tax holiday into the 21st century,” said Senator Ellis. “Texas needs to increase the sales tax holiday amount and add the electronic devices that our students regularly use to succeed in the classroom. As long as tax cuts remain on the agenda this session, I intend to fight for tax cuts that will go straight to families’ pockets. After all, the sales tax holiday means real tax relief for those who need it most.”
“I am committed to making tax relief for hardworking families a priority this session,” said Representative Bohac. “Preliminary budget proposals have afforded us the opportunity to offer meaningful tax relief for consumers, homeowners and business owners. Over the years, the back-to-school sales tax holidays have offered consumers significant spending relief, but we need to make it reflective of ‘inflation creep’ and modernize it to represent what students and consumers are buying in 2015. I am happy to have worked with Senator Ellis to get backpacks added to the list of tax exempt items, but now we have to work to help fill them with the electronics that the 21st century classroom requires.”
The bipartisan bills will help Texas families save money on sales taxes in two ways. First, the bills increase the sales tax holiday’s purchase limit amount for clothing, shoes, backpacks, and school supplies from $100 to $200. The $100 amount for clothing and shoes has not been changed since the holiday was originally created in 1999, and increasing the amount will allow families to continue to utilize the sales tax holiday for items that have substantially increased in cost over the past 16 years.
Second, the bills will add certain electronic devices to the list of items that are tax-free during the sales tax holiday. This includes e-readers, personal computers, and tablet computers. Today’s students rely on much more than pens, paper, and calculators to get prepared for school.
Both members have a long history of working to provide tax relief for Texas families through the sales tax holiday. In 1999, Senator Ellis passed SB 441, which created the back-to-school sales tax holiday for shoes and footwear. In 2007, Senator Ellis amendedHB 3314 to add backpacks to the list of items eligible for the sales tax holiday. In 2009, Representative Bohac passed HB 1801, which added school supplies.
(Houston, TX) // Today, Senator Rodney Ellis (D-Houston) announced the unveiling of billboards across the community aimed at increasing the number of insured Houstonians.
Thanks to a partnership with Clear Channel Outdoor, Senator Ellis will post a dozen billboards in the greater Houston area to encourage citizens to enroll in affordable health insurance options provided by the health insurance marketplace and the Affordable Care Act. Advertising space is being donated by Clear Channel Outdoor to the Houston Area Urban League for the campaign. Thousands of uninsured Houstonians will view these messages over the coming six weeks prior to the February 15 enrollment deadline, creating 10.2 million market impressions over the course of the display.
“Our state does better when all Texans have access to quality, affordable health care,” said Senator Ellis. “That is why I am co-sponsoring this public service outreach effort to ensure all eligible Houstonians receive the information and assistance they need to select a quality health plan that works for them and their families.”
“I’d like to join Senator Ellis in encouraging the community to enroll and get covered,” said Judson Robinson, President and CEO of The Houston Area Urban League. “Investing in your health care is one of the best things you can do for yourself and your family. Become empowered and get covered.”
“The billboard campaign gives a boost to our collaborative’s efforts to educate the many uninsured people of our area about the benefits of enrolling in a low-cost ACA health plan,” said Stephen Williams, director, Houston Department of Health and Human Services. “Its timing is perfect as we need to convince the uninsured to take steps to enroll now to avoid missing the February 15 deadline.”
The billboard images are available for download by clicking here and here.
Texans stands to benefit greatly from the Affordable Care Act, as one in five – more than five million people – lack health insurance coverage. In Texas, over 730,000 people selected a plan during the first open enrollment period.
Texans currently have another opportunity to enroll in coverage as the Health Insurance Marketplace will remain open until February 15, 2015. If you are eligible and don’t get covered, you might have to pay a fine of $325 or 2 percent of your income (whichever is greater).
Financial help is available for individuals and families between 100-400 percent of the federal poverty level ($11,670 to $46,680 for individuals or $23,850 to $95,400 for a family of four). Eighty-four percent of people in our state who previously received coverage through the exchange received help paying for their insurance. In addition, health insurance on the exchange is affordable, as the average monthly cost for those who enrolled in coverage in Texas is $72.
Plans purchased on the exchange will also have new consumer protections and cover all ten essential benefits such as emergency services, prescriptions drugs, and preventive care. Many of these preventive services are covered with no additional costs to consumers.
Information about where to get free local in-person assistance, new health insurance plans, and how to apply for Medicaid and the Children’s Health Insurance Program can be found at links on www.enrollgulfcoast.com or by calling 832-393-5423.
