PRIOR PRINTER'S NO. 508 PRINTER'S NO. 1180
No. 460 Session of 2001
INTRODUCED BY MOWERY, HOLL, ROBBINS, MUSTO, O'PAKE, M. WHITE,
CORMAN, RHOADES AND LOGAN, FEBRUARY 15, 2001
SENATOR HOLL, BANKING AND INSURANCE, AS AMENDED, JUNE 12, 2001
AN ACT
1 Amending the act of February 18, 1998 (P.L.146, No.22), entitled
2 "An act regulating the check-cashing industry; providing for
3 the licensing of check cashers, for additional duties of the
4 Department of Banking and for certain terms and conditions of
5 the business of check cashing; and providing penalties for
6 money-laundering activities and violations of the act,"
7 further providing FOR FEES AND CHARGES AND for applicability. <--
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Section SECTIONS 503, 509 AND 1101 of the act of <--
11 February 18, 1998 (P.L.146, No.22), known as the Check Casher
12 Licensing Act, is ARE amended to read: <--
13 SECTION 503. FEES AND CHARGES. <--
14 (A) ALLOWABLE FEES.--THE LICENSEE OR ANY PERSON SUBJECT TO
15 ANY PROVISION OF THIS ACT MAY COLLECT THE FOLLOWING FEES FOR
16 CASHING A CHECK:
17 (1) A SUM NOT EXCEEDING 2.5% OF THE FACE AMOUNT OF A
18 GOVERNMENT ASSISTANCE CHECK, PROVIDED THE PAYEE SUBMITS VALID
19 IDENTIFICATION IN THE FORM OF A DRIVER'S LICENSE, AN
20 IDENTIFICATION CARD ISSUED BY THE DEPARTMENT OF
1 TRANSPORTATION OR THE EQUIVALENT; OR
2 (2) A SUM NOT EXCEEDING 3% OF THE FACE AMOUNT OF A
3 PAYROLL CHECK.
4 (3) A SUM NOT EXCEEDING 10% OF THE FACE AMOUNT OF A
5 PERSONAL CHECK.
6 (B) NEW CUSTOMER FEE.--NOTWITHSTANDING ANYTHING IN THIS
7 SECTION TO THE CONTRARY, THE LICENSEE OR ANY PERSON SUBJECT TO
8 ANY PROVISION OF THIS ACT MAY CHARGE AN INITIAL FEE NOT TO
9 EXCEED $10 TO A NEW CUSTOMER TO COVER THE COST OF INVESTIGATING
10 THE CUSTOMER'S CREDIT.
11 (C) RECEIPT OF TRANSACTION.--THE LICENSEE OR ANY PERSON
12 SUBJECT TO ANY PROVISION OF THIS ACT SHALL PROVIDE A RECEIPT OF
13 THE TRANSACTION.
14 (D) OTHER GOODS AND SERVICES.--
15 (1) THE LICENSEE OR ANY PERSON SUBJECT TO ANY PROVISION
16 OF THIS ACT SHALL NOT REQUIRE CONSUMERS TO PURCHASE OTHER
17 GOODS OR SERVICES IN ORDER TO CASH A CHECK.
18 (2) NOTHING IN THIS SECTION SHALL PREVENT [LICENSEES] A
19 LICENSEE OR ANY PERSON SUBJECT TO THIS ACT FROM OFFERING
20 ADDITIONAL GOODS AND SERVICES.
21 (E) DEFINITION.--AS USED IN THIS SECTION, THE TERM
22 "GOVERNMENT ASSISTANCE CHECK" MEANS A CHECK ISSUED ON A
23 CONTINUING PERIODIC BASIS BY A GOVERNMENT AGENCY FOR PAYMENT TO
24 THE RECIPIENT PAYEE OF FEDERAL OR STATE ASSISTANCE, SOCIAL
25 SECURITY, WORKERS' COMPENSATION, UNEMPLOYMENT COMPENSATION,
26 RAILROAD RETIREMENT BENEFITS OR VETERANS' DISABILITY.
27 SECTION 509. PRIVATE REMEDY.
28 (A) LIABILITY.--ANY PERSON WHO WILLFULLY VIOLATES ANY
29 PROVISION OF THIS ACT WITH RESPECT TO ANY CONSUMER IS LIABLE TO
30 THE CONSUMER FOR AN AMOUNT EQUAL TO THREE TIMES ANY ACTUAL
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1 DAMAGE SUSTAINED BY THE CONSUMER AS A RESULT OF THE FAILURE OR
2 THE SUM OF $250, WHICHEVER IS GREATER.
3 (B) RECOVERY OF COSTS.--IN THE CASE OF ANY SUCCESSFUL ACTION
4 TO ENFORCE LIABILITY UNDER SUBSECTION (A), THE CONSUMER SHALL
5 RECOVER FROM THE LICENSEE OR ANY PERSON SUBJECT TO THIS ACT THE
6 COSTS OF THE ACTION, TOGETHER WITH A REASONABLE ATTORNEY FEE AS
7 DETERMINED BY THE COURT.
8 Section 1101. Applicability.
9 This act shall not apply to any insured depository
10 institution or affiliate or service corporation of any
11 depository institution supervised or regulated by the Department
12 of Banking, the National Credit Union Administration, the Office
13 of Thrift Supervision, the Federal Deposit Insurance
14 Corporation, the Comptroller of the Currency or the Board of
15 Governors of the Federal Reserve or the Federal Reserve Banks.
16 It also shall not apply to companies licensed by the Department
17 of Banking under the act of April 8, 1937 (P.L.262, No.66),
18 known as the Consumer Discount Company Act, the act of September
19 2, 1965 (P.L.490, No.249), referred to as the Money Transmission
20 Business Licensing Law, unless conducting activities regulated
21 by this act, the act of December 12, 1980 (P.L.1179, No.219),
22 known as the Secondary Mortgage Loan Act, and the act of
23 December 22, 1989 (P.L.687, No.90), known as the Mortgage
24 Bankers and Brokers Act, in the normal course of business with
25 specific relation to lending transactions and when engaged in
26 the activities regulated under these acts. It also shall not
27 apply to a licensed retail food store or a licensed eating and <--
28 drinking establishment FOOD ESTABLISHMENT, AS DEFINED IN SECTION <--
29 2 OF THE ACT OF JULY 7, 1994 (P.L.421, NO.70), KNOWN AS THE FOOD
30 ACT, OR A PUBLIC EATING OR DRINKING PLACE, AS DEFINED IN SECTION
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1 1 OF THE ACT OF MAY 23, 1945 (P.L.926, NO.369), REFERRED TO AS
2 THE PUBLIC EATING AND DRINKING PLACE LAW, that receives less
3 than 1% of its annual gross revenue from cashing checks, except
4 that the provisions of section 503 SECTIONS 503, 507 AND 509 <--
5 shall apply to such a business entity.
6 Section 2. This act shall take effect in 60 days.
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