Bill Text: NJ A598 | 2020-2021 | Regular Session | Introduced
Bill Title: The "Retail Establishment Check Cashers Act"; establishes license for retail establishments to cash checks for fees.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-01-14 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A598 Detail]
Download: New_Jersey-2020-A598-Introduced.html
STATE OF NEW JERSEY
219th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION
Sponsored by:
Assemblyman JOHN DIMAIO
District 23 (Hunterdon, Somerset and Warren)
SYNOPSIS
The "Retail Establishment Check Cashers Act"; establishes license for retail establishments to cash checks for fees.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act establishing licensure for retail establishments to cash checks for fees.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Retail Establishment Check Cashers Act."
2. As used in this act:
"Check cashing location" means an area in a retail establishment where checks are cashed and which is distinct from the areas where merchandise is displayed, held, stored or sold or offered to the public for sale.
"Retail establishment" means a place where merchandise is displayed, held, stored or sold or offered to the public for sale.
"Retail establishment licensee" means a person who owns or operates a retail establishment and is licensed to cash checks for a fee in that retail establishment pursuant to this act.
3. Notwithstanding any of the provisions of "The Check Cashers Regulatory Act of 1993," P.L.1993, c.383 (C.17:15A-30 et seq.) to the contrary, a retail establishment may be licensed as a retail establishment licensee to cash checks.
4. In addition to the requirements of this act, a retail establishment licensee shall comply with the following requirements of "The Check Cashers Regulatory Act of 1993," P.L.1993, c.383 (C.17:15A-30 et seq.) in a manner the commissioner determines to be appropriate for retail establishment licensees:
a. A written application, application fee, proof of net worth and liquid assets, and executed consent shall be submitted to the commissioner pursuant to section 4 of P.L.1993, c.383 (C.17:15A-33);
b. Any application submitted to the commissioner shall comply with the requirements of section 6 of P.L.1993, c.383 (C.17:15A-35);
c. A statement shall be submitted to the department demonstrating the conditions for issuance of license have been met pursuant to subsections a. and c. of section 10 of P.L.1993, c.383 (C.17:15A-39);
d. A valid license shall be maintained pursuant to section 11 of P.L.1993, c.383 (C.17:15A-40);
e. No retail establishment licensee shall be located within 2,500 feet of an existing office or mobile office, pursuant to subsection e. of section 12 of P.L.1993, c.383 (C.17:15A-41);
f. No fee shall be charged which is greater than the amounts permitted pursuant to section 14 of P.L.1993, c.383 (C.17:15A-43);
g. An annual report shall be filed with the commissioner pursuant to section 16 of P.L.1993, c.383 (C.17:15A-45); and
h. No retail establishment licensee shall engage in the transactions prohibited pursuant to subsections a., b., c., d., or h. of section 18 of P.L.1993, c.383 (C.17:15A-47).
5. a. A retail establishment licensee shall annually file with the commissioner a statement made under oath or affirmation that the retail establishment received less than one percent of its annual income revenue from cashing checks.
b. No retail establishment that receives more than one percent of its annual income from cashing checks shall be licensed pursuant to this act.
6. Each manager of a retail establishment check cashing business and each employee of a retail establishment check cashing business designated to operate the check cashing business shall submit to be fingerprinted on forms supplied by the commissioner and shall provide written consent to the performance of background checks. The commissioner is authorized to exchange fingerprint data with and receive criminal history record information from the Federal Bureau of Investigation and the Division of State Police for use in performing background checks. The commissioner is authorized to conduct such additional background checks as he deems appropriate. The department is authorized to collect from the applicant or retail establishment licensee any costs connected with these background investigations.
7. A retail establishment licensee shall:
a. Maintain a check cashing location that engages solely in the business of check cashing.
b. Designate employees to operate the check cashing business pursuant to section 4 of this act.
b. Conspicuously display the original license issued by the commissioner at the check cashing location.
c. Conspicuously display all signs and notifications at the check cashing location which the commissioner may require.
d. Provide each customer, at the time of a transaction, with a record of each transaction as specified by regulation.
e. Conduct all check cashing business through a bank account or accounts which are used solely for that purpose, and which have been identified as such to the department.
f. Inform the department if any bank account number changes or if any bank account is closed.
g. Maintain adequate records of its check cashing business as prescribed by the commissioner by regulation.
h. File with the Attorney General of New Jersey a duplicate copy of any report a licensee is required to file regarding business conducted in this State pursuant to 31 U.S.C.s.5311 et seq. and 31 C.F.R.s.103 et seq.
