Chapter 303 |
2019 -- H 6055 Enacted 07/19/2019 |
A N A C T |
RELATING TO FINANCIAL INSTITUTIONS -- CHECK CASHING |
Introduced By: Representatives Costantino, and Lyle |
Date Introduced: May 02, 2019 |
It is enacted by the General Assembly as follows: |
SECTION 1. Legislative findings and purpose. The general assembly hereby finds that: |
(1) Chapter 14.4 of title 19 entitled "Check Cashing" addresses the licensing of check |
cashing businesses in Rhode Island. Section 19-14.4-3(a) requires the department of business |
regulation to "promulgate regulations that provide for the safety and security of customers of the |
[check cashing] licensee, and/or its employees . . . ", and provides that the regulations shall |
include a requirement that check cashing licensees maintain bulletproof glass and steel partitions. |
(2) Check cashing regulations in Title 230 ("Department Of Business Regulation") |
CHAPTER 40 ("Banking"), Subchapter 20 ("Money Services") provide, in Part 2 ("Check |
Cashers"), that licensed check cashers "[i]nstall bullet proof glass and partitions . . . at all check |
cashing stations, transaction windows, counters and similar areas where the exchange of funds, |
checks, money orders and other transactions take place. . ." 230-RICR-40-20-2.6(A)(3) |
(3) Persons hosting state-operated video lottery games and state-operated casino gaming |
which may include table games and sports betting, may cash checks for their customers as a |
service incidental to their primary business of hosting state-operated games and gaming. Hosts of |
state-operated video lottery games and state-operated casino gaming do not qualify for the |
licensing exemptions described in § 19-14.4-1(3) because their charge per check cashed usually |
exceeds the fifty cent ($0.50) threshold set forth in that section. |
(4) Persons hosting state-operated video lottery games and state-operated casino gaming |
are subject to stringent security and procedural requirements related to their primary business of |
hosting such state-operated games and gaming. These security and procedural requirements |
include, but are not limited to, measures to protect the physical safety and security of customers |
and employees, cybersecurity measures, measures to prevent money laundering, and requirements |
related to the maintenance of insurance. While in some cases the measures to protect the physical |
safety and security of check casher customers and employees are different in form and nature |
than the bulletproof glass and steel partitions contemplated in § 19-14.4-3(a), and subsection 230- |
RICR-40-20-2.6(A)(3) of the regulations promulgated by the department of business regulation, |
they provide at least the same level of physical safety and security. Accordingly, it is appropriate |
that persons hosting state-operated video lottery games and state-operated casino gaming be |
exempt from the bulletproof glass and steel partition requirements of § 19-14.4-3(a), and |
subsection 230-RICR-40-20-2.6(A)(3) of the regulations promulgated by the department of |
business regulation. |
(5) The purpose of this act is to amend chapter 14.4 of title 19 so as to exempt persons |
hosting state-operated video lottery games and state-operated casino gaming pursuant to licenses |
issued by the department of business regulation, division of gaming and athletics, and the |
department of revenue, division of lotteries, from any requirement that they construct and |
maintain bulletproof glass and steel partitions as contemplated in subsection 19-14.4-3(a), and |
subsection 230-RICR-40-20-2.6(A)(3) of the regulations promulgated by the department of |
business regulation. |
SECTION 2. Section 19-14.4-3 of the General Laws in Chapter 19-14.4 entitled "Check |
Cashing" is hereby amended to read as follows: |
19-14.4-3. Rules and regulations. |
(a) The director, or the director's designee, is authorized, directed, and empowered to |
promulgate regulations that provide for the safety and security of customers of the licensee, |
and/or its employees, from robbery or other criminal activities to include, but not be limited to, |
bulletproof glass and steel partitions, except as provided in subsection (c) of this section. |
(b) The rules and regulations, in addition to any other provisions as the director, or the |
director's designee, may require, must provide that licensees maintain: |
(1) Continuously, for each licensed premises, liquid assets of at least ten thousand dollars |
($10,000); |
(2) A cash sheet that must be prepared daily for each day's business reflecting all |
transactions for that day; |
(3) A money-order register recording the date issued, money order number, amount, and |
date paid. In lieu of the money-order register, a copy of the money order may be kept when |
carbonized type money orders are used; |
(4) Insurance issued by an insurance company or indemnity company, authorized to do |
business under the laws of this state, that shall insure the applicant against loss by theft, burglary, |
robbery, or forgery in principal sum, as determined by the director, or the director's designee, that |
shall in no event be less than ten thousand dollars ($10,000), nor more than one hundred thousand |
dollars ($100,000). The required amounts shall bear a relationship to the liquid assets on hand at |
the licensed location; and |
(5) An adequate written policy and affirmative program to ensure compliance with state |
and federal money laundering statutes. |
(c) Notwithstanding the provisions of subsection (a) of this section or any rule or |
regulation promulgated by the department of business regulation pertaining to check cashers, |
persons hosting state-operated video lottery games, and state-operated casino gaming pursuant to |
licenses issued by the department of business regulation, division of gaming and athletics, and the |
department of revenue, division of lotteries, are and shall be exempt from any requirement that |
they construct and maintain bulletproof glass and steel partitions at check cashing stations, |
transaction windows, counters and/or similar areas, whether or not an exchange of funds, checks, |
money orders, or other transactions take place therein. |
SECTION 3. This act shall take effect upon passage. |
======== |
LC002496 |
======== |