Check Cashing Act of 1993

Summary: Check Cashing Act of 1933 - Sets forth licensing requirements for businesses that engage in issuing, redeeming, or cashing checks, travellers' checks, money orders, or similar instruments, or that transmit money.  Confers licensing authority over such businesses upon the Federal Trade Commission (the Commission).  Subjects violators of this Act to a civil penalty. 
Sets a maximum fee limitation which such businesses may charge for their services. 
Prohibits a depository institution from refusing to cash government checks where the presenter is the payee and provides sufficient identification.  Mandates that checks drawn by Federal agencies be mailed only to specified addresses. 
Requires the Comptroller General to study and report to the Congress on the effects of requiring the use of a debit card system for making Federal benefit payments.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Check Cashing Act of 1993''.

SEC. 2. LICENSING AND REGULATION OF CHECK CASHING SERVICES.

    (a) License Requirement.--A person, other than a depository 
institution, shall not engage in business in issuing, redeeming, or 
cashing checks, travellers' checks, money orders, or similar 
instruments, or of transmitting money, unless the person is licensed to 
engage in that activity by the Commission.
    (b) Licensing.--
            (1) In general.--The Commission may issue a license for 
        engaging in an activity referred to in subsection (a) to any 
        person that meets the requirements established under this 
        section for such a license.
            (2) Review and approval of licenses.--Before issuing a 
        license under this subsection, the Commission shall review and 
        approve--
                    (A) the business record and the capital adequacy of 
                the applicant; and
                    (B) the competence, experience, integrity, and 
                financial ability of each individual who--
                            (i) is the applicant;
                            (ii) is a director, officer, or supervisory 
                        employee of the applicant; or
                            (iii) owns or controls the applicant.
            (3) Limitations on licensing.--The Commission may deny a 
        license under this section to any applicant based on any--
                    (A) conviction of the applicant for any criminal 
                activity;
                    (B) fraud or other act of personal dishonesty by 
                the applicant;
                    (C) act, omission, or practice by the applicant 
                which constitutes a breach of fiduciary duty; or
                    (D) suspension or removal of the applicant, by any 
                agency or department of the United States or any State, 
                from participation in the conduct of any federally or 
                State license or regulated business.
            (4) Revocation of license.--A license under this section 
        may be revoked by the Commission if the holder of the license--
                    (A) engages in any activity for which issuance of 
                the license may be denied under paragraph (3);
                    (B) imposes, charges, or collects a fee in excess 
                of the amount permissible under section 3; or
                    (C) violates any regulation issued under this 
                section by the Commission.
    (c) Penalty.--Any person who violates subsection (a) shall be 
liable for a civil penalty of not more than $500,000, to be assessed by 
the Commission.
    (d) Regulations.--Not later than 9 months after the date of the 
enactment of this Act, the Commission shall issue regulations which 
implement this section, including regulations which--
            (1) establish requirements for applying for a license under 
        this section; and
            (2) establish such other requirements relating to 
        activities for which a license is required under this section 
        as the Commission considers appropriate.
    (e) Effective Date.--This section (except subsection (d)) shall 
take effect on the date which is 9 months after the date of the 
enactment of this Act.

SEC. 3. LIMITATION ON FEE CHARGED FOR CHECK CASHING.

    (a) Limitation.--A person that regularly engages in the business of 
cashing checks, travelers' checks, money orders, or similar 
instruments, shall not charge any fee for cashing such an instrument 
that exceeds the greater of $0.50 or 0.85 percent of the amount of the 
instrument.
    (b) Civil Penalty.--A person that violates subsection (a) shall be 
liable for a civil penalty of not more than $500,000, to be assessed by 
the Federal Trade Commission.

SEC. 4. PROHIBITION ON REFUSAL BY DEPOSITORY INSTITUTION TO CASH 
              GOVERNMENT CHECKS.

