Bill Text: NY S05423 | 2019-2020 | General Assembly | Introduced


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 4-0)

Status: (Introduced) 2019-04-30 - REFERRED TO BANKS [S05423 Detail]

Download: New_York-2019-S05423-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5423
                               2019-2020 Regular Sessions
                    IN SENATE
                                     April 30, 2019
                                       ___________
        Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
          printed to be committed 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,  unincorporated
    16  association  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, drafts
    23  or 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.
                                                                   LBD06923-02-9

        S. 5423                             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-

        S. 5423                             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 section 1 of subpart A of part II of
    29  chapter 55 of the laws of 2019, and subdivision 7 as  added  by  chapter
    30  485 of the laws of 1947, is amended to read as follows:
    31    § 369. Conditions precedent to issuing license; issuance and filing of
    32  license;  posting  license. 1. If the superintendent shall find that the
    33  financial responsibility, experience, character, and general fitness  of
    34  the applicant, and of the members thereof if the applicant be a co-part-
    35  nership [or], association or limited liability company, and of the offi-
    36  cers  and  directors thereof if the applicant be a corporation, are such
    37  as to command the confidence of the community and to warrant belief that
    38  the business will be operated honestly, fairly, and  efficiently  within
    39  the  purposes of this article, and if the superintendent shall find that
    40  the granting of such application will promote the convenience and advan-
    41  tage of the area in which such business is to be conducted, and  if  the
    42  superintendent shall find that the applicant has available for the oper-
    43  ation  of  such  business  for  each location and for each [mobile unit]
    44  limited station specified in the application liquid assets of  at  least
    45  ten  thousand  dollars,  the  superintendent  shall  thereupon execute a
    46  primary license and if applicable one or more supplemental  licenses  in
    47  duplicate  to  permit  the  [cashing of checks, drafts and money orders]
    48  delivery of financial services in accordance with the provisions of this
    49  article at the location or locations or in the area or  areas  specified
    50  in such application. In finding whether the application will promote the
    51  convenience and advantage to the public, the superintendent shall deter-
    52  mine  whether  there  is  a  community  need  for  a new licensee in the
    53  proposed area or areas to be served. No license shall be  issued  to  an
    54  applicant  for  a  license, at a location to be licensed which is closer
    55  than one thousand five hundred eighty-four feet (three-tenths of a mile)
    56  from an existing licensee, except  with  the  written  consent  of  such

        S. 5423                             4
     1  existing  licensee  or  pursuant  to  subdivision three of section three
     2  hundred seventy of this article, subject to any restriction or condition
     3  as the superintendent may promulgate by regulation;  provided,  however,
     4  the  superintendent  may permit a location to be licensed that is closer
     5  than three-tenths of a mile from  an  existing  licensee  provided  such
     6  applicant  engages in the cashing of checks, drafts or money orders only
     7  for payees of such checks, drafts or money orders that  are  other  than
     8  natural  persons  at  the location to be licensed and such applicant was
     9  engaged in the cashing of such checks, drafts or money orders for payees
    10  that are other than natural persons at such location on  or  before  the
    11  fourteenth  day  of  July,  two thousand four, and provided further that
    12  upon licensing any such location by the superintendent, such license  as
    13  it  pertains solely to such location shall not be affected thereafter by
    14  any change of control of such license pursuant to section three  hundred
    15  seventy-a  of  this article, provided that the licensee continues there-
    16  after to engage at that location in the cashing  of  checks,  drafts  or
    17  money  orders  only  for  payees that are other than natural persons and
    18  provided further that such license shall bear a legend stating that such
    19  location is restricted to the cashing of checks, drafts or money  orders
    20  only for payees that are other than natural persons. The three-tenths of
    21  a mile distance requirement as set forth in this section shall not apply
    22  in cases where the existing licensee is a restricted location as author-
    23  ized  in  the preceding sentence, or is any other licensed location that
    24  engages solely in the cashing of checks, drafts or money orders only for
    25  payees that are  other  than  natural  persons.  For  purposes  of  this
    26  section,  such  distance  shall be measured on a straight line along the
    27  street between the nearest point of the store fronts of the check  cash-
    28  ing facilities. The primary business of the licensee, at the location to
    29  be licensed, shall be financial services. The superintendent shall tran-
    30  smit  one  copy of such license to the applicant and file another in the
    31  office of the department. Notwithstanding the  foregoing  provisions  of
    32  this  subdivision,  the superintendent, upon application by an applicant
    33  and for good cause shown, may  permit  a  reduction  from  ten  thousand
    34  dollars  to not less than five thousand dollars of minimum liquid assets
    35  required for each location.