8. a. Except as provided in subsection c. of this section, the commissioner may revoke or suspend a license if, after notice and hearing, the commissioner determines that the retail establishment licensee:
(1) Has violated any provision of this act or any order, rule, or regulation made or issued pursuant to this act or has violated any other law in connection with the operation of the check cashing business;
(2) Has failed to pay any fee, penalty, or other lawful levy imposed by the commissioner;
(3) Has withheld information or made a material misstatement in the application for the license, or in any branch application or in any other submission to the department;
(4) Has been convicted of an offense involving breach of trust, moral turpitude or fraudulent or dishonest dealing, or has had a final judgment entered against him in a civil action upon grounds of fraud, misrepresentation or deceit;
(5) Is associating with, or has associated with, any person who has been convicted of an offense involving breach of trust, moral turpitude or fraudulent or dishonest dealing, or who has had a final judgment entered against him in a civil action upon grounds of fraud, misrepresentation or deceit;
(6) Has become insolvent or has acted in a way that indicates the retail establishment licensee's check cashing business would not be operated in a financially responsible manner;
(7) Has demonstrated unworthiness, incompetence, bad faith or dishonesty in transacting business or otherwise; or
(8) Has engaged in any other conduct which would be deemed by the commissioner to be grounds to deny, revoke or suspend a license.
b. Pending an investigation or a hearing for the suspension or revocation of any license issued pursuant to this act, the commissioner may temporarily suspend that license for a period not to exceed 90 days, if the commissioner finds that that suspension is in the public interest.
c. The commissioner shall revoke a license if, after notice and a hearing, the commissioner determines that the retail establishment licensee was convicted of a crime pursuant to the provisions of P.L.1994, c.121 (C.2C:21-23 et seq.) or any other crime defined in chapter 20 or chapter 21 of Title 2C of the New Jersey Statutes.
d. A retail establishment licensee and the probation department shall, not later than 10 days after the entry of a judgment of conviction or the imposition of sentence, whichever first occurs, notify the commissioner of a retail establishment licensee's conviction of any criminal offense.
e. For the purposes of this section, a conviction exists if the person has been convicted under the laws of this State, the United States or another state for an offense that is substantially similar to the offenses enumerated in this section.
9. a. The commissioner may issue an order to any retail establishment licensee who violates any provision of this act or regulation promulgated pursuant to this act, ordering payment of the penalties provided in this act and corrective action concerning the violation. Any person aggrieved by any ruling, action, order, or notice of the commissioner shall be entitled to a hearing. The application for such a hearing shall be filed in writing with the commissioner within 15 days of receipt thereof.
b. Where any violation of any provision of this act is of a continuing nature, each day during which the violation remains uncorrected after the date fixed by the commissioner in any order or notice for the correction or termination of such continuing violation shall constitute a separate and distinct violation, except during the time when an appeal from such an order is being taken.
c. The commissioner is hereby authorized and empowered to compromise and settle any claim for a penalty under this section for an amount that appears appropriate and equitable under the circumstances.
d. The civil penalties provided for in this section, if not paid to the commissioner within 30 days of their issuance, shall be collected in a civil action brought in the name of the commissioner pursuant to the provisions of "The Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
e. Penalties imposed pursuant to this act shall not diminish the remedies which may be available to complainants through private actions.
10. The commissioner shall promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to effectuate the purposes of this act.
11. This act shall take effect on the 90th day following enactment.
STATEMENT
This bill allows retail establishments to be licensed to cash checks for a fee provided they comply with the licensing scheme as set forth in the bill, which includes compliance with certain requirements of "The Check Cashers Regulatory Act of 1993," P.L.1993, c.383 (C.17:15A-30 et seq.).
This bill requires that retail establishment licensees file an annual statement made under oath or affirmation that less than one percent of the retail establishment's annual income came from cashing checks.
This bill provides that each manager of a retail establishment check cashing business and each employee of a retail establishment check cashing business designated to operate the check cashing business shall submit to be fingerprinted on forms supplied by the commissioner and shall provide written consent to the performance of background checks.
This bill requires retail establishment licensees to:
- maintain a check cashing location within the retail establishment that engages solely in the business of check cashing;
- designate employees to operate the check cashing business;
- conspicuously display all signs and notifications at the check cashing location which the commissioner may require;
- provide each customer, at the time of a transaction, with a record of each transaction as specified by regulation;
- conduct all check cashing business through a bank account or accounts which are used solely for that purpose; and
- maintain adequate records of its check cashing business as prescribed by the commissioner by regulation.
Additionally, this bill spells out violations and imposes civil penalties for violations of the bill or of rules and regulations promulgated pursuant to the bill.
