Regular Session 2015-2016 Senate Bill 0489 P.N. 1847

HOUSE AMENDED

PRIOR PRINTER'S NO. 429

PRINTER'S NO. 1847

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

489

Session of

2015

INTRODUCED BY YAW, ALLOWAY, WHITE AND MENSCH, FEBRUARY 13, 2015

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,

MAY 23, 2016

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; and providing for recovery of losses due to theft

and fraudulent misrepresentation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The definition of "department" in section 103 of

the act of February 18, 1998 (P.L.146, No.22), known as the

Check Casher Licensing Act, is amended 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.

* * *

Section 2. Sections 104 and 304(a) of the act are amended to

read:

Section 104. Authority of department.

(a) General rule.--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

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

20150SB0489PN1847 - 2 -

the National Mortgage Licensing System NATIONWIDE MULTISTATE

LICENSING SYSTEM AND REGISTRY .

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.

(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 posted in plain view and in a

location readily apparent to a consumer transacting business

at each business location or site specified in the

application.

* * *

Section 3. 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

20150SB0489PN1847 - 3 -

<--

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

Security, workers' compensation, unemployment compensation,

railroad retirement benefits or veterans' disability.]

DEFINITIONS .--As used in this section, the following words and

phrases shall have the meanings given to them in this subsection

unless the context clearly indicates otherwise:

"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.

Section 4. The act is amended by adding a section to read:

Section 510. Recovery of losses due to theft and fraudulent

misrepresentation.

If a check casher sustains financial loss due to:

20150SB0489PN1847 - 4 -

<--

(1) theft by a customer of a government check or

government assistance check as those terms are defined in

section 503(e), payroll check or personal check; or

(2) 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 theft or fraudulent misrepresentation, whichever

is greater.

Section 5. This act shall take effect in 60 days.

20150SB0489PN1847 - 5 -