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8 LONG TITLE
9 General Description:
10 This bill amends the Check Cashing and Deferred Deposit Lending Registration Act to
11 require additional reporting by deferred deposit lenders.
12 Highlighted Provisions:
13 This bill:
14 . defines terms;
15 . requires a deferred deposit lender to report additional information as part of its
16 annual operation statement; and
17 . makes technical and conforming amendments.
18 Money Appropriated in this Bill:
20 Other Special Clauses:
22 Utah Code Sections Affected:
24 7-23-102, as last amended by Laws of Utah 2008, Chapter 96
25 7-23-201, as last amended by Laws of Utah 2010, Chapter 102
27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 7-23-102 is amended to read:
29 7-23-102. Definitions.
30 As used in this chapter:
31 (1) "Annual percentage rate" has the same meaning as in 15 U.S.C. Sec. 1606, as
32 implemented by regulations issued under that section.
39 deferred deposit lending.
41 (a) a person:
42 (i) presents to a deferred deposit lender a check written on that person's account; or
43 (ii) provides written or electronic authorization to a deferred deposit lender to effect a
44 debit from that person's account using an electronic payment; and
45 (b) the deferred deposit lender:
46 (i) provides the person described in Subsection [
47 equal to the face value of the check or the amount of the debit less any fee or interest charged
48 for the transaction; and
49 (ii) agrees not to cash the check or process the debit until a specific date.
51 (i) accepts a payment from another person; or
52 (ii) makes a payment to another person.
53 (b) "Electronic payment" includes a payment made through:
54 (i) an automated clearing house transaction;
55 (ii) an electronic check;
56 (iii) a stored value card; or
57 (iv) an Internet transfer.
60 Section 2. Section 7-23-201 is amended to read:
61 7-23-201. Registration -- Rulemaking.
62 (1) (a) It is unlawful for a person to engage in the business of cashing checks or the
63 business of deferred deposit lending in Utah or with a Utah resident unless the person:
64 (i) registers with the department in accordance with this chapter; and
65 (ii) maintains a valid registration.
66 (b) It is unlawful for a person to operate a mobile facility in this state to engage in the
67 business of:
68 (i) cashing checks; or
69 (ii) deferred deposit lending.
70 (2) (a) A registration and a renewal of a registration expires on April 30 of each year
71 unless on or before that date the person renews the registration.
72 (b) To register under this section, a person shall:
73 (i) pay an original registration fee established under Subsection 7-1-401 (8); and
74 (ii) submit a registration statement containing the information described in Subsection
76 (c) To renew a registration under this section, a person shall:
77 (i) pay the annual fee established under Subsection 7-1-401 (5);
78 (ii) submit a renewal statement containing the information described in Subsection
79 (2)(d); and
80 (iii) if the person engages in the business of deferred deposit lending, submit an
81 operations statement containing the information described in Subsection (2)(e).
82 (d) A registration or renewal statement shall state:
83 (i) the name of the person;
84 (ii) the name in which the business will be transacted if different from that required in
85 Subsection (2)(d)(i);
86 (iii) the address of the person's principal business office, which may be outside this
88 (iv) the addresses of all offices in this state at which the person conducts the business
90 (A) cashing checks; or
91 (B) deferred deposit lending;
92 (v) if the person conducts the business of cashing checks or the business of deferred
93 deposit lending in this state but does not maintain an office in this state, a brief description of
94 the manner in which the business is conducted;
95 (vi) the name and address in this state of a designated agent upon whom service of
96 process may be made;
97 (vii) disclosure of any injunction, judgment, administrative order, or conviction of any
98 crime involving moral turpitude with respect to that person or any officer, director, manager,
99 operator, or principal of that person; and
100 (viii) any other information required by the rules of the department.
101 (e) An operations statement required for a deferred deposit lender to renew a
102 registration shall state for the immediately preceding calendar year:
103 (i) the average deferred deposit loan amount that the deferred deposit lender extended;
104 (ii) the average number of days a deferred deposit loan is extended by the deferred
105 deposit lender before the deferred deposit loan is paid in full;
106 (iii) of the deferred deposit loans that are paid in full 10 weeks or sooner after the day
107 on which the deferred deposit loan is executed, the average number of days a deferred deposit
108 loan is extended by the deferred deposit lender before the deferred deposit loan is paid in full;
114 lender at the request of the customer pursuant to Subsection 7-23-401 (3)(b);
116 lender that are not paid in full by 10 weeks after the day on which the deferred deposit loan is
117 executed; [
118 (vi) the total dollar amount of deferred deposit loans that are not paid in full by 10
119 weeks after the day on which the deferred deposit loans are executed;
120 (vii) of the persons to whom the deferred deposit lender extended a deferred deposit
121 loan, the percentage that entered into an extended payment plan under Section 7-23-403 [
122 (viii) the total number of individuals to whom the deferred deposit lender extended a
123 deferred deposit loan;
124 (ix) the range of annual percentage rates charged on deferred deposit loans extended by
125 the deferred deposit lender; and
126 (x) the average annual percentage rate charged on a deferred deposit loan extended by
127 the deferred deposit lender.
128 (3) Information provided by a deferred deposit lender under Subsection (2)(e) is:
129 (a) confidential in accordance with Section 7-1-802 ; and
130 (b) not subject to Title 63G, Chapter 2, Government Records Access and Management
132 (4) (a) The commissioner may impose an administrative fine determined under
133 Subsection (4)(b) on a person if:
134 (i) the person is required to be registered under this chapter;
135 (ii) the person fails to register or renew a registration in accordance with this chapter;
136 (iii) the department notifies the person that the person is in violation of this chapter for
137 failure to be registered; and
138 (iv) the person fails to register within 30 days after the day on which the person
139 receives the notice described in Subsection (4)(a)(iii).
140 (b) Subject to Subsection (4)(c), the administrative fine imposed under this section is:
141 (i) $500 if the person:
142 (A) has no office in this state at which the person conducts the business of:
143 (I) cashing checks; or
144 (II) deferred deposit lending; or
145 (B) has one office in this state at which the person conducts the business of:
146 (I) cashing checks; or
147 (II) deferred deposit lending; or
148 (ii) if the person has two or more offices in this state at which the person conducts the
149 business of cashing checks or the business of deferred deposit lending, $500 for each office at
150 which the person conducts the business of:
151 (A) cashing checks; or
152 (B) deferred deposit lending.
153 (c) The commissioner may reduce or waive a fine imposed under this Subsection (4) if
154 the person shows good cause.
155 (5) If the information in a registration, renewal, or operations statement required under
156 Subsection (2) becomes inaccurate after filing, a person is not required to notify the department
158 (a) that person is required to renew the registration; or
159 (b) the department specifically requests earlier notification.
160 (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
161 department may make rules consistent with this section providing for:
162 (a) the form, content, and filing of a registration and renewal statement described in
163 Subsection (2)(d); and
164 (b) the form and filing of an operations statement described in Subsection (2)(e).
Legislative Review Note
as of 11-2-11 3:45 PM