Ohio Issue 5, Payday Lending Referendum (2008)

Ohio Issue 5
Election date November 4, 2008
Topic Banking policy and Business regulations
Status Approved
Type Veto referendum	Origin Citizens

Ohio Issue 5 was on the ballot as a veto referendum in Ohio on November 4, 2008. It was approved.

A "yes" vote supported requiring voters to decide whether Section 3 of H.B. 545 shall go into effect, which relates to payday lending fees, interest rates, and practices.

A "no" vote opposed requiring voters to decide whether Section 3 of H.B. 545 shall go into effect, which relates to payday lending fees, interest rates, and practices.

Election results

Ohio Issue 5
Result		Votes	Percentage
Yes		3,396,968	63.61%
No		1,943,721	36.39%

Results are officially certified.

Source

Text of measure

Ballot title

The ballot title for Issue 5 was as follows:

“

REFERENDUM ON LEGISLATION MAKING CHANGES TO CHECK CASHING LENDING, SOMETIMES KNOWN AS "PAYDAY LENDING," FEES, INTEREST RATES AND PRACTICES Substitute House Bill 545 (H.B. 545), which was passed by the Ohio legislature and signed into law by the Governor, substantially changed the law regulating how certain lenders in Ohio operate. Under the referendum, voters must decide whether Section 3 of H.B. 545 should go into effect. Section 3 of H.B. 545 deletes the old provisions of the law regulating check cashing lenders, sometimes known as “payday lenders,” in favor of the new provisions. 1. If a majority of Ohio voters approve Section 3 of H.B. 545, all short term lenders, including check cashing lenders, would be subject to the following limitations: The maximum loan amount would be $500; Borrowers would have at least 30 days to repay the loan; and The maximum interest rate would be 28% annual percentage rate (APR) on all loans. 2. If a majority of Ohio voters reject Section 3 of H.B. 545, check cashing lenders would be allowed to continue under previous law as follows: The maximum loan amount would continue to be $800; There would continue to be no minimum repayment period; and Check cashing lenders could continue to charge rates and fees, resulting in a total charge for a loan that substantially exceeds an equivalent APR of 28%. A “YES” vote means you approve of Section 3 of H.B. 545, and want to limit the interest rate for short term loans to 28% APR and change short term lending laws. A “NO” vote means you disapprove of Section 3 of H.B. 545 and want to permit check cashing lenders to continue to be able to offer short term loans as currently permitted. A majority YES vote is required for the amendment to be adopted. Shall the proposed amendment be approved?

”

Path to the ballot

See also: Signature requirements for ballot measures in Ohio

A veto referendum is a citizen-initiated ballot measure that asks voters whether to uphold or repeal an enacted law. This type of ballot measure is also called statute referendum, popular referendum, people's veto, or citizen's veto. There are 23 states that allow citizens to initiate veto referendums.

In Ohio, the number of signatures required for a veto referendum is equal to 6% of the votes cast in the last gubernatorial election. Signatures for veto referendums are due 90 days after the targeted law is signed. A simple majority vote is required for voter approval.

See also

2008 Measures

• 2008 Measures
• Business regulations on the ballot
• Banking policy on the ballot
• 2008 legislative sessions

Ohio

• Ohio ballot measures
• Ohio ballot measure laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls

External links

• Legislative Reference Bureau, "Proposed Constitutional Amendments, Initiated Legislation, and Laws Challenged by Referendum, Submitted to the Electors," December 7, 2018