    36    2. Such license shall state the name  of  the  licensee;  and  if  the
    37  licensee  is  a  co-partnership  [or],  association or limited liability
    38  company, the names of the members thereof; and  if  the  licensee  is  a
    39  corporation, the date of its incorporation; and if the business is to be
    40  conducted  at  a specific address, the address at which such business is
    41  to be conducted; and if the business is to be conducted through the  use
    42  of  a  [mobile  unit]  limited  station, the New York state registration
    43  number or other identification of such [mobile unit] limited station and
    44  the area in which such [mobile unit] limited station is authorized to do
    45  business.
    46    3. [Such license] All licenses issued by the superintendent  shall  be
    47  kept  conspicuously  posted in the place of business of the licensee or,
    48  in the case of a [mobile unit] limited station, upon such [mobile  unit]
    49  limited station.  Such license shall not be transferable or assignable.
    50    4.  Such  license  shall  remain  in full force and effect until it is
    51  surrendered by the licensee or revoked or suspended as provided in  this
    52  article.  In the case of a change of control of a location or a business
    53  licensed hereunder, the licensee approved to  acquire  the  business  or
    54  location  may  utilize  a  true copy of the existing license pending the
    55  issuance of a new license by the superintendent.

        S. 5423                             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, consistent with article twenty-three-A of
     9  the correction law, refuse to issue a license pursuant to  this  article
    10  if  he  or  she  shall  find  that the applicant, or any person who is a
    11  director, officer, partner, agent, employee or  substantial  stockholder
    12  of  the applicant, (a) has been convicted of a crime in any jurisdiction
    13  or (b) is associating or consorting with any person who has, or  persons
    14  who  have,  been  convicted  of a crime or crimes in any jurisdiction or
    15  jurisdictions. For the purposes of  this  article,  a  person  shall  be
    16  deemed  to  have  been  convicted  of  a crime if such person shall have
    17  pleaded guilty to a charge thereof before  a  court  or  magistrate,  or
    18  shall  have  been  found guilty thereof by the decision or judgment of a
    19  court or magistrate or by the verdict of a  jury,  irrespective  of  the
    20  pronouncement  of sentence or the suspension thereof. The term "substan-
    21  tial stockholder," as used in this subdivision, shall be deemed to refer
    22  to a person owning or controlling ten per centum or more  of  the  total
    23  outstanding  stock  of  the corporation in which such person is a stock-
    24  holder. In making a determination  pursuant  to  this  subdivision,  the
    25  superintendent shall require fingerprinting of the applicant. Such fing-
    26  erprints shall be submitted to the division of criminal justice services
    27  for a state criminal history record check, as defined in subdivision one
    28  of  section  three thousand thirty-five of the education law, and may be
    29  submitted to the federal bureau of investigation for a national criminal
    30  history record check.
    31    7. No license pursuant to this article shall be issued to  any  appli-
    32  cant  to  do  business  at the place specified in the application as the
    33  place where the business is to be conducted if, within the twelve months
    34  preceding such application, a license to engage in business pursuant  to
    35  this article at such place shall have been revoked.
