Bill Text: NY A02546 | 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: Moderate Partisan Bill (Democrat 14-3)
Status: (Introduced - Dead) 2019-03-25 - enacting clause stricken [A02546 Detail]
Download: New_York-2019-A02546-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2546 2019-2020 Regular Sessions IN ASSEMBLY January 23, 2019 ___________ Introduced by M. of A. RODRIGUEZ, HEVESI, COOK, WEPRIN, MONTESANO, DICK- ENS, D'URSO, VANEL, ARROYO, PICHARDO, RIVERA, ABBATE, McDONOUGH, PERRY, MOSLEY, PALUMBO -- Multi-Sponsored by -- M. of A. RAMOS -- 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, draftsEXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06923-01-9A. 2546 2 1or money orders] providing financial services regulated by this article 2 is to be conducted. 3 4. The term "person" means any individual or other legal entity, 4 including any corporation, partnership, association or limited liability 5 company. 6 5. The term "financial services" means offering or providing any of 7 the following financial products or services: (a) the cashing of checks, 8 drafts and/or money orders, 9 (b) money transmission services as defined in article thirteen-B of 10 this chapter, provided, however, a licensed financial services provider 11 offering money transmission pursuant to article thirteen-B of this chap- 12 ter, other than as an agent of a licensee, shall first obtain a license 13 under that article, 14 (c) bill payment services, 15 (d) the sale of prepaid debit cards, and 16 (e) the dispensing of mass transit fare cards, or such other medium or 17 mechanism for the dispensing of mass transit fares. 18 6. The term "primary license" shall mean an original license issued by 19 the superintendent that authorizes a person to engage in the business of 20 cashing of checks and related financial services, and in the case of a 21 licensee who has multiple licensed business locations at the time of the 22 effective date of this subdivision, the initial longest site continuous- 23 ly licensed under this article. 24 7. The term "supplemental license" shall mean a license issued by the 25 superintendent that authorizes a person having a primary license to 26 engage in the business of cashing of checks and related financial 27 services at branch locations, and in the case of a licensee who has 28 multiple licensed business locations at the time of the effective date 29 of this subdivision, any license issued to an existing licensee after 30 the license for the original site. 31 § 4. Section 367 of the banking law, as amended by chapter 151 of the 32 laws of 1945, subdivision 3 as amended by section 7 of part D-1 of chap- 33 ter 109 of the laws of 2006, and subdivision 4 as amended by chapter 96 34 of the laws of 1981, is amended to read as follows: 35 § 367. License requirements; fees; capital requirements. 1. No 36 person[, partnership, association or corporation] shall engage in the 37 business of cashing checks, drafts or money orders for a consideration 38 without first obtaining a license from the superintendent. 39 2. Application for such license shall be in writing, under oath, and 40 in the form prescribed by the superintendent, and shall contain the 41 name, and the address both of the residence and place of business, of 42 the applicant, and if the applicant is a co-partnership [or], associ- 43 ation or limited liability company, of every member thereof, and if a 44 corporation, of each officer and director thereof; also, if the business 45 is to be conducted at a specific address, the address at which the busi- 46 ness is to be conducted, and if the business is to be conducted from a 47 [mobile unit] limited station, the New York state registration number or 48 other identification of such [mobile unit] limited station and the area 49 in which the applicant proposes to operate such [mobile unit] limited 50 station; and also such further information as the superintendent may 51 require. 52 3. Such applicant at the time of making such application shall pay to 53 the superintendent a fee as prescribed pursuant to section eighteen-a of 54 this chapter for investigating the application. An application for a 55 primary license shall be in writing, under oath, and in the form 56 prescribed by the superintendent and shall contain such information asA. 2546 3 1 the superintendent may require by regulation. The application shall set 2 forth all of the locations at which the applicant seeks to conduct busi- 3 ness hereunder. At the time of making the application for a primary 4 license, an existing licensee under this article shall pay to the super- 5 intendent the sum of two hundred fifty dollars for each proposed 6 location as a fee for investigating the application. An applicant that 7 does not currently hold a license under this article at the time of 8 application shall pay to the superintendent an application fee as 9 provided in this chapter for initial applications. Any licensee request- 10 ing a change of address, shall at the time of making such request, pay 11 to the superintendent a fee as prescribed pursuant to section eighteen-a 12 of this chapter for investigating the new address; provided, however, 13 that the superintendent may, in his or her discretion, waive such inves- 14 tigation fee if warranted, and provided further, that no fee shall be 15 payable for the relocation of a limited station. 