Existing law requires every check casher to post a complete schedule of fees for cashing checks, the sale of money orders, and the issuance of identification.

This bill would prohibit a check casher from charging a fee for cashing a payroll check or government check in excess of 3% or 3.5% of the face amount of the check, depending on whether specified identification is furnished, or $3, whichever is greater. The bill would permit a check casher to charge a fee of no more than $10 to set up an initial account and issue an optional identification card for providing check cashing services, and to issue a replacement optional identification card at a cost not to exceed $5. The bill would require a check casher to provide a receipt to the customer for each transaction. A willful violation of these requirements would be a misdemeanor, thereby imposing a state-mandated local program by creating a new crime.

The bill would also require the owner of a check casher’s business to register his or her name, business name, social security number, and address with the Department of Justice, and would authorize the department to establish a reasonable fee for the registration. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.