Bill Text: NY S02796 | 2021-2022 | General Assembly | Amended

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"; 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 6-0)

Status: (Introduced - Dead) 2022-04-27 - PRINT NUMBER 2796B [S02796 Detail]

Download: New_York-2021-S02796-Amended.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                         2796--A

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 25, 2021
                                       ___________

        Introduced by Sens. SEPULVEDA, BENJAMIN, COMRIE, PARKER, SAVINO, SERRANO
          -- read twice and ordered printed, and when printed to be committed to
          the  Committee on Banks -- committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee

        AN ACT to amend the banking law, in relation to enacting the  "community
          financial  services access and modernization act of 2021"; 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 2021".
     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 and a new subdivision 4 is added to read
    14  as follows:
    15    § 366. Definitions. When used in this article. 1. The  term  "licensed
    16  casher  of  checks"  means  any [individual, partnership, unincorporated
    17  association or corporation] person duly licensed by  the  superintendent
    18  of  financial  services to engage in business pursuant to the provisions
    19  of this article.
    20    2. The term "licensee" means  a  licensed  casher  of  checks,  drafts
    21  and/or money orders.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04514-04-1
        S. 2796--A                          2

     1    3.  The  term  ["mobile  unit"] "limited station" means any vehicle or
     2  other movable means from which the business of cashing checks, drafts or
     3  money orders is to be conducted.
     4    4.  The  term "person"   means   any individual or other legal entity,
     5  including any corporation, partnership, association or limited liability
     6  company.
     7    § 4. Section 367 of the banking law, as amended by chapter 151 of  the
     8  laws of 1945, subdivision 3 as amended by section 7 of part D-1 of chap-
     9  ter  109 of the laws of 2006, and subdivision 4 as amended by chapter 96
    10  of the laws of 1981, is amended to read as follows:
    11    § 367.  License  requirements;  fees;  capital  requirements.  1.   No
    12  person[,  partnership,  association  or corporation] shall engage in the
    13  business of cashing checks, drafts or money orders for  a  consideration
    14  without first obtaining a license from the superintendent.
    15    2.  Application  for such license shall be in writing, under oath, and
    16  in the form prescribed by the  superintendent,  and  shall  contain  the
    17  name,  and  the  address both of the residence and place of business, of
    18  the applicant, and if the applicant is a  co-partnership  [or],  associ-
    19  ation  or  limited  liability company, of every member thereof, and if a
    20  corporation, of each officer and director thereof; also, if the business
    21  is to be conducted at a specific address, the address at which the busi-
    22  ness is to be conducted, and if the business is to be conducted  from  a
    23  [mobile unit] limited station, the New York state registration number or
    24  other  identification of such [mobile unit] limited station and the area
    25  in which the applicant proposes to operate such  [mobile  unit]  limited
    26  station;  and  also  such  further information as the superintendent may
    27  require.
    28    3. Such applicant at the time of making such application shall pay  to
    29  the superintendent a fee as prescribed pursuant to section eighteen-a of
    30  this chapter for investigating the application.  Any licensee requesting
    31  a  change  of  address, shall at the time of making such request, pay to
    32  the superintendent a fee as prescribed pursuant to section eighteen-a of
    33  this chapter for investigating the new address; provided, however,  that
    34  the  superintendent  may,  in his or her discretion, waive such investi-
    35  gation fee if warranted, and provided further,  that  no  fee  shall  be
    36  payable for the relocation of a limited station.
    37    4.  Every  applicant  shall  prove, in form satisfactory to the super-
    38  intendent that he or it has available for the operation  of  such  busi-
    39  ness, for each location and for each [mobile unit] limited station spec-
    40  ified  in  the  application,  liquid  assets  of  at  least ten thousand
    41  dollars, and every licensee shall continuously maintain for  the  opera-
    42  tion  of  such  business  for  each  location and for each [mobile unit]
    43  limited station liquid assets of at least ten thousand dollars. Notwith-
    44  standing the foregoing provisions of this subdivision,  the  superinten-
    45  dent,  upon  application  by  an applicant and for good cause shown, may
    46  permit a reduction from ten thousand dollars to not less than five thou-
    47  sand dollars of minimum liquid assets required for each location.
    48    § 5. Section 369 of the banking law, as amended by chapter 151 of  the
    49  laws  of  1945,  subdivision  1 as amended by chapter 233 of the laws of
    50  2005, subdivisions 4 and 5 as amended by chapter  132  of  the  laws  of
    51  1969,  subdivision  6 as amended by section 1 of subpart A of part II of
    52  chapter 55 of the laws of 2019, and subdivision 7 as  added  by  chapter
    53  485 of the laws of 1947, is amended to read as follows:
    54    § 369. Conditions precedent to issuing license; issuance and filing of
    55  license;  posting  license. 1. If the superintendent shall find that the
    56  financial responsibility, experience, character, and general fitness  of
        S. 2796--A                          3