    (a) Prohibition.--A depository institution shall not refuse to cash 
a government check if--
            (1) the check is presented for cashing by an individual who 
        is the payee of the check; and
            (2) the individual who presents the check for cashing 
        provides sufficient identification.
    (b) Civil Penalty.--A person that violates subsection (a) shall be 
liable for a civil penalty of not more than $500,000.
    (c) Enforcement.--The requirements of this section shall be 
enforced under--
            (1) section 8 of the Federal Deposit Insurance Act, in the 
        case of--
                    (A) national banks, and Federal branches and 
                Federal agencies of foreign banks, by the Office of the 
                Comptroller of the Currency;
                    (B) member banks of the Federal Reserve System 
                (other than national banks), branches and agencies of 
                foreign banks (other than Federal branches, Federal 
                agencies, and insured State branches of foreign banks), 
                commercial lending companies owned or controlled by 
                foreign banks, and organizations operating under 
                section 25 or 25(a) of the Federal Reserve Act, by the 
                Board of the Federal Reserve; and
                    (C) banks insured by the Federal Deposit Insurance 
                Corporation (other than members of the Federal Reserve 
                System) and insured State branches of foreign banks, by 
                the Board of Directors of the Federal Deposit Insurance 
                Corporation;
            (2) section 8 of the Federal Deposit Insurance Act, by the 
        Director of the Office of Thrift Supervision, in the case of a 
        savings association the deposits of which are insured by the 
        Federal Deposit Insurance Corporation;
            (3) the Federal Credit Union Act, by the Administrator of 
        the National Credit Union Administration with respect to any 
        Federal credit union; and
            (4) the Farm Credit Act of 1971, by the Farm Credit 
        Administration with respect to any Federal land bank, Federal 
        land bank association, Federal intermediate credit bank, or 
        production credit association.

SEC. 5. REQUIREMENT THAT CHECKS DRAWN BY FEDERAL AGENCIES BE MAILED 
              ONLY TO CERTAIN ADDRESSES.

    (a) In General.--A government check that is issued by the United 
States or an agency of the United States and that is mailed by such an 
agency to the payee of the check may be mailed only to--
            (1) the residence of the payee;
            (2) the principal place of business of the payee;
            (3) a post office box of the payee at a United States 
        Postal Service facility; or
            (4) an account of the payee at an insured depository 
        institution.
    (b) Application.--Subsection (a) shall apply to checks mailed after 
the date which is 9 months after the date of the enactment of this Act.
    (c) Regulations.--Not later than 2 months after the date of the 
enactment of this Act, the Secretary of the Treasury shall issue 
regulations implementing this section.

SEC. 6. STUDY OF DEBIT CARD SYSTEM OF BENEFIT PAYMENTS AND BENEFIT 
              CHECK DELIVERY.

    Not later than 9 months after the date of the enactment of this 
Act, the Comptroller General of the United States shall conduct a study 
and submit a report to the Congress on--
            (1) the effects of requiring the use of a debit card system 
        for making all benefit payments by the Federal Government; and
            (2) other innovative ways to enhance and upgrade the 
        current methods by which the Federal Government delivers 
        benefit payment checks.

SEC. 7. DEFINITIONS.

    (a) In General.--As used in this Act--
            (1) the term ``Commission'' means the Federal Trade 
        Commission;
            (2) the term ``depository institution'' has the meaning 
        given that term in section 3 of the Federal Deposit Insurance 
        Act (12 U.S.C. 1813(c));
            (3) the term ``government check'' means any check which was 
        issued by--
                    (A) the United States, any State, or any agency of 
                the United States; or
                    (B) any agency of the State in which the check is 
                presented for cashing purposes, any unit of local 
                government of such State, or any agency of any such 
                unit of local government;
            (4) the term ``insured depository institution'' has the 
        meaning given that term in section 3(c) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1813(c)); and
            (5) the term ``sufficient identification'' means--
                    (A) a driver's license;
                    (B) an identification card issued by a State or 
                Federal agency; or
                    (C) a United States passport.
    (b) Terms Relating to Enforcement of Section 3.--A term used in 
section 3(c)(1) that is not defined in this Act shall have the meaning 
given that term by--
            (1) section 3(s) of the Federal Deposit Insurance Act (12 
        U.S.C. 1813(s)); or
            (2) in the case of a term not defined in the Act referred 
        to in paragraph (1), section 1(b) of the International Banking 
        Act of 1978 (12 U.S.C. 3101).