Bill Text: NY A07393 | 2019-2020 | General Assembly | Amended


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 25-0)

Status: (Introduced) 2019-06-18 - reported referred to codes [A07393 Detail]

Download: New_York-2019-A07393-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         7393--A
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                     April 29, 2019
                                       ___________
        Introduced  by  M. of A. DE LA ROSA, PERRY, WEPRIN, HEVESI, FERNANDEZ --
          read once  and  referred  to  the  Committee  on  Banks  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
        AN  ACT to amend the banking law, in relation to enacting the "community
          financial services access and modernization act of 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.
                                                                   LBD06923-03-9

        A. 7393--A                          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. 7393--A                          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 section 1 of subpart A of part  II  of
    31  chapter  55  of  the laws of 2019, and subdivision 7 as added by chapter
    32  485 of the laws of 1947, is amended to read as follows:
    33    § 369. Conditions precedent to issuing license; issuance and filing of
    34  license; posting license. 1. If the superintendent shall find  that  the
    35  financial  responsibility, experience, character, and general fitness of
    36  the applicant, and of the members thereof if the applicant be a co-part-
    37  nership [or], association or limited liability company, and of the offi-
    38  cers and directors thereof if the applicant be a corporation,  are  such
    39  as to command the confidence of the community and to warrant belief that
    40  the  business  will be operated honestly, fairly, and efficiently within
    41  the purposes of this article, and if the superintendent shall find  that
    42  the granting of such application will promote the convenience and advan-
    43  tage  of  the area in which such business is to be conducted, and if the
    44  superintendent shall find that the applicant has available for the oper-
    45  ation of such business for each location  and  for  each  [mobile  unit]
    46  limited  station  specified in the application liquid assets of at least
    47  ten thousand dollars,  the  superintendent  shall  thereupon  execute  a
    48  primary  license  and if applicable one or more supplemental licenses in
    49  duplicate to permit the [cashing of checks,  drafts  and  money  orders]
    50  delivery of financial services in accordance with the provisions of this
    51  article  at  the location or locations or in the area or areas specified
    52  in such application. In finding whether the application will promote the
    53  convenience and advantage to the public, the superintendent shall deter-
    54  mine whether there is a  community  need  for  a  new  licensee  in  the
    55  proposed  area  or  areas to be served. No license shall be issued to an
    56  applicant for a license, at a location to be licensed  which  is  closer

