(1) the check is presented for cashing by an in-
dividual who is the payee of the check, and is prop-
erly endorsed by each individual who is a payee of
the check;
(2) the individual who presents the check for
cashing provides sufficient identification;
(3) the check and the identification documents
required under paragraph (2) do not bear evidence
of forgery, fraud, counterfeiting, alteration, or other
tampering; and
(4) the face value of the check is less than
$2500.
(b) PENALTY.—An insured depository institution or
insured credit union that violates subsection (a) shall be
liable for a civil penalty of not more than $500 for each
violation, which may be assessed by—
(1) the State agency having primary respon-
sibility under State law for administering an ap-
proved State system;
(2) the State agency having primary respon-
sibility under State law for administering laws regu-
lating banking, in the case of a violation in a State
that does not have an approved State system; or
(3) the person having responsibility under sub-
section (c) for enforcing this section with respect to
the depository institution.
(c) ENFORCEMENT.—The requirements of this sec-
tion shall be enforced—
(1) under section 8 of the Federal Deposit In-
surance Act (12 U.S.C. 1818) by the Office of the
Comptroller of the Currency, with respect to na-
tional banks, and Federal branches and Federal
agencies of foreign banks;
(2) under section 8 of that Act by the Board
of Governors of the Federal Reserve, with respect to
member banks of the Federal Reserve System (other
than national banks), branches and agencies of for-
eign banks (other than Federal branches, Federal
agencies, and insured State branches of foreign
banks), commercial lending companies owned or con-
trolled by foreign banks, and organizations operating
under section 25 or 25(a) of the Federal Reserve
Act;
(3) under section 8 of that Act by the Board
of Directors of the Federal Deposit Insurance Cor-
poration, with respect to banks insured by the Fed-
eral Deposit Insurance Corporation (other than
members of the Federal Reserve System) and in-
sured State branches of foreign banks;
(4) under section 8 of that Act by the Director
of the Office of Thrift Supervision, with respect to
any savings association the deposits of which are in-
sured by the Federal Deposit Insurance Corporation;
(5) under the Federal Credit Union Act (12
U.S.C. 1752 et seq.) by the Administrator of the
National Credit Union Administration, with respect
to any insured credit union; and
(6) under the Farm Credit Act of 1971 (12
U.S.C. 2001 et seq.) by the Farm Credit Adminis-
tration, with respect to any Federal land bank, Fed-
eral land bank association, Federal intermediate
credit bank, or production credit association.
(d) RULES OF CONSTRUCTION.—This section shall
not be construed to—
(1) prohibit an insured depository institution
from charging fees to cash Government checks; or
(2) prohibit or preempt a State from establish-
ing requirements or limitations with respect to the
charging of fees by insured depository institutions
for check cashing services, that are different than
State requirements or limitations that apply to per-
sons that are not insured depository institutions.
SEC. 5. DISPENSING OF FEDERAL AND STATE GOVERN-
MENT BENEFITS BY COMMUNITY DEVELOP-
MENT CREDIT UNIONS.
(a) LIMITATION ON AUTHORITY OF NATIONAL CRED-
IT UNION ADMINISTRATION.—The National Credit Union
Administration Board may not prohibit any Federally
chartered credit union from dispensing benefits under any
Federal or State assistance program (including benefits
under the Aid to Families with Dependent Children pro-
gram under title IV of the Social Security Act (42 U.S.C.
601 et seq.)) that are authorized to be dispensed by a
check cashing service.
(b) STUDY.—After the date that is 2 years after the
date of the enactment of this Act, and not later than 3
years after that date of enactment, the Comptroller Gen-
eral of the United States shall conduct a study and submit
a report to the Congress on the effectiveness and efficiency
of the dispensation of benefits under Federal and State
assistance programs (including benefits under the aid to
families with dependent children program under title IV
of the Social Security Act (42 U.S.C. 601 et seq.) through
federally chartered credit unions.
SEC. 6. STUDY OF DEBIT CARD SYSTEMS OF BENEFIT PAY-
MENTS AND BENEFIT CHECK DELIVERY.
Not later than 9 months after the date of the enact-
ment 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 up-
grade 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 ‘‘approved State system’’ means a
State check cashing business license or registration
system that is approved by the Commission under
section 3;
(2) the term ‘‘check cashing business’’ means a
person that regularly and primarily engages in the
business of providing any check cashing service for
a fee and not in exchange for goods or services;
(3) the term ‘‘check cashing service’’ means—
(A) the issuance, redemption, or cashing of
a 2-party or multi-party check or similar nego-
tiable instrument;
(B) the sale, redemption, or cashing of a
travelers check, money order, or similar nego-