Bill Text: NY A07393 | 2019-2020 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to enacting the "community financial services access and modernization act of 2019"; modernizes existing statute to reflect the full scope of financial services available at neighborhood "check cashing" establishments; provides for a comprehensive regulatory framework for the delivery of the expanded financial services currently being offered.
Spectrum: Partisan Bill (Democrat 26-0)
Status: (Introduced - Dead) 2020-01-08 - referred to codes [A07393 Detail]
Download: New_York-2019-A07393-Introduced.html
Bill Title: Relates to enacting the "community financial services access and modernization act of 2019"; modernizes existing statute to reflect the full scope of financial services available at neighborhood "check cashing" establishments; provides for a comprehensive regulatory framework for the delivery of the expanded financial services currently being offered.
Spectrum: Partisan Bill (Democrat 26-0)
Status: (Introduced - Dead) 2020-01-08 - referred to codes [A07393 Detail]
Download: New_York-2019-A07393-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7393 2019-2020 Regular Sessions IN ASSEMBLY April 29, 2019 ___________ Introduced by M. of A. DE LA ROSA -- read once and referred to the Committee on Banks AN ACT to amend the banking law, in relation to enacting the "community financial services access and modernization act of 2019"; and provid- ing for the repeal of certain provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known as and may be cited as 2 the "community financial services access and modernization act of 2019". 3 § 2. Paragraph (b) of subdivision 5 of section 18-a of the banking 4 law, as amended by chapter 155 of the laws of 2012, is amended to read 5 as follows: 6 (b) two thousand dollars when the application relates to the licensing 7 of an additional location or change of location or the licensing of a 8 [mobile unit] limited station of a licensed casher of checks; or 9 § 3. Section 366 of the banking law, as amended by chapter 49 of the 10 laws of 1961, subdivision 1 as amended by chapter 849 of the laws of 11 1964 and as further amended by section 104 of part A of chapter 62 of 12 the laws of 2011, and subdivisions 2 and 3 as renumbered by chapter 132 13 of the laws of 1969, is amended to read as follows: 14 § 366. Definitions. When used in this article. 1. The term "licensed 15 casher of checks" means any [individual, partnership, unincorporated16association or corporation] person duly licensed by the superintendent 17 of financial services to engage in business pursuant to the provisions 18 of this article. 19 2. The term "licensee" means a licensed casher of checks, drafts 20 and/or money orders. 21 3. The term ["mobile unit"] "limited station" means any vehicle or 22 other movable means from which the business of [cashing checks, drafts23or money orders] providing financial services regulated by this article 24 is to be conducted. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06923-01-9A. 7393 2 1 4. The term "person" means any individual or other legal entity, 2 including any corporation, partnership, association or limited liability 3 company. 4 5. The term "financial services" means offering or providing any of 5 the following financial products or services: (a) the cashing of checks, 6 drafts and/or money orders, 7 (b) money transmission services as defined in article thirteen-B of 8 this chapter, provided, however, a licensed financial services provider 9 offering money transmission pursuant to article thirteen-B of this chap- 10 ter, other than as an agent of a licensee, shall first obtain a license 11 under that article, 12 (c) bill payment services, 13 (d) the sale of prepaid debit cards, and 14 (e) the dispensing of mass transit fare cards, or such other medium or 15 mechanism for the dispensing of mass transit fares. 16 6. The term "primary license" shall mean an original license issued by 17 the superintendent that authorizes a person to engage in the business of 18 cashing of checks and related financial services, and in the case of a 19 licensee who has multiple licensed business locations at the time of the 20 effective date of this subdivision, the initial longest site continuous- 21 ly licensed under this article. 22 7. The term "supplemental license" shall mean a license issued by the 23 superintendent that authorizes a person having a primary license to 24 engage in the business of cashing of checks and related financial 25 services at branch locations, and in the case of a licensee who has 26 multiple licensed business locations at the time of the effective date 27 of this subdivision, any license issued to an existing licensee after 28 the license for the original site. 29 § 4. Section 367 of the banking law, as amended by chapter 151 of the 30 laws of 1945, subdivision 3 as amended by section 7 of part D-1 of chap- 31 ter 109 of the laws of 2006, and subdivision 4 as amended by chapter 96 32 of the laws of 1981, is amended to read as follows: 33 § 367. License requirements; fees; capital requirements. 