        A. 7393--A                          4
     1  than one thousand five hundred eighty-four feet (three-tenths of a mile)
     2  from  an  existing  licensee,  except  with  the written consent of such
     3  existing licensee or pursuant to  subdivision  three  of  section  three
     4  hundred seventy of this article, subject to any restriction or condition
     5  as  the  superintendent may promulgate by regulation; provided, however,
     6  the superintendent may permit a location to be licensed that  is  closer
     7  than  three-tenths  of  a  mile  from an existing licensee provided such
     8  applicant engages in the cashing of checks, drafts or money orders  only
     9  for  payees  of  such checks, drafts or money orders that are other than
    10  natural persons at the location to be licensed and  such  applicant  was
    11  engaged in the cashing of such checks, drafts or money orders for payees
    12  that  are  other  than natural persons at such location on or before the
    13  fourteenth day of July, two thousand four,  and  provided  further  that
    14  upon  licensing any such location by the superintendent, such license as
    15  it pertains solely to such location shall not be affected thereafter  by
    16  any  change of control of such license pursuant to section three hundred
    17  seventy-a of this article, provided that the licensee  continues  there-
    18  after  to  engage  at  that location in the cashing of checks, drafts or
    19  money orders only for payees that are other  than  natural  persons  and
    20  provided further that such license shall bear a legend stating that such
    21  location  is restricted to the cashing of checks, drafts or money orders
    22  only for payees that are other than natural persons. The three-tenths of
    23  a mile distance requirement as set forth in this section shall not apply
    24  in cases where the existing licensee is a restricted location as author-
    25  ized in the preceding sentence, or is any other licensed  location  that
    26  engages solely in the cashing of checks, drafts or money orders only for
    27  payees  that  are  other  than  natural  persons.  For  purposes of this
    28  section, such distance shall be measured on a straight  line  along  the
    29  street  between the nearest point of the store fronts of the check cash-
    30  ing facilities. The primary business of the licensee, at the location to
    31  be licensed, shall be financial services. The superintendent shall tran-
    32  smit one copy of such license to the applicant and file another  in  the
    33  office  of  the  department. Notwithstanding the foregoing provisions of
    34  this subdivision, the superintendent, upon application by  an  applicant
    35  and  for  good  cause  shown,  may  permit a reduction from ten thousand
    36  dollars to not less than five thousand dollars of minimum liquid  assets
    37  required for each location.
    38    2.  Such  license  shall  state  the  name of the licensee; and if the
    39  licensee is a co-partnership  [or],  association  or  limited  liability
    40  company,  the  names  of  the  members thereof; and if the licensee is a
    41  corporation, the date of its incorporation; and if the business is to be
    42  conducted at a specific address, the address at which such  business  is
    43  to  be conducted; and if the business is to be conducted through the use
    44  of a [mobile unit] limited station,  the  New  York  state  registration
    45  number or other identification of such [mobile unit] limited station and
    46  the area in which such [mobile unit] limited station is authorized to do
    47  business.
    48    3.  [Such  license] All licenses issued by the superintendent shall be
    49  kept conspicuously posted in the place of business of the  licensee  or,
    50  in  the case of a [mobile unit] limited station, upon such [mobile unit]
    51  limited station.  Such license shall not be transferable or assignable.
    52    4. Such license shall remain in full force  and  effect  until  it  is
    53  surrendered  by the licensee or revoked or suspended as provided in this
    54  article. In the case of a change of control of a location or a  business
    55  licensed  hereunder,  the  licensee  approved to acquire the business or

        A. 7393--A                          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, consistent with article twenty-three-A of
    11  the correction law, refuse to issue a license pursuant to  this  article
    12  if  he  or  she  shall  find  that the applicant, or any person who is a
    13  director, officer, partner, agent, employee or  substantial  stockholder
    14  of  the applicant, (a) has been convicted of a crime in any jurisdiction
    15  or (b) is associating or consorting with any person who has, or  persons
    16  who  have,  been  convicted  of a crime or crimes in any jurisdiction or
    17  jurisdictions. For the purposes of  this  article,  a  person  shall  be
    18  deemed  to  have  been  convicted  of  a crime if such person shall have
    19  pleaded guilty to a charge thereof before  a  court  or  magistrate,  or
    20  shall  have  been  found guilty thereof by the decision or judgment of a
    21  court or magistrate or by the verdict of a  jury,  irrespective  of  the
    22  pronouncement  of sentence or the suspension thereof. The term "substan-
    23  tial stockholder," as used in this subdivision, shall be deemed to refer
    24  to a person owning or controlling ten per centum or more  of  the  total
    25  outstanding  stock  of  the corporation in which such person is a stock-
    26  holder. In making a determination  pursuant  to  this  subdivision,  the
    27  superintendent shall require fingerprinting of the applicant. Such fing-
    28  erprints shall be submitted to the division of criminal justice services
    29  for a state criminal history record check, as defined in subdivision one
    30  of  section  three thousand thirty-five of the education law, and may be
    31  submitted to the federal bureau of investigation for a national criminal
    32  history record check.
    33    7. No license pursuant to this article shall be issued to  any  appli-
    34  cant  to  do  business  at the place specified in the application as the
    35  place where the business is to be conducted if, within the twelve months
    36  preceding such application, a license to engage in business pursuant  to
    37  this article at such place shall have been revoked.
    38    §  6. Section 370 of the banking law, as amended by chapter 151 of the
    39  laws of 1945, subdivision 2 as amended by section 38 of part O of  chap-
    40  ter  59  of the laws of 2006 and subdivision 3 as amended by chapter 703
    41  of the laws of 2006, is amended to read as follows:
    42    § 370. Restrictions as to place or area of doing business;  establish-
    43  ment of stations; change of location. 1. No more than one place of busi-
    44  ness  or one [mobile unit] limited station shall be maintained under the
    45  same license; provided, however, that  more  than  one  license  may  be
    46  issued to the same licensee [upon compliance with the provisions of this
    47  article  for each new license] and if the superintendent determines that
    48  an existing licensee is in good standing  and  in  compliance  with  the
    49  provisions  of  this  article,  a subsequent application for a second or
    50  multiple supplemental licenses at  different,  separate  and  additional
    51  locations  shall be expedited by the superintendent provided the minimum
    52  liquidity requirements and community need criteria set forth in  section
    53  three  hundred  sixty-nine of this article have been demonstrated in the
    54  application for the additional location or locations.
    55    2. Any licensed casher of checks may open and  maintain,  within  this
    56  state,  one  or more limited stations for the purpose of cashing checks,

