STATE OF CONNECTICUT
Raised Committee Bill No. 5106 Page 1
Referred to Committee on JUDICIARY
LCO No. 350
Introduced by (JUD)
General Assembly
February Session, A.D., 1988
AN ACT CONCERNING CHECK CASHING SERVICES.
Be it enacted by the Senate and House of Representatives in
General Assembly convened:
Section 1. (NEW) The provisions of this act shall not apply
to: (1) Checks, drafts or money orders cashed without
consideration or charge; (2) checks, drafts or money orders
cashed as an incident to the conduct of any other lawful business
where not more than fifty cents is charged for cashing such
check, draft or money order; or (3) any institution subject to
and under the general supervision of any agency of the United
States or any entity subject to the general supervision of the
commissioner of banking.
Sec. 2. (a) (NEW) Except as provided for in section 1 of this
act, no person, partnership, association or corporation shall
engage in the business of cashing checks, drafts or money orders
for consideration without obtaining a license from the
commissioner of banking. An application for a check cashing
service license or renewal of such license shall be in writing,
under oath and on a form provided by the commissioner.
(b) The application shall set forth: (1) The name and address
of the applicant; (2) if the applicant is a firm or partnership,
the names and address of each member of the firm or partnership;
(3) if the applicant is a corporation, the names and address of
each officer, director, authorized agent and each stockholder
owning ten per cent or more of the outstanding stock of such
corporation; (4) any other information the commissioner may
require.
(c) Upon the filing of the required application and license
fee, the commissioner shall investigate the facts and may issue a
license if he finds that the applicant is in all respects
properly qualified and of good character, that granting such
license would not be against the public interest and the
applicant has available and shall continuously maintain liquid
assets of at least ten thousand dollars for each business
location specified in the application.
Sec. 3. (NEW) (a) Each applicant for a license to operate a
check cashing service shall pay to the commissioner, at the time
of application, a nonrefundable license fee of two hundred fifty
dollars. Each license issued pursuant to this section shall
expire at the close of business on June thirtieth of each year
unless such license is renewed. Each licensee shall, on or
before June twentieth of each year, pay to the commissioner a
license fee of two hundred fifty dollars for the succeeding year,
commencing July first.
(b) Each applicant or licensee shall pay the expenses of any
examination or investigation under this act.
(c) No abatement of the license fee shall be made if the
license is surrendered, cancelled, revoked or suspended prior to
the expiration of the period for which it was issued.
Sec. 4. (NEW) Any license issued pursuant to section 2 of
this act, shall be conspicuously posted in each place of business
of the licensee. Such license shall not be transferable or
assignable.
Sec. 5. (NEW) A check cashing serevice, licensed under
section 2 of this act, shall not charge or collect in fees,
charges or otherwise for cashing a check, draft or money order,
drawn on a depository institution located in this state, a sum
exceeding (1) one-half of one per cent of the item and a handling
fee of five cents per item, if the face amount of the item is
less than fifty dollars; (2) one-half of one per cent of the item
and a handling fee of ten cents per item if the face amount of
the item is fifty dollars or more; or (3) twenty-five cents,
whichever is greater. A check cashing service, licensed under
section 2 of this act, shall not charge or collect in fees,
charges or otherwise, for cashing a check, draft or money order,
drawn on a depository institution not located in this state a sum
exceeding: (1) One per cent of the item and a handling fee of
five cents per item if the face amount of the item is less than
fifty dollars; (2) one per cent of the item and a handling fee of
ten cents per item if the face amount of the item is fifty
dollars or more; or (3) twenty-five cents, whichever is greater.
The licensee shall conspicuously post and at all times display,
at each place of business, a schedule of fees permitted under
this act.
Sec. 6. (NEW) (a) Each check cashing service, licensed under
section 2 of this act, shall keep and use in the business in the
form satisfactory to the commissioner, books, accounts and
records
as will enable the commissioner to determine whether the licensee
is complying with the provisions of this act. Each licensee shall
retain such books, records and accounts for not less than the
periods of time specified in regulations adopted by the
commissioner in accordance with section 8 of this act.