1. No 34 person[, partnership, association or corporation] shall engage in the 35 business of cashing checks, drafts or money orders for a consideration 36 without first obtaining a license from the superintendent. 37 2. Application for such license shall be in writing, under oath, and 38 in the form prescribed by the superintendent, and shall contain the 39 name, and the address both of the residence and place of business, of 40 the applicant, and if the applicant is a co-partnership [or], associ- 41 ation or limited liability company, of every member thereof, and if a 42 corporation, of each officer and director thereof; also, if the business 43 is to be conducted at a specific address, the address at which the busi- 44 ness is to be conducted, and if the business is to be conducted from a 45 [mobile unit] limited station, the New York state registration number or 46 other identification of such [mobile unit] limited station and the area 47 in which the applicant proposes to operate such [mobile unit] limited 48 station; and also such further information as the superintendent may 49 require. 50 3. Such applicant at the time of making such application shall pay to 51 the superintendent a fee as prescribed pursuant to section eighteen-a of 52 this chapter for investigating the application. An application for a 53 primary license shall be in writing, under oath, and in the form 54 prescribed by the superintendent and shall contain such information as 55 the superintendent may require by regulation. The application shall set 56 forth all of the locations at which the applicant seeks to conduct busi-A. 7393 3 1 ness hereunder. At the time of making the application for a primary 2 license, an existing licensee under this article shall pay to the super- 3 intendent the sum of two hundred fifty dollars for each proposed 4 location as a fee for investigating the application. An applicant that 5 does not currently hold a license under this article at the time of 6 application shall pay to the superintendent an application fee as 7 provided in this chapter for initial applications. Any licensee request- 8 ing a change of address, shall at the time of making such request, pay 9 to the superintendent a fee as prescribed pursuant to section eighteen-a 10 of this chapter for investigating the new address; provided, however, 11 that the superintendent may, in his or her discretion, waive such inves- 12 tigation fee if warranted, and provided further, that no fee shall be 13 payable for the relocation of a limited station. 14 4. Every applicant shall prove, in form satisfactory to the super- 15 intendent that he or it has available for the operation of such busi- 16 ness, for each location and for each [mobile unit] limited station spec- 17 ified in the application, liquid assets of at least ten thousand 18 dollars, and every licensee shall continuously maintain for the opera- 19 tion of such business for each location and for each [mobile unit] 20 limited station liquid assets of at least ten thousand dollars. Notwith- 21 standing the foregoing provisions of this subdivision, the superinten- 22 dent, upon application by an applicant and for good cause shown, may 23 permit a reduction from ten thousand dollars to not less than five thou- 24 sand dollars of minimum liquid assets required for each location. 25 § 5. Section 369 of the banking law, as amended by chapter 151 of the 26 laws of 1945, subdivision 1 as amended by chapter 233 of the laws of 27 2005, subdivisions 4 and 5 as amended by chapter 132 of the laws of 28 1969, subdivision 6 as amended by chapter 164 of the laws of 2003, para- 29 graph (b) of subdivision 6 as amended by section 6 of part LL of chapter 30 56 of the laws of 2010, and subdivision 7 as added by chapter 485 of the 31 laws of 1947, is amended to read as follows: 32 § 369. Conditions precedent to issuing license; issuance and filing of 33 license; posting license. 