74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
House Bill 2220
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 and
Office of Regulatory Streamlining of Department of Consumer and
Business Services)
CHAPTER ................
AN ACT
Relating to pawnbroker regulation; amending ORS 726.050, 726.060,
726.070, 726.080, 726.110, 726.250, 726.280 and 726.340.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 726.050 is amended to read:
726.050. { - No license shall be granted to any person,
partnership, association or corporation - } { + The Director of
the Department of Consumer and Business Services may not issue a
license to a corporation, limited liability company or limited
liability partnership or to a person using an assumed business
name + } unless { - that person and all members of any such
partnership or association are bona fide residents of this state
and unless such - } { + :
(1) The limited liability company or limited liability
partnership has filed the required documents under ORS chapter 63
or 67;
(2) The person using the assumed business name has registered
the name under ORS chapter 648; or
(3) The + } corporation is an Oregon corporation in good
standing or a foreign corporation legally qualified to do
business in this state.
SECTION 2. ORS 726.060 is amended to read:
726.060. (1) { + An + } application for the license shall be
in writing in { - the - } { + a + } form prescribed by the
Director of the Department of Consumer and Business
Services { + . + } { - and - }
{ + (2) The application + } shall contain { + :
(a) If the applicant is an individual, + } the name and both
the residence and business addresses of the applicant { - ,
and - } { + ;
(b) + } If the applicant is a partnership or association,
{ + the name and both the residence and business addresses + }
of every member
{ - thereof, and if a corporation, of each officer and director
thereof. The application shall also show - } { + of the
partnership or association;
(c) If the applicant is a corporation, the name and both the
residence and business addresses of each officer and director of
the corporation;
Enrolled House Bill 2220 (HB 2220-A) Page 1
(d) + } The county and city with street and number, if any,
where the business is to be conducted { + ; + } and
{ + (e) + } { - such - } { + Any + } other information
that the director may require.
{ - (2) Before issuing any license, the director shall post
notice of filing of the application in the office of the
Department of Consumer and Business Services for a period of 30
days. The director may waive posting of the notice if the
application is made by an applicant for the same location as one
for which a license has been surrendered because: - }
{ - (a) The business has been transferred to the
applicant; - }
{ - (b) The licensee has died and the applicant is the
licensee's personal representative or successor in interest;
or - }
{ - (c) The licensee is the applicant and has changed the
name under which the licensee is doing business. - }
(3) The applicant at the time of making application for the
applicant's first licensed location in this state shall pay to
the director a nonrefundable application fee of $500.
SECTION 3. ORS 726.070 is amended to read:
726.070. (1) A bond in the sum of $25,000 executed by the
applicant as obligor, together with a surety company authorized
to do business in this state as surety or an irrevocable letter
of credit issued by an insured institution as defined in ORS
706.008 in the amount of $25,000 shall accompany the application
and be maintained by the pawnbroker licensee with the Director of
the Department of Consumer and Business Services. This bond or
letter of credit shall be executed to the State of Oregon and for
the use of the state and of any person who may have a cause of
action against the obligor of the bond or the letter of credit
issuer under this chapter. The bond or letter of credit shall be
conditioned that the obligor will faithfully conform to and abide
by the provisions of this chapter and of all rules and
regulations lawfully made by the director under this chapter, and
will pay to the state and to any such person any and all moneys
that may become due or owing to the state or to such person from
the obligor under and by virtue of the provisions of this
chapter. The Attorney General shall approve the form of any bond
or letter of credit that may be accepted by the director under
this section.
(2) If any person is aggrieved by the misconduct of a
pawnbroker or by the pawnbroker's violation of any law and
recovers judgment therefor, { - such - } { + the + } person
may, after the return unsatisfied either in whole or in part of
any execution issued upon { - such - } { + the + } judgment,
maintain an action for the person's own use upon the bond or
letter of credit of the pawnbroker in any court having
jurisdiction of the amount claimed. The director shall furnish
to anyone applying therefor, a certified copy of any such bond or
letter of credit filed with the director { - upon the payment
of a fee of $5 and - } { + . + } The certified copy
{ - shall be - } { + is + } prima facie evidence in any court
that the bond or letter of credit was duly executed and delivered
by each pawnbroker whose name appears { - thereon - } { + on
the bond or letter of credit + }.
SECTION 4. ORS 726.080 is amended to read:
726.080. (1) Conditioned upon the applicant's compliance with
this chapter, the payment of the license fee { - , - }
{ + and + } the filing of a bond { + or letter of credit + }
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{ - and approval thereof - } { + on a form approved + } by the
Attorney General { + , + } and in the absence of any reason or
condition { - which - } { + that + } in the judgment of the
Director of the Department of Consumer and Business Services
might warrant the refusal of the granting of a license, including
the reasons set out in ORS 726.075, the director shall issue a
license within { - 10 days after the expiration of the required
30-day filing period or, if the director has waived the filing
period, within 10 - } { + 45 + } days after the date
{ - the - } { + a complete + } application was received.
(2) If the application is denied, the director shall indorse
{ - thereon - } { + on the application + } with the date the
word ' Disapproved' and shall immediately advise the applicant by
registered mail or by certified mail with return receipt of the
reason { - therefor - } { + for the denial + }.