    36    §  6. Section 370 of the banking law, as amended by chapter 151 of the
    37  laws of 1945, subdivision 2 as amended by section 38 of part O of  chap-
    38  ter  59  of the laws of 2006 and subdivision 3 as amended by chapter 703
    39  of the laws of 2006, is amended to read as follows:
    40    § 370. Restrictions as to place or area of doing business;  establish-
    41  ment of stations; change of location. 1. No more than one place of busi-
    42  ness  or one [mobile unit] limited station shall be maintained under the
    43  same license; provided, however, that  more  than  one  license  may  be
    44  issued to the same licensee [upon compliance with the provisions of this
    45  article  for each new license] and if the superintendent determines that
    46  an existing licensee is in good standing  and  in  compliance  with  the
    47  provisions  of  this  article,  a subsequent application for a second or
    48  multiple supplemental licenses at  different,  separate  and  additional
    49  locations  shall be expedited by the superintendent provided the minimum
    50  liquidity requirements and community need criteria set forth in  section
    51  three  hundred  sixty-nine of this article have been demonstrated in the
    52  application for the additional location or locations.
    53    2. Any licensed casher of checks may open and  maintain,  within  this
    54  state,  one  or more limited stations for the purpose of cashing checks,
    55  drafts or money orders for the particular group or groups  specified  in
    56  the  license  authorizing  each  such  station.  Such  stations shall be

        S. 5423                             6
     1  licensed pursuant to and be subject to all the provisions of this  chap-
     2  ter  applicable  to  licensed  cashers  of checks, except that (a) [such
     3  station shall not be subject to the distance  limitation  set  forth  in
     4  subdivision  one  of  section  three hundred sixty-nine of this article,
     5  (b)] the fee for investigating the application for a station shall be as
     6  prescribed pursuant to section eighteen-a of this chapter, and [(c)] (b)
     7  where such a station is at the premises of a specified employer for  the
     8  purpose  of cashing checks, drafts and money orders for the employees of
     9  such employer, the fees and charges for cashing such checks,  drafts  or
    10  money  orders shall not be subject to the limitations of subdivision one
    11  of section three hundred seventy-two of this article if  such  fees  and
    12  charges are paid by such employer.
    13    3. A licensee may make a written application to the superintendent for
    14  leave  to  change  his  or  her  place  of business, or in the case of a
    15  [mobile unit] limited station, the area in which such unit is authorized
    16  to be operated, stating the reasons for such proposed change and in  the
    17  case  where the applicant currently holds a primary license to operate a
    18  business  established  under  this  article,  the  superintendent  shall
    19  streamline and reduce the information required from such applicant. Such
    20  application  may  be  approved  for relocation from a site within three-
    21  tenths of a mile of another licensee to another site within three-tenths
    22  of a mile of such other licensee provided that such new site is  farther
    23  from such existing licensee than the site from which permission to relo-
    24  cate  is  sought. Only in situations in which a licensee seeks to change
    25  its place of business due to  extraordinary  circumstances,  as  may  be
    26  determined by the superintendent pursuant to regulations, may the super-
    27  intendent,  in  his or her discretion, determine that an application may
    28  be approved for relocation from a site within three-tenths of a mile  of
    29  another licensee to a new site which is closer to such existing licensee
    30  than the site from which permission to relocate is sought. Notwithstand-
    31  ing  any  other  provision  of this subdivision, a licensee may relocate
    32  from any location to a location that is within three-tenths  of  a  mile
    33  from another licensee with the written consent of the other licensee. If
    34  the superintendent approves such application he or she shall issue a new
    35  license  in duplicate in accordance with the provisions of section three
    36  hundred sixty-nine of this article, stating the  new  location  of  such
    37  licensee  or,  in  the  case of a [mobile unit] limited station, the new
    38  area in which such [mobile unit] limited station may be operated.