        A. 7393--A                          6
     1  drafts or money orders for the particular group or groups  specified  in
     2  the  license  authorizing  each  such  station.  Such  stations shall be
     3  licensed pursuant to and be subject to all the provisions of this  chap-
     4  ter  applicable  to  licensed  cashers  of checks, except that (a) [such
     5  station shall not be subject to the distance  limitation  set  forth  in
     6  subdivision  one  of  section  three hundred sixty-nine of this article,
     7  (b)] the fee for investigating the application for a station shall be as
     8  prescribed pursuant to section eighteen-a of this chapter, and [(c)] (b)
     9  where such a station is at the premises of a specified employer for  the
    10  purpose  of cashing checks, drafts and money orders for the employees of
    11  such employer, the fees and charges for cashing such checks,  drafts  or
    12  money  orders shall not be subject to the limitations of subdivision one
    13  of section three hundred seventy-two of this article if  such  fees  and
    14  charges are paid by such employer.
    15    3. A licensee may make a written application to the superintendent for
    16  leave  to  change  his  or  her  place  of business, or in the case of a
    17  [mobile unit] limited station, the area in which such unit is authorized
    18  to be operated, stating the reasons for such proposed change and in  the
    19  case  where the applicant currently holds a primary license to operate a
    20  business  established  under  this  article,  the  superintendent  shall
    21  streamline and reduce the information required from such applicant. Such
    22  application  may  be  approved  for relocation from a site within three-
    23  tenths of a mile of another licensee to another site within three-tenths
    24  of a mile of such other licensee provided that such new site is  farther
    25  from such existing licensee than the site from which permission to relo-
    26  cate  is  sought. Only in situations in which a licensee seeks to change
    27  its place of business due to  extraordinary  circumstances,  as  may  be
    28  determined by the superintendent pursuant to regulations, may the super-
    29  intendent,  in  his or her discretion, determine that an application may
    30  be approved for relocation from a site within three-tenths of a mile  of
    31  another licensee to a new site which is closer to such existing licensee
    32  than the site from which permission to relocate is sought. Notwithstand-
    33  ing  any  other  provision  of this subdivision, a licensee may relocate
    34  from any location to a location that is within three-tenths  of  a  mile
    35  from another licensee with the written consent of the other licensee. If
    36  the superintendent approves such application he or she shall issue a new
    37  license  in duplicate in accordance with the provisions of section three
    38  hundred sixty-nine of this article, stating the  new  location  of  such
    39  licensee  or,  in  the  case of a [mobile unit] limited station, the new
    40  area in which such [mobile unit] limited station may be operated.
    41    § 7. Section 370-a of the banking law, as added by chapter 142 of  the
    42  laws  of 1992, subdivision 1 as amended by section 39 of part O of chap-
    43  ter 59 of the laws of 2006, is amended to read as follows:
    44    § 370-a. Changes in control. 1. It shall be unlawful except  with  the
    45  prior  approval  of  the superintendent for any action to be taken which
    46  results in a change of control of the business of a licensee.  Prior  to
    47  any  change  of control, the person desirous of acquiring control of the
    48  business of a licensee, if such person is not already a  licensee  under
    49  this  article,  shall make written application to the superintendent and
    50  pay an investigation fee as prescribed pursuant to section eighteen-a of
    51  this chapter to the superintendent. The application shall  contain  such
    52  information  as the superintendent, by rule or regulation, may prescribe
    53  as necessary or appropriate, and in the case where the acquiring  person
    54  currently  holds  a  primary  license  to operate a business established
    55  under this article, and in the case of a limited  station  license,  the
    56  superintendent shall streamline and reduce the information required from

