72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
 
                            Enrolled
 
                         House Bill 3316
 
Sponsored by Representative KNOPP; Representatives BARKER,
  BERGER, BUTLER, DALTO, FARR, GALLEGOS, KAFOURY, KITTS, KRUMMEL,
  MARCH, MONNES ANDERSON, MORGAN, NELSON, P SMITH, TOMEI (at the
  request of Oregon Bankers Association)
 
 
                     CHAPTER ................
 
 
                             AN ACT
 
 
Relating to commercial transactions; amending ORS 646.894.
  Whereas identity theft and other types of financial fraud are a
growing problem in Oregon; and
  Whereas identity theft and other types of financial fraud
threaten the safety and well-being of all Oregonians by damaging
credit records, driving up the cost of goods and services and
unduly burdening law enforcement agencies; and
  Whereas identity theft and other types of financial fraud can
be deterred by allowing a merchant who is presented with a credit
card or debit card in payment for goods or services to verify the
identity of the person who presents the credit card or debit
card; and
  Whereas some merchants are deterred from verifying the
identities of persons who present credit cards or debit cards
because of provisions in contracts between the merchants and the
credit card or debit card issuers prohibiting verification of
identity; and
  Whereas provisions in contracts that prohibit verification of
identity are contrary to public policy and void because those
provisions prevent persons presenting credit cards or debit cards
in payment for goods or services and merchants who accept credit
cards or debit cards from using reasonable means to prevent
themselves from becoming victims of crimes; now, therefore,
 
Be It Enacted by the People of the State of Oregon:
 
  SECTION 1. ORS 646.894 is amended to read:
  646.894. (1) A   { - person - }   { + merchant + } that accepts
a credit card  { +  or debit card + } for a   { - business - }
transaction   { - shall not write or cause to be written or - }
 { + may + } require that   { - a - }   { + the + } credit card
 { + or debit card + } holder   { - write on a credit card
transaction form any - }  { + provide + } personal
information { + , other than the personal information that
appears on the face of the credit card or debit card, for the
purposes of verification of the card holder's identity + }
 { - not required by the credit card issuer - } . { +  The
merchant may not write the information on the credit card or
debit card transaction form. + }
  (2) This section   { - shall - }   { + may + } not be construed
to prevent a
 
 
Enrolled House Bill 3316 (HB 3316-INTRO)                   Page 1
 
 
 
  { - person - }   { + merchant + } from requesting  { + and
keeping in written form + } information necessary for shipping,
delivery or installation of purchased goods or services, or for
warranty when the information is provided voluntarily by a credit
card  { + or debit card + } holder { + .
  (3) Any provision in a contract between a merchant and a credit
card or debit card issuer, financial institution or other person
that prohibits the merchant from verifying the identity of a
person who presents a credit card or debit card in payment for
goods or services by requiring or requesting identification is
contrary to public policy and void.
  (4) Nothing in this section may be construed to:
  (a) Compel a merchant to verify the identity of a person who
presents a credit card or debit card in payment for goods or
services; or
  (b) Interfere with the ability of a merchant to make and
enforce policies regarding verification of the identity of a
person who presents a credit card or debit card in payment for
goods or services.
  (5) As used in this section, 'merchant' means a person who, in
the ordinary course of that person's business, permits persons to
present credit cards or debit cards in payment for goods or
services + }.
                         ----------
 
 
Passed by House April 28, 2003
 
 
      ...........................................................
                                             Chief Clerk of House
 
      ...........................................................
                                                 Speaker of House
 
Passed by Senate May 19, 2003
 
 
      ...........................................................
                                              President of Senate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enrolled House Bill 3316 (HB 3316-INTRO)                   Page 2
 
 
 
 
 
Received by Governor:
 
......M.,............., 2003
 
Approved:
 
......M.,............., 2003
 
 
      ...........................................................
                                                         Governor
 
Filed in Office of Secretary of State:
 
......M.,............., 2003
 
 
      ...........................................................
                                               Secretary of State
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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