Bill Would Move Credit Card Interest Closer to Savings Rates

Legislation to prohibit interest rates on bank credit cards from being more than 10 percentage points above interest rates paid on bank savings accounts has been introduced in the Assembly.

Assemblyman John Burton (D-San Francisco), the author of the bill, AB 320, said that current interest rates on bank cards such as MasterCard and Visa range from 18% to 21%, while passbook rates have shrunk to 3% or less.

“There are many businesses that would be grateful for a 10% profit,” Burton said. “And there are many consumers who would welcome an increased return on their savings or to be dinged less on their plastic.”

The proposed legislation would not affect gasoline or department-store credit cards.

ASSEMBLY

Floor Action

State Audits: Passed and sent to the Senate on a 57-8 vote a bill (AB 5) by Speaker Willie Brown (D-San Francisco) to establish a Bureau of State Audits within the Independent Commission on California State Government Organization and Economy, better known as the Little Hoover Commission. It would replace the former auditor general’s office, which was abolished because of legislative cuts required by Proposition 140, approved in 1990.

The Senate previously approved a similar proposal. A two-house conference committee is expected to try to write a compromise version.

Bill Introductions

Pet Cats: AB 302 by Assemblyman Paul Horcher (R-Hacienda Heights) would require pet cats over the age of 6 months to be neutered if they are permitted outdoors without supervision.

Stalking: AB 303 by Assemblyman Mickey Conroy (R-Orange) would increase the potential prison penalty for a second conviction of stalking. Stalking is following or harassing another person with the intent of placing them in fear of great bodily injury or death.

Parental Liability: AB 308 by Assemblyman Dean Andal (R-Stockton) would increase parental liability from $10,000 to $25,000 for willful misconduct of minor children that results in death, injury or property damage.

Child Care Centers: AB 312 by Assemblyman Mike Gotch (D-San Diego) would increase prison penalties for drug crimes committed at or near child day-care centers.

SENATE

Bill Introductions

Guns: SB 180 by Sen. Teresa Hughes (D-Los Angeles) would require firearms dealers to keep guns locked in a vault or a safe when their stores are closed.

School Classrooms: SB 190 by Sen. Leroy Greene (D-Carmichael) would ask the voters in 1994 to approve a $1-billion bond issue to build more classrooms in grades kindergarten through 12.

Library Bonds: SB 174 by Sen. Milton Marks (D-San Francisco) would ask the voters in 1994 to approve a $350-million bond issue for local library construction and renovation work.

School Libraries: SB 170 by Sen. William Craven (R-Oceanside) would allow taxpayers to earmark part of their income-tax refunds to support public-school libraries.

Domestic Violence: SB 178 by Sen. Teresa Hughes (D-Los Angeles) would allow victims of domestic violence to testify on videotape at court hearings if the defendant is charged with spousal rape or assault.