     1  the applicant, and of the members thereof if the applicant be a co-part-
     2  nership [or], association or limited liability company, and of the offi-
     3  cers  and  directors thereof if the applicant be a corporation, are such
     4  as to command the confidence of the community and to warrant belief that
     5  the  business  will be operated honestly, fairly, and efficiently within
     6  the purposes of this article, and if the superintendent shall find  that
     7  the granting of such application will promote the convenience and advan-
     8  tage  of  the area in which such business is to be conducted, and if the
     9  superintendent shall find that the applicant has available for the oper-
    10  ation of such business for each location  and  for  each  [mobile  unit]
    11  limited  station  specified in the application liquid assets of at least
    12  ten thousand dollars,  the  superintendent  shall  thereupon  execute  a
    13  license  in  duplicate to permit the cashing of checks, drafts and money
    14  orders in accordance with the provisions of this article at the location
    15  or in the area specified in such application.  In  finding  whether  the
    16  application  will  promote  the convenience and advantage to the public,
    17  the superintendent shall determine whether there is a community need for
    18  a new licensee in the proposed area to be served. No  license  shall  be
    19  issued to an applicant for a license, at a location to be licensed which
    20  is  closer than one thousand five hundred eighty-four feet (three-tenths
    21  of a mile) from an existing licensee, except with the written consent of
    22  such existing licensee or pursuant to subdivision three of section three
    23  hundred seventy of this article, subject to any restriction or condition
    24  as the superintendent may promulgate by regulation;  provided,  however,
    25  the  superintendent  may permit a location to be licensed that is closer
    26  than three-tenths of a mile from  an  existing  licensee  provided  such
    27  applicant  engages in the cashing of checks, drafts or money orders only
    28  for payees of such checks, drafts or money orders that  are  other  than
    29  natural  persons  at  the location to be licensed and such applicant was
    30  engaged in the cashing of such checks, drafts or money orders for payees
    31  that are other than natural persons at such location on  or  before  the
    32  fourteenth  day  of  July,  two thousand four, and provided further that
    33  upon licensing any such location by the superintendent, such license  as
    34  it  pertains solely to such location shall not be affected thereafter by
    35  any change of control of such license pursuant to section three  hundred
    36  seventy-a  of  this article, provided that the licensee continues there-
    37  after to engage at that location in the cashing  of  checks,  drafts  or
    38  money  orders  only  for  payees that are other than natural persons and
    39  provided further that such license shall bear a legend stating that such
    40  location is restricted to the cashing of checks, drafts or money  orders
    41  only for payees that are other than natural persons. The three-tenths of
    42  a mile distance requirement as set forth in this section shall not apply
    43  in cases where the existing licensee is a restricted location as author-
    44  ized  in  the preceding sentence, or is any other licensed location that
    45  engages solely in the cashing of checks, drafts or money orders only for
    46  payees that are  other  than  natural  persons.  For  purposes  of  this
    47  section,  such  distance  shall be measured on a straight line along the
    48  street between the nearest point of the store fronts of the check  cash-
    49  ing facilities. The primary business of the licensee, at the location to
    50  be licensed, shall be financial services. The superintendent shall tran-
    51  smit  one  copy of such license to the applicant and file another in the
    52  office of the department. Notwithstanding the  foregoing  provisions  of
    53  this  subdivision,  the superintendent, upon application by an applicant
    54  and for good cause shown, may  permit  a  reduction  from  ten  thousand
    55  dollars  to not less than five thousand dollars of minimum liquid assets
    56  required for each location.
        S. 2796--A                          4

