SENATE AMENDED PRIOR PRINTER'S NOS. 18, 774, 1066 PRINTER'S NO. 2827
No. 14 Session of 1997
INTRODUCED BY THOMAS, BELARDI, MANDERINO, HENNESSEY, KAISER, YOUNGBLOOD, HERSHEY, PISTELLA, ROBINSON, JOSEPHS, MICHLOVIC RAMOS, WASHINGTON, TIGUE, CORRIGAN, STEELMAN, HERMAN, DeLUCA, BATTISTO, LEDERER, STEIL, RUBLEY, FLICK, MELIO, TULLI, STABACK, CORNELL, BARLEY, D. W. SNYDER, E. Z. TAYLOR, BARD, SCHRODER and SEYFERT, JANUARY 27, 1997
SENATOR HOLL, BANKING AND INSURANCE, IN SENATE, AS AMENDED, JANUARY 27, 1998
AN ACT 1 Regulating the check-cashing industry; providing for the <-- 2 licensing of check cashers, for additional duties of the 3 Department of Banking and for certain terms and conditions of 4 the business of check cashing; and providing penalties. 5 TABLE OF CONTENTS 6 Chapter 1. General Provisions 7 Section 101. Short title. 8 Section 102. Purpose. 9 Section 103. Definitions. 10 Section 104. Authority of department. 11 Chapter 3. Licensing Provisions 12 Section 301. License requirement and form. 13 Section 302. Annual license fee. 14 Section 303. Issuance of license. 15 Section 304. Conditions for licensing. 16 Chapter 5. Enforcement
1 Section 501. Suspension and revocation of and refusal to issue 2 license. 3 Section 502. Change of status. 4 Section 503. Fees and charges. 5 Section 504. Endorsement of checks, drafts or money orders 6 cashed. 7 Section 505. Restrictions on business of licensee. 8 Section 506. Books, accounts and records. 9 Section 507. Departmental penalty. 10 Section 508. Criminal penalty. 11 Section 509. Private remedy. 12 Chapter 11. Miscellaneous Provisions 13 Section 1101. Applicability. 14 Section 1102. Report to General Assembly. 15 Section 1103. Disposition of funds. 16 Section 1104. Effective date. 17 REGULATING THE CHECK-CASHING INDUSTRY; PROVIDING FOR THE <-- 18 LICENSING OF CHECK CASHERS, FOR ADDITIONAL DUTIES OF THE 19 DEPARTMENT OF BANKING AND FOR CERTAIN TERMS AND CONDITIONS OF 20 THE BUSINESS OF CHECK CASHING; AND PROVIDING PENALTIES FOR 21 MONEY-LAUNDERING ACTIVITIES AND VIOLATIONS OF THE ACT. 22 TABLE OF CONTENTS 23 CHAPTER 1. GENERAL PROVISIONS 24 SECTION 101. SHORT TITLE. 25 SECTION 102. PURPOSE. 26 SECTION 103. DEFINITIONS. 27 SECTION 104. AUTHORITY OF DEPARTMENT. 28 CHAPTER 3. LICENSING PROVISIONS 29 SECTION 301. LICENSE REQUIREMENT AND FORM. 30 SECTION 302. LICENSE TERMS AND FEES. 31 SECTION 303. ISSUANCE OF LICENSE. 32 SECTION 304. CONDITIONS FOR LICENSING. 19970H0014B2827 - 2 -
1 CHAPTER 5. ENFORCEMENT 2 SECTION 501. SUSPENSION AND REVOCATION OF LICENSE 3 AND CIVIL PENALTIES. 4 SECTION 502. CHANGE OF STATUS. 5 SECTION 503. FEES AND CHARGES. 6 SECTION 504. ENDORSEMENT OF CHECKS. 7 SECTION 505. RESTRICTIONS ON BUSINESS OF LICENSEE. 8 SECTION 506. BOOKS, ACCOUNTS AND RECORDS. 9 SECTION 507. CIVIL PENALTY. 10 SECTION 508. CRIMINAL PENALTY. 11 SECTION 509. PRIVATE REMEDY. 12 CHAPTER 11. MISCELLANEOUS PROVISIONS 13 SECTION 1101. APPLICABILITY. 14 SECTION 1102. REPORT TO GENERAL ASSEMBLY. 15 SECTION 1103. DISPOSITION OF FUNDS. 16 SECTION 1104. TRANSITION PROVISIONS 17 SECTION 1105. EFFECTIVE DATE. 18 The General Assembly of the Commonwealth of Pennsylvania 19 hereby enacts as follows: 20 CHAPTER 1 <-- 21 GENERAL PROVISIONS 22 Section 101. Short title. 23 This act shall be known and may be cited as the Check Cashing 24 Licensing Act. 25 Section 102. Purpose. 26 The General Assembly hereby finds and declares that check 27 cashers which engage in the business of cashing checks, drafts 28 or money orders provide vital banking services which some 29 citizens of this Commonwealth find unavailable or inconvenient 30 to obtain from traditional banking institutions. Some customers, 19970H0014B2827 - 3 -
1 however, have been charged unreasonable rates by some check 2 cashers for these services. Therefore, it is in the public 3 interest, convenience and welfare to have the Commonwealth set 4 check-cashing rates and to regulate the manner in which these 5 services are provided. 6 Section 103. Definitions. 7 The following words and phrases when used in this act shall 8 have the meanings given to them in this section unless the 9 context clearly indicates otherwise: 10 "Cashing." Providing currency for payment instruments, 11 except for travelers checks and foreign denominations payment 12 instruments. 13 "Check." A type of negotiable instrument as defined in 13 14 Pa.C.S. § 3104 (relating to negotiable instrument). 15 "Check casher." Any person, partnership, association or 16 corporation engaging in the business of cashing checks, drafts 17 or money orders for a fee. 18 "Department." The Department of Banking of the Commonwealth. 19 "Draft." A type of negotiable instrument as defined in 13 20 Pa.C.S. § 3104 (relating to negotiable instrument). 21 "Licensee." A check casher licensed by the Department of 22 Banking to engage in the business of cashing checks, drafts or 23 money orders. 24 "Money order." As defined in the act of September 2, 1965 25 (P.L.490, No.249), referred to as the Money Transmission 26 Business Licensing Law. 27 "Secretary." The Secretary of Banking of the Commonwealth or 28 a designee. 29 Section 104. Authority of department. 30 The department shall have the authority to: 19970H0014B2827 - 4 -
1 (1) Issue rules, regulations and orders as may be 2 necessary for the administration and enforcement of this act 3 and the proper conduct of the business of check cashing. 4 (2) Examine any instrument, document, account, book, 5 record or file of a check casher, any employee or any other 6 person, or make such other investigation as may be necessary 7 to administer this act. 8 (3) Conduct administrative hearings of any matter 9 pertaining to this act, issue subpoenas to compel the 10 attendance of witnesses and the production of instruments, 11 documents, accounts, books and records at any such hearing 12 which may be retained by the department until the completion 13 of all proceedings in connection with which they were 14 produced and administer oaths and affirmations to any person 15 whose testimony is required. In the event a person fails to 16 comply with a subpoena issued by the department or to testify 17 on any matter concerning which that person may be lawfully 18 interrogated, on application by the department, the 19 Commonwealth Court may issue an order requiring the 20 attendance of such person, the production of instruments, 21 documents, accounts, books or records or the giving of 22 testimony or may institute contempt of court penalties. 23 CHAPTER 3 24 LICENSING PROVISIONS 25 Section 301. License requirement and form. 26 (a) Licensing required.--No person, partnership, association 27 or corporation shall engage in the business of cashing checks, 28 drafts or money orders for a fee without first obtaining a 29 license under this act. 30 (b) Form of application.--Application for a license shall be 19970H0014B2827 - 5 -