    39    § 7. Section 370-a of the banking law, as added by chapter 142 of  the
    40  laws  of 1992, subdivision 1 as amended by section 39 of part O of chap-
    41  ter 59 of the laws of 2006, is amended to read as follows:
    42    § 370-a. Changes in control. 1. It shall be unlawful except  with  the
    43  prior  approval  of  the superintendent for any action to be taken which
    44  results in a change of control of the business of a licensee.  Prior  to
    45  any  change  of control, the person desirous of acquiring control of the
    46  business of a licensee, if such person is not already a  licensee  under
    47  this  article,  shall make written application to the superintendent and
    48  pay an investigation fee as prescribed pursuant to section eighteen-a of
    49  this chapter to the superintendent. The application shall  contain  such
    50  information  as the superintendent, by rule or regulation, may prescribe
    51  as necessary or appropriate, and in the case where the acquiring  person
    52  currently  holds  a  primary  license  to operate a business established
    53  under this article, and in the case of a limited  station  license,  the
    54  superintendent shall streamline and reduce the information required from
    55  such  applicant, for the purpose of making the determination required by
    56  subdivision two of this section.

        S. 5423                             7
     1    2. The superintendent shall approve or disapprove the proposed  change
     2  of  control  of a licensee in accordance with the provisions of subdivi-
     3  sions one and six of section three hundred sixty-nine of  this  article.
     4  The  superintendent shall approve or disapprove the application in writ-
     5  ing  within ninety days after the date the application is filed with the
     6  superintendent.
     7    3. For a period of six months from the date of  qualification  thereof
     8  and  for  such  additional  period  of  time  as  the superintendent may
     9  prescribe, in writing, the provisions of subdivisions  one  and  two  of
    10  this  section  shall  not apply to a transfer of control by operation of
    11  law to the legal representative, as hereinafter defined, of one who  has
    12  control  of  a  licensee.  Thereafter,  such  legal representative shall
    13  comply with the provisions of subdivisions one and two of this  section.
    14  The  provisions  of  subdivisions  one  and two of this section shall be
    15  applicable to an application made under such section by a  legal  repre-
    16  sentative.
    17    The  term  "legal  representative",  for the purposes of this section,
    18  shall mean one duly appointed by a court of  competent  jurisdiction  to
    19  act  as  executor,  administrator,  trustee,  committee,  conservator or
    20  receiver, including one who succeeds  a  legal  representative  and  one
    21  acting   in  an  ancillary  capacity  thereto  in  accordance  with  the
    22  provisions of such court appointment.
    23    4. As used in this section: (a) the term "person" includes an individ-
    24  ual, partnership, corporation, association, limited  liability  company,
    25  or  any  other  organization,  and  (b)  the  term  "control"  means the
    26  possession, directly or indirectly, of the power to direct or cause  the
    27  direction  of the management and policies of a licensee, whether through
    28  the ownership of voting stock of such licensee, the ownership of  voting
    29  stock  of  any  person  which possesses such power or otherwise. Control
    30  shall be presumed to exist if any person, directly or indirectly,  owns,
    31  controls  or  holds  with  power  to  vote ten per centum or more of the
    32  voting stock of any licensee or of any person which  owns,  controls  or
    33  holds  with  power to vote ten per centum or more of the voting stock of
    34  any licensee, but no person shall be deemed to control a licensee solely
    35  by reason of being an officer or director of such  licensee  or  person.
    36  The superintendent may in his or her discretion, upon the application of
    37  a  licensee or any person who, directly or indirectly, owns, controls or
    38  holds with power to vote or seeks to own, control or hold with power  to
    39  vote  any  voting  stock  of such licensee, determine whether or not the
    40  ownership, control or holding of such voting stock constitutes or  would
    41  constitute control of such licensee for purposes of this section.
    42    §  8.  Section  371 of the banking law, as added by chapter 151 of the
    43  laws of 1945, is amended to read as follows:
    44    § 371.  Regulations.  The  superintendent  is  hereby  authorized  and
    45  empowered to make such rules and regulations, and such specific rulings,
    46  demands,  and  findings  as  he or she may deem necessary for the proper
    47  conduct of the business  authorized  and  licensed  under  and  for  the
    48  enforcement  of  this  article,  in addition hereto and not inconsistent
    49  herewith.