        A. 7393--A                          7
     1  such  applicant, for the purpose of making the determination required by
     2  subdivision two of this section.
     3    2.  The superintendent shall approve or disapprove the proposed change
     4  of control of a licensee in accordance with the provisions  of  subdivi-
     5  sions  one  and six of section three hundred sixty-nine of this article.
     6  The superintendent shall approve or disapprove the application in  writ-
     7  ing  within ninety days after the date the application is filed with the
     8  superintendent.
     9    3. For a period of six months from the date of  qualification  thereof
    10  and  for  such  additional  period  of  time  as  the superintendent may
    11  prescribe, in writing, the provisions of subdivisions  one  and  two  of
    12  this  section  shall  not apply to a transfer of control by operation of
    13  law to the legal representative, as hereinafter defined, of one who  has
    14  control  of  a  licensee.  Thereafter,  such  legal representative shall
    15  comply with the provisions of subdivisions one and two of this  section.
    16  The  provisions  of  subdivisions  one  and two of this section shall be
    17  applicable to an application made under such section by a  legal  repre-
    18  sentative.
    19    The  term  "legal  representative",  for the purposes of this section,
    20  shall mean one duly appointed by a court of  competent  jurisdiction  to
    21  act  as  executor,  administrator,  trustee,  committee,  conservator or
    22  receiver, including one who succeeds  a  legal  representative  and  one
    23  acting   in  an  ancillary  capacity  thereto  in  accordance  with  the
    24  provisions of such court appointment.
    25    4. As used in this section: (a) the term "person" includes an individ-
    26  ual, partnership, corporation, association, limited  liability  company,
    27  or  any  other  organization,  and  (b)  the  term  "control"  means the
    28  possession, directly or indirectly, of the power to direct or cause  the
    29  direction  of the management and policies of a licensee, whether through
    30  the ownership of voting stock of such licensee, the ownership of  voting
    31  stock  of  any  person  which possesses such power or otherwise. Control
    32  shall be presumed to exist if any person, directly or indirectly,  owns,
    33  controls  or  holds  with  power  to  vote ten per centum or more of the
    34  voting stock of any licensee or of any person which  owns,  controls  or
    35  holds  with  power to vote ten per centum or more of the voting stock of
    36  any licensee, but no person shall be deemed to control a licensee solely
    37  by reason of being an officer or director of such  licensee  or  person.
    38  The superintendent may in his or her discretion, upon the application of
    39  a  licensee or any person who, directly or indirectly, owns, controls or
    40  holds with power to vote or seeks to own, control or hold with power  to
    41  vote  any  voting  stock  of such licensee, determine whether or not the
    42  ownership, control or holding of such voting stock constitutes or  would
    43  constitute control of such licensee for purposes of this section.
    44    §  8.  Section  371 of the banking law, as added by chapter 151 of the
    45  laws of 1945, is amended to read as follows:
    46    § 371.  Regulations.  The  superintendent  is  hereby  authorized  and
    47  empowered to make such rules and regulations, and such specific rulings,
    48  demands,  and  findings  as  he or she may deem necessary for the proper
    49  conduct of the business  authorized  and  licensed  under  and  for  the
    50  enforcement  of  this  article,  in addition hereto and not inconsistent
    51  herewith.
    52    § 9. Section 372 of the banking law, as amended by chapter 151 of  the
    53  laws  of  1945,  the  section  heading  and subdivision 1 as amended and
    54  subdivision 7 as added by chapter 432 of the laws of 2004,  subdivisions
    55  2,  3  and  4 as added and subdivisions 5 and 6 as renumbered by chapter

