These summaries are not intended to be a complete and detailed statement of
all applicable legislation. For a complete list of legislation, please visit
the Oregon Legislature's
Web site.
Unless otherwise specified, the effective date of a bill is January 1 of the
year following its enactment. A bill may also have one or more operative dates
that apply to one or more sections of the bill, in addition to its effective
date. An operative date is the date on which the affected section or sections
first apply.
Bills are identified by their bill numbers. SB indicates a Senate bill, HB
indicates a House bill. DCBS is the Oregon Department of Consumer & Business
Services.
2007 regular session
Securities
enforcement - SB 119. The bill authorizes the Attorney General, with
the consent of the Director of DCBS, to investigate and prosecute violations
of the Oregon Securities Law in certain instances. The Attorney General will
be able to pursue alleged violations involving companies whose securities
are listed on the national stock exchanges or where the Attorney General is
also pursuing an investigation or litigation regarding unlawful trade practices,
racketeering, or antitrust.
Variable
annuities - SB 257. The bill makes variable annuities, currently regulated
as insurance, also subject to state securities regulation. The effect is to
create broader enforcement tools, and to give DCBS better ability to require
supervision of brokers who sell annuities.
Identity
theft protection - SB 583. The bill protects Oregonians from identity
theft by providing that those who own, maintain, possess or dispose of personal
data must safeguard that data from unauthorized use. Consumers must be notified
when their personal information is subject to a security breach. Every Oregonian
will have the right to request a security freeze on his or her credit file
maintained by a credit reporting agency, and to temporarily lift the freeze
for a period of time. Use and display of Social Security numbers is restricted.
DCBS is given the authority to enforce the law.
Credit
union service to the poor - SB 592. The bill allows a state-chartered
credit union that predominantly serves low-income members to receive a low-income
designation. With this designation, nonmembers may make deposits and hold
shares in the credit union and the credit union may accept secondary capital
accounts. The Director of the DCBS will set guidelines for determining whether
the credit union will qualify for this designation. The bill also limits the
fees credit unions can charge to cash checks, and allows credit unions to
sell checks, money orders, and other money transfer instruments to non-credit
union members.
Regulation
of check-cashing businesses - HB 2202. The bill limits check-cashing
fees to the greater of $5 or 2 percent for checks issued by the federal government,
the State of Oregon, or the municipality where the check is cashed; the greater
of $5 or 3 percent for payroll checks and all other government checks; and
the greater of $5 or 10 percent for personal checks. The total fee for cashing
any check cannot exceed $100. The bill also establishes licensing requirements
for check-cashing businesses.
Regulation
of payday lending - HB 2203. The bill extends Oregon's payday lending
laws to all paydays loans made to borrowers in Oregon, including Internet
lenders. In addition, the bill allows DCBS to implement and require payday
and title loan companies to participate in a statewide lender database to
ensure compliance with the rollover and seven-day wait limitations applicable
to these loans.
Fees
and interest rates on short-term title loans - HB 2204. The bill limits
interest rates and fees on vehicle title loans to match the caps on payday
loans (36 percent per annum), requires a minimum term of 31 days, and limits
loans to two renewals. The bill also prohibits a title lender from making
a new title loan to the same consumer within 7 days of the expiration of the
previous title loan. Title loans will include "sale-leaseback" arrangements.
Updated
pawnbroker regulation - HB 2220. The bill allows DCBS to determine
the frequency of examinations of licensed pawnbrokers, updates record-keeping
requirements, allows pawnbrokers to keep records electronically, eliminates
the residency requirement for pawnbrokers, and eliminates the requirement
that a license application be posted for 30 days before a license is issued.
The bill also allows a pawnbroker to redeem a pledge or provide a new pawn
ticket within five days of receiving notice from a customer that their pawn
ticket is lost, destroyed, or stolen.
Financial
education - HB 2584. The bill creates a task force to make recommendations
on how to improve civics and financial education in kindergarten through the
12th grade. The task force will report to the Legislature's interim education
committees by October 1, 2008, with a summary of findings and legislative
recommendations.
