2019 -- S 0912

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LC002604

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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: Senator Frank A. Ciccone

     Date Introduced: May 22, 2019

     Referred To: Senate Special Legislation and Veterans Affairs

     It is enacted by the General Assembly as follows:

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     SECTION 1. Legislative findings and purpose. The general assembly hereby finds that:

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     (1) Chapter 14.4 of title 19 entitled "Check Cashing" addresses the licensing of check

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cashing businesses in Rhode Island. Section 19-14.4-3(a) requires the department of business

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regulation to "promulgate regulations that provide for the safety and security of customers of the

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[check cashing] licensee, and/or its employees . . . ", and provides that the regulations shall

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include a requirement that check cashing licensees maintain bulletproof glass and steel partitions.

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     (2) Check cashing regulations in Title 230 ("Department Of Business Regulation")

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CHAPTER 40 ("Banking"), Subchapter 20 ("Money Services") provide, in Part 2 ("Check

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Cashers"), that licensed check cashers "[i]nstall bullet proof glass and partitions . . . at all check

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cashing stations, transaction windows, counters and similar areas where the exchange of funds,

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checks, money orders and other transactions take place. . ." 230-RICR-40-20-2.6(A)(3)

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     (3) Persons hosting state-operated video lottery games and state-operated casino gaming

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which may include table games and sports betting, may cash checks for their customers as a

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service incidental to their primary business of hosting state-operated games and gaming. Hosts of

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state-operated video lottery games and state-operated casino gaming do not qualify for the

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licensing exemptions described in § 19-14.4-1(3) because their charge per check cashed usually

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exceeds the fifty cent ($0.50) threshold set forth in that section.

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     (4) Persons hosting state-operated video lottery games and state-operated casino gaming

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are subject to stringent security and procedural requirements related to their primary business of

 

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hosting such state-operated games and gaming. These security and procedural requirements

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include, but are not limited to, measures to protect the physical safety and security of customers

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and employees, cybersecurity measures, measures to prevent money laundering, and requirements

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related to the maintenance of insurance. While in some cases the measures to protect the physical

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safety and security of check casher customers and employees are different in form and nature

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than the bulletproof glass and steel partitions contemplated in § 19-14.4-3(a), and subsection 230-

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RICR-40-20-2.6(A)(3) of the regulations promulgated by the department of business regulation,

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they provide at least the same level of physical safety and security. Accordingly, it is appropriate

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that persons hosting state-operated video lottery games and state-operated casino gaming be

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exempt from the bulletproof glass and steel partition requirements of § 19-14.4-3(a), and

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subsection 230-RICR-40-20-2.6(A)(3) of the regulations promulgated by the department of

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business regulation.

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     (5) The purpose of this act is to amend chapter 14.4 of title 19 so as to exempt persons

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hosting state-operated video lottery games and state-operated casino gaming pursuant to licenses

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issued by the department of business regulation, division of gaming and athletics, and the

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department of revenue, division of lotteries, from any requirement that they construct and

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maintain bulletproof glass and steel partitions as contemplated in subsection 19-14.4-3(a), and

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subsection 230-RICR-40-20-2.6(A)(3) of the regulations promulgated by the department of

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business regulation.

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     SECTION 2. Section 19-14.4-3 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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     19-14.4-3. Rules and regulations.

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     (a) The director, or the director's designee, is authorized, directed and empowered to

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promulgate regulations that provide for the safety and security of customers of the licensee,

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and/or its employees, from robbery or other criminal activities to include, but not be limited to,

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bulletproof glass and steel partitions, except as provided in subsection (c) of this section.

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     (b) The rules and regulations, in addition to any other provisions as the director, or the

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director's designee, may require, must provide that licensees maintain:

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     (1) Continuously, for each licensed premises, liquid assets of at least ten thousand dollars

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($10,000);

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     (2) A cash sheet that must be prepared daily for each day's business reflecting all

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transactions for that day;

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     (3) A money-order register recording the date issued, money order number, amount, and

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date paid. In lieu of the money-order register, a copy of the money order may be kept when

 

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carbonized type money orders are used;

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     (4) Insurance issued by an insurance company or indemnity company, authorized to do

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business under the laws of this state, that shall insure the applicant against loss by theft, burglary,

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robbery, or forgery in principal sum, as determined by the director, or the director's designee, that

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shall in no event be less than ten thousand dollars ($10,000), nor more than one hundred thousand

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dollars ($100,000). The required amounts shall bear a relationship to the liquid assets on hand at

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the licensed location; and

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     (5) An adequate written policy and affirmative program to ensure compliance with state

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and federal money laundering statutes.

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     (c) Notwithstanding the provisions of subsection (a) of this section or any rule or

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regulation promulgated by the department of business regulation pertaining to check cashers,

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persons hosting state-operated video lottery games, and state-operated casino gaming pursuant to

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licenses issued by the department of business regulation, division of gaming and athletics, and the

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department of revenue, division of lotteries, are and shall be exempt from any requirement that

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they construct and maintain bulletproof glass and steel partitions at check cashing stations,

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transaction windows, counters and/or similar areas, whether or not an exchange of funds, checks,

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money orders or other transactions take place therein.

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     SECTION 3. 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 exempt persons hosting state-operated video lottery games and state-

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operated casino gaming pursuant to licenses issued by the department of business regulation,

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division of gaming and athletics, and the department of revenue, division of lotteries, from the

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statutory requirement that they construct and maintain bulletproof glass and steel partitions at

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check cashing stations, transaction windows, counters and/or similar areas, whether or not an

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exchange of funds, checks, money orders or other transactions take place therein.

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     This act would take effect upon passage.

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