In March 2012, Margaret Jones, a 71-year-old Austin great-grandmother, found herself in a financial crisis. Her husband had recently passed away, she’d lost a temporary job and she was struggling to live on a Social Security check of $1,160 each month. Jones, who asked that her real first name not be used, had moved in with her daughter but was looking for her own place. She had just enough to cover utilities, groceries, gas for her car and rent, but not enough left over for a deposit for an apartment. Cash Plus, a California-based payday loan franchise, had recently opened a location near her home in South Austin, so one day Jones went in and took out a $225 loan. In a month, she would owe Cash Plus $271.91—an effective APR of 245 percent. Jones hoped to be settled in her new place by then and have her finances in order enough to pay the loan off. But a month later, her financial situation had worsened.
The deposit on her new place was tied up. The electricity bill was much higher than expected. And she’d also taken on an auto-title loan; not keeping up with the payments would mean losing her car. She explained all this to a Cash Plus manager, who persuaded her to renew, or “roll over,” her payday loan by carrying the balance forward and paying $50 in fees.
But then the next month Jones faced the same hopeless prospect. This time she didn’t even have the cash to pay the renewal fees.
“I was in an impossible situation,” she said, “but at the same time I wanted to keep my obligations with these people.” She pleaded for a payment plan but the store manager demanded the full amount.
“What I thought was going to happen was they would have some kind of sympathy for a senior who was living on a fixed income of Social Security and that they would allow me to make some kind of monthly payment.”
Instead, the manager began haranguing Jones over the phone for the full amount of $271. Jones kept asking for a payment plan. One day, he told her, “I hate to do this to you,” but didn’t explain what he was planning to do. After that she didn’t hear from him for a few weeks, until the day he called to give her a “case number” and a telephone number to call. As she would find out later, the man had filed a criminal theft by check complaint against her with a Travis County justice of the peace.
“I was just terrified to the point that I couldn’t eat, my blood pressure went up,” she said. “I was just nervous, scared.”
Jones hunkered down, waiting for something to happen. But nothing came in the mail, no threatening letters or legal notices. In February, almost two years later, she called the Department of Public Safety to see about getting her driver’s license renewed—but DPS refused. That’s how she found out that a warrant had been issued for arrest. As she later discovered with the help of a pro bono attorney, the justice of the peace court had sent her paperwork to a previous address and she’d missed a court hearing. In her absence, the judge had ordered her to pay $981 in court fees and restitution, and issued a warrant for her arrest.
Pursuing, or even threatening, criminal charges against payday and title borrowers is strictly prohibited by Texas law, with very few exceptions. The Texas Constitution unequivocally states, “No person shall ever be imprisoned for debt.”
But new research released this morning by Texas Appleseed shows that criminal charges against payday borrowers for missing payments is common in Texas. Texas Appleseed documents more than 1,500 criminal complaints of bad check and theft by check allegations filed by payday loan companies in Texas between 2012 and the spring of this year. Many of them resulted in fines, arrest warrants and even jail time.
The research builds on reporting by the Observer published in July 2013, which found 1,700 instances in which payday lenders in Texas have filed criminal complaints against customers. The Observerstory prompted an ongoing investigation by the state Office of Consumer Credit Commissioner, which regulates the industry in Texas, into one payday loan business, Cash Biz. It also led regulators to issue an advisory bulletin to lenders warning them to stop pursuing criminal charges against their customers.
Texas Appleseed found 13 different payday loan companies pursuing criminal charges in eight different counties, including Travis, Dallas, Harris and Collin. Texas Appleseed filed a complaint today with the federal Consumer Financial Protection Bureau, the Federal Trade Commission, the Texas Attorney General’s Office and the state Office of Consumer Credit Commissioner. The complaint letter, which includes 700 pages of supporting documentation calls for state and federal authorities to launch an investigation and take enforcement action against lenders abusing the law and their customers.
“In addition to their outrageous rates and lending practices, payday loan businesses are illegally using the criminal justice system to coerce repayment form borrowers,” said Ann Baddour of Texas Appleseed. “This directly contravenes state and federal law, which eliminated debtor’s prisons long ago.”
In one justice of the peace court in Harris County, the group found that arrest warrants were issued in more than 42 percent of the cases and at least six people served jail time. In Collin County, there were 740 documented criminal cases against payday borrowers—636 from a single lender, PLS Loan Store—and $132,000 collected from borrowers.
Consumer advocates say district attorneys and courts are—intentionally or not—acting as debt collection agencies for predatory lenders. A letter from a DA threatening steep fines, arrest and jail time can be a highly persuasive tool. In Margaret Jones’ case, a Travis County constable paid her two visits. The first time she wasn’t home; the second she hurried him inside before her neighbors could see. The constable urged her to contact the court.
She said she fell apart. “I was scared. I cried. I kept saying, ‘Why is this happening to me?’ I was just devastated. Hurt and devastated.”