1. If the superintendent shall find that the 34 financial responsibility, experience, character, and general fitness of 35 the applicant, and of the members thereof if the applicant be a co-part- 36 nership [or], association or limited liability company, and of the offi- 37 cers and directors thereof if the applicant be a corporation, are such 38 as to command the confidence of the community and to warrant belief that 39 the business will be operated honestly, fairly, and efficiently within 40 the purposes of this article, and if the superintendent shall find that 41 the granting of such application will promote the convenience and advan- 42 tage of the area in which such business is to be conducted, and if the 43 superintendent shall find that the applicant has available for the oper- 44 ation of such business for each location and for each [mobile unit] 45 limited station specified in the application liquid assets of at least 46 ten thousand dollars, the superintendent shall thereupon execute a 47 primary license and if applicable one or more supplemental licenses in 48 duplicate to permit the [cashing of checks, drafts and money orders] 49 delivery of financial services in accordance with the provisions of this 50 article at the location or locations or in the area or areas specified 51 in such application. In finding whether the application will promote the 52 convenience and advantage to the public, the superintendent shall deter- 53 mine whether there is a community need for a new licensee in the 54 proposed area or areas to be served. No license shall be issued to an 55 applicant for a license, at a location to be licensed which is closer 56 than one thousand five hundred eighty-four feet (three-tenths of a mile)A. 7393 4 1 from an existing licensee, except with the written consent of such 2 existing licensee or pursuant to subdivision three of section three 3 hundred seventy of this article, subject to any restriction or condition 4 as the superintendent may promulgate by regulation; provided, however, 5 the superintendent may permit a location to be licensed that is closer 6 than three-tenths of a mile from an existing licensee provided such 7 applicant engages in the cashing of checks, drafts or money orders only 8 for payees of such checks, drafts or money orders that are other than 9 natural persons at the location to be licensed and such applicant was 10 engaged in the cashing of such checks, drafts or money orders for payees 11 that are other than natural persons at such location on or before the 12 fourteenth day of July, two thousand four, and provided further that 13 upon licensing any such location by the superintendent, such license as 14 it pertains solely to such location shall not be affected thereafter by 15 any change of control of such license pursuant to section three hundred 16 seventy-a of this article, provided that the licensee continues there- 17 after to engage at that location in the cashing of checks, drafts or 18 money orders only for payees that are other than natural persons and 19 provided further that such license shall bear a legend stating that such 20 location is restricted to the cashing of checks, drafts or money orders 21 only for payees that are other than natural persons. The three-tenths of 22 a mile distance requirement as set forth in this section shall not apply 23 in cases where the existing licensee is a restricted location as author- 24 ized in the preceding sentence, or is any other licensed location that 25 engages solely in the cashing of checks, drafts or money orders only for 26 payees that are other than natural persons. For purposes of this 27 section, such distance shall be measured on a straight line along the 28 street between the nearest point of the store fronts of the check cash- 29 ing facilities. The primary business of the licensee, at the location to 30 be licensed, shall be financial services. The superintendent shall tran- 31 smit one copy of such license to the applicant and file another in the 32 office of the department. Notwithstanding the foregoing provisions of 33 this subdivision, the superintendent, upon application by an applicant 34 and for good cause shown, may permit a reduction from ten thousand 35 dollars to not less than five thousand dollars of minimum liquid assets 36 required for each location. 37 2. Such license shall state the name of the licensee; and if the 38 licensee is a co-partnership [or], association or limited liability 39 company, the names of the members thereof; and if the licensee is a 40 corporation, the date of its incorporation; and if the business is to be 41 conducted at a specific address, the address at which such business is 42 to be conducted; and if the business is to be conducted through the use 43 of a [mobile unit] limited station, the New York state registration 44 number or other identification of such [mobile unit] limited station and 45 the area in which such [mobile unit] limited station is authorized to do 46 business. 47 3. [Such license] All licenses issued by the superintendent shall be 48 kept conspicuously posted in the place of business of the licensee or, 49 in the case of a [mobile unit] limited station, upon such [mobile unit] 50 limited station. Such license shall not be transferable or assignable. 