Report Title:

Consumer Protection

 

Description:

Reduces fees under the check cashing law and repeals sunset.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

241

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO CHECK CASHING.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Act 146, Session Laws of Hawaii 1999, is amended by amending section 1 as follows:

1. By amending section    -3 to read:

"§ -3 Authorized fees. Except as provided in section    -4, no check casher shall charge fees in excess of the following amounts:

(1) [Five] Two per cent of the face amount of the check or [$5,] $2, whichever is greater;

(2) [Three] One per cent of the face amount of the check or [$5,] $2, whichever is greater, if the check is the payment of any kind of state public assistance or federal social security benefit payable to the bearer of the check;

(3) [Ten] Five per cent of the face amount of a personal check or money order, or [$5,] $2, whichever is greater; or

(4) No more than [$10] $5 to set up an initial account and issue an optional membership or identification card, and no more than [$5] $2 for a replacement optional identification card.

The fees allowed in this section shall not be assessed in any transaction or agreement in which the check casher defers deposit of the check."

2. By amending subsection (c) of section    -4 to read:

"(c) The face amount of the check shall not exceed [$300] $100 and the deposit of a personal check written by a customer pursuant to a deferred deposit transaction may be deferred for no more than thirty-one days. A check casher may charge a fee for deferred deposit of a personal check in an amount not to exceed [fifteen] two per cent of the face amount of the check. Any fees charged for deferred deposit of a personal check in compliance with this section shall be exempt from chapter 478."

SECTION 2. Act 146, Session Laws of Hawaii 1999, is amended by amending section 2 to read as follows:

"SECTION 2. This Act shall take effect on July 1, 1999[, and shall be repealed on July 1, 2001]."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

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