2020 -- H 7567

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LC004686

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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A N   A C T

RELATING TO FINANCIAL INSTITUTIONS -- EXEMPTIONS FROM LICENSING

     Introduced By: Representatives Canario, Edwards, Casimiro, Johnston, and Noret

     Date Introduced: February 13, 2020

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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

Cashing" is hereby amended to read as follows:

     19-14.4-1. Exemptions from licensing.

     No license to cash checks shall be required of any:

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

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

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

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

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

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

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

under the laws of another state within the United States may receive deposits, pay checks or lend

money from any location within this state unless such bank or credit union has received approval

from the director, or the director's designee, for the establishment of an interstate branch office

pursuant to chapter 7 of title 19;

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

behalf; or

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

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

six dollars ($6.00) per check cashed.

     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 -- EXEMPTIONS FROM LICENSING

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

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

the retail sale of goods or services.

     This act would take effect upon passage.

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LC004686

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