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Dreher Tomkies LLP
Attorneys at Law
2750 Huntington Center
41 South High Street
Columbus, Ohio 43215
Telephone (614) 628-8000
Fax (614) 628-1600



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OHIO DRAFT RULES UNDER THE OHIO CHECK CASHING ACT

The Division has circulated a draft of proposed rules under the Check Cashing Act, Ohio Rev. Code §§ 1315.21 to 1315.30. The draft has not been formally filed, so it is not available on the Division website.

The Division drafted the revised rules as part of its required five year rule review. However, the draft contains new substantive restrictions not found in the statute. These new substantive restrictions include a prohibition on charging or collecting any fee to cash a check issued by the check-cashing business or an affiliate of the check cashing business in connection with a loan to that customer.

The Division has to go through the Administrative Procedures Act process (APA), Ohio Rev. Code § 119.03, and the legislative hearing process before its proposed rules can take effect.

The APA requires public notice of any proposed rules and a public hearing. The legislative hearing process involves the Joint Committee on Agency Rule Review (JCARR). JCARR consists of five State Representatives and five State Senators. The primary function of JCARR is to review proposed new, amended and rescinded administrative rules to ensure the following:

  1. the rules do not exceed the scope of the rule-making agency's statutory authority;
  2. the rules do not conflict with a rule of that agency or another rule-making agency;
  3. the rules do not conflict with the intent of the legislature in enacting the statute under which the rule is proposed; and
  4. the rule-making agency has prepared a complete and accurate rule summary and fiscal analysis of the proposed rule, amendment, or rescission.

The effective date of a rule is determined by two different factors: (1) when the rule leaves JCARR jurisdiction, which lasts 65 days from the date of original filing or 29 days from the date of refiling and (2) when the agency files the rule in final form with JCARR, the Legislative Services Commission and the Ohio Secretary of State.

The Division has indicated that it anticipates that the draft rules will be officially filed with JCARR in the “next few weeks.”

We have attached a copy of the draft proposed rules.

  • Darrell Dreher and Elizabeth Anstaett

HEARING SCHEDULED FOR OHIO H.B. NO. 209

A fifth hearing is scheduled for Ohio H.B. No. 209, a bill aimed at further restricting the payday lending industry, before the House Financial Institutions, Real Estate and Securities Committee on Wednesday November 18, 2009 at 10 a.m. in room 018 of the Ohio Statehouse.

The chairman of the committee has indicated that there will be amendments and a possible vote.

Please let us know if you have any questions.

  • Darrell Dreher, Elizabeth Anstaett

We have attached a copy of a recent article from the Columbus Dispatch on payday lending that we though might be of interest.