PRINTER'S NO. 506
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
460
Session of
2015
INTRODUCED BY ROSS AND GINGRICH, FEBRUARY 12, 2015
REFERRED TO COMMITTEE ON COMMERCE, FEBRUARY 12, 2015
AN ACT
Amending the act of February 18, 1998 (P.L.146, No.22), entitled
"An act regulating the check-cashing industry; providing for
the licensing of check cashers, for additional duties of the
Department of Banking and for certain terms and conditions of
the business of check cashing; and providing penalties for
money-laundering activities and violations of the act,"
further providing for definitions, for authority of
department, for conditions for licensing and for fees and
charges; providing for recovery of losses due to fraudulent
misrepresentation; and making editorial changes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The title of the act of February 18, 1998
(P.L.146, No.22), known as the Check Casher Licensing Act, is
amended to read:
AN ACT
Regulating the check-cashing industry; providing for the
licensing of check cashers, for additional duties of the
Department of Banking and Securities and for certain terms
and conditions of the business of check cashing; and
providing penalties for money-laundering activities and
violations of the act.
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Section 2. The definitions of "department" and "licensee" in
section 103 of the act are amended and the section is amended by
adding definitions to read:
Section 103. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Department." The Department of Banking and Securities of
the Commonwealth.
"Government assistance check." A check issued by the Federal
Government or State government on a continuing periodic basis by
a government agency for the payment to the recipient payee of
Federal or State assistance, Social Security, workers'
compensation, unemployment compensation, railroad retirement
benefits, veterans benefits or housing assistance.
"Government check." A check issued by the Federal
Government, State government or local government other than a
government assistance check.
"Licensee." A check casher licensed by the Department of
Banking and Securities to engage in the business of cashing
checks at a fixed location or by means of a mobile unit.
* * *
Section 3. Sections 104 and 304(a) of the act are amended to
read:
Section 104. Authority of department.
(a) Authority.--The department shall have the authority to:
(1) Issue rules, regulations and orders as may be
necessary for the administration and enforcement of this act.
(2) Examine any check, document, account, book, record
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or file relating to a check casher's business or operation
during regular business hours at the check casher's principal
office or to make such other investigation as may be
reasonably necessary to administer and enforce this act.
(3) Conduct administrative hearings on any matter
pertaining to this act, issue subpoenas to compel the
attendance of witnesses and the production of checks,
documents, accounts, books and records at any such hearing,
which may be retained by the department until the proceedings
are completed, and administer oaths and affirmations to any
person whose testimony is required. In the event a person
fails to comply with a subpoena issued by the department or
to testify on any matter concerning which that person may be
lawfully interrogated, on application by the department the
Commonwealth Court may issue an order requiring the
attendance and testimony of such person and requiring the
production of checks, documents, accounts, books and records
or may institute contempt of court penalties.
(b) Limitation.--The department may not require retail food
stores which must register with the department to register with
the National Mortgage Licensing System.
Section 304. Conditions for licensing.
(a) Conditions for license.--
(1) Except as provided in subsection (b), if the
department finds that the financial responsibility,
experience, character and general fitness of the applicant
warrants the conclusion that the business will be operated
honestly and fairly within the purpose of the act, the
department shall issue a check-casher license in accordance
with this act.
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(2) A license shall be issued for the business location
specified in the application only and for mobile units to the
site or sites specified.
(3) Check cashers shall post a notice of exact fees and
charges, which shall be within the maximum prescribed in this
act. The notice shall be in plain view and in a location
readily apparent to the consumer transacting business at each
check-casher location.
* * *
Section 4. Section 503(a) and (e) of the act, amended
December 9, 2002 (P.L.1546, No.200), are amended to read:
Section 503. Fees and charges.
(a) Allowable fees.--The licensee or any person subject to
any provision of this act may collect the following fees for
cashing a check:
(1) A sum not exceeding [2.5%] 1.5% of the face amount
of a government [assistance] check or 0.5% of the face amount
of a government assistance check, provided the payee submits
valid identification in the form of a driver's license, an
identification card issued by the Department of
Transportation or the equivalent; or
(2) A sum not exceeding 3% of the face amount of a
payroll check.
(3) A sum not exceeding 10% of the face amount of a
personal check.
* * *
[(e) Definition.--As used in this section, the term
"government assistance check" means a check issued on a
continuing periodic basis by a government agency for payment to
the recipient payee of Federal or State assistance, Social
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Security, workers' compensation, unemployment compensation,
railroad retirement benefits or veterans' disability.]
Section 5. The act is amended by adding a section to read:
Section 510. Recovery of losses due to fraudulent
misrepresentation.
In the case where a check casher entails financial loss due
to the theft of a government check or government assistance
check, payroll check or personal check due to fraudulent
misrepresentation by a customer, the customer shall be liable to
the check casher for an amount equal to three times any actual
face value of the check or three times any actual damage
sustained by the check casher as a result of the fraudulent
misrepresentation, whichever is greater.
Section 6. Section 1101 of the act, amended December 9, 2002
(P.L.1546, No.200), is amended to read:
Section 1101. Applicability.
This act shall not apply to any insured depository
institution or affiliate or service corporation of any
depository institution supervised or regulated by the Department
of Banking and Securities, the National Credit Union
Administration, the Office of Thrift Supervision, the Federal
Deposit Insurance Corporation, the Comptroller of the Currency
or the Board of Governors of the Federal Reserve or the Federal
Reserve Banks. It also shall not apply to companies licensed by
the Department of Banking and Securities under the act of April
8, 1937 (P.L.262, No.66), known as the Consumer Discount Company
Act, the act of September 2, 1965 (P.L.490, No.249), referred to
as the Money Transmission Business Licensing Law, unless
conducting activities regulated by this act, [the act of
December 12, 1980 (P.L.1179, No.219), known as the Secondary
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Mortgage Loan Act, and] the act of December 22, 1989 (P.L.687,
No.90), known as the Mortgage Bankers and Brokers and Consumer
Equity Protection Act, and 7 Pa.C.S. Ch. 61 (relating to
mortgage loan industry licensing and consumer protection) in the
normal course of business with specific relation to lending
transactions and when engaged in the activities regulated under
these acts. It also shall not apply to a retail food store
licensed as a food establishment, as defined in [section 2 of
the act of July 7, 1994 (P.L.421, No.70), known as the Food
Act,] 3 Pa.C.S. § 5702 (relating to definitions) or a retail
food store licensed as a public eating or drinking place, as
defined in [section 1 of the act of May 23, 1945 (P.L.926,
No.369), referred to as the Public Eating and Drinking Place
Law,] 3 Pa.C.S. § 5702 that receives less than 1% of its annual
gross revenue from cashing checks. A retail food store location
must register annually with the department, and the provisions
of sections 301(b)(4), 304(c)(3), 503, 507 and 509 shall apply
to such a business entity. Each retail food store location shall
provide the department with the company name, address and
telephone number on a form prescribed by the department and a
$100 annual registration fee. Upon request, a retail food store
location shall demonstrate to the satisfaction of the department
that it receives less than 1% of its annual gross income revenue
from cashing checks.
Section 7. Section 1103 of the act is amended to read:
Section 1103. Disposition of funds.
All moneys received by the Treasury Department from the
Department of Banking and Securities from fees, fines,
assessments, charges and penalties, collected or recovered from
check cashers pursuant to the provisions of this act shall be
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deposited in the Banking [Department] Fund.
Section 8. This act shall take effect in 60 days.
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