51 4. Such license shall remain in full force and effect until it is 52 surrendered by the licensee or revoked or suspended as provided in this 53 article. In the case of a change of control of a location or a business 54 licensed hereunder, the licensee approved to acquire the business or 55 location may utilize a true copy of the existing license pending the 56 issuance of a new license by the superintendent.A. 7393 5 1 5. If the superintendent shall find that the applicant fails to meet 2 any of the conditions set forth in subdivision one of this section, he 3 or she shall not issue such license, and he or she shall notify the 4 applicant of the denial. If an application is denied or withdrawn, the 5 superintendent shall retain the investigation fee to cover the costs of 6 investigating the application and return the license fee to the appli- 7 cant. 8 6. The superintendent may refuse to issue a license pursuant to this 9 article if he or she shall find that the applicant, or any person who is 10 a director, officer, partner, agent, employee or substantial stockholder 11 of the applicant, (a) has been convicted of a crime in any jurisdiction 12 or (b) is associating or consorting with any person who has, or persons 13 who have, been convicted of a crime or crimes in any jurisdiction or 14 jurisdictions; provided, however, that the superintendent shall not 15 issue such a license if he or she shall find that the applicant, or any 16 person who is a director, officer, partner, agent, employee or substan- 17 tial stockholder of the applicant, has been convicted of a felony in any 18 jurisdiction or of a crime which, if committed within this state, would 19 constitute a felony under the laws thereof. For the purposes of this 20 article, a person shall be deemed to have been convicted of a crime if 21 such person shall have pleaded guilty to a charge thereof before a court 22 or magistrate, or shall have been found guilty thereof by the decision 23 or judgment of a court or magistrate or by the verdict of a jury, irre- 24 spective of the pronouncement of sentence or the suspension thereof, 25 unless such plea of guilty, or such decision, judgment or verdict, shall 26 have been set aside, reversed or otherwise abrogated by lawful judicial 27 process or unless the person convicted of the crime shall have received 28 a pardon therefor from the president of the United States or the gover- 29 nor or other pardoning authority in the jurisdiction where the 30 conviction was had, or shall have received a certificate of relief from 31 disabilities or a certificate of good conduct pursuant to article twen- 32 ty-three of the correction law to remove the disability under this arti- 33 cle because of such conviction. The term "substantial stockholder," as 34 used in this subdivision, shall be deemed to refer to a person owning or 35 controlling ten per centum or more of the total outstanding stock of the 36 corporation in which such person is a stockholder. In making a determi- 37 nation pursuant to this subdivision, the superintendent shall require 38 fingerprinting of the applicant. Such fingerprints shall be submitted to 39 the division of criminal justice services for a state criminal history 40 record check, as defined in subdivision one of section three thousand 41 thirty-five of the education law, and may be submitted to the federal 42 bureau of investigation for a national criminal history record check. 43 7. No license pursuant to this article shall be issued to any appli- 44 cant to do business at the place specified in the application as the 45 place where the business is to be conducted if, within the twelve months 46 preceding such application, a license to engage in business pursuant to 47 this article at such place shall have been revoked. 48 § 6. Section 370 of the banking law, as amended by chapter 151 of the 49 laws of 1945, subdivision 2 as amended by section 38 of part O of chap- 50 ter 59 of the laws of 2006 and subdivision 3 as amended by chapter 703 51 of the laws of 2006, is amended to read as follows: 52 § 370. Restrictions as to place or area of doing business; establish- 53 ment of stations; change of location. 1. No more than one place of busi- 54 ness or one [mobile unit] limited station shall be maintained under the 55 same license; provided, however, that more than one license may be 56 issued to the same licensee [upon compliance with the provisions of thisA. 7393 6 1article for each new license] and if the superintendent determines that 2 an existing licensee is in good standing and in compliance with the 3 provisions of this article, a subsequent application for a second or 4 multiple supplemental licenses at different, separate and additional 5 locations shall be expedited by the superintendent provided the minimum 6 liquidity requirements and community need criteria set forth in section 7 three hundred sixty-nine of this article have been demonstrated in the 8 application for the additional location or locations. 