16 4. Every applicant shall prove, in form satisfactory to the super- 17 intendent that he or it has available for the operation of such busi- 18 ness, for each location and for each [mobile unit] limited station spec- 19 ified in the application, liquid assets of at least ten thousand 20 dollars, and every licensee shall continuously maintain for the opera- 21 tion of such business for each location and for each [mobile unit] 22 limited station liquid assets of at least ten thousand dollars. Notwith- 23 standing the foregoing provisions of this subdivision, the superinten- 24 dent, upon application by an applicant and for good cause shown, may 25 permit a reduction from ten thousand dollars to not less than five thou- 26 sand dollars of minimum liquid assets required for each location. 27 § 5. Section 369 of the banking law, as amended by chapter 151 of the 28 laws of 1945, subdivision 1 as amended by chapter 233 of the laws of 29 2005, subdivisions 4 and 5 as amended by chapter 132 of the laws of 30 1969, subdivision 6 as amended by chapter 164 of the laws of 2003, para- 31 graph (b) of subdivision 6 as amended by section 6 of part LL of chapter 32 56 of the laws of 2010, and subdivision 7 as added by chapter 485 of the 33 laws of 1947, is amended to read as follows: 34 § 369. Conditions precedent to issuing license; issuance and filing of 35 license; posting license. 1. If the superintendent shall find that the 36 financial responsibility, experience, character, and general fitness of 37 the applicant, and of the members thereof if the applicant be a co-part- 38 nership [or], association or limited liability company, and of the offi- 39 cers and directors thereof if the applicant be a corporation, are such 40 as to command the confidence of the community and to warrant belief that 41 the business will be operated honestly, fairly, and efficiently within 42 the purposes of this article, and if the superintendent shall find that 43 the granting of such application will promote the convenience and advan- 44 tage of the area in which such business is to be conducted, and if the 45 superintendent shall find that the applicant has available for the oper- 46 ation of such business for each location and for each [mobile unit] 47 limited station specified in the application liquid assets of at least 48 ten thousand dollars, the superintendent shall thereupon execute a 49 primary license and if applicable one or more supplemental licenses in 50 duplicate to permit the [cashing of checks, drafts and money orders] 51 delivery of financial services in accordance with the provisions of this 52 article at the location or locations or in the area or areas specified 53 in such application. In finding whether the application will promote the 54 convenience and advantage to the public, the superintendent shall deter- 55 mine whether there is a community need for a new licensee in the 56 proposed area or areas to be served. No license shall be issued to anA. 2546 4 1 applicant for a license, at a location to be licensed which is closer 2 than one thousand five hundred eighty-four feet (three-tenths of a mile) 3 from an existing licensee, except with the written consent of such 4 existing licensee or pursuant to subdivision three of section three 5 hundred seventy of this article, subject to any restriction or condition 6 as the superintendent may promulgate by regulation; provided, however, 7 the superintendent may permit a location to be licensed that is closer 8 than three-tenths of a mile from an existing licensee provided such 9 applicant engages in the cashing of checks, drafts or money orders only 10 for payees of such checks, drafts or money orders that are other than 11 natural persons at the location to be licensed and such applicant was 12 engaged in the cashing of such checks, drafts or money orders for payees 13 that are other than natural persons at such location on or before the 14 fourteenth day of July, two thousand four, and provided further that 15 upon licensing any such location by the superintendent, such license as 16 it pertains solely to such location shall not be affected thereafter by 17 any change of control of such license pursuant to section three hundred 18 seventy-a of this article, provided that the licensee continues there- 19 after to engage at that location in the cashing of checks, drafts or 20 money orders only for payees that are other than natural persons and 21 provided further that such license shall bear a legend stating that such 22 location is restricted to the cashing of checks, drafts or money orders 23 only for payees that are other than natural persons. The three-tenths of 24 a mile distance requirement as set forth in this section shall not apply 25 in cases where the existing licensee is a restricted location as author- 26 ized in the preceding sentence, or is any other licensed location that 27 engages solely in the cashing of checks, drafts or money orders only for 28 payees that are other than natural persons. For purposes of this 29 section, such distance shall be measured on a straight line along the 30 street between the nearest point of the store fronts of the check cash- 31 ing facilities. The primary business of the licensee, at the location to 32 be licensed, shall be financial services. The superintendent shall tran- 33 smit one copy of such license to the applicant and file another in the 34 office of the department. Notwithstanding the foregoing provisions of 35 this subdivision, the superintendent, upon application by an applicant 36 and for good cause shown, may permit a reduction from ten thousand 37 dollars to not less than five thousand dollars of minimum liquid assets 38 required for each location. 