1 in writing, under oath, shall be in the form prescribed by the 2 department and shall contain the following: 3 (1) The applicant's name and address of residence. 4 (2) If the applicant is a partnership or association, 5 the name and address of every member and, if a corporation, 6 of each officer and director. 7 (3) The name and address of the business. 8 (4) Evidence of a lease, mortgage or agreement of sale 9 for the business location. 10 (5) Evidence in the form of a signed statement by the 11 applicant that the applicant has complied with all municipal 12 and county requirements for doing business. 13 (6) Evidence in the form of a signed statement by the 14 applicant that the applicant has no outstanding debts to the 15 Commonwealth or evidence that a payoff agreement is in place. 16 (c) Additional information.--The department may request any 17 additional information which it deems necessary to the licensing 18 procedure. 19 Section 302. Annual license fee. 20 (a) Amount.--An applicant shall pay to the department at the 21 time an application is filed an initial license fee of $500 for 22 each location. On or before January 1 of each year a licensee 23 shall pay a license renewal fee of $350. Each licensee shall, 90 24 days prior to the date of expiration, apply for license renewal 25 on a form provided by the department. The department shall renew 26 the license if the license renewal applicant is in compliance 27 with the provisions of this act. 28 (b) Recovery of costs.--No abatement of any license fee 29 shall be made if the license is issued for a period of less than 30 one year. The department shall be entitled to recover any cost 19970H0014B2827 - 6 -
1 of investigation in excess of license or renewal fees from the 2 licensee or from any person who is not licensed under this act 3 but who is presumed to be engaged in business contemplated by 4 this act. 5 Section 303. Issuance of license. 6 (a) Time limit.--Within 90 days after a complete application 7 is received, the department shall either issue a license or 8 refuse to issue or renew a license as provided for by section 9 501. Upon receipt of an application for license, the department 10 shall conduct such investigation as it deems necessary to 11 determine that the applicant and its officers, directors and 12 principals are of good character and ethical reputation. 13 (b) Appeal of denial.--If the department refuses to issue a 14 license, it shall notify the applicant, in writing, of the 15 denial and the reason therefor and of the applicant's right to 16 appeal from such action to the Commonwealth Court. An appeal 17 from the department's refusal to approve an application for a 18 license shall be filed by the applicant within 30 days of notice 19 thereof. 20 Section 304. Conditions for licensing. 21 (a) Conditions for license.--The department shall issue a 22 license to permit the cashing of checks, drafts and money 23 orders, in accordance with this act at the location specified in 24 the application for license if the department finds that the 25 financial responsibility and general fitness of the applicant, 26 and of the members thereof if the applicant is a partnership or 27 association, and of the officers and directors thereof if the 28 applicant is a corporation, warrants the conclusion that the 29 business will be operated honestly and fairly within the 30 purposes of this act. 19970H0014B2827 - 7 -
1 (b) Procedure for public comment.--To determine the 2 financial responsibility, experience, character and general 3 fitness of the applicant, the department shall consider public 4 comment. The procedure for public comment shall be as follows: 5 (1) The applicant shall publish notice, within ten days 6 after being notified by the department, that the application 7 is completed. Notice shall be published in a newspaper having 8 general circulation in the community in which the applicant 9 intends to locate. 10 (2) The applicant shall transmit to the department a 11 copy of the notice and the publisher's affidavit of 12 publication. 13 (3) Upon publication, the application and all related 14 communications may be inspected in the department during 15 working hours by any person. This inspection shall be upon 16 written request and by appointment. The department may refuse 17 to disclose information that it deems is confidential. The 18 department shall not be liable for disclosure of information 19 deemed confidential by the applicant. 20 (4) Within 30 days of the date of publication of notice, 21 anyone may file a communication in protest or in favor of the 22 application by submitting two copies to the department. 23 (5) The applicant may request a copy of such 24 communication and may file an answer to any protest until ten 25 days after the last date for filing of communication by 26 submitting two copies to the department. 27 (6) The department shall consider all such communication 28 in its evaluation of the application. 29 (c) Felony conviction.--The department shall not issue a 30 license if it finds that the applicant, or any person who is a 19970H0014B2827 - 8 -
