Senate Labor and Business Committee advances HB 4,116 after debate over 36% cap and legal risk

The Senate Committee on Labor and Business moved House Bill 4,116 to the Senate floor with a due‑pass recommendation on Feb. 26 after a lengthy public hearing and work session on whether to opt Oregon out of federal preemption that allows interest‑rate exports by some out‑of‑state lenders.

The bill would make state‑chartered consumer finance lenders subject to Oregon law and its 36% annual percentage rate cap, rather than allowing interest‑rate exportation under federal statutes. Legislative Counsel Sean Brennan told the committee, “this bill does address only state chartered institutions or other licensees of who are consumer finance lenders in the state,” and described the measure as using an opt‑out from the DIDMCA to put state‑chartered institutions under Oregon’s regulatory cap.

Supporters including Representative Nathan Sosa, who testified for the bill, argued the change creates a clear regulatory rule for enforcement. “What we do is we create a bright line rule that says we don't care what the arrangement is, we…