39 2. Such license shall state the name of the licensee; and if the 40 licensee is a co-partnership [or], association or limited liability 41 company, the names of the members thereof; and if the licensee is a 42 corporation, the date of its incorporation; and if the business is to be 43 conducted at a specific address, the address at which such business is 44 to be conducted; and if the business is to be conducted through the use 45 of a [mobile unit] limited station, the New York state registration 46 number or other identification of such [mobile unit] limited station and 47 the area in which such [mobile unit] limited station is authorized to do 48 business. 49 3. [Such license] All licenses issued by the superintendent shall be 50 kept conspicuously posted in the place of business of the licensee or, 51 in the case of a [mobile unit] limited station, upon such [mobile unit] 52 limited station. Such license shall not be transferable or assignable. 53 4. Such license shall remain in full force and effect until it is 54 surrendered by the licensee or revoked or suspended as provided in this 55 article. In the case of a change of control of a location or a business 56 licensed hereunder, the licensee approved to acquire the business orA. 2546 5 1 location may utilize a true copy of the existing license pending the 2 issuance of a new license by the superintendent. 3 5. If the superintendent shall find that the applicant fails to meet 4 any of the conditions set forth in subdivision one of this section, he 5 or she shall not issue such license, and he or she shall notify the 6 applicant of the denial. If an application is denied or withdrawn, the 7 superintendent shall retain the investigation fee to cover the costs of 8 investigating the application and return the license fee to the appli- 9 cant. 10 6. The superintendent may refuse to issue a license pursuant to this 11 article if he or she shall find that the applicant, or any person who is 12 a director, officer, partner, agent, employee or substantial stockholder 13 of the applicant, (a) has been convicted of a crime in any jurisdiction 14 or (b) is associating or consorting with any person who has, or persons 15 who have, been convicted of a crime or crimes in any jurisdiction or 16 jurisdictions; provided, however, that the superintendent shall not 17 issue such a license if he or she shall find that the applicant, or any 18 person who is a director, officer, partner, agent, employee or substan- 19 tial stockholder of the applicant, has been convicted of a felony in any 20 jurisdiction or of a crime which, if committed within this state, would 21 constitute a felony under the laws thereof. For the purposes of this 22 article, a person shall be deemed to have been convicted of a crime if 23 such person shall have pleaded guilty to a charge thereof before a court 24 or magistrate, or shall have been found guilty thereof by the decision 25 or judgment of a court or magistrate or by the verdict of a jury, irre- 26 spective of the pronouncement of sentence or the suspension thereof, 27 unless such plea of guilty, or such decision, judgment or verdict, shall 28 have been set aside, reversed or otherwise abrogated by lawful judicial 29 process or unless the person convicted of the crime shall have received 30 a pardon therefor from the president of the United States or the gover- 31 nor or other pardoning authority in the jurisdiction where the 32 conviction was had, or shall have received a certificate of relief from 33 disabilities or a certificate of good conduct pursuant to article twen- 34 ty-three of the correction law to remove the disability under this arti- 35 cle because of such conviction. The term "substantial stockholder," as 36 used in this subdivision, shall be deemed to refer to a person owning or 37 controlling ten per centum or more of the total outstanding stock of the 38 corporation in which such person is a stockholder. In making a determi- 39 nation pursuant to this subdivision, the superintendent shall require 40 fingerprinting of the applicant. Such fingerprints shall be submitted to 41 the division of criminal justice services for a state criminal history 42 record check, as defined in subdivision one of section three thousand 43 thirty-five of the education law, and may be submitted to the federal 44 bureau of investigation for a national criminal history record check. 45 7. No license pursuant to this article shall be issued to any appli- 46 cant to do business at the place specified in the application as the 47 place where the business is to be conducted if, within the twelve months 48 preceding such application, a license to engage in business pursuant to 49 this article at such place shall have been revoked. 