FINAL BILL REPORT

                  HB 1865

                         C 143 L 93

                     Synopsis as Enacted

Brief Description:  Preventing check cashers and sellers from operating without a license.

By Representatives Mielke, Kremen, Zellinsky, Dorn, R. Meyers, Schmidt, Tate and Dellwo.

House Committee on Financial Institutions & Insurance

Senate Committee on Labor & Commerce

Background:  In 1991, the Legislature adopted a comprehensive licensing statute for persons and organizations engaged in the business of cashing and selling checks.  Under the act, the supervisor of banking was granted authority to issue a cease and desist order to licensees who violate the act; however, this authority extends only to persons and organizations who already maintain the required license.  If a person or organization fails to obtain the necessary license, the Office of the Attorney General must bring a Consumer Protection Act claim against the offending person or organization.  Bringing such an action is a time consuming and expensive process for the enforcement of state licensing requirements.  Several pawnbroker businesses are engaging in a check cashing business without a license.

Summary:  The supervisor of banking may issue cease and desist orders against any check casher or seller who is operating without the required state license, including pawnbrokers engaged in a check cashing business without the required license.

Votes on Final Passage:

House  98 0

Senate 45 0

Effective:  July 25, 1993