1 director, officer, partner or agent has been convicted of or 2 pled guilty or nolo contendere to a felony or to a crime 3 committed in this Commonwealth or another jurisdiction which, if 4 committed within this Commonwealth, would constitute a felony. 5 (d) Information on license.--The license issued pursuant to 6 this section shall state: 7 (1) The name of the licensee. 8 (2) The name and address of the business. 9 (3) Any other information deemed necessary by the 10 department. 11 (f) Conspicuous posting.--The license shall be kept 12 conspicuously posted in the place of business of the licensee. 13 The license shall not be sold, transferred or assigned. 14 (g) Effect of license.--The license shall remain in full 15 force and effect until it expires or is surrendered by the 16 licensee or revoked or suspended as provided in this act. 17 CHAPTER 5 18 ENFORCEMENT 19 Section 501. Suspension and revocation of and refusal to issue 20 license. 21 (a) Notice.--The department, upon 30 days written notice to 22 the licensee forwarded by registered mail to the place of 23 business of such licensee as shown in the application for 24 license or as amended on the license certificate in case of 25 change of address subsequent to issuance of the license 26 certificate, may refuse to issue, revoke or suspend any license 27 if it finds any of the following: 28 (1) The licensee or applicant has made any material 29 misstatement in the application for license. 30 (2) The licensee or applicant has violated any provision 19970H0014B2827 - 9 -
1 of this act. 2 (3) The licensee or applicant has violated any, order, 3 rule or regulation of the department issued under this act. 4 (4) The licensee or applicant has failed to comply with 5 any order, rule or regulation lawfully made by the department 6 under the authority of this act. 7 (5) The licensee or applicant refuses or has refused to 8 permit the department or its designated representative to 9 make examinations or investigations authorized by this act. 10 (6) The licensee or applicant has failed to maintain 11 satisfactory records required by this act or as prescribed by 12 the department. 13 (7) The licensee or applicant has falsified any records 14 required by this act to be maintained of the business 15 contemplated by this act. 16 (8) The licensee or applicant has failed to file any 17 report with the department within the time stipulated in this 18 act. 19 (9) The licensee or applicant has used unfair or 20 deceptive practices. 21 (10) Any fact or condition exists or is discovered 22 which, if it had existed or had been discovered at the time 23 of filing of the application for the license, would have been 24 grounds for the department to refuse to issue such license. 25 (11) The licensee or applicant has failed to report to 26 the department any change in ownership at least ten days 27 prior to the effective date of the ownership change. 28 (b) Multiple license suspension or revocation.--The 29 department may revoke or suspend only the particular license 30 with respect to which grounds for revocation may occur or exist, 19970H0014B2827 - 10 -
1 but if it finds that grounds for revocation are of general 2 application to all places of business or to more than one place 3 of business operated by a licensee, it may revoke all of the 4 licenses issued to such licensee or those licenses to which 5 grounds for revocation apply, as the case may be. 6 (c) Issuance of another license.--Whenever a license has 7 been revoked, the department shall not issue another license 8 until the expiration of at least five years from the effective 9 date of revocation of such license and shall never issue a 10 license if such licensee or an owner, partner, member, officer, 11 director, employee, agent or spouse of the licensee shall have 12 pleaded guilty, entered a plea of nolo contendere, or has been 13 found guilty by a judge or a jury of a second offense violation 14 of this act. 15 (d) Appeals.--Appeals may be taken from the action of the 16 department in suspending and revoking licenses in accordance 17 with the procedures of 2 Pa.C.S. (relating to administrative law 18 and procedure). 19 Section 502. Change of status. 20 A licensee shall make written application to the department 21 on any change in status including address change, ownership 22 change, change of directors, officers or principals by stating 23 the reason for the proposed change. If the department approves 24 the application a new license shall be issued. 25 Section 503. Fees and charges. 26 (a) Allowable fees.--The licensee shall not charge or 27 collect, in fees, charges or otherwise, for cashing a check or 28 draft drawn on a bank or other financial institution an amount 29 in excess of the following percentages of the face amount of the 30 check or draft: 19970H0014B2827 - 11 -
1 (1) One-half of one percent of the face amount of a 2 check which is an entitlement check from Federal or State 3 government programs, including, but not limited to, Aid to 4 Families with Dependent Children (AFDC), General Assistance, 5 Social Security, Railroad Retirement, government and 6 veterans' disability payments and government pensions. 7 (2) Two percent of the face amount of a nonentitlement 8 check. 9 (3) Five percent of the face amount of a personal check. 10 (b) Fee schedule.--In every check-casher location there 11 shall be conspicuously posted and at all times displayed a 12 schedule of fees and charges based on a model form to be 13 published by the department in the Pennsylvania Bulletin. The 14 schedule shall state the maximum fees or charges and shall 15 include a table of amounts and corresponding maximum fees along 16 with the telephone number of the Consumer Services Division of 17 the Department of Banking. 18 (c) Receipt.--Based on the model form to be published by the 19 department in the Pennsylvania Bulletin, the licensee shall 20 provide a receipt to each consumer for each transaction. The 21 receipt shall include the name and address of the licensee, the 22 total amount of the check cashed, the fee charged, the maximum 23 fee permitted under the act, the type of check and the telephone 24 number of the Consumer Affairs Division of the Department of 25 Banking. 26 (d) Other goods and services.--The check casher shall not 27 require consumers to purchase other goods or services in order 28 to cash checks, drafts or money orders. A licensee shall not 29 discount normal check-cashing fees or charges for cashing 30 checks, drafts or money orders upon the purchase of other goods 19970H0014B2827 - 12 -
1 or services. 2 Section 504. Endorsement of checks, drafts or money orders 3 cashed. 4 Before a check casher deposits with any banking institution a 5 check, draft or money order cashed by the check casher, the same 6 must be endorsed with the actual name under which such check 7 casher is doing business and must have the words "licensed 8 casher of checks" legibly written or stamped immediately after 9 or below such name. 10 Section 505. Restrictions on business of licensee. 11 (a) Advancement of moneys.--No check casher shall at any 12 time cash or advance any money on a postdated check, draft or 13 money order. No check casher shall make loans without the 14 appropriate license or engage in the business of transmitting 15 money or receiving money for transmission, unless licensed under 16 the act of September 2, 1965 (P.L.490, No.249), referred to as 17 the Money Transmission Business Licensing Law. 18 (b) Exceptions.--Notwithstanding subsection (a), a licensee 19 may cash a check payable on the first banking business day 20 following the date of cashing if: 21 (1) the check is drawn by the United States, the 22 Commonwealth or any political subdivision of the Commonwealth 23 or by any department, bureau, agency, authority, 24 instrumentality or officer (acting in official capacity) of 25 the United States, or the Commonwealth or any political 26 subdivision of the Commonwealth; or 27 (2) the check is a payroll check drawn by an employer to 28 the order of its employee. 29 Section 506. Books, accounts and records. 30 (a) Keeping and use of information.--Each check casher shall 19970H0014B2827 - 13 -
1 keep and use in the business, in a form satisfactory to the 2 department, such books, accounts and records as will enable the 3 department to determine whether the check casher is complying 4 with the provisions of this act and the rules and regulations 5 adopted under this act. Every check casher shall preserve such 6 books, accounts and records for five years. 7 (b) Filing of information.--Every check casher shall 8 annually, on or before September 1, file a report with the 9 department giving such information as the department may require 10 concerning the business and operations of the licensee during 11 the preceding calendar year. In addition to the annual report, 12 the department may require such additional regular or special 13 reports deemed necessary to the proper operation and enforcement 14 of this act. These reports shall be made under oath or 15 affirmation and shall be in the form prescribed by the 16 department which shall make and publish annually an analysis of 17 these reports. 18 (c) Examination and cost of information.--The department may 19 examine the affairs, business, records, books, documents, 20 accounts and papers of any licensee. The actual cost of these 21 examinations shall be paid to the department by the licensee 22 examined, and the department may bring an action for the 23 recovery of these costs in any court of competent jurisdiction. 24 Section 507. Departmental penalty. 25 Any person who is subject to the provisions of this act who 26 violates any of the provisions of this act shall be subject to a 27 fine levied by the department of up to $2,000 for each offense. 28 Section 508. Criminal penalty. 29 Any person, partnership, association or corporation, and any 30 member, officer, director, agent or employee thereof, who 19970H0014B2827 - 14 -
1 violates any of the provisions of this act commits a misdemeanor 2 of the third degree. 3 Section 509. Private remedy. 4 (a) Liability.--Any person who fails to comply with any 5 provision of this act with respect to any consumer is liable to 6 the consumer for an amount equal to three times any actual 7 damage sustained by the consumer as a result of the failure or 8 the sum of $250, whichever is greater. 9 (b) Recovery of costs.--In the case of any successful action 10 to enforce the liability under subsection (a), the consumer 11 shall recover from the licensee the costs of the action, 12 together with a reasonable attorney fee as determined by the 13 court. 14 CHAPTER 11 15 MISCELLANEOUS PROVISIONS 16 Section 1101. Applicability. 17 This act shall not apply to any insured depository 18 institution or affiliate or service corporation of any 19 depository institution supervised or regulated by the Department 20 of Banking, the National Credit Union Administration, the Office 21 of Thrift Supervision, the Federal Deposit Insurance 22 Corporation, the Comptroller of the Currency or the Board of 23 Governors of the Federal Reserve or the Federal Reserve Banks. 24 It also shall not apply to companies licensed by the Department 25 of Banking under the act of April 8, 1937 (P.L.262, No.66), 26 known as the Consumer Discount Company Act, the act of September 27 2, 1965 (P.L.490, No.249), referred to as the Money Transmission 28 Business Licensing Law, the act of December 12, 1980 (P.L.1179, 29 No.219), known as the Secondary Mortgage Loan Act, and the act 30 of December 22, 1989 (P.L.687, No.90), known as the Mortgage 19970H0014B2827 - 15 -
1 Bankers and Brokers Act, in the normal course of business with 2 specific relation to lending transactions and when engaged in 3 the activities regulated under these acts. 4 Section 1102. Report to General Assembly. 5 Three years from the effective date of this act, the 6 department shall provide a written report to the General 7 Assembly summarizing consumer complaints received by the 8 department relating to check cashing activities and the methods 9 by which the complaints were addressed. The department shall 10 also make recommendations to the General Assembly regarding 11 improvements to this act and the continuance of a licensing 12 program. 13 Section 1103. Disposition of funds. 14 All moneys received by the Treasury Department from the 15 Department of Banking from fees, fines, assessments, charges and 16 penalties, collected or recovered from persons, firms, 17 corporations or associations, under the supervision of the 18 Department of Banking pursuant to the provisions of this act 19 shall be deposited in the Banking Department Fund. 20 Section 1104. Effective date. 21 This act shall take effect in one year. 22 CHAPTER 1 <-- 23 GENERAL PROVISIONS 24 SECTION 101. SHORT TITLE. 25 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE CHECK CASHING 26 LICENSING ACT. 27 SECTION 102. PURPOSE. 28 THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT CHECK 29 CASHERS WHICH ENGAGE IN THE BUSINESS OF CASHING CHECKS PROVIDE 30 VITAL FINANCIAL SERVICES WHICH SOME CITIZENS OF THIS 19970H0014B2827 - 16 -
1 COMMONWEALTH FIND UNAVAILABLE OR INCONVENIENT TO OBTAIN FROM 2 TRADITIONAL BANKING INSTITUTIONS AND THAT IT IS IN THE PUBLIC 3 INTEREST, CONVENIENCE AND WELFARE TO: 4 (1) PREVENT THE CHARGING OF UNCONSCIONABLE RATES. 5 (2) INSURE THE FINANCIAL STABILITY OF THE CHECK-CASHING 6 INDUSTRY. 7 (3) REGULATE THE MANNER OF PERFORMANCE OF CHECK-CASHING 8 SERVICE. 9 (4) SEEK THE CHECK-CASHING INDUSTRY'S ASSISTANCE IN 10 PREVENTING MONEY-LAUNDERING ACTIVITIES. 11 SECTION 103. DEFINITIONS. 12 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL 13 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE 14 CONTEXT CLEARLY INDICATES OTHERWISE: 15 "CHECK." A TYPE OF NEGOTIABLE INSTRUMENT AS DEFINED IN 13 16 PA.C.S. § 3104 (F), (G), (H) AND (I) (RELATING TO NEGOTIABLE 17 INSTRUMENTS) AND DOMESTIC POSTAL MONEY ORDERS. 18 "CHECK CASHER." A BUSINESS ENTITY, WHETHER OPERATING AS A 19 PROPRIETORSHIP, PARTNERSHIP, ASSOCIATION, LIMITED LIABILITY 20 COMPANY OR CORPORATION ENGAGING IN THE CASHING OF CHECKS FOR A 21 FEE. 22 "DEPARTMENT." THE DEPARTMENT OF BANKING OF THE COMMONWEALTH. 23 "LICENSEE." AN ENTITY LICENSED BY THE DEPARTMENT OF BANKING 24 TO ENGAGE IN THE BUSINESS OF CASHING CHECKS AT A FIXED LOCATION 25 OR BY MEANS OF A MOBILE UNIT. 26 "MOBILE UNIT." A VEHICLE OR OTHER MOVABLE MEANS FROM WHICH 27 THE BUSINESS OF CASHING CHECKS IS CONDUCTED. 28 SECTION 104. AUTHORITY OF DEPARTMENT. 29 THE DEPARTMENT SHALL HAVE THE AUTHORITY TO: 30 (1) ISSUE RULES, REGULATIONS AND ORDERS AS MAY BE 19970H0014B2827 - 17 -
1 NECESSARY FOR THE ADMINISTRATION AND ENFORCEMENT OF THIS ACT 2 AND THE PROPER CONDUCT OF THE BUSINESS OF CHECK CASHING. 3 (2) EXAMINE ANY INSTRUMENT, DOCUMENT, ACCOUNT, BOOK, 4 RECORD OR FILE RELATING TO A CHECK CASHER'S BUSINESS OR 5 OPERATION OR TO MAKE SUCH OTHER INVESTIGATION AS MAY BE 6 REASONABLY NECESSARY TO ADMINISTER THIS ACT. 7 (3) CONDUCT ADMINISTRATIVE HEARINGS OF ANY MATTER 8 PERTAINING TO THIS ACT, ISSUE SUBPOENAS TO COMPEL THE 9 ATTENDANCE OF WITNESSES AND THE PRODUCTION OF INSTRUMENTS, 10 DOCUMENTS, ACCOUNTS, BOOKS AND RECORDS AT ANY SUCH HEARING 11 WHICH MAY BE RETAINED BY THE DEPARTMENT UNTIL THE COMPLETION 12 OF ALL PROCEEDINGS IN CONNECTION WITH WHICH THEY WERE 13 PRODUCED AND ADMINISTER OATHS AND AFFIRMATIONS TO ANY PERSON 14 WHOSE TESTIMONY IS REQUIRED. IN THE EVENT A PERSON FAILS TO 15 COMPLY WITH A SUBPOENA ISSUED BY THE DEPARTMENT OR TO TESTIFY 16 ON ANY MATTER CONCERNING WHICH THAT PERSON MAY BE LAWFULLY 17 INTERROGATED, ON APPLICATION BY THE DEPARTMENT, THE 18 COMMONWEALTH COURT MAY ISSUE AN ORDER REQUIRING THE 19 ATTENDANCE OF SUCH PERSON, THE PRODUCTION OF INSTRUMENTS, 20 DOCUMENTS, ACCOUNTS, BOOKS OR RECORDS OR THE GIVING OF 21 TESTIMONY OR MAY INSTITUTE CONTEMPT OF COURT PENALTIES. 22 CHAPTER 3 23 LICENSING PROVISIONS 24 SECTION 301. LICENSE REQUIREMENT AND FORM. 25 (A) LICENSING REQUIRED.--NO PERSON OR BUSINESS ENTITY SHALL 26 ENGAGE IN THE BUSINESS OF CASHING CHECKS FOR A FEE WITHOUT FIRST 27 OBTAINING A LICENSE UNDER THIS ACT FOR EACH FIXED LOCATION OR 28 MOBILE UNIT. 29 (B) FORM OF APPLICATION.--APPLICATION FOR A LICENSE SHALL BE 30 IN WRITING, UNDER OATH, SHALL BE IN THE FORM PRESCRIBED BY THE 19970H0014B2827 - 18 -
1 DEPARTMENT AND SHALL CONTAIN THE FOLLOWING: 2 (1) THE APPLICANT'S NAME AND ADDRESS OF RESIDENCE. 3 (2) IF THE APPLICANT IS A PARTNERSHIP OR ASSOCIATION, 4 THE NAME AND ADDRESS OF EVERY MEMBER AND, IF A CORPORATION, 5 OF EACH OFFICER AND DIRECTOR. 6 (3) THE NAME AND ADDRESS OF THE BUSINESS IF THE BUSINESS 7 WILL BE CONDUCTED AT A SPECIFIC ADDRESS OR, IF THE APPLICANT 8 INTENDS TO OPERATE A MOBILE UNIT, THE PENNSYLVANIA 9 REGISTRATION NUMBER OR OTHER IDENTIFICATION OF THE MOBILE 10 UNIT, THE AREA IN WHICH THE APPLICANT PROPOSES TO OPERATE THE 11 MOBILE UNIT AND A STATIONARY PHYSICAL LOCATION WHERE RECORDS 12 SHALL BE MAINTAINED FOR PHYSICAL EXAMINATION. 13 (4) A SIGNED STATEMENT BY THE APPLICANT THAT THE 14 APPLICANT HAS COMPLIED WITH ALL MUNICIPAL AND COUNTY 15 REQUIREMENTS FOR DOING BUSINESS. 16 (5) A SIGNED STATEMENT BY THE APPLICANT THAT THE 17 APPLICANT HAS NO OUTSTANDING DEBTS TO THE COMMONWEALTH OR 18 EVIDENCE THAT A PAYMENT AGREEMENT IS IN PLACE. 19 (6) FOR APPLICANTS DOING BUSINESS ON THE EFFECTIVE DATE 20 OF THIS ACT, THE LENGTH OF TIME THE APPLICANT HAS BEEN 21 ENGAGED IN THE CHECK-CASHING BUSINESS AT THE LOCATION 22 SPECIFIED IN THE APPLICATION OR ANY OTHER LOCATION. 23 (C) ADDITIONAL INFORMATION.--THE DEPARTMENT MAY REQUEST ANY 24 ADDITIONAL INFORMATION WHICH IT DEEMS NECESSARY TO THE LICENSING 25 PROCEDURE, AS WELL AS INFORMATION FROM OTHER STATES OR THE 26 FEDERAL GOVERNMENT, WHICH MAY BE EVALUATED FOR LICENSURE. 27 SECTION 302. LICENSE TERMS AND FEES. 28 (A) APPLICATION FEES.--AN APPLICANT FOR A LICENSE TO CONDUCT 29 A CHECK-CASHING BUSINESS FROM EITHER A STATIONARY OR MOBILE UNIT 30 LOCATION SHALL BE SUBJECT TO AN APPLICATION FEE OF $500. 19970H0014B2827 - 19 -
1 (B) RENEWAL FEE.--ON OR BEFORE MARCH 1, EVERY YEAR, A 2 LICENSEE SHALL BE SUBJECT TO A RENEWAL FEE OF $350. EACH 3 LICENSEE SHALL, 90 DAYS PRIOR TO THE DATE OF EXPIRATION, APPLY 4 FOR LICENSE RENEWAL ON A FORM PROVIDED BY THE DEPARTMENT. THE 5 DEPARTMENT SHALL RENEW THE LICENSE IF THE LICENSE RENEWAL 6 APPLICANT IS IN COMPLIANCE WITH THE PROVISIONS OF THIS ACT. 7 (C) SINGLE APPLICATION.--THE DEPARTMENT SHALL PERMIT THE 8 FILING OF A SINGLE APPLICATION FOR ALL APPLICANTS WHO CONDUCT 9 BUSINESS AT MULTIPLE LOCATIONS. A SINGLE APPLICATION SHALL 10 INDICATE THE PRINCIPAL OFFICE OF THE BUSINESS AND A SPECIFIC 11 ADDRESS FOR EACH FIXED LOCATION OR MOBILE UNIT COVERED UNDER THE 12 APPLICATION. THE PRINCIPAL OFFICE SHALL HAVE AVAILABLE ALL 13 PERTINENT RECORDS AND INFORMATION RELATED TO THE BUSINESSES 14 LICENSED. A LICENSE SHALL BE ISSUED FOR EACH LOCATION OR MOBILE 15 UNIT. THE DEPARTMENT MAY ACCEPT THE FILINGS ELECTRONICALLY OR IN 16 COMPUTER FORMAT. 17 (D) RECOVERY OF COSTS.--NO ABATEMENT OF ANY LICENSE FEE 18 SHALL BE MADE IF THE LICENSE IS ISSUED FOR A PERIOD OF LESS THAN 19 ONE YEAR. 20 (E) ADJUSTMENT OF FEE.--WHEN, IN THE OPINION OF THE 21 DEPARTMENT, THE APPLICATION FEES NEEDED TO ADMINISTER THIS ACT 22 ARE IN EXCESS OF THAT NECESSARY AMOUNT, IT MAY REDUCE THE FEE BY 23 REGULATION. 24 SECTION 303. ISSUANCE OF LICENSE. 25 (A) TIME LIMIT.--WITHIN 60 DAYS AFTER A COMPLETE APPLICATION 26 IS RECEIVED, THE DEPARTMENT SHALL EITHER ISSUE A LICENSE OR 27 REFUSE TO ISSUE OR RENEW A LICENSE AS PROVIDED FOR BY SECTION 28 501. UPON RECEIPT OF AN APPLICATION FOR LICENSE, THE DEPARTMENT 29 SHALL CONDUCT SUCH INVESTIGATION AS IT DEEMS NECESSARY TO 30 DETERMINE THAT THE APPLICANT AND ITS OFFICERS, DIRECTORS AND 19970H0014B2827 - 20 -