50 § 6. Section 370 of the banking law, as amended by chapter 151 of the 51 laws of 1945, subdivision 2 as amended by section 38 of part O of chap- 52 ter 59 of the laws of 2006 and subdivision 3 as amended by chapter 703 53 of the laws of 2006, is amended to read as follows: 54 § 370. Restrictions as to place or area of doing business; establish- 55 ment of stations; change of location. 1. No more than one place of busi- 56 ness or one [mobile unit] limited station shall be maintained under theA. 2546 6 1 same license; provided, however, that more than one license may be 2 issued to the same licensee [upon compliance with the provisions of this3article for each new license] and if the superintendent determines that 4 an existing licensee is in good standing and in compliance with the 5 provisions of this article, a subsequent application for a second or 6 multiple supplemental licenses at different, separate and additional 7 locations shall be expedited by the superintendent provided the minimum 8 liquidity requirements and community need criteria set forth in section 9 three hundred sixty-nine of this article have been demonstrated in the 10 application for the additional location or locations. 11 2. Any licensed casher of checks may open and maintain, within this 12 state, one or more limited stations for the purpose of cashing checks, 13 drafts or money orders for the particular group or groups specified in 14 the license authorizing each such station. Such stations shall be 15 licensed pursuant to and be subject to all the provisions of this chap- 16 ter applicable to licensed cashers of checks, except that (a) [such17station shall not be subject to the distance limitation set forth in18subdivision one of section three hundred sixty-nine of this article,19(b)] the fee for investigating the application for a station shall be as 20 prescribed pursuant to section eighteen-a of this chapter, and [(c)] (b) 21 where such a station is at the premises of a specified employer for the 22 purpose of cashing checks, drafts and money orders for the employees of 23 such employer, the fees and charges for cashing such checks, drafts or 24 money orders shall not be subject to the limitations of subdivision one 25 of section three hundred seventy-two of this article if such fees and 26 charges are paid by such employer. 27 3. A licensee may make a written application to the superintendent for 28 leave to change his or her place of business, or in the case of a 29 [mobile unit] limited station, the area in which such unit is authorized 30 to be operated, stating the reasons for such proposed change and in the 31 case where the applicant currently holds a primary license to operate a 32 business established under this article, the superintendent shall 33 streamline and reduce the information required from such applicant. Such 34 application may be approved for relocation from a site within three- 35 tenths of a mile of another licensee to another site within three-tenths 36 of a mile of such other licensee provided that such new site is farther 37 from such existing licensee than the site from which permission to relo- 38 cate is sought. Only in situations in which a licensee seeks to change 39 its place of business due to extraordinary circumstances, as may be 40 determined by the superintendent pursuant to regulations, may the super- 41 intendent, in his or her discretion, determine that an application may 42 be approved for relocation from a site within three-tenths of a mile of 43 another licensee to a new site which is closer to such existing licensee 44 than the site from which permission to relocate is sought. Notwithstand- 45 ing any other provision of this subdivision, a licensee may relocate 46 from any location to a location that is within three-tenths of a mile 47 from another licensee with the written consent of the other licensee. If 48 the superintendent approves such application he or she shall issue a new 49 license in duplicate in accordance with the provisions of section three 50 hundred sixty-nine of this article, stating the new location of such 51 licensee or, in the case of a [mobile unit] limited station, the new 52 area in which such [mobile unit] limited station may be operated. 53 § 7. Section 370-a of the banking law, as added by chapter 142 of the 54 laws of 1992, subdivision 1 as amended by section 39 of part O of chap- 55 ter 59 of the laws of 2006, is amended to read as follows:A. 2546 7 1 § 370-a. Changes in control. 1. It shall be unlawful except with the 2 prior approval of the superintendent for any action to be taken which 3 results in a change of control of the business of a licensee. Prior to 4 any change of control, the person desirous of acquiring control of the 5 business of a licensee, if such person is not already a licensee under 6 this article, shall make written application to the superintendent and 7 pay an investigation fee as prescribed pursuant to section eighteen-a of 8 this chapter to the superintendent. The application shall contain such 9 information as the superintendent, by rule or regulation, may prescribe 10 as necessary or appropriate, and in the case where the acquiring person 11 currently holds a primary license to operate a business established 12 under this article, and in the case of a limited station license, the 13 superintendent shall streamline and reduce the information required from 14 such applicant, for the purpose of making the determination required by 15 subdivision two of this section. 