Pre-need
practices - HB 2864. The bill addresses a number of business practices
involving the sale of funeral-related items and services prior to the time
of need. Significant changes include reporting requirements for the purchase
and storage of merchandise, clarification about the termination and payout
of pre-need trust accounts, clarification of DCBS regulatory authority, and
miscellaneous definitions and clarifications of terminology used in these
laws.
Consumer
finance and short-term loan interest rate and fee limits - HB 2871.
The bill caps interest rates for conventional consumer finance loans as well
as payday and title loans. Conventional loan rates are limited to an annual
percentage rate of 36 percent or 30 percentage points above the discount rate
on 90-day commercial paper, whichever is greater. The bill also restricts
fees that can be charged by payday and title lenders; regulates brokers or
facilitators of loans; and allows contract terms and other charges to be set
by rule.
2006 Special Session
Senate
Bill 1105 Enrolled - SB 1105 impacts those consumer finance lenders
who make short-term unsecured loans to consumers repayable on the consumer's
next payday, and consumers who obtain those loans.
The bill makes the following modifications to current law:
- Limits the interest rate that may be charged on a loan or a renewal to
36% per annum
- Permits an origination fee to be charged on each new loan of no more than
$10 per $100 loaned
- Limits the lender's remedies for dishonored checks or insufficient funds
to a maximum fee of $20 per loan transaction plus any fee charged to the
lender by its financial institution
- Other than the interest and fees described above, prohibits charging a
consumer any fee or interest on a payday loan
- Sets a minimum term of 31 days for each loan or renewal of that loan
- Reduces from three to two the number of times a loan may be renewed
- Prohibits the lender from making a new loan to a consumer within seven
days of the expiration of a previous payday loan
- Disallows seeking or recovering statutory damages and attorneys fees for
a dishonored check under ORS 30.701
These modifications apply to payday loans made or renewed on or after July
1, 2007.
The Director of the Department of Consumer and Business Services is given
authority to adopt rules to carry out and enforce these modifications.
2005 legislation
The Division of Finance & Corporate Securities sponsored five pieces
of legislation during the 2005 session.
Enforcement
of franchise statutes - SB121 - The Division of Finance and Corporate
Securities (DFCS) regulates the offering and selling of franchises in Oregon.
Currently, the only enforcement tool available to DFCS is a civil lawsuit.
This bill would provide greater protection to consumers by giving DFCS the
authority to use quicker and less costly remedies by issuing cease and desist
orders and civil penalties to deter violations.
Update - 6-29(S) Governor signed.
Enforcement
powers for non-depository programs - SB120 - DCBS regulates a number
of nondepository financial institutions such as collection agencies, consumer
finance companies, mortgage lenders, and pawnbrokers. The enforcement tools
available to DCBS vary in these programs. This bill will provide greater consumer
protection by giving DCBS the authority to issue subpoenas and cease and desist
orders for all non-depository programs, and to collect the costs of investigation.
Update - 6-29(S) Governor signed.
Repeal
of DFCS non-depository registration provisions - HB2173 - The electronic
(digital) signature statutes give DCBS the authority to certify persons who
issue digital certificates. The intent of the statutes was to enhance the
use of the Internet by proving an assurance that the person who signed the
document is the person he or she claims to be and that the document has not
been altered. Because participation in the program is voluntary and the use
of encryption systems has replaced whatever need that existed to certify entities,
this program should be eliminated.
This bill also eliminates registration provisions for international trade
consultants who assist private businesses, promote Oregon products, and assist
businesses in dealing with international law and markets. There is no enforcement
authority and registration is voluntary. There currently is only one registrant.
Update - 6-29(S) Governor signed.
Interest
on escrow impounds - HB2153 - Lenders are required to pay interest
on escrow impounds from real estate borrowers intended to cover property taxes
and insurance. The interest rate is currently tied to a listing by the Federal
Reserve that has been discontinued. This bill revises the statute to replace
this reference to the interest rate as published by the U.S. Treasury, Bureau
of Public Debt.