        A. 7393--A                          8
     1  263 of the laws of 1983, and subdivision 6 as added by  chapter  485  of
     2  the laws of 1947, is amended to read as follows:
     3    § 372. Fees and charges; posting schedule; records and reports. 1. The
     4  superintendent  shall,  by  regulation, establish the maximum fees which
     5  may be charged by licensees for cashing a check, draft, or money  order.
     6  No  licensee shall charge or collect any sum for cashing a check, draft,
     7  or money order in excess of that  established  by  the  superintendent's
     8  regulations;  provided,  however, that no maximum fee shall apply to the
     9  charging of fees by licensees for the cashing of checks, drafts or money
    10  orders for payees of such checks, drafts or money orders that are  other
    11  than natural persons. The licensee shall pay to every customer tendering
    12  any  check, draft or money order to be cashed, the entire face amount of
    13  such instrument, less any charges permitted by  the  superintendent,  in
    14  such  form  and by such means as agreed upon by the customer on the same
    15  date upon which such instrument is presented.
    16    2. The schedule of fees and charges permitted under this section shall
    17  be conspicuously and continuously posted in every  location  and  [mobil
    18  unit] limited station licensed under this article.
    19    3.  In the case of an internet, digital or other electronic advertise-
    20  ment or solicitation, a licensee shall be deemed to have  fulfilled  the
    21  disclosure requirements required by law by displaying the disclosures on
    22  its  website,  so  long  as the advertisement or solicitation includes a
    23  link directly to such website.
    24    4. No change in fees shall become effective earlier than  thirty  days
    25  after the superintendent shall notify the majority leader of the senate,
    26  the  speaker  of  the  assembly, and the chairmen of both the senate and
    27  assembly committees on banks of his or her intention to change fees.
    28    [4.] 5. The fees in effect immediately prior to the effective date  of
    29  this  subdivision  shall continue to be the maximum allowable fees until
    30  revised by the superintendent's regulations.
    31    [5.] 6. Each licensee shall keep and use in its business  such  books,
    32  accounts,  and  records  as the superintendent may require to carry into
    33  effect the provisions of this article and the rules and regulations made
    34  by the superintendent hereunder.  Every  licensee  shall  preserve  such
    35  books, accounts and records for at least two years.
    36    [6.] 7. Before a licensee shall deposit with any banking organization,
    37  or  with  any  organization engaged in the business of banking, a check,
    38  draft or money order cashed by such licensee, the same must be  endorsed
    39  with  the  actual  name  under which such licensee is doing business and
    40  must have the words "licensed  casher  of  checks"  legibly  written  or
    41  stamped immediately after or below such name.
    42    [7.]  8.  Every  licensee  shall submit to the superintendent, or such
    43  person as the superintendent may  designate,  such  suspicious  activity
    44  reports  or currency transaction reports as are required to be submitted
    45  to federal authorities pursuant to provisions of the  Bank  Secrecy  Act
    46  (subchapter  11,  chapter  53,  title  31, United States code) and regu-
    47  lations and administrative orders related thereto,  as  amended,  within
    48  the  periods of time as required by such act and regulations. A licensee
    49  may submit a copy of any such report  to  the  superintendent,  or  such
    50  person  as  the  superintendent  may  designate, that is filed with such
    51  federal authorities. The superintendent may adopt  such  regulations  or
    52  require  such  additional reports as he or she deems necessary to insure
    53  the effective enforcement of this subdivision.
    54    § 10. Section 372-a of the banking law, as added by chapter 432 of the
    55  laws of 2004, is amended to read as follows:

