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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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 26-0)

Status: (Introduced - Dead) 2020-01-08 - referred to codes [A07393 Detail]

Download: New_York-2019-A07393-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          7393
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                     April 29, 2019
                                       ___________
        Introduced  by  M.  of  A.  DE LA ROSA  -- 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
    23  or  money orders] providing financial services regulated by this article
    24  is to be conducted.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06923-01-9
        A. 7393                             2
     1    4. The term "person" means  any  individual  or  other  legal  entity,
     2  including any corporation, partnership, association or limited liability
     3  company.
     4    5.  The  term  "financial services" means offering or providing any of
     5  the following financial products or services: (a) the cashing of checks,
     6  drafts and/or money orders,
     7    (b) money transmission services as defined in  article  thirteen-B  of
     8  this  chapter, provided, however, a licensed financial services provider
     9  offering money transmission pursuant to article thirteen-B of this chap-
    10  ter, other than as an agent of a licensee, shall first obtain a  license
    11  under that article,
    12    (c) bill payment services,
    13    (d) the sale of prepaid debit cards, and
    14    (e) the dispensing of mass transit fare cards, or such other medium or
    15  mechanism for the dispensing of mass transit fares.
    16    6. The term "primary license" shall mean an original license issued by
    17  the superintendent that authorizes a person to engage in the business of
    18  cashing  of  checks and related financial services, and in the case of a
    19  licensee who has multiple licensed business locations at the time of the
    20  effective date of this subdivision, the initial longest site continuous-
    21  ly licensed under this article.
    22    7. The term "supplemental license" shall mean a license issued by  the
    23  superintendent  that  authorizes  a  person  having a primary license to
    24  engage in the business  of  cashing  of  checks  and  related  financial
    25  services  at  branch  locations,  and  in the case of a licensee who has
    26  multiple licensed business locations at the time of the  effective  date
    27  of  this  subdivision,  any license issued to an existing licensee after
    28  the license for the original site.
    29    § 4. Section 367 of the banking law, as amended by chapter 151 of  the
    30  laws of 1945, subdivision 3 as amended by section 7 of part D-1 of chap-
    31  ter  109 of the laws of 2006, and subdivision 4 as amended by chapter 96
    32  of the laws of 1981, is amended to read as follows:
    33    § 367.  License  requirements;  fees;  capital  requirements.  1.   No
    34  person[,  partnership,  association  or corporation] shall engage in the
    35  business of cashing checks, drafts or money orders for  a  consideration
    36  without first obtaining a license from the superintendent.
    37    2.  Application  for such license shall be in writing, under oath, and
    38  in the form prescribed by the  superintendent,  and  shall  contain  the
    39  name,  and  the  address both of the residence and place of business, of
    40  the applicant, and if the applicant is a  co-partnership  [or],  associ-
    41  ation  or  limited  liability company, of every member thereof, and if a
    42  corporation, of each officer and director thereof; also, if the business
    43  is to be conducted at a specific address, the address at which the busi-
    44  ness is to be conducted, and if the business is to be conducted  from  a
    45  [mobile unit] limited station, the New York state registration number or
    46  other  identification of such [mobile unit] limited station and the area
    47  in which the applicant proposes to operate such  [mobile  unit]  limited
    48  station;  and  also  such  further information as the superintendent may
    49  require.
    50    3. Such applicant at the time of making such application shall pay  to
    51  the superintendent a fee as prescribed pursuant to section eighteen-a of
    52  this  chapter  for  investigating the application.  An application for a
    53  primary license shall be  in  writing,  under  oath,  and  in  the  form
    54  prescribed  by  the superintendent and shall contain such information as
    55  the superintendent may require by regulation. The application shall  set
    56  forth all of the locations at which the applicant seeks to conduct busi-
        A. 7393                             3
     1  ness  hereunder.    At  the time of making the application for a primary
     2  license, an existing licensee under this article shall pay to the super-
     3  intendent the sum  of  two  hundred  fifty  dollars  for  each  proposed
     4  location  as  a fee for investigating the application. An applicant that
     5  does not currently hold a license under this  article  at  the  time  of
     6  application  shall  pay  to  the  superintendent  an  application fee as
     7  provided in this chapter for initial applications. Any licensee request-
     8  ing a change of address, shall at the time of making such  request,  pay
     9  to the superintendent a fee as prescribed pursuant to section eighteen-a
    10  of  this  chapter  for investigating the new address; provided, however,
    11  that the superintendent may, in his or her discretion, waive such inves-
    12  tigation fee if warranted, and provided further, that no  fee  shall  be
    13  payable for the relocation of a limited station.
    14    4.  Every  applicant  shall  prove, in form satisfactory to the super-
    15  intendent that he or it has available for the operation  of  such  busi-
    16  ness, for each location and for each [mobile unit] limited station spec-
    17  ified  in  the  application,  liquid  assets  of  at  least ten thousand
    18  dollars, and every licensee shall continuously maintain for  the  opera-
    19  tion  of  such  business  for  each  location and for each [mobile unit]
    20  limited station liquid assets of at least ten thousand dollars. Notwith-
    21  standing the foregoing provisions of this subdivision,  the  superinten-
    22  dent,  upon  application  by  an applicant and for good cause shown, may
    23  permit a reduction from ten thousand dollars to not less than five thou-
    24  sand dollars of minimum liquid assets required for each location.
    25    § 5. