74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 572
House Bill 2202
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Department of Consumer and Business Services)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Prohibits certain persons from conducting check-cashing
business without license from Director of Department of Consumer
and Business Services. Provides for license application and
specifies information required in application. Requires director
to issue license to persons meeting certain criteria. Prohibits
collection of excessive fees for cashing payment instruments.
Requires licensees to post and file with director schedule of
fees collected. Permits director to investigate violations of
Act, to suspend or revoke license and to impose civil fines of
not more than $1,000 per violation or $1,000 per day for
continuing violations.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to check-cashing businesses; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 16 of this 2007 Act:
(1) 'Check-cashing business' means any person that conducts a
business that for a fee, service charge or other consideration
provides money, credit or any other thing of value in exchange
for payment instruments. 'Check-cashing business' does not
include a financial institution as defined in ORS 706.008 or an
employee of a licensee.
(2) 'Licensee' means a person licensed as a check-cashing
business under section 6 of this 2007 Act.
(3) 'Payment instrument' means:
(a) A check or draft issued by the federal government, a state
government, a county or municipal government, or a federal or
state agency; or
(b) A payroll check. + }
SECTION 2. { + (1) Sections 4, 5, 6 and 13 of this 2007 Act do
not apply to a person licensed under ORS 717.200 to 717.320.
(2) Sections 4, 5, 6, 11 and 13 of this 2007 Act do not apply
to a person engaged in the bona fide retail sale of goods or
services and not purporting to be a check-cashing business that,
as an incident of or independent of a retail sale or service,
from time to time cashes payment instruments for a fee, service
charge or other consideration but does not charge more than $2 or
two percent of the face value of the payment instrument,
whichever is greater. + }
SECTION 3. { + Except as provided in section 2 of this 2007
Act, a person may not conduct, purport to conduct or advertise
that the person conducts a check-cashing business without first
obtaining a license under section 6 of this 2007 Act. + }
SECTION 4. { + (1) An applicant for a license to conduct a
check-cashing business shall apply in writing and in a form that
the Director of the Department of Consumer and Business Services
prescribes by rule.
(2) An application for a license to conduct a check-cashing
business must contain all of the following:
(a) The applicant's name, together with any fictitious name,
assumed business name or trade name the applicant uses in
conducting the applicant's business;
(b) The name and address of all of the applicant's members,
partners, officers, directors or principals, as appropriate;
(c) The name and address of the applicant's agent for the
service of process, notice or demand, or a power of attorney that
the applicant has executed and by which the applicant appoints
the Director of the Department of Consumer and Business Services
as the applicant's agent for service of process, notice or
demand;
(d) The applicant's principal business address, the location of
the applicant's business records and the addresses for all
locations where the applicant conducts or proposes to conduct a
check-cashing business; and
(e) Other information that the director may require concerning
the applicant's financial responsibility, background experience
and business activities and those of the applicant's members,
partners, officers, directors and principals.
(3) The director, for good cause shown, may waive any
requirement of this section with respect to any license
application or may allow an applicant to submit substituted
information in a license application in lieu of the information
required under subsection (2) of this section. + }
SECTION 5. { + (1) Each person who submits an application
under section 4 of this 2007 Act shall at the same time pay a
nonrefundable application fee and a nonrefundable investigation
fee to the Director of the Department of Consumer and Business
Services in amounts the director prescribes by rule. If the
director approves the application and issues a license under
section 6 of this 2007 Act, the application fee shall constitute
the license fee for the remaining portion of the first calendar
year in which the applicant conducts a check-cashing business.
(2) The director shall prescribe fee amounts under subsection
(1) of this section that in the aggregate are sufficient to pay
all expenses of the Department of Consumer and Business Services
related to administering sections 1 to 16 of this 2007 Act. The
director shall pay all moneys received under this section into
the Consumer and Business Services Fund as provided in ORS
705.145. + }
SECTION 6. { + (1) After an applicant has submitted a complete
application, the Director of the Department of Consumer and
Business Services shall review the application and may
investigate the applicant's financial condition and
responsibility, financial and business experience, character and
general fitness to conduct a check-cashing business. The director
may also determine if the applicant has complied with applicable
provisions of sections 1 to 16 of this 2007 Act and of federal
law.
