February 2010 Newsletter

Issue of the Month: Consumer Protection

Every day, American consumers trade money for the goods and services generated within our economy. And sometimes, they get more than they bargained for (pun intended) – and not in a good way. With growing frequency we hear about harmful substances in the goods we buy, misleading and false information, predatory and financially damaging services and corporate practices.

If we are to have healthy, thriving communities, consumers need to be protected. Many YEOs across the country are working diligently to ensure that the constituent consumers in their communities have the proper safeguards in place that protect their interests and ensure economic efficiency.

Last year, Mayor Ryan Coonerty and the City of Santa Cruz (California) passed the Environmentally Acceptable Food Packaging Ordinance, which banned the use of polystyrene foam or “Styrofoam” and other non-biodegradable food packaging in restaurants. The County of Santa Cruz and other nearby cities soon followed similar bans. By preventing the use of Styrofoam, especially as “to-go” packaging, it will help maximize the life of landfills, lessen the impact of litter, and reduce health concerns. After initial concerns from local businesses, the ban has been embraced, and has caused some national chains, like Jamba Juice and Cold Stone Creamery, to reconsider the packaging in all their stores across the country. Mayor Coonerty emphasizes that the education component of letting businesses know about alternatives and suppliers was extremely important.
Click here for information on the danger of Styrofoam.
Click here for information about the ordinance and education program.

State Representative Cory Mason (Wisconsin) has introduced the “Toxic Toys Bills,” aimed at giving consumers information about the chemicals found in children’s toys. According to a news release by Rep Mason, the bill would:

• Require the state's consumer watchdog agency to identify chemicals that are capable of causing harm to children, based on credible scientific evidence.
• Require manufacturers and distributors of products containing those chemicals to provide information to the agency about those products.
• Require the agency to identify safer alternatives and then require manufacturers and distributors to use them to replace problematic chemicals within a reasonable amount of time.
• Require the agency to develop a program to educate consumers and retailers so they can identify children's products that may contain harmful chemicals.

“One of the best ways to keep our children safe is to be knowledgeable about the chemicals which may be in their toys," he stated. For more information, click here.

State Treasurer Alexi Giannoulias (Illinois) is proposing legislation that will protect consumers from predatory debt settlement companies. "Debt settlement companies claim to be a lifeboat for people drowning in debt. But their deceptive practices put consumers on a sinking ship toward bankruptcy," said Treasurer Giannoulias, who noted that many of these companies have been heavily advertising on television and elsewhere. The bill will require debt settlement companies to be licensed in the state and the fees they charge to be limited to $50 upfront, and no more than $30 a month. The will also be required to provide monthly statements and be barred from advising customers to stop making their regular credit payments. For more information, click here.

Senator Gretchen Whitmer (Michigan) is proposing a package of legislation that will help protect consumers from excessive and hidden bank fees. According to The Michigan News, Sen. Whitmer’s “Buyer Beware” Consumer Protection plan will:

• Reduce overdraft fees and prevent banks from charging multiple fees in a 24-hour period when an overdraft occurs. Currently, consumers may not know they have gone over their limit and continue purchasing things, racking up another fee each time.
• End overdraft manipulation by requiring banks to process smaller charges first. Now banks can choose to process the highest amount first, which makes it more likely that there will be insufficient funds, leading to multiple overdraft charges for the other, smaller charges in the system.
• Encourage overdraft fee transparency by requiring banks to disclose and post online how they determine and calculate the amount of overdraft fees.
  For more information, click here.

State Representative Gordon Hintz (Wisconsin) has authored a bill that will require payday lenders to obtain state lending licenses and will cap the annual interest rate they can charge at 36 percent. This measure mirrors a federal law that prohibits payday lenders from charging members of the military or their families an interest rate higher than 36 percent. For more information, click here.

Resource Center:
Consumer Protection
The following organizations provide research and policy resources on consumer protection.

Progressive States Network –
Consumer Protection & Corporate Accountability Policy Resources

Center for Responsible Lending –
Consumer Financial Protection Agency

2010 YEO Network National Convening
Save the Date!

The 2010 YEO Network National Convening will be held May 13 – 16, 2010 in Washington, DC. Mark your calendars today for this amazing opportunity to meet, network, and learn from other Young Elected Officials from across the country.

Do you want to have a voice in the planning of the Convening? YEOs are a crucial part of program planning and trainer recommendation, as well as fundraising for the 5th Anniversary YEO Party! Please click here to learn about the Convening Host Committee and to sign up.

Protecting Consumers Against Chemicals
By State Representative Hannah Pingree

Even though Maine is a small state, our effort to confront dangerous chemicals in common household products has rippled throughout the nation.  

In 2006, I sponsored and passed legislation to ban the flame retardant known as Deca.  Since that time, similar legislation has been introduced in Congress and forced the Deca-bromine industry to agree to a voluntary phase-out of the product.

Deca has been banned in the European Union for some time because it is a carcinogen and was shown to build up in people’s bodies overtime.  Even though safer alternatives have been identified, the Deca producing industry still found outlets for their dangerous product in America.