9 2. Any licensed casher of checks may open and maintain, within this 10 state, one or more limited stations for the purpose of cashing checks, 11 drafts or money orders for the particular group or groups specified in 12 the license authorizing each such station. Such stations shall be 13 licensed pursuant to and be subject to all the provisions of this chap- 14 ter applicable to licensed cashers of checks, except that (a) [such15station shall not be subject to the distance limitation set forth in16subdivision one of section three hundred sixty-nine of this article,17(b)] the fee for investigating the application for a station shall be as 18 prescribed pursuant to section eighteen-a of this chapter, and [(c)] (b) 19 where such a station is at the premises of a specified employer for the 20 purpose of cashing checks, drafts and money orders for the employees of 21 such employer, the fees and charges for cashing such checks, drafts or 22 money orders shall not be subject to the limitations of subdivision one 23 of section three hundred seventy-two of this article if such fees and 24 charges are paid by such employer. 25 3. A licensee may make a written application to the superintendent for 26 leave to change his or her place of business, or in the case of a 27 [mobile unit] limited station, the area in which such unit is authorized 28 to be operated, stating the reasons for such proposed change and in the 29 case where the applicant currently holds a primary license to operate a 30 business established under this article, the superintendent shall 31 streamline and reduce the information required from such applicant. Such 32 application may be approved for relocation from a site within three- 33 tenths of a mile of another licensee to another site within three-tenths 34 of a mile of such other licensee provided that such new site is farther 35 from such existing licensee than the site from which permission to relo- 36 cate is sought. Only in situations in which a licensee seeks to change 37 its place of business due to extraordinary circumstances, as may be 38 determined by the superintendent pursuant to regulations, may the super- 39 intendent, in his or her discretion, determine that an application may 40 be approved for relocation from a site within three-tenths of a mile of 41 another licensee to a new site which is closer to such existing licensee 42 than the site from which permission to relocate is sought. Notwithstand- 43 ing any other provision of this subdivision, a licensee may relocate 44 from any location to a location that is within three-tenths of a mile 45 from another licensee with the written consent of the other licensee. If 46 the superintendent approves such application he or she shall issue a new 47 license in duplicate in accordance with the provisions of section three 48 hundred sixty-nine of this article, stating the new location of such 49 licensee or, in the case of a [mobile unit] limited station, the new 50 area in which such [mobile unit] limited station may be operated. 51 § 7. Section 370-a of the banking law, as added by chapter 142 of the 52 laws of 1992, subdivision 1 as amended by section 39 of part O of chap- 53 ter 59 of the laws of 2006, is amended to read as follows: 54 § 370-a. Changes in control. 1. It shall be unlawful except with the 55 prior approval of the superintendent for any action to be taken which 56 results in a change of control of the business of a licensee. Prior toA. 7393 7 1 any change of control, the person desirous of acquiring control of the 2 business of a licensee, if such person is not already a licensee under 3 this article, shall make written application to the superintendent and 4 pay an investigation fee as prescribed pursuant to section eighteen-a of 5 this chapter to the superintendent. The application shall contain such 6 information as the superintendent, by rule or regulation, may prescribe 7 as necessary or appropriate, and in the case where the acquiring person 8 currently holds a primary license to operate a business established 9 under this article, and in the case of a limited station license, the 10 superintendent shall streamline and reduce the information required from 11 such applicant, for the purpose of making the determination required by 12 subdivision two of this section. 13 2. The superintendent shall approve or disapprove the proposed change 14 of control of a licensee in accordance with the provisions of subdivi- 15 sions one and six of section three hundred sixty-nine of this article. 16 The superintendent shall approve or disapprove the application in writ- 17 ing within ninety days after the date the application is filed with the 18 superintendent. 19 3. For a period of six months from the date of qualification thereof 20 and for such additional period of time as the superintendent may 21 prescribe, in writing, the provisions of subdivisions one and two of 22 this section shall not apply to a transfer of control by operation of 23 law to the legal representative, as hereinafter defined, of one who has 24 control of a licensee. Thereafter, such legal representative shall 25 comply with the provisions of subdivisions one and two of this section. 