Bill Text: NJ S3399 | 2016-2017 | Regular Session | Introduced

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Bill Title: Modifies certain fees charged by check casher licensees.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-06-29 - Introduced in the Senate, Referred to Senate Commerce Committee [S3399 Detail]

Download: New_Jersey-2016-S3399-Introduced.html

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SENATE, No. 3399

STATE OF NEW JERSEY

217th LEGISLATURE

 

INTRODUCED JUNE 29, 2017

 

 

Sponsored by:

Senator  NICHOLAS P. SCUTARI

District 22 (Middlesex, Somerset and Union)

 

 

 

 

SYNOPSIS

     Modifies certain fees charged by check casher licensees.

 

CURRENT VERSION OF TEXT

     As introduced.

  

An Act concerning licensed check cashers and amending P.L.1993, c.383.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 14 of P.L.1993, c.383 (C.17:15A-43) is amended to read as follows:

     14.  No licensee shall charge a fee or receive any other consideration, directly or indirectly, which is greater than the amount permitted pursuant to this section, as follows: 

     a.     For cashing a check drawn on a depository institution or other financial entity located in this or any other State, two percent of the face amount of the check, or $.90, whichever is greater; 

     b.    For cashing a check payable to a recipient of Temporary Assistance for Needy Families (TANF), one percent of the face amount of the check, or $.90, whichever is greater;

     c.     For cashing a check payable to a recipient of supplemental security income pursuant to Subchapter XVI of the Social Security Act, 42 U.S.C. s.1381 et seq., one and one half percent of the face amount of the check, or $.90, whichever is greater; 

     d.    For cashing a check payable to a recipient of old-age and survivors benefit payments pursuant to Subchapter II of the Social Security Act, 42 U.S.C. s.401 et seq., one and one half percent of the face amount of the check, or $.90, whichever is greater;

     e.     On or after the 365th day from the effective date of this act, subsequent increases to the fees which may be charged pursuant to subsection a. of this section by a licensee for cashing a check, draft or money order shall be set by the commissioner by regulation;

     f.     In setting the fees pursuant to subsection e. of this section, the commissioner shall consider, but not be limited to, the following:

     (1)   rates charged in the past;

     (2)   the income, cost and expense of the operation of licensees;

     (3)   rates charged by licensed check cashers or other similar entities located in other states for the same or similar services and the factors upon which those rates are based;

     (4)   changes in the population served; and

     (5)   a reasonable profit for check cashers; and

     g.    Subject to the provisions of subsections b., c., and d. of this section, for cashing a check payable to a non-natural person or a check in excess of $2,500, a licensee may charge up to three percent of the face amount of the check.

(cf: P.L.2015, c.233, s.2)

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill modifies certain fees charged by check casher licensees.  Specifically, the bill permits check casher licensees to charge a fee of up to three percent of the face amount of the check on checks that are payable to an entity, rather than a "natural person," or on checks in excess of $2,500.