REPORT ON BILLS FAVORABLY REPORTED BY COMMITTEE

COMMITTEE:

Banks Committee

File No.:

Bill No.:

SB-227

PH Date:

3/2/2006

Action/Date:

JF 3/9/2006

Reference Change:

  

TITLE OF BILL:

AN ACT CONCERNING CHECK CASHERS, MONEY TRANSMITTERS AND OTHER NONMORTGAGE LICENSEES.

SPONSORS OF BILL:

Department of Banking

  

REASONS FOR BILL:

To change from one to two years the period for which the licenses on money transmitters and check cashers are valid and to tighten the requirements for investments in lieu of bonds as applicable to money transmitters. In addition, the bill will specify the time frame within which certain licensees shall notify the Commissioner of changes of information in their application. Other technical revisions are included.

RESPONSE FROM ADMINISTRATION/AGENCY:

Department of Banking:

The bills provisions are:

1. To reinstate for state credit unions the exemption from licensure as check cashers.

2. To establish a two year licensure period for check cashers and money transmitters.

3. To more accurately reflect the purpose of fees for a check cashing license by changing the names of said fees.

4. To ensure that consumers are afforded the same level of protection with money transmitters who use investments in lieu of bonds as are currently in statute with bonds.

5. To conform the time frame used in determining the amount of a bond for a debt adjuster to that of the form of the bond approved by the Attorney General.

NATURE AND SOURCES OF SUPPORT:

This is a Department of Banking bill.

NATURE AND SOURCES OF OPPOSITION:

None offered

 

Hal Smullen, clerk

03/13/2006

 

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