1 PRINCIPALS ARE OF GOOD CHARACTER AND ETHICAL REPUTATION. 2 (B) APPEAL OF DENIAL.--IF THE DEPARTMENT REFUSES TO ISSUE OR 3 RENEW A LICENSE, IT SHALL NOTIFY THE APPLICANT, IN WRITING, OF 4 THE DENIAL AND THE REASON THEREFOR AND OF THE APPLICANT'S RIGHT 5 TO APPEAL FROM SUCH ACTION TO THE COMMONWEALTH COURT. AN APPEAL 6 FROM THE DEPARTMENT'S REFUSAL TO APPROVE OR RENEW AN APPLICATION 7 FOR A LICENSE SHALL BE FILED BY THE APPLICANT WITHIN 30 DAYS OF 8 NOTICE THEREOF. 9 SECTION 304. CONDITIONS FOR LICENSING. 10 (A) CONDITIONS FOR LICENSE.-- 11 (1) EXCEPT AS PROVIDED IN SUBSECTION (B), IF THE 12 DEPARTMENT FINDS THAT THE FINANCIAL RESPONSIBILITY, 13 EXPERIENCE, CHARACTER AND GENERAL FITNESS OF THE APPLICANT 14 WARRANTS THE CONCLUSION THAT THE BUSINESS WILL BE OPERATED 15 HONESTLY AND FAIRLY WITHIN THE PURPOSE OF THE ACT, THE 16 DEPARTMENT SHALL ISSUE A LICENSE TO PERMIT THE CASHING OF 17 CHECKS. FOR PURPOSES OF THIS SECTION, "APPLICANT" MEANS 18 MEMBERS OF A PARTNERSHIP OR OFFICERS OF A CORPORATION. 19 (2) THE DEPARTMENT SHALL ISSUE A LICENSE TO PERMIT THE 20 CASHING OF CHECKS IN ACCORDANCE WITH THIS ACT. THE LICENSE 21 SHALL BE ISSUED FOR THE BUSINESS LOCATION SPECIFIED IN THE 22 APPLICATION ONLY AND FOR MOBILE UNITS TO THE SITE OR SITES 23 SPECIFIED. THE APPLICANT SHALL SUBMIT A COMPLETED APPLICATION 24 FULLY DISCLOSING THE NATURE AND OPERATION OF THE BUSINESS. 25 (B) NEW LOCATION OR NEW LICENSEES.--FOR ALL NEW LOCATIONS OR 26 NEW LICENSEES, TO DETERMINE THE FINANCIAL RESPONSIBILITY, 27 EXPERIENCE, CHARACTER AND GENERAL FITNESS OF THE APPLICANT 28 PURSUANT TO SUBSECTION (A), THE DEPARTMENT SHALL CONSIDER PUBLIC 29 COMMENT. THE PROCEDURE FOR PUBLIC COMMENT SHALL BE AS FOLLOWS: 30 (1) THE APPLICANT SHALL PUBLISH NOTICE, WITHIN TEN DAYS 19970H0014B2827 - 21 -
1 AFTER BEING NOTIFIED BY THE DEPARTMENT, THAT THE APPLICATION 2 IS COMPLETED. NOTICE SHALL BE PUBLISHED IN A NEWSPAPER HAVING 3 GENERAL CIRCULATION IN THE COMMUNITY IN WHICH THE APPLICANT 4 INTENDS TO LOCATE. 5 (2) THE APPLICANT SHALL TRANSMIT TO THE DEPARTMENT A 6 COPY OF THE NOTICE AND THE PUBLISHER'S AFFIDAVIT OF 7 PUBLICATION. 8 (3) UPON PUBLICATION, THE APPLICATION AND ALL RELATED 9 COMMUNICATIONS MAY BE INSPECTED IN THE DEPARTMENT DURING 10 WORKING HOURS BY ANY PERSON. THIS INSPECTION SHALL BE UPON 11 WRITTEN REQUEST AND BY APPOINTMENT. THE DEPARTMENT MAY REFUSE 12 TO DISCLOSE INFORMATION THAT IT DEEMS IS CONFIDENTIAL. THE 13 DEPARTMENT SHALL NOT BE LIABLE FOR DISCLOSURE OF INFORMATION 14 DEEMED CONFIDENTIAL BY THE APPLICANT. 15 (4) WITHIN 30 DAYS OF THE DATE OF PUBLICATION OF NOTICE, 16 ANYONE MAY FILE A COMMUNICATION IN PROTEST OR IN FAVOR OF THE 17 APPLICATION BY SUBMITTING TWO COPIES TO THE DEPARTMENT. 18 (5) THE APPLICANT MAY REQUEST A COPY OF SUCH 19 COMMUNICATION AND MAY FILE AN ANSWER TO ANY PROTEST UNTIL TEN 20 DAYS AFTER THE LAST DATE FOR FILING OF COMMUNICATION BY 21 SUBMITTING TWO COPIES TO THE DEPARTMENT. 22 (6) THE DEPARTMENT SHALL CONSIDER ALL SUCH COMMUNICATION 23 IN ITS EVALUATION OF THE APPLICATION. 24 (C) FACTORS AFFECTING LICENSING.--THE DEPARTMENT, PRIOR TO 25 THE GRANTING OF A LICENSE, SHALL CONSIDER THE FOLLOWING FACTORS: 26 (1) FOR PURPOSES OF THE INITIAL APPLICATION ONLY, 27 WHETHER THE APPLICANT HAS IN FACT BEEN ENGAGED IN THE CHECK- 28 CASHING BUSINESS AT THE LOCATION SPECIFIED IN THE APPLICATION 29 FOR A PERIOD OF AT LEAST ONE YEAR PRIOR TO THE EFFECTIVE DATE 30 OF THIS ACT. 19970H0014B2827 - 22 -
1 (2) WHETHER THE APPLICANT HAS MADE A SUBSTANTIAL LEGAL 2 OR FINANCIAL COMMITMENT, IN THE FORM OF A LEASE, OPTION TO 3 LEASE OR PURCHASE OF PROPERTY COVERING THE LOCATION TO BE 4 LICENSED, PRIOR TO THE ENACTMENT OF THIS ACT. 5 (3) WHETHER THE APPLICANT IS OPERATING IN COMPLIANCE 6 WITH ALL LOCAL ZONING LAWS AND LAWS PERTAINING TO THE 7 OPERATION OF A BUSINESS IN THIS COMMONWEALTH. 8 (4) WHETHER THE APPLICANT HAS SUFFICIENT BUSINESS 9 EXPERIENCE TO QUALIFY THE APPLICANT TO COMPETENTLY CONDUCT, 10 OPERATE OR BECOME ASSOCIATED WITH A CHECK-CASHING BUSINESS. 11 (D) ACTION BY DEPARTMENT.--EXCEPT AS PROVIDED IN SECTION 12 1104, THE DEPARTMENT SHALL ACT UPON A LICENSE APPLICATION WITHIN 13 60 DAYS FROM THE DATE OF RECEIVING A COMPLETED APPLICATION AND 14 CONDUCTING AN INVESTIGATION. 15 (E) NUMBER OF LICENSES.--NO MORE THAN ONE PLACE OF BUSINESS 16 OR MORE THAN ONE MOBILE UNIT SHALL BE MAINTAINED UNDER THE SAME 17 LICENSE. HOWEVER, MORE THAN ONE LICENSE MAY BE ISSUED TO THE 18 SAME LICENSEE UPON COMPLIANCE WITH THIS ACT FOR EACH NEW 19 LICENSE. 20 (F) FELONY CONVICTION.--THE DEPARTMENT MAY DECLINE TO ISSUE 21 A LICENSE IF IT FINDS THAT THE APPLICANT HAS BEEN CONVICTED OF 22 OR PLED GUILTY OR NOLO CONTENDERE TO A FELONY WHICH WOULD 23 WARRANT SUCH A DENIAL. THE DEPARTMENT SHALL CONSIDER THE YEAR OF 24 THE CONVICTION, THE NATURE OF THE OFFENSE AND THE POTENTIAL 25 IMPACT ON THE CHECK-CASHING BUSINESS OR THE COMMUNITY PRIOR TO 26 DECLINING TO ISSUE A LICENSE PURSUANT TO THIS SUBSECTION. THE 27 DEPARTMENT SHALL MAKE SPECIFIC WRITTEN FINDINGS REGARDING ITS 28 DECISION TO DENY AT THE TIME OF THE ISSUANCE OF THE DENIAL. 29 (G) INFORMATION ON LICENSE.--THE LICENSE ISSUED UNDER THIS 30 SECTION SHALL STATE: 19970H0014B2827 - 23 -
1 (1) THE NAME AND SPECIFIC ADDRESS OF THE LICENSEE. 2 (2) THE NAME AND SPECIFIC ADDRESS OF THE BUSINESS AND 3 THE LICENSEE'S PERMITTED UNIT LOCATIONS IN THE CASE OF A 4 MOBILE UNIT. 5 (3) ANY OTHER INFORMATION DEEMED NECESSARY BY THE 6 DEPARTMENT. 7 (H) LICENSE NOT TRANSFERABLE.--THE LICENSE SHALL NEITHER BE 8 TRANSFERABLE OR ASSIGNABLE NOR MAY OWNERSHIP BE CHANGED UNDER 9 THE EXISTING LICENSE. 10 (I) POSTING.--THE LICENSE SHALL BE CONSPICUOUSLY POSTED IN 11 THE PLACE OF BUSINESS OF THE LICENSEE OR, IN THE CASE OF A 12 MOBILE UNIT, UPON A WINDOW OF THE MOBILE UNIT. 13 (J) EFFECT OF LICENSE.--THE LICENSE SHALL REMAIN IN FULL 14 FORCE AND EFFECT UNTIL IT EXPIRES OR IS SURRENDERED BY THE 15 LICENSEE OR REVOKED OR SUSPENDED AS PROVIDED IN THIS ACT. 16 CHAPTER 5 17 ENFORCEMENT 18 SECTION 501. SUSPENSION AND REVOCATION OF LICENSE AND CIVIL 19 PENALTIES. 20 (A) ACTS OF LICENSEE.--THE DEPARTMENT, UPON 60 DAYS' WRITTEN 21 NOTICE TO THE LICENSEE AND CONSISTENT WITH 2 PA.C.S. (RELATING 22 TO ADMINISTRATIVE LAW AND PROCEDURE), MAY REVOKE OR SUSPEND A 23 LICENSE IF IT FINDS THAT THE LICENSEE: 24 (1) HAS MADE ANY MATERIAL MISSTATEMENT IN THE 25 APPLICATION FOR LICENSE; 26 (2) HAS VIOLATED ANY PROVISION OF THIS ACT OR ANY ORDER, 27 RULE OR REGULATION OF THE DEPARTMENT ISSUED UNDER THIS ACT; 28 (3) HAS FAILED TO COMPLY WITH A SUBPOENA ISSUED UNDER 29 AUTHORITY OF THIS ACT; 30 (4) HAS FAILED TO MAINTAIN RECORDS REQUIRED UNDER THIS 19970H0014B2827 - 24 -