    50    § 9. Section 372 of the banking law, as amended by chapter 151 of  the
    51  laws  of  1945,  the  section  heading  and subdivision 1 as amended and
    52  subdivision 7 as added by chapter 432 of the laws of 2004,  subdivisions
    53  2,  3  and  4 as added and subdivisions 5 and 6 as renumbered by chapter
    54  263 of the laws of 1983, and subdivision 6 as added by  chapter  485  of
    55  the laws of 1947, is amended to read as follows:

        S. 5423                             8
     1    § 372. Fees and charges; posting schedule; records and reports. 1. The
     2  superintendent  shall,  by  regulation, establish the maximum fees which
     3  may be charged by licensees for cashing a check, draft, or money  order.
     4  No  licensee shall charge or collect any sum for cashing a check, draft,
     5  or  money  order  in  excess of that established by the superintendent's
     6  regulations; provided, however, that no maximum fee shall apply  to  the
     7  charging of fees by licensees for the cashing of checks, drafts or money
     8  orders  for payees of such checks, drafts or money orders that are other
     9  than natural persons. The licensee shall pay to every customer tendering
    10  any check, draft or money order to be cashed, the entire face amount  of
    11  such  instrument,  less  any charges permitted by the superintendent, in
    12  such form and by such means as agreed upon by the customer on  the  same
    13  date upon which such instrument is presented.
    14    2. The schedule of fees and charges permitted under this section shall
    15  be  conspicuously  and  continuously posted in every location and [mobil
    16  unit] limited station licensed under this article.
    17    3. In the case of an internet, digital or other electronic  advertise-
    18  ment  or  solicitation, a licensee shall be deemed to have fulfilled the
    19  disclosure requirements required by law by displaying the disclosures on
    20  its website, so long as the advertisement  or  solicitation  includes  a
    21  link directly to such website.
    22    4.  No  change in fees shall become effective earlier than thirty days
    23  after the superintendent shall notify the majority leader of the senate,
    24  the speaker of the assembly, and the chairmen of  both  the  senate  and
    25  assembly committees on banks of his or her intention to change fees.
    26    [4.]  5. The fees in effect immediately prior to the effective date of
    27  this subdivision shall continue to be the maximum allowable  fees  until
    28  revised by the superintendent's regulations.
    29    [5.]  6.  Each licensee shall keep and use in its business such books,
    30  accounts, and records as the superintendent may require  to  carry  into
    31  effect the provisions of this article and the rules and regulations made
    32  by  the  superintendent  hereunder.  Every  licensee shall preserve such
    33  books, accounts and records for at least two years.
    34    [6.] 7. Before a licensee shall deposit with any banking organization,
    35  or with any organization engaged in the business of  banking,  a  check,
    36  draft  or money order cashed by such licensee, the same must be endorsed
    37  with the actual name under which such licensee  is  doing  business  and
    38  must  have  the  words  "licensed  casher  of checks" legibly written or
    39  stamped immediately after or below such name.
    40    [7.] 8. Every licensee shall submit to  the  superintendent,  or  such
    41  person  as  the  superintendent  may designate, such suspicious activity
    42  reports or currency transaction reports as are required to be  submitted
    43  to  federal  authorities  pursuant to provisions of the Bank Secrecy Act
    44  (subchapter 11, chapter 53, title 31,  United  States  code)  and  regu-
    45  lations  and  administrative  orders related thereto, as amended, within
    46  the periods of time as required by such act and regulations. A  licensee
    47  may  submit  a  copy  of  any such report to the superintendent, or such
    48  person as the superintendent may designate,  that  is  filed  with  such
    49  federal  authorities.  The  superintendent may adopt such regulations or
    50  require such additional reports as he or she deems necessary  to  insure
    51  the effective enforcement of this subdivision.