     1    2. Such license shall state the name  of  the  licensee;  and  if  the
     2  licensee  is  a  co-partnership  [or],  association or limited liability
     3  company, the names of the members thereof; and  if  the  licensee  is  a
     4  corporation, the date of its incorporation; and if the business is to be
     5  conducted  at  a specific address, the address at which such business is
     6  to be conducted; and if the business is to be conducted through the  use
     7  of  a  [mobile  unit]  limited  station, the New York state registration
     8  number or other identification of such [mobile unit] limited station and
     9  the area in which such [mobile unit] limited station is authorized to do
    10  business.
    11    3. Such license shall be kept conspicuously posted  in  the  place  of
    12  business  of  the  licensee  or,  in the case of a [mobile unit] limited
    13  station, upon such [mobile unit] limited station.   Such  license  shall
    14  not be transferable or assignable.
    15    4.  Such  license  shall  remain  in full force and effect until it is
    16  surrendered by the licensee or revoked or suspended as provided in  this
    17  article.
    18    5.  If  the superintendent shall find that the applicant fails to meet
    19  any of the conditions set forth in subdivision one of this  section,  he
    20  or  she  shall  not  issue  such license, and he or she shall notify the
    21  applicant of the denial.  If an application is denied or withdrawn,  the
    22  superintendent  shall retain the investigation fee to cover the costs of
    23  investigating the application and return the license fee to  the  appli-
    24  cant.
    25    6.  The  superintendent may, consistent with article twenty-three-A of
    26  the correction law, refuse to issue a license pursuant to  this  article
    27  if  he  or  she  shall  find  that the applicant, or any person who is a
    28  director, officer, partner, agent, employee or  substantial  stockholder
    29  of  the applicant, (a) has been convicted of a crime in any jurisdiction
    30  or (b) is associating or consorting with any person who has, or  persons
    31  who  have,  been  convicted  of a crime or crimes in any jurisdiction or
    32  jurisdictions. For the purposes of  this  article,  a  person  shall  be
    33  deemed  to  have  been  convicted  of  a crime if such person shall have
    34  pleaded guilty to a charge thereof before  a  court  or  magistrate,  or
    35  shall  have  been  found guilty thereof by the decision or judgment of a
    36  court or magistrate or by the verdict of a  jury,  irrespective  of  the
    37  pronouncement  of sentence or the suspension thereof. The term "substan-
    38  tial stockholder," as used in this subdivision, shall be deemed to refer
    39  to a person owning or controlling ten per centum or more  of  the  total
    40  outstanding  stock  of  the corporation in which such person is a stock-
    41  holder. In making a determination  pursuant  to  this  subdivision,  the
    42  superintendent shall require fingerprinting of the applicant. Such fing-
    43  erprints shall be submitted to the division of criminal justice services
    44  for a state criminal history record check, as defined in subdivision one
    45  of  section  three thousand thirty-five of the education law, and may be
    46  submitted to the federal bureau of investigation for a national criminal
    47  history record check.
    48    7. No license pursuant to this article shall be issued to  any  appli-
    49  cant  to  do  business  at the place specified in the application as the
    50  place where the business is to be conducted if, within the twelve months
    51  preceding such application, a license to engage in business pursuant  to
    52  this article at such place shall have been revoked.
    53    §  6. Section 370 of the banking law, as amended by chapter 151 of the
    54  laws of 1945, subdivision 2 as amended by section 38 of part O of  chap-
    55  ter  59  of the laws of 2006 and subdivision 3 as amended by chapter 703
    56  of the laws of 2006, is amended to read as follows:
        S. 2796--A                          5

     1    § 370. Restrictions as to place or area of doing business;  establish-
     2  ment of stations; change of location. 1. No more than one place of busi-
     3  ness  or one [mobile unit] limited station shall be maintained under the
     4  same license; provided, however, that  more  than  one  license  may  be
     5  issued  to the same licensee upon compliance with the provisions of this
     6  article for each new license.
     7    2. Any licensed casher of checks may open and  maintain,  within  this
     8  state,  one  or more limited stations for the purpose of cashing checks,
     9  drafts or money orders for the particular group or groups  specified  in
    10  the  license  authorizing  each  such  station.  Such  stations shall be
    11  licensed pursuant to and be subject to all the provisions of this  chap-
    12  ter  applicable  to  licensed  cashers  of  checks, except that (a) such
    13  station shall not be subject to the distance  limitation  set  forth  in
    14  subdivision one of section three hundred sixty-nine of this article, (b)
    15  the  fee  for  investigating  the  application for a station shall be as
    16  prescribed pursuant to section eighteen-a of this chapter, and (c) where
    17  such a station is at the  premises  of  a  specified  employer  for  the
    18  purpose  of cashing checks, drafts and money orders for the employees of
    19  such employer, the fees and charges for cashing such checks,  drafts  or
    20  money  orders shall not be subject to the limitations of subdivision one
    21  of section three hundred seventy-two of this article if  such  fees  and
    22  charges are paid by such employer.
    23    3. A licensee may make a written application to the superintendent for
    24  leave  to  change  his  or  her  place  of business, or in the case of a
    25  [mobile unit] limited station, the area in which such unit is authorized
    26  to be operated, stating the reasons for  such  proposed  change.    Such
    27  application  may  be  approved  for relocation from a site within three-
    28  tenths of a mile of another licensee to another site within three-tenths
    29  of a mile of such other licensee provided that such new site is  farther
    30  from such existing licensee than the site from which permission to relo-
    31  cate  is  sought. Only in situations in which a licensee seeks to change
    32  its place of business due to  extraordinary  circumstances,  as  may  be
    33  determined by the superintendent pursuant to regulations, may the super-
    34  intendent,  in  his or her discretion, determine that an application may
    35  be approved for relocation from a site within three-tenths of a mile  of
    36  another licensee to a new site which is closer to such existing licensee
    37  than the site from which permission to relocate is sought. Notwithstand-
    38  ing  any  other  provision  of this subdivision, a licensee may relocate
    39  from any location to a location that is within three-tenths  of  a  mile
    40  from another licensee with the written consent of the other licensee. If
    41  the superintendent approves such application he or she shall issue a new
    42  license  in duplicate in accordance with the provisions of section three
    43  hundred sixty-nine of this article, stating the  new  location  of  such
    44  licensee  or,  in  the  case of a [mobile unit] limited station, the new
    45  area in which such [mobile unit] limited station may be operated.
    46    § 7. Subdivision 4 of section 370-a of the banking law,  as  added  by
    47  chapter 142 of the laws of 1992, is amended to read as follows:
    48    4.  As  used in this section[: (a) the term "person" includes an indi-
    49  vidual, partnership, corporation, association or any other organization,
    50  and (b)], the term "control" means the possession, directly or indirect-
    51  ly, of the power to direct or cause the direction of the management  and
    52  policies of a licensee, whether through the ownership of voting stock of
    53  such  licensee,  the  ownership  of  voting  stock  of  any person which
    54  possesses such power or otherwise. Control shall be presumed to exist if
    55  any person, directly or indirectly, owns, controls or holds  with  power
    56  to vote ten per centum or more of the voting stock of any licensee or of
        S. 2796--A                          6

     1  any  person  which  owns,  controls  or holds with power to vote ten per
     2  centum or more of the voting stock of any licensee, but no person  shall
     3  be  deemed to control a licensee solely by reason of being an officer or
     4  director  of  such  licensee or person. The superintendent may in his or
     5  her discretion, upon the application of a licensee or  any  person  who,
     6  directly  or  indirectly,  owns, controls or holds with power to vote or
     7  seeks to own, control or hold with power to vote  any  voting  stock  of
     8  such  licensee, determine whether or not the ownership, control or hold-
     9  ing of such voting stock constitutes or would constitute control of such
    10  licensee for purposes of this section.
    11    § 8. Section 371 of the banking law, as added by chapter  151  of  the
    12  laws of 1945, is amended to read as follows:
    13    § 371.  Regulations.  The  superintendent  is  hereby  authorized  and
    14  empowered to make such rules and regulations, and such specific rulings,
    15  demands, and findings as he or she may deem  necessary  for  the  proper
    16  conduct  of  the  business  authorized  and  licensed  under and for the
    17  enforcement of this article, in addition  hereto  and  not  inconsistent
    18  herewith.
    19    §  9. Section 372 of the banking law, as amended by chapter 151 of the
    20  laws of 1945, the section heading  and  subdivision  1  as  amended  and
    21  subdivision  7 as added by chapter 432 of the laws of 2004, subdivisions
    22  2, 3 and 4 as added and subdivisions 5 and 6 as  renumbered  by  chapter
    23  263  of  the  laws of 1983, and subdivision 6 as added by chapter 485 of
    24  the laws of 1947, is amended to read as follows:
    25    § 372. Fees and charges; posting schedule; records and reports. 1. The
    26  superintendent shall, by regulation, establish the  maximum  fees  which
    27  may  be charged by licensees for cashing a check, draft, or money order.
    28  No licensee shall charge or collect any sum for cashing a check,  draft,
    29  or  money  order  in  excess of that established by the superintendent's
    30  regulations; provided, however, that no maximum fee shall apply  to  the
    31  charging of fees by licensees for the cashing of checks, drafts or money
    32  orders  for payees of such checks, drafts or money orders that are other
    33  than natural persons.
    34    2. The schedule of fees and charges permitted under this section shall
    35  be conspicuously and continuously posted in every  location  and  [mobil
    36  unit] limited station licensed under this article.
    37    3. Only in the case of an internet, digital or other electronic adver-
    38  tisement  or  solicitation, a licensee shall be deemed to have fulfilled
    39  the disclosure requirements required by law with respect to such  inter-
    40  net,  digital  or other electronic advertisement or solicitation only by
    41  displaying the disclosures on its website, so long as the  advertisement
    42  or  solicitation  includes a link directly to such website, and provided
    43  this does not modify in-store disclosure requirements.
    44    4. No change in fees shall become effective earlier than  thirty  days
    45  after the superintendent shall notify the majority leader of the senate,
    46  the  speaker  of  the  assembly, and the chairmen of both the senate and
    47  assembly committees on banks of his or her intention to change fees.
    48    [4.] 5. The fees in effect immediately prior to the effective date  of
    49  this  subdivision  shall continue to be the maximum allowable fees until
    50  revised by the superintendent's regulations.
    51    [5.] 6. Each licensee shall keep and use in its business  such  books,
    52  accounts,  and  records  as the superintendent may require to carry into
    53  effect the provisions of this article and the rules and regulations made
    54  by the superintendent hereunder.  Every  licensee  shall  preserve  such
    55  books, accounts and records for at least two years.
        S. 2796--A                          7

     1    [6.] 7. Before a licensee shall deposit with any banking organization,
     2  or  with  any  organization engaged in the business of banking, a check,
     3  draft or money order cashed by such licensee, the same must be  endorsed
     4  with  the  actual  name  under which such licensee is doing business and
     5  must  have  the  words  "licensed  casher  of checks" legibly written or
     6  stamped immediately after or below such name.
     7    [7.] 8. Every licensee shall submit to  the  superintendent,  or  such
     8  person  as  the  superintendent  may designate, such suspicious activity
     9  reports or currency transaction reports as are required to be  submitted
    10  to  federal  authorities  pursuant to provisions of the Bank Secrecy Act
    11  (subchapter 11, chapter 53, title 31,  United  States  code)  and  regu-
    12  lations  and  administrative  orders related thereto, as amended, within
    13  the periods of time as required by such act and regulations. A  licensee
    14  may  submit  a  copy  of  any such report to the superintendent, or such
    15  person as the superintendent may designate,  that  is  filed  with  such
    16  federal  authorities.  The  superintendent may adopt such regulations or
    17  require such additional reports as he or she deems necessary  to  insure
    18  the effective enforcement of this subdivision.
    19    § 10. Section 372-a of the banking law, as added by chapter 432 of the
    20  laws of 2004, is amended to read as follows:
    21    §  372-a.  Superintendent authorized to examine. 1. For the purpose of
    22  discovering violations of this article or securing information  lawfully
    23  required  in  this  section,  the superintendent may at any time, and as
    24  often as may be determined, either personally or by a person duly desig-
    25  nated by the superintendent, investigate  the  [cashing  of  checks  by]
    26  licensees and their business practices as authorized by this article and
    27  examine  the  books,  accounts, records, and files used therein of every
    28  licensee.
    29    2. For the purpose established in subdivision one of this section, the
    30  superintendent and his or her duly designated representatives shall have
    31  free access to the offices and  places  of  business,  books,  accounts,
    32  papers,  records,  files,  safes  and  vaults of all such licensees. The
    33  superintendent shall have authority to require the attendance of and  to
    34  examine  under oath all persons whose testimony may be required relative
    35  to such cashing of checks or such business.
    36    § 11. Subdivisions 1 and 2 of section 373 of the banking law, subdivi-
    37  sion 1 as amended by chapter 432 of the laws of 2004 and  subdivision  2
    38  as  amended  by  chapter 132 of the laws of 1969, are amended to read as
    39  follows:
    40    1. No licensee shall engage in the business of making loans of  money,
    41  credit,  goods  or  things  or  discounting of notes, bills of exchange,
    42  checks, or other evidences of debt pursuant to the provisions of article
    43  nine of this chapter, nor shall a loan business or  the  negotiation  of
    44  loans  or  the  discounting of notes, bills of exchange, checks or other
    45  evidences of debt be conducted on the same premises where  the  licensee
    46  is  conducting  business  pursuant  to  the  provisions of this article.
    47  Except as otherwise provided by regulation of  the  superintendent,  all
    48  checks,  drafts  and  money  orders shall be deposited in the licensee's
    49  bank account not later than the first business day following the day  on
    50  which  they  were  cashed. No licensee shall at any time cash or advance
    51  any moneys on a post-dated check or draft or engage in the  business  of
    52  transmitting money or receiving money for transmission; provided, howev-
    53  er, that a licensee may cash a check [payable on the first banking busi-
    54  ness day following the date of cashing (a) if such check is drawn by the
    55  United  States,  the  state of New York, or any political subdivision of
    56  the state of New York, or by any department, bureau, agency,  authority,
        S. 2796--A                          8

     1  instrumentality  or  officer,  acting  in  his official capacity, of the
     2  United States or of the state of New York or of any  political  subdivi-
     3  sion  of  the state of New York, or (b) if such check is a payroll check
     4  drawn  by  an  employer  to  the  order  of  its employee in payment for
     5  services  performed  by  such  employee]  without  regard  to  the  date
     6  imprinted  on the check as long as the check is dated not more than five
     7  business days after the date of presentment and as long as the check  is
     8  deposited  in the licensee's bank account not later than the first busi-
     9  ness day following the day on which it was cashed that is:  (a)  payable
    10  no more than five banking business days following the date of cashing if
    11  such  check is drawn by the United States, the state of New York, or any
    12  political subdivision of the state of New York, or  by  any  department,
    13  bureau,  agency, authority, instrumentality or officer, acting in his or
    14  her official capacity, of the United States or of the state of New  York
    15  or of any political subdivision of the state of New York; (b) payable no
    16  more  than  five  banking business days following the date of cashing if
    17  such check is payable to a natural  person  and  is  in  an  amount  not
    18  exceeding  one  thousand  dollars;  or  (c) payable on the first banking
    19  business day following the date of cashing if such check  is  a  payroll
    20  check  drawn  by an employer to the order of its employee in payment for
    21  services performed by such employee. Any licensee who cashes  post-dated
    22  checks  pursuant to paragraph (a) or (b) of this subdivision shall do so
    23  subject to the  safety  and  soundness  requirements  of  this  article,
    24  including  establishment  of policies and procedures to implement robust
    25  due diligence, risk management, liquidity management, structured  trans-
    26  actions  and  fraud prevention.  No licensee shall cash any check, draft
    27  or money order if the face amount for which it is drawn is in excess  of
    28  [fifteen]   twenty   thousand  dollars;  provided,  however,  that  this
    29  restriction shall not apply to the cashing of checks,  drafts  or  money
    30  orders  drawn  by  the United States, any state thereof or any political
    31  subdivision of any such state, or by  any  department,  bureau,  agency,
    32  authority,  instrumentality  or  officer,  acting in his or her official
    33  capacity, of the United States,  any  state  thereof  or  any  political
    34  subdivision  of  any such state, or any [banking] financial institution,
    35  or to any check or draft drawn by or on account of any insurance  compa-
    36  ny,  attorney  for  the  settlement of claims, or to any check which has
    37  been certified or guaranteed by the [banking] financial  institution  on
    38  which  it has been drawn, or if such check is drawn on a bona fide work-
    39  ers' compensation fund issued by a third-party payor, or if  such  check
    40  is  drawn  by  an  employer from a pension or profit sharing fund, or if
    41  such check is drawn by a union from a pension or benefit fund or if such
    42  check is drawn by a union; provided  further,  however,  that  any  such
    43  restriction  upon the maximum face amount that may be cashed by a licen-
    44  see shall not apply to the cashing of checks, drafts or money orders  by
    45  licensees  for  payees  of  such checks, drafts or money orders that are
    46  other than natural persons. For purposes of this subdivision, "[banking]
    47  financial institution" means any  bank,  trust  company,  savings  bank,
    48  savings  and  loan  association  [or],  credit  union or other financial
    49  institution which is incorporated, chartered [or], organized or licensed
    50  under the laws of this state or any other state or the United States.
    51    2. The superintendent may suspend or revoke any  license  or  licenses
    52  issued  pursuant  to  this article if, after notice and a hearing, he or
    53  she shall find that the licensee (a) has committed any fraud, engaged in
    54  any dishonest activities or  made  any  misrepresentation;  or  (b)  has
    55  violated  any  provisions  of  the  banking law or any regulation issued
    56  pursuant thereto, or has violated any other law in the course of its  or
        S. 2796--A                          9

