H.B. 241

This document includes House Committee Amendments incorporated into the bill on Thu, Mar 4, 2010 at 2:22 PM by jeyring. --> 1

REQUIREMENTS FOR CHECK CASHER TO
2 CASH A CHECK
3 2010 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Wayne A. Harper
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Check Cashing and Deferred Deposit Lending Registration Act to
11 amend requirements related to the business of cashing checks.
12 Highlighted Provisions:
13 This bill:
14 . amends definition provisions;
15 . enacts requirements related to use of valid identification when cashing a check; and
16 . makes technical and conforming amendments.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 AMENDS:
23 7-23-102, as last amended by Laws of Utah 2008, Chapter 96
24 7-23-301, as renumbered and amended by Laws of Utah 2008, Chapter 96
25
26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 7-23-102 is amended to read:

28 7-23-102. Definitions.
29 As used in this chapter:
30 (1) "Business of cashing checks" means cashing a check for consideration.
31 (2) "Business of deferred deposit lending" means extending a deferred deposit loan.
32 (3) "Cash" means to exchange a check for money delivered to the presenter at the time
33 and place of the presentation.
34 [(3)] (4) "Check" is as defined in Section 70A-3-104 .
35 [(4)] (5) "Check casher" means a person that engages in the business of cashing checks.
36 [(5)] (6) "Deferred deposit lender" means a person that engages in the business of
37 deferred deposit lending.
38 [(6)] (7) "Deferred deposit loan" means a transaction where:
39 (a) a person:
40 (i) presents to a deferred deposit lender a check written on that person's account; or
41 (ii) provides written or electronic authorization to a deferred deposit lender to effect a
42 debit from that person's account using an electronic payment; and
43 (b) the deferred deposit lender:
44 (i) provides the person described in Subsection [(6)] (7)(a) an amount of money that is
45 equal to the face value of the check or the amount of the debit less any fee or interest charged
46 for the transaction; and
47 (ii) agrees not to cash the check or process the debit until a specific date.
48 [(7)] (8) (a) "Electronic payment" means an electronic method by which a person:
49 (i) accepts a payment from another person; or
50 (ii) makes a payment to another person.
51 (b) "Electronic payment" includes a payment made through:
52 (i) an automated clearing house transaction;
53 (ii) an electronic check;
54 (iii) a stored value card; or
55 (iv) an Internet transfer.
56 [(8)] (9) "Rollover" means the extension or renewal of the term of a deferred deposit
57 loan.
58 (10) (a) "Valid identification" means a form of identification issued by a governmental

59 entity that:
60 (i) contains:
61 (A) a numerical identifier; and
62 (B) a photograph of the person identified; and
63 (ii) is valid on the day on which the document is presented for purposes of cashing a
64 check.
65 (b) "Valid identification" includes:
66 (i) an identification card issued by a state or federal agency;
67 (ii) a state driver license;
68 (iii) a United States military identification card;
69 (iv) a United States passport; or
70 (v) a tribal identification card.
71 Section 2. Section 7-23-301 is amended to read:
72 7-23-301. Operational requirements for cashing checks.
73 (1) (a) A check casher shall post a complete schedule of [all] the fees for cashing a
74 check in a conspicuous location on [its] the check casher's premises that can be viewed by a
75 person [cashing] presenting the check casher a check for cashing.
76 [(2)] (b) The schedule of fees required to be posted under this Subsection (1) shall state
77 [the fees using dollar amounts] a fee using a dollar amount.
78 (2) H. [ A ] (a) Except as provided in Subsection (2)(b), a .H check casher may not cash
78a a check unless at the time the check is presented for
79 cashing the check casher in good faith confirms the identity of the person presenting the check
80 by the person providing the check casher valid identification.
80a H. (b) A check casher may cash a check without requiring the presentation of valid
80b identification if:
80c (i) the check is cashed in a transaction that is incidental to a retail sale of goods or
80d services; and
80e (ii) the individual who on behalf of the check casher decides to cash the check is
80f sufficiently familiar with the individual presenting the check, on the basis of interactions
80g over a period of time, to eliminate reasonable doubt that the individual has the identity
80h claimed. .H




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as of 1-21-10 5:32 PM

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