The bill amends Section 19-14-1 of the General Laws by updating definitions related to licensed financial activities. It defines "check cashing" as providing currency for checks, excluding certain types of checks, and expands "currency transmission" to include control of virtual currency transactions. The term "deferred-deposit transaction" is deleted, suggesting a move away from payday loans. The bill also updates the definitions of "lender," "loan," and introduces new terms such as "loan broker," "loan-closing services," and "Nationwide Multistate Licensing System." Additionally, it defines a range of other terms including "Natural person employee," "Negative equity," "Nonprofit organization," and "Operating subsidiary," among others, to provide a comprehensive legal framework for financial transactions and services.

The bill further specifies the definition of "virtual currency" and exempts certain entities from licensing requirements for making or brokering loans. It sets a maximum interest rate for small loans and amends fees for check-cashing services. Notably, the bill includes deletions of previous exemptions for licenses to make or fund loans or to act as a lender or small loan lender for those engaging in deferred deposit transactions with a valid check-cashing license. It also repeals Section 19-14.4-5.1, which allowed check cashers to defer the deposit of personal checks under certain conditions, effectively aiming to repeal provisions for payday lenders. The bill is set to take effect on January 1, 2024.

Statutes affected:
5160  as amended: 19-14-1, 19-14.1-10, 19-14.2-1, 19-14.4-5.1
5160: 19-14-1, 19-14.1-10, 19-14.2-1, 19-14.4-5.1