16 2. The superintendent shall approve or disapprove the proposed change 17 of control of a licensee in accordance with the provisions of subdivi- 18 sions one and six of section three hundred sixty-nine of this article. 19 The superintendent shall approve or disapprove the application in writ- 20 ing within ninety days after the date the application is filed with the 21 superintendent. 22 3. For a period of six months from the date of qualification thereof 23 and for such additional period of time as the superintendent may 24 prescribe, in writing, the provisions of subdivisions one and two of 25 this section shall not apply to a transfer of control by operation of 26 law to the legal representative, as hereinafter defined, of one who has 27 control of a licensee. Thereafter, such legal representative shall 28 comply with the provisions of subdivisions one and two of this section. 29 The provisions of subdivisions one and two of this section shall be 30 applicable to an application made under such section by a legal repre- 31 sentative. 32 The term "legal representative", for the purposes of this section, 33 shall mean one duly appointed by a court of competent jurisdiction to 34 act as executor, administrator, trustee, committee, conservator or 35 receiver, including one who succeeds a legal representative and one 36 acting in an ancillary capacity thereto in accordance with the 37 provisions of such court appointment. 38 4. As used in this section: (a) the term "person" includes an individ- 39 ual, partnership, corporation, association, limited liability company, 40 or any other organization, and (b) the term "control" means the 41 possession, directly or indirectly, of the power to direct or cause the 42 direction of the management and policies of a licensee, whether through 43 the ownership of voting stock of such licensee, the ownership of voting 44 stock of any person which possesses such power or otherwise. Control 45 shall be presumed to exist if any person, directly or indirectly, owns, 46 controls or holds with power to vote ten per centum or more of the 47 voting stock of any licensee or of any person which owns, controls or 48 holds with power to vote ten per centum or more of the voting stock of 49 any licensee, but no person shall be deemed to control a licensee solely 50 by reason of being an officer or director of such licensee or person. 51 The superintendent may in his or her discretion, upon the application of 52 a licensee or any person who, directly or indirectly, owns, controls or 53 holds with power to vote or seeks to own, control or hold with power to 54 vote any voting stock of such licensee, determine whether or not the 55 ownership, control or holding of such voting stock constitutes or would 56 constitute control of such licensee for purposes of this section.A. 2546 8 1 § 8. Section 371 of the banking law, as added by chapter 151 of the 2 laws of 1945, is amended to read as follows: 3 § 371. Regulations. The superintendent is hereby authorized and 4 empowered to make such rules and regulations, and such specific rulings, 5 demands, and findings as he or she may deem necessary for the proper 6 conduct of the business authorized and licensed under and for the 7 enforcement of this article, in addition hereto and not inconsistent 8 herewith. 9 § 9. Section 372 of the banking law, as amended by chapter 151 of the 10 laws of 1945, the section heading and subdivision 1 as amended and 11 subdivision 7 as added by chapter 432 of the laws of 2004, subdivisions 12 2, 3 and 4 as added and subdivisions 5 and 6 as renumbered by chapter 13 263 of the laws of 1983, and subdivision 6 as added by chapter 485 of 14 the laws of 1947, is amended to read as follows: 15 § 372. Fees and charges; posting schedule; records and reports. 1. The 16 superintendent shall, by regulation, establish the maximum fees which 17 may be charged by licensees for cashing a check, draft, or money order. 18 No licensee shall charge or collect any sum for cashing a check, draft, 19 or money order in excess of that established by the superintendent's 20 regulations; provided, however, that no maximum fee shall apply to the 21 charging of fees by licensees for the cashing of checks, drafts or money 22 orders for payees of such checks, drafts or money orders that are other 23 than natural persons. The licensee shall pay to every customer tendering 24 any check, draft or money order to be cashed, the entire face amount of 25 such instrument, less any charges permitted by the superintendent, in 26 such form and by such means as agreed upon by the customer on the same 27 date upon which such instrument is presented. 28 2. The schedule of fees and charges permitted under this section shall 29 be conspicuously and continuously posted in every location and [mobil30unit] limited station licensed under this article. 