(b) Before a licensee deposits with any financial institution
a check, draft or money order cashed by such licensee, the item
shall be endorsed with the actual name under which the licensee
is doing business and must have the words "licensed check cashing
service" legibly written or stamped immediately after or below
such name.
Sec. 7. (NEW) (a) The commissioner may suspend, revoke or
refuse to renew any license issued pursuant to section 2 of this
act upon ten days' notice in writing, forwarded by certified mail
to the principal place of business of the licensee, stating the
contemplated action and in general the grounds therefor. After
allowing the licensee a reasonable opportunity to be heard, the
commissioner may suspend, revoke or refuse to renew any license
for any reason which would be sufficient grounds for the
commissioner to deny an application for a license under this act
or if the commissioner finds that the licensee or any owner,
director, officer, member, partner, stockholder, trustee,
employee or agent of such licensee has done any of the following:
(1) Made any material misstatement in the application; (2)
committed any fraud, engaged in dishonest activities or made any
misrepresentation; (3) violated any provision of this act or any
regulation promulgated under this act, or (4) demonstrated his
incompetency or untrustworthiness to act as a licensed check
cashing service.
(b) Whenever it appears to the commissioner that any person
is violating the provisions of this act, the commissioner may in
his discretion: (1) Commence a proceeding under this section, or
(2) bring an action in the superior court for the judicial
district of Hartford-New Britain to enjoin such person from
violating the provisions of this act.
(c) If the commissioner determines that any licensee has
violated any provision of this act or any regulation adopted
pursuant thereto, he may, upon fourteen days' notice in writing,
order such person to cease and desist from such practices and to
comply with the provisions of this act. The notice shall be sent
by certified mail to the principal place of business of the
licensee and shall state the grounds for the contemplated action.
Within fourteen days of receipt of the notice, the person or
persons named therein may file a written request for a hearing.
If a hearing is requested, the commissioner shall not issue a
cease and desist order until after such hearing is held. Such
hearing shall be conducted in accordance with the provisions of
chapter 54. The commissioner may bring an action in the superior
court for the judicial district of Hartford-New Britain to
enforce compliance with any such order issued under this
subsection.
Sec. 8. (NEW) The commissioner shall adopt, pursuant to
chapter 54, such regulations as may be necessary to carry out the
provisions of this act.
STATEMENT OF PURPOSE: To authorize the department of banking
to regulate check cashing services.
[Proposed deletions are enclosed in brackets. Proposed
additions are all capitalized or underlined where appropriate,
except that when the entire text of a bill or resolution or a
section thereof is new, it is not capitalized or underlined.]

STATE OF CONNECTICUT
Raised Committee Bill No. 5005 Page 1
Referred to Committee on BANKS
LCO No. 405
Introduced by (BA)
General Assembly
February Session, A.D., 1988
AN ACT CONCERNING SAVINGS AND BANK TIME DEPOSITS.
Be it enacted by the Senate and House of Representatives in
General Assembly convened:
Section 36-104a of the general statutes is repealed and the
following is substituted in lieu thereof: Savings banks may
receive time deposits in addition to savings deposits and other
types of deposits authorized by law and may issue certificates
evidencing time deposits and may pay interest upon time deposits,
including those evidenced by certificates of deposits, at the
time and for the period established by agreement with the
depositor. For the purposes of section 36-139, the payment or
accrual of interest on time deposits shall be considered the
payment of dividends, and the limitations and requirements of
that section in regard to dividends shall apply equally to such
interest. Time deposits as well as savings deposits shall be
eligible as security for loans authorized by sections 36-98 and
36-101a. Sections 36-111 and 36-113 shall apply to time deposits
as well as to savings deposits. Section 36-114 shall apply to
nonnegotiable certificates of deposits as well as to passbooks.
For purposes of this section [and sections 4-33, 7-402, 36-9i,
36-97b and 36-131e,] "depositor" means any INDIVIDUAL,
corporation, partnership or association.
STATEMENT OF PURPOSE: To clarify that savings banks have the
authority to offer time deposits and to delete certain inaccurate
statutory references.
[Proposed deletions are enclosed in brackets. Proposed
additions are all capitalized or underlined where appropriate,
except that when the entire text of a bill or resolution or a
section thereof is new, it is not capitalized or underlined.]