Pennsylvania Act 2002-200 — CHECK CASHER LICENSING ACT - AMEND LICENSE TERMS AND FEES, FEES AND CHARGES

Act text

CHECK CASHER LICENSING ACT - AMEND LICENSE TERMS AND FEES, FEES AND
                                 CHARGES
                 Act of Dec. 9, 2002, P.L. 1546, No. 200              Cl. 07
                             Session of 2002
                               No. 2002-200

     SB 460

                                  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 license terms and fees, for fees and
        charges and for applicability.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Sections 302(b), 503, 509 and 1101 of the act of
     February 18, 1998 (P.L.146, No.22), known as the Check Casher
     Licensing Act, are amended to read:
      Section 302.  License terms and fees.
        * * *
        (b)  [Renewal fee.--On or before March 1 of every year, a
     licensee shall apply for license renewal on a form provided by
     the department and pay a renewal fee of $350 for each fixed
     location or mobile unit. The department shall renew the license
     if the licensee is in compliance with the provisions of this
     act.] License renewal.--On May 1 of each year, upon payment of
     an annual renewal fee of $350 for each fixed location or mobile
     unit, the department shall renew the license if the licensee is
     in compliance with the provisions of this act.
        * * *
      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% 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.
        (b)  New customer fee.--Notwithstanding anything in this
     section to the contrary, the licensee or any person subject to
     any provision of this act may charge an initial fee not to
     exceed $10 to a new customer to cover the cost of investigating
     the customer's credit.
        (c)  Receipt of transaction.--The licensee or any person
     subject to any provision of this act shall provide a receipt of
     the transaction.
        (d)  Other goods and services.--
            (1)  The licensee or any person subject to any provision
        of this act shall not require consumers to purchase other
        goods or services in order to cash a check.
            (2)  Nothing in this section shall prevent [licensees] a
        licensee or any person subject to this act from offering
        additional goods and services.
        (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.
      Section 509.  Private remedy.
        (a)  Liability.--Any person who willfully violates any
     provision of this act with respect to any consumer is liable to
     the consumer for an amount equal to three times any actual
     damage sustained by the consumer as a result of the failure or
     the sum of $250, whichever is greater.
        (b)  Recovery of costs.--In the case of any successful action
     to enforce liability under subsection (a), the consumer shall
     recover from the licensee or any person subject to this act the
     costs of the action, together with a reasonable attorney fee as
     determined by the court.
      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, 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 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 Mortgage Loan Act, and the act of
     December 22, 1989 (P.L.687, No.90), known as the Mortgage
     Bankers and Brokers Act, 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, 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, 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 2.  This act shall take effect in 60 days.

     APPROVED--The 9th day of December, A. D. 2002.

     MARK S. SCHWEIKER