    52    § 10. Section 372-a of the banking law, as added by chapter 432 of the
    53  laws of 2004, is amended to read as follows:
    54    §  372-a.  Superintendent authorized to examine. 1. For the purpose of
    55  discovering violations of this article or securing information  lawfully
    56  required  in  this  section,  the superintendent may at any time, and as

        S. 5423                             9
     1  often as may be determined, either personally or by a person duly desig-
     2  nated by the superintendent,  investigate  the  [cashing  of  checks  by
     3  licensees] business practices of a licensee rendering financial services
     4  authorized by this article and examine the books, accounts, records, and
     5  files used therein of every licensee.
     6    2. For the purpose established in subdivision one of this section, the
     7  superintendent and his or her duly designated representatives shall have
     8  free  access  to  the  offices  and places of business, books, accounts,
     9  papers, records, files, safes and vaults  of  all  such  licensees.  The
    10  superintendent  shall have authority to require the attendance of and to
    11  examine under oath all persons whose testimony may be required  relative
    12  to such cashing of checks or such business.
    13    § 11. Subdivisions 1 and 2 of section 373 of the banking law, subdivi-
    14  sion  1  as amended by chapter 432 of the laws of 2004 and subdivision 2
    15  as amended by chapter 132 of the laws of 1969, are amended  to  read  as
    16  follows:
    17    1.  No licensee shall engage in the business of making loans of money,
    18  credit, goods or things or discounting  of  notes,  bills  of  exchange,
    19  checks, or other evidences of debt pursuant to the provisions of article
    20  nine  of  this  chapter, nor shall a loan business or the negotiation of
    21  loans or the discounting of notes, bills of exchange,  checks  or  other
    22  evidences  of  debt be conducted on the same premises where the licensee
    23  is conducting business pursuant  to  the  provisions  of  this  article.
    24  Except  as  otherwise  provided by regulation of the superintendent, all
    25  checks, drafts and money orders shall be  deposited  in  the  licensee's
    26  bank  account not later than the first business day following the day on
    27  which they were cashed. No licensee shall at any time  cash  or  advance
    28  any  moneys  on a post-dated check or draft or engage in the business of
    29  transmitting money or receiving money for transmission; provided, howev-
    30  er, that a licensee may cash a check [payable on the first banking busi-
    31  ness day following the date of cashing (a) if such check is drawn by the
    32  United States, the state of New York, or any  political  subdivision  of
    33  the  state of New York, or by any department, bureau, agency, authority,
    34  instrumentality or officer, acting in  his  official  capacity,  of  the
    35  United  States  or of the state of New York or of any political subdivi-
    36  sion of the state of New York, or (b) if such check is a  payroll  check
    37  drawn  by  an  employer  to  the  order  of  its employee in payment for
    38  services  performed  by  such  employee]  without  regard  to  the  date
    39  imprinted  on  the  check  as  long  as  the  check  is deposited in the
    40  licensee's bank account not later than the first business day  following
    41  the  day on which it was cashed. No licensee shall cash any check, draft
    42  or money order if the face amount for which it is drawn is in excess  of
    43  [fifteen]   twenty   thousand  dollars;  provided,  however,  that  this
    44  restriction shall not apply to the cashing of checks,  drafts  or  money
    45  orders  drawn  by  the United States, any state thereof or any political
    46  subdivision of any such state, or by  any  department,  bureau,  agency,
    47  authority,  instrumentality or officer, acting in his official capacity,
    48  of the United States, any state thereof or any political subdivision  of
    49  any  such state, or any [banking] financial institution, or to any check
    50  or draft drawn by or on account of any insurance company,  attorney  for
    51  the  settlement  of  claims, or to any check which has been certified or
    52  guaranteed by the banking institution on which it has been drawn, or  if
    53  such  check is drawn on a bona fide workers' compensation fund issued by
    54  a third-party payor, or if such check is drawn by  an  employer  from  a
    55  pension  or  profit  sharing  fund, or if such check is drawn by a union
    56  from a pension or benefit fund or if such check is  drawn  by  a  union;

        S. 5423                            10
     1  provided  further,  however,  that any such restriction upon the maximum
     2  face amount that may be cashed by a licensee  shall  not  apply  to  the
     3  cashing  of  checks,  drafts  or money orders by licensees for payees of
     4  such checks, drafts or money orders that are other than natural persons.