1 ACT OR AS PRESCRIBED BY THE DEPARTMENT; 2 (5) HAS FALSIFIED A RECORD REQUIRED UNDER THIS ACT OR AS 3 PRESCRIBED BY THE DEPARTMENT; 4 (6) REFUSES OR HAS REFUSED TO PERMIT THE DEPARTMENT OR 5 ITS DESIGNATED REPRESENTATIVE TO MAKE EXAMINATIONS OR 6 INVESTIGATIONS AUTHORIZED UNDER THIS ACT; 7 (7) HAS FAILED TO FILE A REPORT WITH THE DEPARTMENT 8 WITHIN THE TIME STIPULATED IN THIS ACT; 9 (8) HAS BEEN CONVICTED OF OR PLED GUILTY OR NOLO 10 CONTENDERE TO OR HAS OTHERWISE BEEN ADJUDGED IN A FINAL 11 JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE 12 COMMITTED ANY OF THE FOLLOWING ACTS: 13 (I) A VIOLATION OF 18 PA.C.S. (RELATING TO CRIMES 14 AND OFFENSES) DEALING WITH THEFT OR FRAUD TO A CUSTOMER; 15 (II) A VIOLATION OF FEDERAL OR STATE LAW CONCERNING 16 THE REPORTING OF CURRENCY TRANSACTIONS, INCLUDING SECTION 17 411 OF THE NATIONAL HOUSING ACT (48 STAT. 1246, 12 U.S.C. 18 § 1730D), SECTION 21 OF THE FEDERAL DEPOSIT INSURANCE 19 CORPORATION ACT (64 STAT. 873, 12 U.S.C. § 1829B) AND 20 SECTIONS 121 THROUGH 124 OF THE ACT OF OCTOBER 26, 1970 21 (PUBLIC LAW 91-508, 12 U.S.C. §§ 1951 THROUGH 1954); 22 (III) A VIOLATION OF 18 PA.C.S. § 5111 (RELATING TO 23 DEALING IN PROCEEDS OF UNLAWFUL ACTIVITIES) OR FEDERAL 24 CRIMINAL STATUTE, RELATED TO MONEY LAUNDERING OR 25 CONSPIRACY TO LAUNDER MONEY; OR 26 (IV) ANY OTHER FELONY AS DETERMINED IN ACCORDANCE 27 WITH SECTION 304(F). 28 (9) HAS FAILED TO REPORT TO THE DEPARTMENT ANY CHANGE IN 29 OWNERSHIP AT LEAST TEN DAYS PRIOR TO THE EFFECTIVE DATE OF 30 THE OWNERSHIP CHANGE; 19970H0014B2827 - 25 -
1 (10) HAS ENGAGED IN AN ACTIVITY PROHIBITED BY SECTION 2 304(F); OR 3 (11) COMMITTED ANY ACT, THE FACT OR CONDITION OF WHICH 4 EXISTS OR IS DISCOVERED TO EXIST WHICH, IF IT HAD EXISTED OR 5 HAD BEEN DISCOVERED TO EXIST AT THE TIME OF FILING OF THE 6 APPLICATION FOR THE LICENSE, WOULD HAVE BEEN GROUNDS FOR THE 7 DEPARTMENT TO REFUSE TO ISSUE THE LICENSE. 8 (B) NONCOMPLIANCE NOTICE.--THE DEPARTMENT SHALL PROVIDE TO A 9 LICENSEE NOTICE OF NONCOMPLIANCE WITH OR A VIOLATION OF THIS 10 ACT. THE DEPARTMENT SHALL PERMIT THE LICENSEE A REASONABLE TIME 11 TO COMPLY WITH THIS ACT OR TO CORRECT THE VIOLATION. IF THE 12 LICENSEE FAILS TO COMPLY OR CORRECT THE VIOLATION, THE 13 DEPARTMENT MAY ORDER THAT CIVIL PENALTIES BE LEVIED AGAINST A 14 LICENSEE. 15 (C) MULTIPLE LICENSE SUSPENSION OR REVOCATION.--THE 16 DEPARTMENT MAY REVOKE OR SUSPEND ONLY THE PARTICULAR LICENSE 17 WITH RESPECT TO WHICH GROUNDS FOR REVOCATION MAY OCCUR OR EXIST, 18 BUT IF IT FINDS THAT GROUNDS FOR REVOCATION ARE OF GENERAL 19 APPLICATION TO ALL PLACES OF BUSINESS OR TO MORE THAN ONE PLACE 20 OF BUSINESS OPERATED BY A LICENSEE, IT MAY REVOKE ALL OF THE 21 LICENSES ISSUED TO SUCH LICENSEE OR THOSE LICENSES TO WHICH 22 GROUNDS FOR REVOCATION APPLY, AS THE CASE MAY BE. 23 (D) ISSUANCE OF ANOTHER LICENSE.--WHENEVER A LICENSE HAS 24 BEEN REVOKED, THE DEPARTMENT SHALL NOT ISSUE ANOTHER LICENSE 25 UNTIL THE EXPIRATION OF AT LEAST ONE YEAR FROM THE EFFECTIVE 26 DATE OF REVOCATION OF SUCH LICENSE. 27 (E) APPEALS.--APPEALS MAY BE TAKEN FROM THE ACTION OF THE 28 DEPARTMENT IN SUSPENDING AND REVOKING LICENSES IN ACCORDANCE 29 WITH THE PROCEDURES OF 2 PA.C.S. (RELATING TO ADMINISTRATIVE LAW 30 AND PROCEDURE). 19970H0014B2827 - 26 -
1 SECTION 502. CHANGE OF STATUS. 2 (A) NOTICE TO DEPARTMENT.--A LICENSEE SHALL SEND WRITTEN 3 NOTICE TO THE DEPARTMENT ON ANY CHANGE IN STATUS INCLUDING 4 ADDRESS CHANGE, CHANGE OF DIRECTORS, OWNERS OR OFFICERS BY 5 STATING THE REASON FOR THE PROPOSED CHANGE. 6 (B) APPROVAL FOR SALE OR TRANSFER OF LICENSE.--A LICENSEE 7 SHALL NOT BE PERMITTED TO SELL, TRANSFER OR ASSIGN A LICENSE OF 8 THE BUSINESS WITHOUT THE APPROVAL BY THE DEPARTMENT OF THE NEW 9 LICENSEE. IN THE EVENT A LICENSE IS TERMINATED, THE FORMER 10 LICENSEE SHALL SURRENDER IT TO THE DEPARTMENT. 11 SECTION 503. FEES AND CHARGES. 12 (A) ALLOWABLE FEES.--THE LICENSEE MAY COLLECT IN FEES: 13 (1) FOR CASHING A GOVERNMENT ASSISTANCE CHECK A SUM OR 14 SUMS NOT EXCEEDING 2.5% OF THE FACE AMOUNT OF THE CHECK, 15 PROVIDED THE PAYEE SUBMITS VALID IDENTIFICATION IN THE FORM 16 OF A DRIVER'S LICENSE, AN IDENTIFICATION CARD ISSUED BY THE 17 DEPARTMENT OF TRANSPORTATION OR THE EQUIVALENT; OR 18 (2) A SUM NOT EXCEEDING 3% OF THE FACE AMOUNT OF A 19 PAYROLL CHECK. 20 (3) A SUM NOT TO EXCEED 10% OF THE FACE AMOUNT OF A 21 PERSONAL CHECK. 22 (B) NEW CUSTOMER FEE.--NOTWITHSTANDING ANYTHING IN THIS 23 SECTION TO THE CONTRARY, THE LICENSEE MAY CHARGE AN INITIAL FEE 24 NOT EXCEEDING $10 TO A NEW CUSTOMER TO COVER THE COST OF 25 INVESTIGATING THE CUSTOMER'S CREDIT. 26 (C) RECEIPT OF TRANSACTION.--THE LICENSEE SHALL PROVIDE A 27 RECEIPT OF THE TRANSACTION. 28 (D) OTHER GOODS AND SERVICES.-- 29 (1) THE LICENSEE SHALL NOT REQUIRE CONSUMERS TO PURCHASE 30 OTHER GOODS OR SERVICES IN ORDER TO CASH CHECKS. 19970H0014B2827 - 27 -
