PRINTER'S NO. 1460
THE GENERAL ASSEMBLY OF PENNSYLVANIA
INTRODUCED BY BRUBAKER, WHITE, WOZNIAK, BOSCOLA AND MENSCH, OCTOBER 9, 2013
REFERRED TO BANKING AND INSURANCE, OCTOBER 9, 2013
1Amending the act of February 18, 1998 (P.L.146, No.22), entitled
2"An act regulating the check-cashing industry; providing for
3the licensing of check cashers, for additional duties of the
4Department of Banking and for certain terms and conditions of
5the business of check cashing; and providing penalties for
6money-laundering activities and violations of the act,"
7further providing for definitions, for authority of the
8department, for conditions for licensing and for fees and
9charges; and providing for recovery of losses due to
16Section 103. Definitions.
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1* * *
4Section 104. Authority of department.
5(a) Authority.--The department shall have the authority to:
8(2) Examine any check, document, account, book, record
9or file relating to a check casher's business or operation
10during regular business hours at the check casher's principal
11office or to make such other investigation as may be
12reasonably necessary to administer and enforce this act.
13(3) Conduct administrative hearings on any matter
14pertaining to this act, issue subpoenas to compel the
15attendance of witnesses and the production of checks,
16documents, accounts, books and records at any such hearing,
17which may be retained by the department until the proceedings
18are completed, and administer oaths and affirmations to any
19person whose testimony is required. In the event a person
20fails to comply with a subpoena issued by the department or
21to testify on any matter concerning which that person may be
22lawfully interrogated, on application by the department the
23Commonwealth Court may issue an order requiring the
24attendance and testimony of such person and requiring the
25production of checks, documents, accounts, books and records
26or may institute contempt of court penalties.
30Section 304. Conditions for licensing.
1(a) Conditions for license.--
2(1) Except as provided in subsection (b), if the
3department finds that the financial responsibility,
4experience, character and general fitness of the applicant
5warrants the conclusion that the business will be operated
6honestly and fairly within the purpose of the act, the
7department shall issue a check-casher license in accordance
8with this act.
12(3) Check cashers shall post a notice of exact fees and
13charges, which shall be within the maximum prescribed in this
14act. The notice should be in plain view and in a location
15readily apparent to the consumer transacting business at each
17* * *
20Section 503. Fees and charges.
24(1) A sum not exceeding [2.5%] 1.5% of the face amount
25of a government [assistance] check or 0.5% of the face amount
26of a government assistance check, provided the payee submits
27valid identification in the form of a driver's license, an
28identification card issued by the Department of
29Transportation or the equivalent; or
30(2) A sum not exceeding 3% of the face amount of a
4* * *
5(e) Definition.--[As used in this section, the term
6"government assistance check" means a check issued on a
7continuing periodic basis by a government agency for payment to
8the recipient payee of Federal or State assistance, Social
9Security, workers' compensation, unemployment compensation,
10railroad retirement benefits or veterans' disability.] As used
11in this section, the following words and phrases shall have the
12meanings given to them in this subsection unless the context
13clearly indicates otherwise:
14"Government assistance check." A check issued by the Federal
15Government or State Government on a continuing periodic basis by
16a government agency for the payment to the recipient payee of
17Federal or State assistance, Social Security, workers'
18compensation, unemployment compensation, railroad retirement
19benefits, veterans benefits or housing assistance.
23Section 4. The act is amended by adding a section to read:
26In the case where a check casher entails financial loss due
27to the theft of a government check or government assistance
28check as those terms are defined in section 503(e), payroll
29check or personal check due to fraudulent misrepresentation by a
30customer, the customer shall be liable to the check casher for
1an amount equal to three times any actual face value of the
2check or three times any actual damage sustained by the check
3casher as a result of the fraudulent misrepresentation,
4whichever is greater.
5Section 5. This act shall take effect in 60 days.