I
103D CONGRESS
1ST SESSION
H. R. 1448
To establish a limit on the fee which certain persons may charge for cashing
checks and other instruments, to require depository institutions to cash
checks issued by the United States or a State, and to provide that
checks drawn by the Federal Government may be mailed only to the
personal residence or primary place of business of the payee, to a Federal
post office box, or to a federally insured depository institution at which
the payee holds an account.
IN THE HOUSE OF REPRESENTATIVES
MARCH 24, 1993
Mr. FIELDS of Louisiana (for himself and Mr. WYNN) introduced the follow-
ing bill; which was referred jointly to the Committees on Banking, Fi-
nance and Urban Affairs and Government Operations
A BILL
To establish a limit on the fee which certain persons may
charge for cashing checks and other instruments, to re-
quire depository institutions to cash checks issued by
the United States or a State, and to provide that checks
drawn by the Federal Government may be mailed only
to the personal residence or primary place of business
of the payee, to a Federal post office box, or to a
federally insured depository institution at which the
payee holds an account.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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 require-
ments established under this section for such a
license.
(2) REVIEW AND APPROVAL OF LICENSES.—Be-
fore 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 super-
visory employee of the applicant; or
(iii) owns or controls the applicant.
(3) LIMITATIONS
ON
LICENSING.—The Com-
mission 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 dis-
honesty by the applicant;
(C) act, omission, or practice by the appli-
cant 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 reg-
ulated 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 issu-
ance of the license may be denied under para-
graph (3);
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 sub-
section (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 INSTI-
TUTION 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 in-
dividual 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 sub-
section (a) shall be liable for a civil penalty of not more
than $500,000.
(c) ENFORCEMENT.—The requirements of this sec-
tion 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 Fed-
eral branches, Federal agencies, and insured
State branches of foreign banks), commercial
lending companies owned or controlled by for-
eign 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 Di-
rectors of the Federal Deposit Insurance Cor-
poration;
(2) section 8 of the Federal Deposit Insurance
Act, by the Director of the Office of Thrift Super-
vision, in the case of a savings association the depos-
its of which are insured by the Federal Deposit In-
surance Corporation;
(3) the Federal Credit Union Act, by the Ad-
ministrator of the National Credit Union Adminis-
tration 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 asso-
ciation.
SEC. 5. REQUIREMENT THAT CHECKS DRAWN BY FEDERAL
AGENCIES BE MAILED ONLY TO CERTAIN AD-
DRESSES.
(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 de-
pository 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 sec-
tion.
SEC. 6. STUDY OF DEBIT CARD SYSTEM 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 ‘‘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 SEC-
TION 3.—A term used in section 3(c)(1) that is not de-
fined in this Act shall have the meaning given that term
by—
(1) section 3(s) of the Federal Deposit Insur-
ance 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).
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