     1  his  or  her  dealings as a licensed casher of checks; or (c) has made a
     2  false statement in the application for such license or failed to give  a
     3  true  reply  to  a question in such application; or (d) has demonstrated
     4  his or its incompetency or untrustworthiness to act as a licensed casher
     5  of  checks;  or  (e)  is  not doing sufficient business pursuant to this
     6  article to justify the continuance of the license, or if he or she shall
     7  find that any ground or grounds exist which would require or warrant the
     8  refusal of an application for the issuance of the  license  if  such  an
     9  application  were  then before him or her.  Such a hearing shall be held
    10  in the manner and upon such notice as may be prescribed  by  the  super-
    11  intendent.  Pending  an investigation or a hearing for the suspension or
    12  revocation of any license or licenses issued pursuant to  this  article,
    13  the  superintendent may temporarily suspend such license or licenses for
    14  a period not to exceed ninety days, provided  the  superintendent  shall
    15  find that such a temporary suspension is in the public interest.
    16    §  12.   Subdivision 3 of section 37 of the banking law, as amended by
    17  chapter 360 of the laws of 1984, is amended to read as follows:
    18    3. In addition to any reports expressly required by this chapter to be
    19  made, the superintendent may require any banking organization,  licensed
    20  lender,  licensed  casher  of  checks, licensed mortgage banker, foreign
    21  banking corporation licensed by the superintendent  to  do  business  in
    22  this state, bank holding company and any non-banking subsidiary thereof,
    23  corporate affiliate of a corporate banking organization within the mean-
    24  ing  of  subdivision  six  of section thirty-six of this article and any
    25  non-banking subsidiary of a corporation  which  is  an  affiliate  of  a
    26  corporate  banking  organization within the meaning of subdivision six-a
    27  of section thirty-six of this article to make special reports to him  or
    28  her at such times as he or she may prescribe.
    29    §  13.    Within  ninety  days  of the effective date of this act, the
    30  superintendent of financial services shall  commence  a  review  of  its
    31  current  system  of  issuing  licenses  for check cashing licensees, the
    32  establishment of new check cashing  locations,  for  the  relocation  of
    33  check  cashing  locations,  and for changes of control of existing check
    34  cashing licensees, and will issue a report to the governor, the chairman
    35  of the assembly banks committee, and the chairman of  the  senate  banks
    36  committee,  regarding the costs (including application fees, preparation
    37  fees, and other costs) incurred by  applicants  to  prepare  and  submit
    38  applications, the costs incurred by the department of financial services
    39  to  review and process applications, the length of time required for the
    40  review and processing of applications by such department, and  recommen-
    41  dations  to  improve  the  efficiency and lessen the costs, burdens, and
    42  length of such department's licensing processes. The  superintendent  of
    43  financial  services  shall  report to the governor and to the respective
    44  committee chairs within one hundred eighty days of the date of commence-
    45  ment of his or her review.  The  superintendent  of  financial  services
    46  shall consult with and receive input from check cashing licensees in the
    47  preparation of its analysis and report.
    48    §  14.    This  act shall take effect on the one hundred eightieth day
    49  after it shall have become a law; provided, however, that:
    50    (a) the amendments to section 373 of the banking law made  by  section
    51  eleven  of  this  act shall expire and be deemed repealed June 30, 2026;
    52  and
    53    (b) any contract, instrument, argument  or  other  written  obligation
    54  entered  into  by  a financial service provider authorized under section
    55  373 of the banking law prior to June 30, 2026 shall be deemed valid  and
    56  enforceable after such date.
        S. 2796--A                         10

     1    Effective  immediately  the  addition,  amendment and/or repeal of any
     2  rule or regulation necessary for the implementation of this act  on  its
     3  effective date are authorized to be made and completed on or before such
     4  effective date.