26 The provisions of subdivisions one and two of this section shall be 27 applicable to an application made under such section by a legal repre- 28 sentative. 29 The term "legal representative", for the purposes of this section, 30 shall mean one duly appointed by a court of competent jurisdiction to 31 act as executor, administrator, trustee, committee, conservator or 32 receiver, including one who succeeds a legal representative and one 33 acting in an ancillary capacity thereto in accordance with the 34 provisions of such court appointment. 35 4. As used in this section: (a) the term "person" includes an individ- 36 ual, partnership, corporation, association, limited liability company, 37 or any other organization, and (b) the term "control" means the 38 possession, directly or indirectly, of the power to direct or cause the 39 direction of the management and policies of a licensee, whether through 40 the ownership of voting stock of such licensee, the ownership of voting 41 stock of any person which possesses such power or otherwise. Control 42 shall be presumed to exist if any person, directly or indirectly, owns, 43 controls or holds with power to vote ten per centum or more of the 44 voting stock of any licensee or of any person which owns, controls or 45 holds with power to vote ten per centum or more of the voting stock of 46 any licensee, but no person shall be deemed to control a licensee solely 47 by reason of being an officer or director of such licensee or person. 48 The superintendent may in his or her discretion, upon the application of 49 a licensee or any person who, directly or indirectly, owns, controls or 50 holds with power to vote or seeks to own, control or hold with power to 51 vote any voting stock of such licensee, determine whether or not the 52 ownership, control or holding of such voting stock constitutes or would 53 constitute control of such licensee for purposes of this section. 54 § 8. Section 371 of the banking law, as added by chapter 151 of the 55 laws of 1945, is amended to read as follows:A. 7393 8 1 § 371. Regulations. The superintendent is hereby authorized and 2 empowered to make such rules and regulations, and such specific rulings, 3 demands, and findings as he or she may deem necessary for the proper 4 conduct of the business authorized and licensed under and for the 5 enforcement of this article, in addition hereto and not inconsistent 6 herewith. 7 § 9. Section 372 of the banking law, as amended by chapter 151 of the 8 laws of 1945, the section heading and subdivision 1 as amended and 9 subdivision 7 as added by chapter 432 of the laws of 2004, subdivisions 10 2, 3 and 4 as added and subdivisions 5 and 6 as renumbered by chapter 11 263 of the laws of 1983, and subdivision 6 as added by chapter 485 of 12 the laws of 1947, is amended to read as follows: 13 § 372. Fees and charges; posting schedule; records and reports. 1. The 14 superintendent shall, by regulation, establish the maximum fees which 15 may be charged by licensees for cashing a check, draft, or money order. 16 No licensee shall charge or collect any sum for cashing a check, draft, 17 or money order in excess of that established by the superintendent's 18 regulations; provided, however, that no maximum fee shall apply to the 19 charging of fees by licensees for the cashing of checks, drafts or money 20 orders for payees of such checks, drafts or money orders that are other 21 than natural persons. The licensee shall pay to every customer tendering 22 any check, draft or money order to be cashed, the entire face amount of 23 such instrument, less any charges permitted by the superintendent, in 24 such form and by such means as agreed upon by the customer on the same 25 date upon which such instrument is presented. 26 2. The schedule of fees and charges permitted under this section shall 27 be conspicuously and continuously posted in every location and [mobil28unit] limited station licensed under this article. 29 3. In the case of an internet, digital or other electronic advertise- 30 ment or solicitation, a licensee shall be deemed to have fulfilled the 31 disclosure requirements required by law by displaying the disclosures on 32 its website, so long as the advertisement or solicitation includes a 33 link directly to such website. 34 4. No change in fees shall become effective earlier than thirty days 35 after the superintendent shall notify the majority leader of the senate, 36 the speaker of the assembly, and the chairmen of both the senate and 37 assembly committees on banks of his or her intention to change fees. 38 [4.] 5. The fees in effect immediately prior to the effective date of 39 this subdivision shall continue to be the maximum allowable fees until 40 revised by the superintendent's regulations. 