HB 226 (BR 1099) - J. Coleman, G. Stumbo, P. Worthington
AN ACT relating to check cashing and deferred deposit transactions and declaring an emergency.
Amend KRS 368.010 to include definitions for "deferred deposit transaction" and deferred "deposit service business"; amend KRS 368.020 to require a separate license for each business location; amend KRS 368.040 to require a net worth minimum for each location; amend KRS 368.070 to require a licensee to notify the department 15 business days before changing location or name; amend KRS 368.100 to require payment of fees when checks are cashed, cap any fee at 5% of face amount, deferred deposit consideration viewed as interest subject to KRS Chapter 360, prohibit a service fee as consideration for an agreement not to present a check to the payor for a specified period of time or for any other purpose, cap licensee transactions from any one customer at any one time to a set face amount of $250, list certain requirements to be met in writing by customer, limit amount of time check can be held by licensee to 31 days, prohibit prosecution under KRS 514.040 of individuals who enter into a deferred deposit transaction with a licensee; amend KRS 368.110 to allow the commissioner to revoke or suspend all licensees issued to a licensee if revocation or suspension at any one location is of general application to all locations; create a new section of KRS Chapter 368.010 to 368.120 to allow written complaints to be filed with and investigated by the commissioner, assign certain investigative powers to the commissioner; create a new section of KRS Chapter 368.010 to 368.120 to establish that an annual report be filed with the commissioner by the licensee; and create a new section of KRS Chapter 368.010 to 368.120 to mandate that each licensee comply with the Consumer Credit Protection Act and display certain information.
HB 226 - AMENDMENTS
HCS - Retain original text, with the following exceptions: amend KRS 368.030 to remove mortgage loan companies, mortgage loan brokers and pawn brokers from the Chapter 368 exemption list; amend KRS 368.060 to require an investigation fee of $500 to accompany each application for a license for each location; amend KRS 368.080 to require a license fee of $500 for each renewal for the first location and $500 for each additional location; amend KRS 368.090 to allow the department to charge an examination fee sufficient to cover the cost of the examination; amend KRS 368.100 to establish that the fee charged can not exceed $15 per $100 and that the fee is for a period of 14 days, to prohibit a licensee from accepting more than one deferred deposit transaction from any one customer with a face value greater then $500, to require a customer to represent in writing that he has no more than one deferred deposit transaction and the face value of the deferred deposit transaction does not exceed $500, to establish that a deferred deposit transaction can not be held for more than 60 days and must be made in accordance with a dated and signed written agreement, and to limit the deferred deposit transaction to 3 rollovers; amend KRS 368.120 to establish that no license can be suspended without an opportunity for a hearing; and create a new section of KRS Chapter 368 to mandate that each licensee comply with the disclosure requirements of the Consumer Credit Protection Act, to require that every licensee display a schedule of fees in the office and in every branch office of the licensee, and to allow a licensee to charge, collect and receive check collection charges for each check returned or dishonored from a financial institution.
HFA (1, J. Adams) - Make title amendment.
HCA (1, J. Adams) - Amend KRS 368.010 to define a "licensee" as a person duly licensed for one or more locations; amend KRS 368.020 to change time frame for application process to begin; amend KRS 368.040 to require a licensee to maintain a specific net worth; and amend to drop the requirement of a net worth for each location.
HFA (2, J. Coleman) - Amend to prohibit a licensee from prosecuting or threatening to prosecute an individual under the provisions of KRS 514.040; amend to require a licensee to post a notice that an individual who enters into a deferred deposit transaction will not be prosecuted under the provisions of KRS 514.040; EMERGENCY.
HCA (2, J. Adams) - Make title amendment.
HFA (3, J. Coleman) - Make title amendment; and declare an EMERGENCY.
HFA (4, S. Riggs) - Amend to replace a net worth requirement of $100,000 with a requirement that an applicant post a letter of credit with the commissioner in specified amounts that increase with the number of business locations.
HFA (5, M. Long) - Amend to replace a net worth requirement of $100,000 with a requirement that an applicant deposit with the commissioner a letter of credit, evidence of an account payable to the commissioner or a savings certificate in specified amounts that increase with the number of business locations.
HFA (6, R. Crimm) - Amend to retain the exclusion for mortgage loan brokers and for pawn brokers.
SFA (1, C. Borders) - Amend to decrease from fifteen dollars ($15) to ten dollars ($10) per hundred dollars ($100) regarding allowable fees of deferred deposit transactions; and amend to decrease the number of rollovers from three (3) to two (2).
CCR - Report that the committee could not agree and request a free conference committee.
FCCR (Majority Report) - Eliminate renewal and rollovers for deferred deposit transactions.
Jan 9-introduced in House
Jan 12-to Banking and Insurance (H)
Jan 13-posted in committee
Jan 29-reported favorably, 1st reading, to Calendar with Committee Substitute, Committee Amendment (1) and Committee Title Amendment (2)
Feb 2-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for February 3, 1998
Feb 3-Floor Title Amendments (1) and (3) filed to Bill; Floor amendment (2) filed to Committee Substitute
Feb 4-Floor amendment (4) filed to Committee Substitute
Feb 5-Floor amendment (5) filed to Committee Substitute
Feb 6-Floor amendment (6) filed to Committee Substitute
Feb 11-3rd reading, passed 96-1 with Committee Substitute and Floor Amendments (2) and (5) and Floor Title Amendment (3)
Feb 12-received in Senate
Feb 17-to Banking and Insurance (S)
Mar 4-reported favorably, 1st reading, to Calendar
Mar 5-2nd reading, to Rules
Mar 6-posted for passage in the Regular Orders of the Day for March 10, 1998
Mar 9-floor amendment (1) filed
Mar 10-3rd reading, passed 36-1 with floor amendment (1)
Mar 11-received in House; posted for passage for concurrence in Senate amendment
Mar 24-House refused to concur in Senate floor amendment (1); received in Senate
Mar 26-posted for passage for receding from Senate floor amendment (1) on March 27, 1988
Mar 27-Senate refused to recede from floor amendment (1); Conference Committee appointed in Senate; received in House
Mar 31-Conference Committee appointed in House; Conference Committee report filed in House and Senate; Conference Committee report adopted in House and Senate; Free Conference Committee appointed in House and Senate
Apr 1-Free Conference Committee report filed in House and Senate; Senate adopted Free Conference Committee report,; passed 30-0; received in House; House adopted Free Conference Committee report,; passed 72-21
Apr 2-enrolled, signed by each presiding officer, delivered to Governor
Apr 14-signed by Governor