Eventually, through Texas Appleseed, Jones found a pro bono attorney who agreed to take her case. The lawyer was able to persuade the Travis County Attorney’s Office to dismiss the charges.
Jones said she thinks Cash Plus knew that she would be unable to pay from the get-go.
“If they couldn’t get their money one way,” she said, “they’ll get it another, even if it hurts the poor. That’s what I am. I’m a poor person. And it saddens me” how many people “have become prey to such predatory lenders.”
Because record-keeping is spotty and hot check cases are handled by a patchwork of hundreds of DAs, county attorneys and justices of the peace, it’s likely that the problem is more pervasive, said Deborah Fowler, deputy director of Texas Appleseed.
“We believe that the cases we documented are just the tip of the iceberg.”
As this Veterans Day approaches, it is appropriate to honor those who have served our country. Veterans Day is not only flags and parades, though. It is a reminder that, every day, we all have a chance to do something to assist those who have sacrificed so much in our name. That is why we are letting our community know that, even in the criminal justice system, there can be a place where compassion and justice meet. That place is called the Veterans’ Court, and this Veterans Day marks the fifth anniversary of the first such court in Texas, which was started right here in Harris County in November 2009.
Like most great ideas, this one had many people who helped give it a start. From folks in the Legislature who drafted and pushed for the bill in 2009 that authorized the creation of treatment courts for returning vets, to the large number of federal, state, county, judicial and nonprofit officials who helped bring the statute to life in the Harris County district courts, to the local private bar associations, prosecutors and court staff who worked tirelessly to make the implementation work on a day-to-day basis – all are owed a debt of gratitude.
This very special court is a labor of love for all involved. For us, it combines two public-policy issues that are near and dear to our hearts: helping veterans and making our criminal justice system more fair and balanced.
The principle behind these courts is simple: If a veteran suffers from a condition related to his or her service, such as traumatic brain injury, post-traumatic stress disorder or depression, and that condition leads them to an encounter with the criminal justice system, then our treatment court will ensure they are matched up to the services at the Department of Veterans Affairs to which they are entitled. The court will hold them accountable to use those services and receive the treatment and counseling needed to cope with the residual effects of war. If they complete their treatment honorably, they are given a chance to reclaim their good name and clean record.
To date, 52 veterans of all services, from the Vietnam era to Iraq and Operation Enduring Freedom in Afghanistan, have completed the felony program successfully. Now the Harris County misdemeanor courts are beginning their own program, and today there are 19 such programs across Texas. Each court has chosen to focus on its own unique population. Some have made drug abuse among veterans their priority, as returning vets may self-medicate to cope with PTSD, physical pain from injuries and depression. Other courts focus strictly on the needs of felony offenders and the serious consequences they face in our criminal justice system.
All of these courts are united in their mission to help those who served us. Men and women who might never have gotten treatment to grapple with the profound changes in their lives as a result of military service now have that opportunity thanks to the enacting legislation and the good people from the VA and local governments who put it into practice.
Texas has a long tradition of honoring those who served. Wherever you can, we urge you to ask your local officials to consider such a program so that we can give meaning to the pledge to honor veterans as they return home. We did not march where they marched, yet we can help them carry their burdens back home.
Ellis, a Democrat representing Houston in the state Senate, is author of the original veterans court legislation in the Legislature. Carter is presiding judge of the Harris County Veterans Court.
Today marks the 25th anniversary of the untimely passing of Congressman Mickey Leland. While leading a relief mission to a refugee camp in Ethiopia, his plane went down in remote mountains, killing him, his staff, and a group of international leaders.
Mickey was my boss, my mentor, and my dear friend. He died as he lived, trying to end world hunger and serving as a voice for the voiceless. His story is worthy of celebration and remembrance, as the values he embraced still live on a quarter of a century later.
First elected to the Texas House of Representatives in 1972, Mickey was unlike anyone who had ever served in that body previously. Picture an African American with an afro, platform shoes, leather shoulder bag, and bright dashiki walking around the Texas Capitol. He caused quite a stir.
By the time he got elected to the U.S. House of Representatives in 1978 – replacing Barbara Jordan – he had traded in the dashiki for a business suit, but that did not change what he fought for. He used his position in Washington to shine the spotlight on the plight of the powerless in this world.
Mickey had a motto, quoted from the Talmud: “If you save one life, you save the world.” He put that motto in practice, fighting to bridge the differences in our society, expand diversity, and end world hunger.
One of the first things he did in Congress was create a program that has sent hundreds of students from his congressional district to Israel during the summer of their junior year of high school, helping to broaden their perspective of the world.
He also began an internship program to start casting the net for more minority students to get involved in government service – one that I emulated through the Texas Legislative Internship Program. Mickey opened the door to students interested in the system and helped them get their foot in the door for training and experience. His efforts helped change lives, and also – in small ways – helped change the culture and complexion of the professional staff in Congress.