41 [5.] 6. Each licensee shall keep and use in its business such books, 42 accounts, and records as the superintendent may require to carry into 43 effect the provisions of this article and the rules and regulations made 44 by the superintendent hereunder. Every licensee shall preserve such 45 books, accounts and records for at least two years. 46 [6.] 7. Before a licensee shall deposit with any banking organization, 47 or with any organization engaged in the business of banking, a check, 48 draft or money order cashed by such licensee, the same must be endorsed 49 with the actual name under which such licensee is doing business and 50 must have the words "licensed casher of checks" legibly written or 51 stamped immediately after or below such name. 52 [7.] 8. Every licensee shall submit to the superintendent, or such 53 person as the superintendent may designate, such suspicious activity 54 reports or currency transaction reports as are required to be submitted 55 to federal authorities pursuant to provisions of the Bank Secrecy Act 56 (subchapter 11, chapter 53, title 31, United States code) and regu-A. 7393 9 1 lations and administrative orders related thereto, as amended, within 2 the periods of time as required by such act and regulations. A licensee 3 may submit a copy of any such report to the superintendent, or such 4 person as the superintendent may designate, that is filed with such 5 federal authorities. The superintendent may adopt such regulations or 6 require such additional reports as he or she deems necessary to insure 7 the effective enforcement of this subdivision. 8 § 10. Section 372-a of the banking law, as added by chapter 432 of the 9 laws of 2004, is amended to read as follows: 10 § 372-a. Superintendent authorized to examine. 1. For the purpose of 11 discovering violations of this article or securing information lawfully 12 required in this section, the superintendent may at any time, and as 13 often as may be determined, either personally or by a person duly desig- 14 nated by the superintendent, investigate the [cashing of checks by15licensees] business practices of a licensee rendering financial services 16 authorized by this article and examine the books, accounts, records, and 17 files used therein of every licensee. 18 2. For the purpose established in subdivision one of this section, the 19 superintendent and his or her duly designated representatives shall have 20 free access to the offices and places of business, books, accounts, 21 papers, records, files, safes and vaults of all such licensees. The 22 superintendent shall have authority to require the attendance of and to 23 examine under oath all persons whose testimony may be required relative 24 to such cashing of checks or such business. 25 § 11. Subdivisions 1 and 2 of section 373 of the banking law, subdivi- 26 sion 1 as amended by chapter 432 of the laws of 2004 and subdivision 2 27 as amended by chapter 132 of the laws of 1969, are amended to read as 28 follows: 29 1. No licensee shall engage in the business of making loans of money, 30 credit, goods or things or discounting of notes, bills of exchange, 31 checks, or other evidences of debt pursuant to the provisions of article 32 nine of this chapter, nor shall a loan business or the negotiation of 33 loans or the discounting of notes, bills of exchange, checks or other 34 evidences of debt be conducted on the same premises where the licensee 35 is conducting business pursuant to the provisions of this article. 36 Except as otherwise provided by regulation of the superintendent, all 37 checks, drafts and money orders shall be deposited in the licensee's 38 bank account not later than the first business day following the day on 39 which they were cashed. No licensee shall at any time cash or advance 40 any moneys on a post-dated check or draft or engage in the business of 41 transmitting money or receiving money for transmission; provided, howev- 42 er, that a licensee may cash a check [payable on the first banking busi-43ness day following the date of cashing (a) if such check is drawn by the44United States, the state of New York, or any political subdivision of45the state of New York, or by any department, bureau, agency, authority,46instrumentality or officer, acting in his official capacity, of the47United States or of the state of New York or of any political subdivi-48sion of the state of New York, or (b) if such check is a payroll check49drawn by an employer to the order of its employee in payment for50services performed by such employee] without regard to the date 51 imprinted on the check as long as the check is deposited in the 52 licensee's bank account not later than the first business day following 53 the day on which it was cashed. No licensee shall cash any check, draft 54 or money order if the face amount for which it is drawn is in excess of 55 [fifteen] twenty thousand dollars; provided, however, that this 56 restriction shall not apply to the cashing of checks, drafts or moneyA. 