Update - 3-11(H) Governor signed.
Oregon
Capital Corporation repeal
- HB2161 - In 1987 the Oregon Legislature created a mechanism to help
generate a find for risk capital investments to stimulate the Oregon economy.
Because the finding never occurred, the Oregon Capital Corporation was never
formed by its August, 1989 deadline. Therefore, this statute is obsolete and
should be repealed.
Update - 5-25(H) Governor signed.
2004 legislation
The following are proposed legislative concepts that the division of finance
and corporate securities sponsored during the 2005 legislative session.
Securities Law Update -
LC-359 - Authorizes Director of Department of Consumer and Business
Services to issue cease and desist order and to impose civil penalty for improper
conduct in franchise transactions.
2003 Legislation
The Oregon legislature passed several bills affecting the industries regulated
by the Division of Finance and Corporate Securities during its 2003 regular
session. Lawmakers addressed a variety of issues ranging from licensing loan
originators to raising securities fees to the national midpoint.
HB
2711A - Modifies provisions relating to child support payments by
collection agencies. This bill increases the fee that a private collection
agency may charge for collecting child support obligations from 20% of each
support payment to 29% and requires the collection agreement be printed in
at least 12-point type that provides information on the fees and penalties
in the contract and the length of the contract and how the contract could
be terminated. The bill eliminates the provision that requires the obligor
to renew every six months the use of a collection agency.
SB
159A - Payday lending - Incorporates existing administrative rule
provisions relating to payday loans, similar to relating to title loans enacted
in the 2001 Legislative session. This bill will provide regulatory parity
between the two types of short-term lending activities.
HB 2682A - This bill requires criminal background checks of loan
originators and requires DCBS to adopt rules specifying the categories of
criminal convictions that will prevent a person from acting as a loan originator.
The bill also requires insurance agents and insurance consultants who are
employed full time as loan originators to comply with loan originator training,
examination, and continuing education requirements.
SB
248 - Pawnbroker Regulation - Provides that only the form of a surety
bond be approved by the Department of Justice rather than each individual
bond for the Pawnbroker program; and deletes the mandated annual examination
of pawnbrokers in favor of a biennial field examination supplemented by off-year
filings by each licensed pawnbroker. These amendments are consistent with
instructions of the 2001 Legislative Assembly to reduce the cost of pawnbroker
regulation.
SB
199 - Pre-Need Funeral Trusts Bonds - This bill removes an exception
in existing law governing a person with a claim against a letter of credit
or surety bond for certain providers of prepaid funeral services. The bill
does not change policy but removes a paradox in statutory construction, which,
if strictly followed as worded, deprives persons of a right of action against
an endowment cemetery's bond or letter of credit intended to protect consumers
in the first place.
SB 200A - Pre-Need Funeral Plan Law Clarification - Requires annual
reports from master trustees as well as providers of pre-need plans; requires
master trustees to pay the costs of exams; extends the law to cover providers
and trustees doing business without having secured the requisite certification
or registration; permits the director to suspend or revoke certificates and
registrations of insolvent providers and trustees; makes the director's referrals
to local and federal law enforcement authorities discretionary instead of
mandatory; and, creates criminal sanctions for providers and master trustees
who misuse trust funds.
SB
194 - Securities Law Update - Deletes obsolete references to securities
registration and licensing covered under federal law; deletes confusing references
to securities licenses of persons employed by mortgage brokers and bankers,
and clarifies language in securities licensing provisions to provide that
investment advisor representatives, broker-dealers and salespersons are subject
to comparable treatment under the law. This bill cleans up technical problems
but makes no substantive changes.
HB
3656 - Requires Director of DCBS to adopt rules setting fees
for registration of securities and licensing of broker-dealers, investment
advisers, and salespersons at the national midpoint for such fees.
