00RS HB73

HB73

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HB 73 (BR 350) - J. Coleman, F. Rasche

     AN ACT related to deferred deposit transactions.
     Amend KRS 368.010 to define "check cashing", to clarify that a deferred deposit transaction means accepting a postdated check, and to define "postdated check"; amend KRS 368.020 to clarify that check cashing businesses and deferred deposit service businesses have separate licenses; amend KRS 368.090 to require the Department of Financial Institutions to promulgate administrative regulations and to conduct annual examinations of the business records of a licensee; amend 368.100 to establish that a deferred deposit service business is subject to KRS Chapter 360, relating to interest and usury; amend KRS 368.102 to require deferred deposit service businesses to display interest rates.

HB 73 - AMENDMENTS


     HCS - Amend KRS 368.090 to require the Department of Financial Institutions to promulgate administrative regulations regarding deferred deposit transaction service businesses; amend KRS 368.100 to establish that the fifteen ($15) fee charge is per one hundred dollars ($100) advanced to the customer, to establish that the five hundred dollar ($500) maximum includes all service fees, to require a seven (7) day lapse following payment before a new deferred deposit transaction may be consummated; to prohibit a customer from paying collection fees unless so ordered by a court or as set forth in KRS 368.102, to prohibit electronic debit of a customer's account; and amend KRS 368.102 to limit to two (2), the number of times a check may be presented to a financial institution for payment, to limit the check collection charge to a one (1) time, ten dollar ($10) fee.
     HFA (1, G. Stumbo) - Delete provision that prohibited a deferred deposit service business from entering into a new deferred deposit transaction with a customer for at least 7 days; add a new section stating the intent of the General Assembly.
     HFA (2, P. Bather) - Amend to define change the stay between deferred deposit transactions from 7 days to 24 hours and to exempt paydown option customers from the seven (7) day stay between deferred deposit transactions.
     HFA (3, P. Bather) - Amend to define "paydown option" and to exempt paydown option customers from the seven (7) day stay between deferred deposit transactions.
     SCA (1, E. Scorsone) - Delete the last section of the bill relating to legislative intent as to deferred deposit transactions.

     (Prefiled by the sponsor(s))

     Jan 4-introduced in House; to Banking and Insurance (H)
     Jan 10-posted in committee
     Jan 27-reported favorably, 1st reading, to Calendar with Committee Substitute
     Jan 28-2nd reading, to Rules
     Feb 2-posted for passage in the Regular Orders of the Day for Thursday, February 3, 2000
     Feb 8-floor amendment (1) filed to Committee Substitute
     Feb 10-floor amendments (2) and (3) filed to Committee Substitute
     Feb 14-3rd reading, passed 58-34 with Committee Substitute, floor amendment (1)
     Feb 15-received in Senate
     Feb 17-to Judiciary (S)
     Mar 23-reported favorably, 1st reading, to Calendar with committee amendment (1)
     Mar 24-2nd reading, to Rules


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