76th OREGON LEGISLATIVE ASSEMBLY--2011 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 3260

                         House Bill 3443

Sponsored by Representative SHEEHAN

                             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 check-cashing business from commencing action as
holder in due course against maker of payment instrument if maker
is consumer and payee is business entity or person that has
registered assumed business name.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to check-cashing businesses; creating new provisions;
  amending ORS 697.520; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 697.520 is amended to read:
  697.520. (1) A check-cashing business 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 - }  { +  the check-cashing business
charges + } is more than the following amounts:
  (a) For a payment instrument issued by the federal government
or an agency of the federal government, by this state or an
agency of this state or by the government of the municipality in
which a person   { - is cashing - }   { + cashes + } the payment
instrument:
  (A) $5 or two percent of the face value of the payment
instrument, whichever is greater, if the person   { - cashing - }
 { + that cashes + } the payment instrument provides valid and
current government-issued photo identification; or
  (B) $5 or 2-1/2 percent of the face value of the payment
instrument, whichever is greater, if the person   { - cashing - }
 { +  that cashes + } the payment instrument does not provide
valid and current government-issued photo identification.
  (b) For a payment instrument issued by   { - any other - }
 { +  another + } state or { +  a + } political subdivision
 { - thereof - }  { +  of another state + } or for a payment
instrument that is a payroll check:
  (A) $5 or three percent of the face value of the payment
instrument, whichever is greater, if the person   { - cashing - }
 { +  that cashes + } the payment instrument provides valid and
current government-issued photo identification; or
  (B) $5 or 3-1/2 percent of the face value of the payment
instrument, whichever is greater, if the person   { - cashing - }

 { +  that cashes + } the payment instrument does not provide
valid and current government-issued photo identification.
  (c) For any other payment instrument, $5 or 10 percent of the
face value of the payment instrument, whichever is greater.
  (2) Notwithstanding the provisions of subsection (1) of this
section, a fee, service charge or other consideration is
excessive if the total amount charged is more than $100.
  (3)  { + Except as provided in subsection (4) of this
section, + } 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.
   { +  (4)(a) Notwithstanding provisions of law that otherwise
may entitle a check-cashing business to have rights as a holder
in due course, as defined in ORS 73.0302, a check-cashing
business may not commence an action as a holder in due course to
enforce a payment instrument against the maker of the payment
instrument if the maker is a consumer and the payee of the
payment instrument is a business entity, as defined in ORS
60.470, or a person that has registered an assumed business name
under ORS 648.010.
  (b) As used in this subsection, 'consumer' means an individual
who gives a payment instrument in exchange for goods or services
that the individual uses primarily for personal, family or
household purposes. + }
  SECTION 2.  { + The amendments to ORS 697.520 by section 1 of
this 2011 Act apply to actions that a check-cashing business
commences on or after the effective date of this 2011 Act. + }
  SECTION 3.  { + This 2011 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2011 Act takes effect on its
passage. + }
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