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) 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, 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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06923-01-9

        A. 2546                             2

     1  or  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  as

        A. 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 an

        A. 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  or

        A. 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 the

        A. 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 this
     3  article  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)  [such
    17  station  shall  not  be  subject to the distance limitation set forth in
    18  subdivision 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 [mobil
    30  unit] 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  submitted

        A. 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 by
    17  licensees] 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-
    45  ness day following the date of cashing (a) if such check is drawn by the
    46  United  States,  the  state of New York, or any political subdivision of
    47  the state of New York, or by any department, bureau, agency,  authority,
    48  instrumentality  or  officer,  acting  in  his official capacity, of the
    49  United States or of the state of New York or of any  political  subdivi-
    50  sion  of  the state of New York, or (b) if such check is a payroll check
    51  drawn by an employer to  the  order  of  its  employee  in  payment  for
    52  services  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 of

        A. 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-a

        A. 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.
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