(2) The director shall issue a license to the applicant to
conduct a check-cashing business at the locations identified in
the application if the director finds that:
(a) The applicant and the applicant's members, officers,
directors and principals are financially responsible, have a good
character and a good reputation and are experienced and generally
fit to conduct a check-cashing business efficiently, in the
public interest and in accordance with law;
(b) The applicant has fulfilled the requirements imposed under
section 4 of this 2007 Act; and
(c) The applicant has paid the license and investigation fees
required under section 5 of this 2007 Act.
(3) A license issued under this section expires on December 31
of the year for which the license is issued. A licensee may not
assign or transfer a license issued under this section. A
licensee may renew a license upon payment of a license fee in an
amount the director prescribes by rule.
(4) The director shall deny the application if the applicant
does not meet the requirements set forth in this section. The
director's denial shall be in writing and shall describe the
reasons for the denial.
(5) If the director denies a license under this section, the
applicant may request a hearing in accordance with ORS 183.435.
Upon receiving the applicant's request, the director shall grant
the applicant a hearing under ORS 183.413 to 183.470. + }
SECTION 7. { + (1) A person may not charge or collect,
directly or indirectly, an excessive fee, service charge or other
consideration for cashing a payment instrument. A fee, service
charge or other consideration is excessive if the total amount
charged is more than $5 or three percent of the face value of the
payment instrument, whichever is greater.
(2) This section does not affect fees, statutory damages or
other charges a person may collect under ORS 30.701 in connection
with dishonored payment instruments. + }
SECTION 8. { + A check-cashing business shall provide a
receipt to the individual for whom the business cashes a payment
instrument. The receipt must display at least:
(1) The name, assumed business name or trade name of the
check-cashing business;
(2) The transaction date;
(3) The face amount of the payment instrument; and
(4) The fee charged or collected for cashing the payment
instrument. + }
SECTION 9. { + A check-cashing business shall:
(1) Endorse in the name of the business all payment instruments
for which the business provided money, credit or any other thing
of value; and
(2) Deposit or present for payment each such payment instrument
not later than one business day following the date of the
transaction. + }
SECTION 10. { + A check-cashing business shall conspicuously
post and at all times display in each business location a notice
that states the fees, services charges or other consideration
that the business charges for cashing payment instruments. A
licensee shall also file with the Director of the Department of
Consumer and Business Services a copy of the notice posted in
each of the licensee's business locations. + }
SECTION 11. { + (1) A check-cashing business shall make, keep
and maintain all records used in providing money, credit or any
other thing of value in exchange for payment instruments that the
Director of the Department of Consumer and Business Services may
reasonably require. The check-cashing business shall keep and
maintain the records that the director requires under this
section separate from records used for any other business that
the check-cashing business conducts. The check-cashing business
shall retain the records the director requires under this section
for three years following the date of the transaction each record
describes, or for so long as the director may prescribe by rule.
(2) The director may examine the records required to be kept
and maintained under this section to determine whether the
check-cashing business is complying with sections 1 to 16 of this
2007 Act and with rules the director has adopted under sections 1
to 16 of this 2007 Act. The check-cashing business shall pay the
Department of Consumer and Business Services for the actual cost
of the examination. The director by rule shall establish rates
and charges associated with examinations made under this
section. + }
SECTION 12. { + A check-cashing business may not:
(1) Publish, disseminate or cause to be published or
disseminated a communication that contains a false, misleading or
deceptive statement or representation.
(2) Conduct business at premises or locations other than
locations licensed by the Director of the Department of Consumer
and Business Services.