It was also his staff that ended up changing my life. I met Licia Green at an event in DC with Mickey. She later moved to Houston to run his district office, we fell in love and got married, and the rest is history.
But the cause that came to define Mickey was the plight of Africa, particularly the children of the continent. He talked frequently and eloquently about how this issue became his defining cause. On a trip to the Sudan in 1984, he watched a young girl die of starvation right before his eyes. He said he saw her face every day.
He knew something had to be done, and he was in a position to do something about it. He worked hard to expand ties and increase aid to the nations of Africa. He championed anti-hunger efforts and helped expand U.S. aid to Ethiopia during the famine in 1985. He traveled frequently to Ethiopia and across Africa and put into practice his deep belief that we are supposed to help “the least of our brothers.”
I still miss Mickey every day, but the lessons that he taught me will always guide my public service.
He taught me that there are no lost causes or unwinnable fights. He taught me that patience, cooperation, and dedication are the small but vital steps of progress.
He taught me that change comes in constant and consistent action, not in one fell swoop. He taught me that we are responsible not just for ourselves and our families, not just for our friends or neighbors, but for the people and children of the world.
And he taught me that we can all make a difference if we simply choose to get involved and take a stand.
So I am using the anniversary of Mickey’s passing as a moment to rededicate myself to the values that he espoused: courage, compassion, and a commitment to all people. I hope today’s solemn occasion will cause more to follow his lead.
(Austin, TX) // Senator Rodney Ellis (D-Houston) sent a letter (click here for PDF or see below) to Insurance Commissioner Julia Rathgeber calling on her to oppose the recent homeowners insurance rate increases announced by the three largest insurers in the state. Continue Reading »
Usury is the practice of lending money at an exorbitantly high rate, so high that any reasonable person would find the rate to be unconscionable, even immoral. Every state in the union has laws to protect its residents from usury. The Texas Constitution limits loans to an annual percentage rate of 10 percent, unless the Legislature specifically sets a different rate. Accordingly, commercial loans are capped at an annual percentage rate of 18 percent, motor vehicle financing loans at 27 percent, and even pawn loans are capped at a shocking 240 percent. Continue Reading »
Deadline for low-income Texans to qualify for help on energy bills looming
(Austin, Texas) – Senator Rodney Ellis (D-Houston) today joined Representative Sylvester Turner (D-Houston) and advocates urging low-income Texans to sign up for LITE-UP Texas energy bill assistance before the August 10, 2013 deadline.
The LITE-UP Texas program is designed to help qualified low-income individuals who live in areas where they can choose their own electricity provider to reduce their monthly cost of electric service. During this year’s regular session, the 83rd Texas Legislature made profound changes to this program, increasing the discount from 16.5 percent to 82 percent. The 82 percent discount will be effective for this September and also for May, June, July and August of 2014.
“Time is running out for low-income and elderly Texans to get the help they need to keep the power on in late summer,” said Ellis. “We are here to spread the word to make sure that Texans know there is help on the way.”
In 1999 the legislature created the System Benefit Fund to help low-income Texans pay summer energy bills when Texas deregulated electric utility companies. The Fund’s goal was to assist the least fortunate Texans in braving the summer heat, and as temperatures across the state soar to increasingly high levels, that mission is more critical than ever. Unfortunately, this session, the legislature ended the surcharge on customers’ electricity bills but took steps to provide a discount on customers’ September electricity bills for 2013 and May through August bills for 2014. According to the Public Utility Commission, about 500,000 Texans received aid from the System Benefit Fund to help pay their summer bills.
Since the creation of the System Benefit Fund, the legislature has often neglected to use the full balance to help Texans pay their summer electric bills, instead redirecting the balance to shore up budget shortfalls. For instance, in 2011 $650 million was left in the Fund instead of distributed to senior and needy Texans.
“I opposed the reverse Robin Hood plan to take from the poor,” said Ellis. “The System Benefit Fund was created for the explicit purpose of helping low-income Texans pay rising energy bills after electric deregulation. That’s where the money should be going and where Texans want it to go. Unfortunately, our side did not prevail, but at least there is the silver lining that Texans will receive a bigger discount this summer and in 2014, so Texans need to take advantage of it while they can.”
While Austin is trying to save the planet by banning plastic bags, every night thousands of glass bottles are thrown away. A lot of those are beer bottles that could be recycled, but in Austin there’s no requirement to do so. However, that could soon change. Continue Reading »
(Austin, Texas) – Following a series of consumer-friendly amendments and a pledge by leaders to maintain those protections, Senator Rodney Ellis (D-Houston) today voted in favor of legislation to enact regulation of predatory lenders in Texas. Continue Reading »