Sec. 6. CFPB oversight of providers of money transfer services for correctional and immigration detention facilities
380 words·~2 min read·
/bill/114/s/2054/is/section-6A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In this section— the term Bureau means the Bureau of Consumer Financial Protection; the term correctional facility means a jail, prison, or other detention facility used to house people who have been arrested, detained, held, or convicted by a criminal justice agency or a court; the term covered inmate means— an individual who is being held, detained, or incarcerated in a correctional facility; and an individual who is being held in an immigration detention facility; the term covered provider means a provider of a service, including a money transfer service, that— facilitates the electronic transfer of funds from an individual who is not a covered inmate to a covered inmate; provides a payment to a covered inmate who is being released from a correctional facility or an immigration detention facility; or provides a payment on behalf of a covered inmate; and the term immigration detention facility means a Federal, State, or local government facility, or a privately owned and operated facility, that is used, in whole or in part, to hold individuals under the authority of the Director of U.S.
Immigration and Customs Enforcement, including facilities that hold such individuals under a contract or agreement with the Department of Homeland Security. The amount of any fee or charge that a covered provider may impose with respect to a service described in subparagraph (A), (B), or
(C)of subsection (a)(4) shall be reasonable and proportional to the relative cost or value of the service. Not later than 3 years after the date of enactment of this Act, the Bureau shall issue final rules to establish standards for assessing whether the amount of any fee or charge described in subsection
(b)is reasonable and proportional to the relative cost or value of the service provided by a covered provider. In issuing the final rules under paragraph (1), the Bureau shall consider— whether there are alternative means for transferring funds into correctional facilities and immigration detention facilities; whether those alternatives can reasonably be considered comparable; differing cost structures for transferring funds into correctional facilities and immigration detention facilities; and such other factors as the Bureau may determine necessary or appropriate. In issuing the final rules under paragraph (1), the Bureau may establish different standards for different types of fees and charges, as appropriate.