31 3. In the case of an internet, digital or other electronic advertise- 32 ment or solicitation, a licensee shall be deemed to have fulfilled the 33 disclosure requirements required by law by displaying the disclosures on 34 its website, so long as the advertisement or solicitation includes a 35 link directly to such website. 36 4. No change in fees shall become effective earlier than thirty days 37 after the superintendent shall notify the majority leader of the senate, 38 the speaker of the assembly, and the chairmen of both the senate and 39 assembly committees on banks of his or her intention to change fees. 40 [4.] 5. The fees in effect immediately prior to the effective date of 41 this subdivision shall continue to be the maximum allowable fees until 42 revised by the superintendent's regulations. 43 [5.] 6. Each licensee shall keep and use in its business such books, 44 accounts, and records as the superintendent may require to carry into 45 effect the provisions of this article and the rules and regulations made 46 by the superintendent hereunder. Every licensee shall preserve such 47 books, accounts and records for at least two years. 48 [6.] 7. Before a licensee shall deposit with any banking organization, 49 or with any organization engaged in the business of banking, a check, 50 draft or money order cashed by such licensee, the same must be endorsed 51 with the actual name under which such licensee is doing business and 52 must have the words "licensed casher of checks" legibly written or 53 stamped immediately after or below such name. 54 [7.] 8. Every licensee shall submit to the superintendent, or such 55 person as the superintendent may designate, such suspicious activity 56 reports or currency transaction reports as are required to be submittedA. 2546 9 1 to federal authorities pursuant to provisions of the Bank Secrecy Act 2 (subchapter 11, chapter 53, title 31, United States code) and regu- 3 lations and administrative orders related thereto, as amended, within 4 the periods of time as required by such act and regulations. A licensee 5 may submit a copy of any such report to the superintendent, or such 6 person as the superintendent may designate, that is filed with such 7 federal authorities. The superintendent may adopt such regulations or 8 require such additional reports as he or she deems necessary to insure 9 the effective enforcement of this subdivision. 10 § 10. Section 372-a of the banking law, as added by chapter 432 of the 11 laws of 2004, is amended to read as follows: 12 § 372-a. Superintendent authorized to examine. 1. For the purpose of 13 discovering violations of this article or securing information lawfully 14 required in this section, the superintendent may at any time, and as 15 often as may be determined, either personally or by a person duly desig- 16 nated by the superintendent, investigate the [cashing of checks by17licensees] business practices of a licensee rendering financial services 18 authorized by this article and examine the books, accounts, records, and 19 files used therein of every licensee. 20 2. For the purpose established in subdivision one of this section, the 21 superintendent and his or her duly designated representatives shall have 22 free access to the offices and places of business, books, accounts, 23 papers, records, files, safes and vaults of all such licensees. The 24 superintendent shall have authority to require the attendance of and to 25 examine under oath all persons whose testimony may be required relative 26 to such cashing of checks or such business. 27 § 11. Subdivisions 1 and 2 of section 373 of the banking law, subdivi- 28 sion 1 as amended by chapter 432 of the laws of 2004 and subdivision 2 29 as amended by chapter 132 of the laws of 1969, are amended to read as 30 follows: 31 1. No licensee shall engage in the business of making loans of money, 32 credit, goods or things or discounting of notes, bills of exchange, 33 checks, or other evidences of debt pursuant to the provisions of article 34 nine of this chapter, nor shall a loan business or the negotiation of 35 loans or the discounting of notes, bills of exchange, checks or other 36 evidences of debt be conducted on the same premises where the licensee 37 is conducting business pursuant to the provisions of this article. 38 Except as otherwise provided by regulation of the superintendent, all 39 checks, drafts and money orders shall be deposited in the licensee's 40 bank account not later than the first business day following the day on 41 which they were cashed. No licensee shall at any time cash or advance 42 any moneys on a post-dated check or draft or engage in the business of 43 transmitting money or receiving money for transmission; provided, howev- 44 er, that a licensee may cash a check [payable on the first banking busi-45ness day following the date of cashing (a) if such check is drawn by the46United States, the state of New York, or any political subdivision of47the state of New York, or by any department, bureau, agency, authority,48instrumentality or officer, acting in his official capacity, of the49United States or of the state of New York or of any political subdivi-50sion of the state of New York, or (b) if such check is a payroll check51drawn by an employer to