2012 -- H 7480

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LC00878

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO FINANCIAL INSTITUTIONS - CHECK CASHING

     Introduced By: Representatives Baldelli-Hunt, Carnevale, Medina, Menard, and Brien

     Date Introduced: February 09, 2012

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 19-14.4-1 of the General Laws in Chapter 19-14.4 entitled "Check

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Cashing" is hereby amended to read as follows:

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     19-14.4-1. Exemptions from licensing. -- No license to cash checks shall be required of

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any:

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      (1) Regulated institution, bank or credit union organized under the laws of the United

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States, or subject to written notice with a designated Rhode Island agent for service of process in

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the form prescribed by the director or the director's designee, of any other state within the United

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States if the laws of the other state in which such bank or credit union is organized authorizes

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under conditions not substantially more restrictive than those imposed by the laws of this state, as

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determined by the director or the director's designee, a financial institution or credit union to

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engage in the business of cashing checks in the other state; no bank or credit union duly

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organized under the laws of another state within the United States may receive deposits, pay

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checks or lend money from any location within this state unless such bank or credit union has

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received approval from the director or the director's designee for the establishment of an interstate

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branch office pursuant to chapter 7 of title 19 of the general laws. ; and

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      (2) Natural person employee who is employed by a licensee when acting on the

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licensee's behalf; or.

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      (3) Persons engaged in the business of cashing checks where that business is incidental

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to the person's retail sale of goods or services and the person charges not more than fifty cents

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($.50) per check cashed.

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     SECTION 2. This act shall take effect upon passage.

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LC00878

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO FINANCIAL INSTITUTIONS - CHECK CASHING

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     This act would eliminate the exemption from licensing for certain persons who are

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engaged in the business of cashing checks as an incidental portion of their business.

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     This act would take effect upon passage.

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LC00878

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