As a young lawmaker, and as a woman who may want to have children one day, I have taken a keen interest in protecting consumers from dangerous chemicals.  I have sponsored several consumer protection bills aimed at reducing our exposure to chemicals that are found in everyday items that pose a threat to our health.

Maine has set up a unique administrative system to identify dangerous chemicals.  Maine’s Department of Environmental Protection is going through the process of identifying “chemicals of high concern” and would have the ability to recommend chemicals be banned if safer alternatives are available. This relieves policy makers from constantly playing catch-up with the chemists and trying to identify individual compounds to be worried about.  

When states pass tough policies promoting safer chemicals it will also put pressure on the federal government to update federal laws.  If you want more information on safer chemical policies, check out the Alliance for a Clean and Healthy Maine: www.cleanandhealthyme.org.

Hannah Pingree currently serves as the Speaker of the Maine House of Representatives.

2010 Census: Having Your Community Count

February 11, 2010
1:00 PM (EST)
RSVP to epope@pfaw.org

Census 2010 will directly impact you as a young elected official, your power to govern, and your constituents.

Historically, many communities are undercounted and certain populations are at risk of not being counted at all. This affects the true political voice of your community, as the numbers inform voting districts; this affects the ability to help your constituents, as the numbers inform the allocation of federal dollars.

This is why it’s imperative to ensure that everyone is counted!

YEOs said they were interested and we are responding! The YEO Network will hold a Census & Redistricting telebrief on February 11, 2010 at 1:00 PM (EST). Issues discussed will include:

• Why the census is so important to YEOs, particularly those serving diverse populations and historically undercounted communities.
• Which groups are considered historically undercounted and what YEOs can do to help ensure that everyone is counted.
• A Census 2010 message manual to help YEOs effectively explain the census to undercounted communities, specifically the two most chronically undercounted groups – African-American men and undocumented Latino immigrants.
• The census resources that are available, and where they can be found.

RSVP to epope@pfaw.org

Survey Incentive Prize Winners!

In honor of our 5th anniversary year, the YEO Network was extremely excited to offer some extra special survey incentive prizes this year. We are even happier to announce the winners:

Grand Prize Winner:

City Councilman Lamar Heystek
Councilman Heystek will receive an all-inclusive 2010 National Convening package, to include:

• 1 round trip ticket to Washington, DC for the 2010 National Convening
• A single room during the event
• All convening meals and conference fees
• 2 complimentary tickets to the YEO Network 5th Anniversary National Convening Gala

Runner-up Prize Winners:

City Councilman Henry Davis, Jr. and County Board Supervisor Chris Larson will each receive a 1-hour personal public speaking consultation with Joel Silberman.

School Board Member Marisol Cruz and Alderman Jason Wiener will each receive a 1-hour personal communications consultation with the People for the American Way Communications Department.

Special Prize for YEO Aides:

The aide to State Senator Michael Frerichs will receive a $25 Visa gift certificate.

"Why I became an elected official"
By Mayor Evan Low

As a child, I volunteered with the local Kiwanis Club and I worked with a local education foundation, under the instruction of my father, a local business owner and member of the local Chamber of Commerce.  In our small city of Campbell, Calif., it was through volunteerism where my career in public service began.

The City of Campbell is one of the youngest cities in our county, with an average age of 35 years. No Asian Americans or people of color had ever been elected in the city’s history. In 2004, I first ran for office at the age of 21 and lost by about one percent.

When I ran again at 23 years of age, people realized I was vested in the community. I came to realize people simply have a fear of the unknown. This was something new to them, not just because of my age, but because they hadn’t seen an Asian American run before.

There were several challenges to my candidacy. With my youth, people questioned my abilities. Because of my ethnicity, I was seen as the “perpetual foreigner,” receiving hate mail from people who stated they “want American interests, not Chinese interests.” Running as an openly gay candidate, some questioned my “homosexual agenda,” which I never understood. But there was no doubt that my biggest challenge was my age.

Progressive Policy Corner

Eliminating Credit Reports for Employment Decisions
State Representative Matthew Lesser
Middletown, Connecticut
This legislation aims to prevent employers from using credit reports or credit histories to make employment decisions concerning current and prospective employees. It carves out exceptions where credit histories are substantially job-related, when otherwise required by law or when an employer has reason to believe an employee has committed a crime. This is a new and growing practice, with as many as half of employers now investigating the credit histories of job applicants. With so many Americans losing their jobs through no fault of their own, owing money should not be one more barrier to employment.
Read More

Home Mortgage Lending Protection
Drum Major Institute for Public Policy
New York City, New York
This legislation regulates home mortgage lending to prevent predatory practices. The Minnesota law, one of the nation’s strongest, has many provisions which prohibit unfair lending practices. It requires non-bank lenders to verify borrowers’ ability to repay their loan; bans refinancing loans without benefit to the borrower; caps points and fees; bans prepayment penalties for subprime loans; prohibits lenders from steering a borrower to a higher interest rate than they qualify for; and, mandates that mortgage brokers act in clients’ best interests. This legislation should prevent irresponsible lending practices that lead to home foreclosures and loss of home equity and will affect non-bank mortgage lenders, loan servicers and mortgage brokers that are directly regulated as well as home buyers, refinancers, and those who would otherwise have their home values reduced by nearby foreclosures.
Read More