2019 -- H 5687

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LC001975

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO FINANCIAL INSTITUTIONS -- CHECK CASHING

     

     Introduced By: Representatives Ruggiero, Shekarchi, Almeida, Carson, and Craven

     Date Introduced: February 27, 2019

     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.

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     No license to cash checks shall be required of 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

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interstate branch office pursuant to chapter 7 of title 19;

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

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behalf; or

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

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the person's retail sale of goods or services and the person charges not more than fifty cents ($.50)

 

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six dollars ($6.00) per check cashed.

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     SECTION 2. This act shall take effect upon passage.

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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 raise the maximum check cashing fee from fifty cents ($.50) to six dollars

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($6.00) per check, for persons cashing checks in instances where cashing checks is incidental to

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the retail sale of goods or services.

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     This act would take effect upon passage.

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