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     1    § 372-a. Superintendent authorized to examine. 1. For the  purpose  of
     2  discovering  violations of this article or securing information lawfully
     3  required in this section, the superintendent may at  any  time,  and  as
     4  often as may be determined, either personally or by a person duly desig-
     5  nated  by  the  superintendent,  investigate  the  [cashing of checks by
     6  licensees] business practices of a licensee rendering financial services
     7  authorized by this article and examine the books, accounts, records, and
     8  files used therein of every licensee.
     9    2. For the purpose established in subdivision one of this section, the
    10  superintendent and his or her duly designated representatives shall have
    11  free access to the offices and  places  of  business,  books,  accounts,
    12  papers,  records,  files,  safes  and  vaults of all such licensees. The
    13  superintendent shall have authority to require the attendance of and  to
    14  examine  under oath all persons whose testimony may be required relative
    15  to such cashing of checks or such business.
    16    § 11. Subdivisions 1 and 2 of section 373 of the banking law, subdivi-
    17  sion 1 as amended by chapter 432 of the laws of 2004 and  subdivision  2
    18  as  amended  by  chapter 132 of the laws of 1969, are amended to read as
    19  follows:
    20    1. No licensee shall engage in the business of making loans of  money,
    21  credit,  goods  or  things  or  discounting of notes, bills of exchange,
    22  checks, or other evidences of debt pursuant to the provisions of article
    23  nine of this chapter, nor shall a loan business or  the  negotiation  of
    24  loans  or  the  discounting of notes, bills of exchange, checks or other
    25  evidences of debt be conducted on the same premises where  the  licensee
    26  is  conducting  business  pursuant  to  the  provisions of this article.
    27  Except as otherwise provided by regulation of  the  superintendent,  all
    28  checks,  drafts  and  money  orders shall be deposited in the licensee's
    29  bank account not later than the first business day following the day  on
    30  which  they  were  cashed. No licensee shall at any time cash or advance
    31  any moneys on a post-dated check or draft or engage in the  business  of
    32  transmitting money or receiving money for transmission; provided, howev-
    33  er, that a licensee may cash a check [payable on the first banking busi-
    34  ness day following the date of cashing (a) if such check is drawn by the
    35  United  States,  the  state of New York, or any political subdivision of
    36  the state of New York, or by any department, bureau, agency,  authority,
    37  instrumentality  or  officer,  acting  in  his official capacity, of the
    38  United States or of the state of New York or of any  political  subdivi-
    39  sion  of  the state of New York, or (b) if such check is a payroll check
    40  drawn by an employer to  the  order  of  its  employee  in  payment  for
    41  services  performed  by  such  employee]  without  regard  to  the  date
    42  imprinted on the check  as  long  as  the  check  is  deposited  in  the
    43  licensee's  bank account not later than the first business day following
    44  the day on which it was cashed. No licensee shall cash any check,  draft
    45  or  money order if the face amount for which it is drawn is in excess of
    46  [fifteen]  twenty  thousand  dollars;  provided,  however,   that   this
    47  restriction  shall  not  apply to the cashing of checks, drafts or money
    48  orders drawn by the United States, any state thereof  or  any  political
    49  subdivision  of  any  such  state, or by any department, bureau, agency,
    50  authority, instrumentality or officer, acting in his official  capacity,
    51  of  the United States, any state thereof or any political subdivision of
    52  any such state, or any [banking] financial institution, or to any  check
    53  or  draft  drawn by or on account of any insurance company, attorney for
    54  the settlement of claims, or to any check which has  been  certified  or
    55  guaranteed  by the banking institution on which it has been drawn, or if
    56  such check is drawn on a bona fide workers' compensation fund issued  by

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

        A. 7393--A                         11
     1    Effective immediately the addition, amendment  and/or  repeal  of  any
     2  rule  or  regulation necessary for the implementation of this act on its
     3  effective date are authorized to be made and completed on or before such
     4  effective date.
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