SECTION 5. ORS 726.110 is amended to read:
726.110. Whenever a pawnbroker changes the place of business to
another location within the same city or town, the pawnbroker
shall at once give written notice { - thereof - } { + of the
change + } to the Director of the Department of Consumer and
Business Services and shall surrender the pawnbroker's license
for cancellation { - , together with the payment of a fee of $5
for a new license - } . Thereupon a new license shall be issued
by the director for the new location. { - No - } { + A + }
change in the place of business of a pawnbroker to a location
outside of the city or town named in the original license
{ - shall be - } { + is not + } permitted under the same
license.
SECTION 6. ORS 726.250 is amended to read:
726.250. (1)(a) For the purpose of discovering violations of
this chapter or securing information required by the Director of
the Department of Consumer and Business Services under this
chapter, the director at any time, either personally or by an
examiner or other employee of the Department of Consumer and
Business Services, may investigate the pledge loans and business
and examine the books, accounts, records and files used in the
pledge loans and business of every pawnbroker and of every person
that the director has reason to believe is acting as a pawnbroker
without a license, whether that person acts or claims to act as
principal or agent, or under or without the authority of this
chapter.
(b) For the purposes of paragraph (a) of this subsection:
(A) Every pawnbroker and person that the director has reason to
believe is acting as a pawnbroker without a license shall give
the director, examiner or other employee of the department free
access to the person's place of business, books, accounts,
papers, records, files, safes and vaults; and
(B) The director, examiner or other employee may:
(i) Compel the attendance of witnesses and examine the
witnesses under oath; and
(ii) Require the production of documents or records.
(c) The actual cost of each examination shall be paid to the
director by every person examined. The director may maintain an
action for recovery of costs in any court of competent
jurisdiction.
(2) { - At least once every two calendar years or - } As
often as the director determines necessary, the director,
examiner or other employee of the department shall make an
examination of the pledge loans and business, office records and
Enrolled House Bill 2220 (HB 2220-A) Page 3
files of each licensed pawnbroker. The examination shall occur at
the licensed location of the pawnbroker.
(3) { - At least once during any calendar year in which an
examination is not conducted under subsection (2) of this
section, - } { + As often as the director determines
necessary, + } each licensed pawnbroker shall submit to the
director for examination, at the office of the director, those
books, records and documents prescribed by the director by rule.
SECTION 7. ORS 726.280 is amended to read:
726.280. (1) Every pawnbroker shall keep a register in which
shall be recorded in ink { + or in electronic form + }:
(a) The date of the transaction.
(b) The serial number of the pledge loan.
(c) The name and address of the pledgor, or if the pledge is
made by a person acting as agent for a disclosed principal, the
name and address of principal and agent.
(d) An identifying description of the article or articles
pledged.
(e) The amount of the pledge loan.
(f) The date on which such pledge loan was canceled.
(g) A notation as to whether it was redeemed or renewed, or
whether the pledge was forfeited.
(2) All entries in the register shall be made in the English
language and shall be open to the inspection of any public
official, police officer or any other person who is duly
authorized or empowered by the laws of this state to make such
inspection.
(3) Every pawnbroker shall maintain an alphabetical file from
which can be determined the total obligations of any one pledgor.
(4) Subject to the provisions of this chapter { + , + } the
Director of the Department of Consumer and Business Services may
prescribe the form of other books and records to be kept by the
pawnbroker. All records shall be preserved and available for at
least two years after making the final entry on any pledge loan
recorded therein.
SECTION 8. ORS 726.340 is amended to read:
726.340. If the pawn ticket or memorandum is lost, destroyed or
stolen, the pledgor shall so notify the pawnbroker in writing.
The { + pawnbroker shall treat + } receipt of such notice
{ - shall be treated by the pawnbroker - } as a stop against
the pledge loan, and thereafter the provisions of ORS 726.310 and
726.320 shall not apply to such pledge loan. Before delivering
the pledge or issuing a new pawn ticket in such event, the
pawnbroker may require the pledgor to make an affidavit of the
alleged loss, destruction or theft of the ticket. { - Upon
receipt of the affidavit, or in case no affidavit is required,
then within not less than three nor more than five days from
receipt of - } { + Not more than five days after receiving + }
notice of the loss of the ticket, the pawnbroker shall permit the
pledgor either to redeem the pledge or to receive a new ticket
upon the payment of accrued interest, and the pawnbroker shall
incur no liability for so doing unless the pawnbroker has
previously received written notice of an adverse claim. This
section { - shall not be construed as in any manner limiting or
affecting - } { + does not limit or affect + } the pawnbroker's
legal liability in cases where goods are stolen or other legal
defects of title exist in the pledgor.
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Enrolled House Bill 2220 (HB 2220-A) Page 4
Passed by House February 13, 2007
Repassed by House May 22, 2007
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 18, 2007
...........................................................
President of Senate
Enrolled House Bill 2220 (HB 2220-A) Page 5
Received by Governor:
......M.,............., 2007
Approved:
......M.,............., 2007
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2007
...........................................................
Secretary of State
Enrolled House Bill 2220 (HB 2220-A) Page 6