the order of its employee in payment for52services performed by such employee] without regard to the date 53 imprinted on the check as long as the check is deposited in the 54 licensee's bank account not later than the first business day following 55 the day on which it was cashed. No licensee shall cash any check, draft 56 or money order if the face amount for which it is drawn is in excess ofA. 2546 10 1 [fifteen] twenty thousand dollars; provided, however, that this 2 restriction shall not apply to the cashing of checks, drafts or money 3 orders drawn by the United States, any state thereof or any political 4 subdivision of any such state, or by any department, bureau, agency, 5 authority, instrumentality or officer, acting in his official capacity, 6 of the United States, any state thereof or any political subdivision of 7 any such state, or any [banking] financial institution, or to any check 8 or draft drawn by or on account of any insurance company, attorney for 9 the settlement of claims, or to any check which has been certified or 10 guaranteed by the banking institution on which it has been drawn, or if 11 such check is drawn on a bona fide workers' compensation fund issued by 12 a third-party payor, or if such check is drawn by an employer from a 13 pension or profit sharing fund, or if such check is drawn by a union 14 from a pension or benefit fund or if such check is drawn by a union; 15 provided further, however, that any such restriction upon the maximum 16 face amount that may be cashed by a licensee shall not apply to the 17 cashing of checks, drafts or money orders by licensees for payees of 18 such checks, drafts or money orders that are other than natural persons. 19 For purposes of this subdivision, "[banking] financial institution" 20 means any bank, trust company, savings bank, savings and loan associ- 21 ation [or], credit union or other financial institution which is incor- 22 porated, chartered [or], organized or licensed under the laws of this 23 state or any other state or the United States. 24 2. The superintendent may suspend or revoke any license or licenses 25 issued pursuant to this article if, after notice and a hearing, he or 26 she shall find that the licensee (a) has committed any fraud, engaged in 27 any dishonest activities or made any misrepresentation; or (b) has 28 violated any provisions of the banking law or any regulation issued 29 pursuant thereto, or has violated any other law in the course of its or 30 his dealings as a licensed casher of checks; or (c) has made a false 31 statement in the application for such license or failed to give a true 32 reply to a question in such application; or (d) has demonstrated his or 33 its incompetency or untrustworthiness to act as a licensed casher of 34 checks; or (e) is not doing sufficient business pursuant to this article 35 to justify the continuance of the license, or if he or she shall find 36 that any ground or grounds exist which would require or warrant the 37 refusal of an application for the issuance of the license if such an 38 application were then before him or her. Such a hearing shall be held 39 in the manner and upon such notice as may be prescribed by the super- 40 intendent. Pending an investigation or a hearing for the suspension or 41 revocation of any license or licenses issued pursuant to this article, 42 the superintendent may temporarily suspend such license or licenses for 43 a period not to exceed ninety days, provided the superintendent shall 44 find that such a temporary suspension is in the public interest. 45 § 12. Subdivision 3 of section 37 of the banking law, as amended by 46 chapter 360 of the laws of 1984, is amended to read as follows: 47 3. In addition to any reports expressly required by this chapter to be 48 made, the superintendent may require any banking organization, licensed 49 lender, licensed casher of checks, licensed mortgage banker, foreign 50 banking corporation licensed by the superintendent to do business in 51 this state, bank holding company and any non-banking subsidiary thereof, 52 corporate affiliate of a corporate banking organization within the mean- 53 ing of subdivision six of section thirty-six of this article and any 54 non-banking subsidiary of a corporation which is an affiliate of a 55 corporate banking organization within the meaning of subdivision six-aA. 2546 11 1 of section thirty-six of this article to make special reports to him or 2 her at such times as he or she may prescribe. 3 § 13. This act shall take effect on the one hundred eightieth day 4 after it shall have become a law; provided, however, that: 5 (a) the amendments to section 373 of the banking law made by section 6 eleven of this act shall expire and be deemed repealed June 30, 2024; 7 and 8 (b) any contract, instrument, argument or other written obligation 9 entered into by a financial service provider authorized under section 10 373 of the banking law prior to June 30, 2024 shall be deemed valid and 11 enforceable after such date. 12 Effective immediately the addition, amendment and/or repeal of any 13 rule or regulation necessary for the implementation of this act on its 14 effective date are authorized to be made and completed on or before such 15 effective date.