     5  For  purposes  of  this  subdivision,  "[banking] financial institution"
     6  means any bank, trust company, savings bank, savings  and  loan  associ-
     7  ation  [or], credit union or other financial institution which is incor-
     8  porated, chartered [or], organized or licensed under the  laws  of  this
     9  state or any other state or the United States.
    10    2.  The  superintendent  may suspend or revoke any license or licenses
    11  issued pursuant to this article if, after notice and a  hearing,  he  or
    12  she shall find that the licensee (a) has committed any fraud, engaged in
    13  any  dishonest  activities  or  made  any  misrepresentation; or (b) has
    14  violated any provisions of the banking  law  or  any  regulation  issued
    15  pursuant  thereto, or has violated any other law in the course of its or
    16  his dealings as a licensed casher of checks; or (c)  has  made  a  false
    17  statement  in  the application for such license or failed to give a true
    18  reply to a question in such application; or (d) has demonstrated his  or
    19  its  incompetency  or  untrustworthiness  to act as a licensed casher of
    20  checks; or (e) is not doing sufficient business pursuant to this article
    21  to justify the continuance of the license, or if he or  she  shall  find
    22  that  any  ground  or  grounds  exist which would require or warrant the
    23  refusal of an application for the issuance of the  license  if  such  an
    24  application  were  then before him or her.  Such a hearing shall be held
    25  in the manner and upon such notice as may be prescribed  by  the  super-
    26  intendent.  Pending  an investigation or a hearing for the suspension or
    27  revocation of any license or licenses issued pursuant to  this  article,
    28  the  superintendent may temporarily suspend such license or licenses for
    29  a period not to exceed ninety days, provided  the  superintendent  shall
    30  find that such a temporary suspension is in the public interest.
    31    §  12.   Subdivision 3 of section 37 of the banking law, as amended by
    32  chapter 360 of the laws of 1984, is amended to read as follows:
    33    3. In addition to any reports expressly required by this chapter to be
    34  made, the superintendent may require any banking organization,  licensed
    35  lender,  licensed  casher  of  checks, licensed mortgage banker, foreign
    36  banking corporation licensed by the superintendent  to  do  business  in
    37  this state, bank holding company and any non-banking subsidiary thereof,
    38  corporate affiliate of a corporate banking organization within the mean-
    39  ing  of  subdivision  six  of section thirty-six of this article and any
    40  non-banking subsidiary of a corporation  which  is  an  affiliate  of  a
    41  corporate  banking  organization within the meaning of subdivision six-a
    42  of section thirty-six of this article to make special reports to him  or
    43  her at such times as he or she may prescribe.
    44    §  13.    This  act shall take effect on the one hundred eightieth day
    45  after it shall have become a law; provided, however, that:
    46    (a) the amendments to section 373 of the banking law made  by  section
    47  eleven  of  this  act shall expire and be deemed repealed June 30, 2024;
    48  and
    49    (b) any contract, instrument, argument  or  other  written  obligation
    50  entered  into  by  a financial service provider authorized under section
    51  373 of the banking law prior to June 30, 2024 shall be deemed valid  and
    52  enforceable after such date.
    53    Effective  immediately  the  addition,  amendment and/or repeal of any
    54  rule or regulation necessary for the implementation of this act  on  its
    55  effective date are authorized to be made and completed on or before such
    56  effective date.
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