(3) Engage in unfair, deceptive or fraudulent practices. + }
SECTION 13. { + (1) The Director of the Department of Consumer
and Business Services may by order suspend or revoke any license
issued under section 6 of this 2007 Act if the director finds
that any of the following circumstances are true:
(a) The licensee has violated a provision of sections 1 to 16
of this 2007 Act or of a rule or order the director has adopted
or issued under sections 1 to 16 of this 2007 Act.
(b) The licensee knowingly made a false or misleading statement
on the application for a license under section 4 of this 2007 Act
or in information the licensee submitted to the director.
(c) The licensee refused to permit the director to make an
investigation authorized under section 11 of this 2007 Act.
(d) The licensee has engaged in, or has a felony or misdemeanor
conviction for, fraud, misrepresentation or deceit or has
demonstrated untrustworthiness or incompetence in conducting the
check-cashing business.
(e) The licensee has not paid a fee required under section 5 of
this 2007 Act or examination costs under section 11 of this 2007
Act.
(2) The director may not suspend or revoke any license issued
under section 6 of this 2007 Act unless the licensee has had
notice and an opportunity for a hearing in accordance with ORS
183.413 to 183.470. + }
SECTION 14. { + The Director of the Department of Consumer and
Business Services may:
(1) Make such investigations as the director deems necessary to
determine whether a person has violated, is violating or is
preparing to violate sections 1 to 16 of this 2007 Act or a rule
or order adopted or issued under sections 1 to 16 of this 2007
Act.
(2) Require a person to file a statement in writing, under oath
or otherwise as the director determines, concerning a matter
under investigation.
(3) Take evidence from witnesses and compel the attendance of
witnesses and the production of books, papers, correspondence,
memoranda, agreements or other documents or records that the
director considers relevant or material to an investigation or
proceeding.
(4) Take any affirmative action necessary to carry out the
provisions of this section, including assessing the costs of an
investigation.
(5) Order a person to cease and desist from any action that the
director has reason to believe was, is or is about to become a
violation of sections 1 to 16 of this 2007 Act, a rule adopted to
implement sections 1 to 16 of this 2007 Act or an order the
director issued to enforce sections 1 to 16 of this 2007 Act. + }
SECTION 15. { + (1) If the Director of the Department of
Consumer and Business Services finds that a person has violated a
provision of sections 1 to 16 of this 2007 Act or any rules
adopted under sections 1 to 16 of this 2007 Act, the director may
impose in the manner provided in ORS 183.745 a civil penalty in
an amount not to exceed $1,000 for each violation or, in the case
of a continuing violation, not more than $1,000 for each day that
the violation continues. The director shall pay all moneys
received under this section into the Consumer and Business
Services Fund as provided in ORS 705.145.
(2) The director may order any person the director finds in
violation of section 7 of this 2007 Act to repay any excessive
fee, service charge or consideration the person has
collected. + }
SECTION 16. { + The Director of the Department of Consumer and
Business Services may adopt rules for the purpose of carrying out
the provisions of sections 1 to 16 of this 2007 Act. + }
SECTION 17. { + Sections 1 to 16 of this 2007 Act become
operative on January 1, 2008. + }
SECTION 18. { + (1) Except as provided in section 2 of this
2007 Act, sections 3, 4, 5, 6 and 11 of this 2007 Act apply to
all persons conducting a check-cashing business on or after the
operative date of sections 1 to 16 of this 2007 Act.
(2) Sections 7, 8, 9, 10 and 12 of this 2007 Act apply to all
transactions in which a person provides money, credit or any
other thing of value in exchange for a payment instrument on or
after the operative date of sections 1 to 16 of this 2007
Act. + }
SECTION 19. { + The Director of the Department of Consumer and
Business Services may take any action before the operative date
of sections 1 to 16 of this 2007 Act that is necessary to enable
the director to exercise, on and after the operative date of
sections 1 to 16 of this 2007 Act, all the duties, functions and
powers conferred on the director by sections 1 to 16 of this 2007
Act. + }
SECTION 20. { + This 2007 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2007 Act takes effect on
its passage. + }
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