1 (2) NOTHING IN THIS SECTION SHALL PREVENT LICENSEES FROM 2 OFFERING ADDITIONAL GOODS AND SERVICES. 3 (D) DEFINITION.--AS USED IN THIS SECTION, THE TERM 4 "GOVERNMENT ASSISTANCE CHECK" MEANS A CHECK ISSUED ON A 5 CONTINUING PERIODIC BASIS BY A GOVERNMENT AGENCY FOR PAYMENT TO 6 THE RECIPIENT PAYEE OF FEDERAL OR STATE ASSISTANCE, SOCIAL 7 SECURITY, WORKERS' COMPENSATION, UNEMPLOYMENT COMPENSATION, 8 RAILROAD RETIREMENT BENEFITS OR VETERANS DISABILITY. 9 SECTION 504. ENDORSEMENT OF CHECKS. 10 BEFORE A CHECK CASHER DEPOSITS WITH ANY BANKING INSTITUTION A 11 CHECK, THE SAME MUST BE ENDORSED WITH THE ACTUAL NAME UNDER 12 WHICH SUCH CHECK CASHER IS DOING BUSINESS AND MUST HAVE THE 13 WORDS "LICENSED CASHER OF CHECKS" LEGIBLY WRITTEN OR STAMPED 14 IMMEDIATELY AFTER OR BELOW SUCH NAME. 15 SECTION 505. RESTRICTIONS ON BUSINESS OF LICENSEE. 16 (A) ADVANCEMENT OF MONEYS.--NO LICENSEE SHALL AT ANY TIME 17 CASH OR ADVANCE ANY MONEY ON A POSTDATED CHECK. NO CHECK 18 LICENSEE SHALL ENGAGE IN THE BUSINESS OF TRANSMITTING MONEY OR 19 RECEIVING MONEY FOR TRANSMISSION, UNLESS LICENSED UNDER THE ACT 20 OF SEPTEMBER 2, 1965 (P.L.490, NO.249), REFERRED TO AS THE MONEY 21 TRANSMISSION BUSINESS LICENSING LAW. 22 (B) REPORT OF CERTAIN TRANSACTIONS.--A LICENSEE SHALL REPORT 23 TO THE DEPARTMENT EACH TRANSACTION INVOLVING A CHECK DRAWN ON 24 THE PERSONAL ACCOUNT OF THE MAKER WHICH IS ALSO PAYABLE TO THE 25 MAKER IF IT EXCEEDS $2,500. THE REPORT SHALL BE FORWARDED TO THE 26 SECRETARY WITHIN TEN DAYS OF THE TRANSACTION AND SHALL INCLUDE 27 THE NAME AND ADDRESS OF THE PERSON ON WHOSE ACCOUNT THE CHECK 28 WAS DRAWN AND THE DATE OF THE TRANSACTION. 29 SECTION 506. BOOKS, ACCOUNTS AND RECORDS. 30 (A) KEEPING AND USE OF INFORMATION.--EACH CHECK CASHER SHALL 19970H0014B2827 - 28 -
1 KEEP AND USE IN THE BUSINESS, IN A FORM SATISFACTORY TO THE 2 DEPARTMENT, SUCH BOOKS, ACCOUNTS AND RECORDS AS WILL ENABLE THE 3 DEPARTMENT TO DETERMINE WHETHER THE CHECK CASHER IS COMPLYING 4 WITH THE PROVISIONS OF THIS ACT AND THE RULES AND REGULATIONS 5 ADOPTED UNDER THIS ACT. EVERY CHECK CASHER SHALL PRESERVE SUCH 6 BOOKS, ACCOUNTS AND RECORDS FOR FIVE YEARS. 7 (B) FILING OF INFORMATION.--EVERY CHECK CASHER SHALL 8 ANNUALLY, ON OR BEFORE SEPTEMBER 1, FILE A REPORT WITH THE 9 DEPARTMENT GIVING SUCH INFORMATION AS THE DEPARTMENT MAY REQUIRE 10 CONCERNING THE BUSINESS AND OPERATIONS OF THE LICENSEE DURING 11 THE PRECEDING CALENDAR YEAR. IN ADDITION TO THE ANNUAL REPORT, 12 THE DEPARTMENT MAY REQUIRE SUCH ADDITIONAL REGULAR OR SPECIAL 13 REPORTS DEEMED NECESSARY TO THE PROPER OPERATION AND ENFORCEMENT 14 OF THIS ACT. THESE REPORTS SHALL BE MADE UNDER OATH OR 15 AFFIRMATION AND SHALL BE IN THE FORM PRESCRIBED BY THE 16 DEPARTMENT WHICH SHALL MAKE AND PUBLISH ANNUALLY AN ANALYSIS OF 17 THESE REPORTS. 18 (C) EXAMINATION AND COST OF INFORMATION.--THE DEPARTMENT MAY 19 EXAMINE THE AFFAIRS, BUSINESS, RECORDS, BOOKS, DOCUMENTS, 20 ACCOUNTS AND PAPERS OF ANY LICENSEE. THE ACTUAL COST OF THESE 21 EXAMINATIONS SHALL BE PAID TO THE DEPARTMENT BY THE LICENSEE 22 EXAMINED, AND THE DEPARTMENT MAY BRING AN ACTION FOR THE 23 RECOVERY OF THESE COSTS IN ANY COURT OF COMPETENT JURISDICTION. 24 SECTION 507. CIVIL PENALTY. 25 ANY PERSON WHO IS SUBJECT TO THE PROVISIONS OF THIS ACT WHO 26 VIOLATES ANY OF THE PROVISIONS OF THIS ACT SHALL BE SUBJECT TO A 27 CIVIL PENALTY LEVIED BY THE DEPARTMENT OF UP TO $2,000 FOR EACH 28 VIOLATION. THE CIVIL PENALTY SHALL SPECIFICALLY APPLY TO 29 LICENSED AND UNLICENSED ACTIVITY UNDER THIS ACT. THE DEPARTMENT 30 MAY ALSO RECOVER THE COST OF INVESTIGATING ALLEGED VIOLATIONS. 19970H0014B2827 - 29 -
1 SECTION 508. CRIMINAL PENALTY. 2 IT SHALL BE A MISDEMEANOR OF THE THIRD DEGREE FOR ANY PERSON 3 TO OPERATE AS A CHECK CASHER WITHOUT OBTAINING A LICENSE UNDER 4 SECTION 304 OR WHO VIOLATES SECTION 501(A)(5) OR (6) OR 503. 5 SECTION 509. PRIVATE REMEDY. 6 (A) LIABILITY.--ANY PERSON WHO WILLFULLY VIOLATES ANY 7 PROVISION OF THIS ACT WITH RESPECT TO ANY CONSUMER IS LIABLE TO 8 THE CONSUMER FOR AN AMOUNT EQUAL TO THREE TIMES ANY ACTUAL 9 DAMAGE SUSTAINED BY THE CONSUMER AS A RESULT OF THE FAILURE OR 10 THE SUM OF $250, WHICHEVER IS GREATER. 11 (B) RECOVERY OF COSTS.--IN THE CASE OF ANY SUCCESSFUL ACTION 12 TO ENFORCE THE LIABILITY UNDER SUBSECTION (A), THE CONSUMER 13 SHALL RECOVER FROM THE LICENSEE THE COSTS OF THE ACTION, 14 TOGETHER WITH A REASONABLE ATTORNEY FEE AS DETERMINED BY THE 15 COURT. 16 CHAPTER 11 17 MISCELLANEOUS PROVISIONS 18 SECTION 1101. APPLICABILITY. 19 THIS ACT SHALL NOT APPLY TO ANY INSURED DEPOSITORY 20 INSTITUTION OR AFFILIATE OR SERVICE CORPORATION OF ANY 21 DEPOSITORY INSTITUTION SUPERVISED OR REGULATED BY THE DEPARTMENT 22 OF BANKING, THE NATIONAL CREDIT UNION ADMINISTRATION, THE OFFICE 23 OF THRIFT SUPERVISION, THE FEDERAL DEPOSIT INSURANCE 24 CORPORATION, THE COMPTROLLER OF THE CURRENCY OR THE BOARD OF 25 GOVERNORS OF THE FEDERAL RESERVE OR THE FEDERAL RESERVE BANKS. 26 IT ALSO SHALL NOT APPLY TO COMPANIES LICENSED BY THE DEPARTMENT 27 OF BANKING UNDER THE ACT OF APRIL 8, 1937 (P.L.262, NO.66), 28 KNOWN AS THE CONSUMER DISCOUNT COMPANY ACT, THE ACT OF DECEMBER 29 12, 1980 (P.L.1179, NO.219), KNOWN AS THE SECONDARY MORTGAGE 30 LOAN ACT, AND THE ACT OF DECEMBER 22, 1989 (P.L.687, NO.90), 19970H0014B2827 - 30 -
1 KNOWN AS THE MORTGAGE BANKERS AND BROKERS ACT, IN THE NORMAL 2 COURSE OF BUSINESS WITH SPECIFIC RELATION TO LENDING 3 TRANSACTIONS AND WHEN ENGAGED IN THE ACTIVITIES REGULATED UNDER 4 THESE ACTS. 5 SECTION 1102. REPORT TO GENERAL ASSEMBLY. 6 THREE YEARS FROM THE EFFECTIVE DATE OF THIS ACT, THE 7 DEPARTMENT SHALL PROVIDE A WRITTEN REPORT TO THE GENERAL 8 ASSEMBLY SUMMARIZING CONSUMER COMPLAINTS RECEIVED BY THE 9 DEPARTMENT RELATING TO CHECK CASHING ACTIVITIES AND THE METHODS 10 BY WHICH THE COMPLAINTS WERE ADDRESSED. THE DEPARTMENT SHALL 11 ALSO MAKE RECOMMENDATIONS TO THE GENERAL ASSEMBLY REGARDING 12 IMPROVEMENTS TO THIS ACT AND THE CONTINUANCE OF A LICENSING 13 PROGRAM. 14 SECTION 1103. DISPOSITION OF FUNDS. 15 ALL MONEYS RECEIVED BY THE TREASURY DEPARTMENT FROM THE 16 DEPARTMENT OF BANKING FROM FEES, FINES, ASSESSMENTS, CHARGES AND 17 PENALTIES, COLLECTED OR RECOVERED FROM PERSONS, FIRMS, 18 CORPORATIONS OR ASSOCIATIONS, UNDER THE SUPERVISION OF THE 19 DEPARTMENT OF BANKING PURSUANT TO THE PROVISIONS OF THIS ACT 20 SHALL BE DEPOSITED IN THE BANKING DEPARTMENT FUND. 21 SECTION 1104. TRANSITION PROVISIONS. 22 (A) NEW LICENSE AND LOCATION.--NOTWITHSTANDING THE 23 PROVISIONS OF SECTION 304(D), UNTIL JANUARY 1, 1999, THE 24 DEPARTMENT SHALL ACT UPON AN APPLICATION FOR A NEW LICENSE OR 25 NEW LOCATION, WITHIN SIX MONTHS OF RECEIPT OF THE COMPLETED 26 APPLICATION. 27 (B) CURRENT OPERATION.--AN APPLICATION FOR A LICENSE BY 28 CHECK-CASHING BUSINESSES OPERATING ON THE EFFECTIVE DATE OF THIS 29 ACT SHALL BE FILED WITHIN ONE YEAR FROM THE EFFECTIVE DATE OF 30 THIS ACT AND SHALL BE SUBJECT TO THE PROVISIONS OF SECTION 19970H0014B2827 - 31 -
1 304(D). 2 SECTION 1105. EFFECTIVE DATE. 3 THIS ACT SHALL TAKE EFFECT IMMEDIATELY. L17L12DGS/19970H0014B2827 - 32 -