72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
HMRA to A-Eng. SB 159
 
LC 528/SB 159-AMR4
 
                      HOUSE MINORITY REPORT
                          AMENDMENTS TO
                   A-ENGROSSED SENATE BILL 159
 
                             May 19
 
Speaker Minnis:
  A minority of your Committee on Business, Labor and Consumer
Affairs, to whom was referred A-engrossed Senate Bill 159, having
had the same under consideration, respectfully reports it back
with the recommendation that it do pass with the following
amendments:
 
  On page 1 of the printed A-engrossed bill, line 2, delete ' and
725.610' and insert ', 725.610 and 725.625'.
  On page 2, after line 8, insert:
  '  { +  SECTION 3. + } ORS 725.625 is amended to read:
  ' 725.625.   { - In accordance with ORS 183.310 to 183.550, - }
The Director of the Department of Consumer and Business Services
may adopt rules   { - for the purpose of carrying - }   { + under
ORS 183.310 to 183.550 to carry + } out the provisions of ORS
725.600 to 725.625, including but not limited to establishing
contract terms, charges and fees for title  { + and payday + }
loans.'.
  In line 9, delete '3' and insert '4' and delete '4 and 5' and
insert '5, 6 and 7'.
  In line 11, delete '4' and insert '5'.
  After line 32, insert:
  '  { +  SECTION 6. + }  { + (1) A lender in the business of
making payday loans may not charge a consumer interest or fees on
a payday loan that exceed, in the aggregate, the total of:
  ' (a) $50; and
  ' (b) A sum equal to 60 percent of the principal amount of the
loan multiplied by a duration factor.
  ' (2) The lender shall calculate the duration factor by
dividing the number of days in the term of the loan by 365.
  ' (3) If the lender extends the term of or renews a loan, the
lender may not charge additional interest or fees that exceed, in
the aggregate, 60 percent of the principal amount of the loan at
the time of extension or renewal multiplied by the duration
factor of the extension or renewal. + } ' .
  In line 33, delete '5' and insert '7' and after '(1) ' delete
the rest of the line and insert 'A lender in the business of
making payday loans shall include in every payday loan contract a
notice, printed in type size equal to at least 12-point type,
stating that the consumer or the consumer's attorney may file a
complaint with the Director of the Department of Consumer and
Business Services as provided in this section.
  ' (2) A person claiming to be aggrieved by a practice that
violates section 5'.
  In line 40, delete '(2)' and insert '(3)'.
  Delete lines 42 through 44 and insert:
  '  { +  SECTION 8. Sections 5, 6 and 7 of this 2003 Act and the
amendments to ORS 725.600, 725.610 and 725.625 by sections 1, 2
and 3 of this 2003 Act apply to payday loans made on or after the
effective date of this 2003 Act. + } ' .
 
                         /sJeff Merkley
                           Representative
 
                         /sDiane Rosenbaum
                           Representative
 
                         /sMike Schaufler
                           Representative
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