7393 10 1 orders drawn by the United States, any state thereof or any political 2 subdivision of any such state, or by any department, bureau, agency, 3 authority, instrumentality or officer, acting in his official capacity, 4 of the United States, any state thereof or any political subdivision of 5 any such state, or any [banking] financial institution, or to any check 6 or draft drawn by or on account of any insurance company, attorney for 7 the settlement of claims, or to any check which has been certified or 8 guaranteed by the banking institution on which it has been drawn, or if 9 such check is drawn on a bona fide workers' compensation fund issued by 10 a third-party payor, or if such check is drawn by an employer from a 11 pension or profit sharing fund, or if such check is drawn by a union 12 from a pension or benefit fund or if such check is drawn by a union; 13 provided further, however, that any such restriction upon the maximum 14 face amount that may be cashed by a licensee shall not apply to the 15 cashing of checks, drafts or money orders by licensees for payees of 16 such checks, drafts or money orders that are other than natural persons. 17 For purposes of this subdivision, "[banking] financial institution" 18 means any bank, trust company, savings bank, savings and loan associ- 19 ation [or], credit union or other financial institution which is incor- 20 porated, chartered [or], organized or licensed under the laws of this 21 state or any other state or the United States. 22 2. The superintendent may suspend or revoke any license or licenses 23 issued pursuant to this article if, after notice and a hearing, he or 24 she shall find that the licensee (a) has committed any fraud, engaged in 25 any dishonest activities or made any misrepresentation; or (b) has 26 violated any provisions of the banking law or any regulation issued 27 pursuant thereto, or has violated any other law in the course of its or 28 his dealings as a licensed casher of checks; or (c) has made a false 29 statement in the application for such license or failed to give a true 30 reply to a question in such application; or (d) has demonstrated his or 31 its incompetency or untrustworthiness to act as a licensed casher of 32 checks; or (e) is not doing sufficient business pursuant to this article 33 to justify the continuance of the license, or if he or she shall find 34 that any ground or grounds exist which would require or warrant the 35 refusal of an application for the issuance of the license if such an 36 application were then before him or her. Such a hearing shall be held 37 in the manner and upon such notice as may be prescribed by the super- 38 intendent. Pending an investigation or a hearing for the suspension or 39 revocation of any license or licenses issued pursuant to this article, 40 the superintendent may temporarily suspend such license or licenses for 41 a period not to exceed ninety days, provided the superintendent shall 42 find that such a temporary suspension is in the public interest. 43 § 12. Subdivision 3 of section 37 of the banking law, as amended by 44 chapter 360 of the laws of 1984, is amended to read as follows: 45 3. In addition to any reports expressly required by this chapter to be 46 made, the superintendent may require any banking organization, licensed 47 lender, licensed casher of checks, licensed mortgage banker, foreign 48 banking corporation licensed by the superintendent to do business in 49 this state, bank holding company and any non-banking subsidiary thereof, 50 corporate affiliate of a corporate banking organization within the mean- 51 ing of subdivision six of section thirty-six of this article and any 52 non-banking subsidiary of a corporation which is an affiliate of a 53 corporate banking organization within the meaning of subdivision six-a 54 of section thirty-six of this article to make special reports to him or 55 her at such times as he or she may prescribe.A. 7393 11 1 § 13. This act shall take effect on the one hundred eightieth day 2 after it shall have become a law; provided, however, that: 3 (a) the amendments to section 373 of the banking law made by section 4 eleven of this act shall expire and be deemed repealed June 30, 2024; 5 and 6 (b) any contract, instrument, argument or other written obligation 7 entered into by a financial service provider authorized under section 8 373 of the banking law prior to June 30, 2024 shall be deemed valid and 9 enforceable after such date. 10 Effective immediately the addition, amendment and/or repeal of any 11 rule or regulation necessary for the implementation of this act on its 12 effective date are authorized to be made and completed on or before such 13 effective date.