Louisiana House Bill HB425

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13
• Report Pass: 4/22/13
• Engrossed: 5/1/13
• Refer: 5/6/13
• Report Pass: 5/15/13
• Enrolled: 6/3/13
• Chaptered: 6/17/13
• Passed: 6/17/13

Caption

Requires presentment of identifying information when cashing federal or state treasury checks over a certain amount

Impact

Upon its enactment, HB 425 will introduce record-keeping requirements for check cashing facilities. Each licensed facility will be required to maintain detailed records of each transaction involving government checks over the specified amount for a minimum of three years. This includes retaining copies of the checks and the identification presented. The impact of this legislation will likely enhance the ability of state regulators to track potential fraudulent activities and provide a layer of protection for consumers and businesses by ensuring that only verified individuals can cash large checks.

Summary

House Bill 425 focuses on the regulation of check cashing facilities, emphasizing the need for proper identification when cashing federal and state treasury checks over a threshold amount. The bill mandates that individuals requesting to cash checks of one thousand dollars or greater must present valid identification that verifies their identity. Acceptable forms of identification include current state-issued driver's licenses, passports, and military identification cards. The intent behind this requirement is to enhance security and reduce the risk of fraud associated with cashing large checks.

Sentiment

The sentiment regarding HB 425 appears to be generally supportive among those concerned with fraud prevention and consumer protection. Advocates argue that the legislation is a necessary measure to safeguard against identity theft and financial fraud, fostering trust in check cashing operations. However, there may be pushback from those who feel that such regulations could create barriers for individuals who may not possess the requisite forms of identification, potentially impacting access to financial services for vulnerable populations.

Contention

Notable points of contention surrounding HB 425 could include discussions about the adequacy of the identification requirements and the burden they may impose on certain groups. Critics might argue that imposing rigid identification standards could unintentionally exclude individuals without access to specific forms of ID, thus limiting their ability to cash essential government checks. The requirement for extensive record retention may also raise concerns regarding privacy and the management of sensitive personal information.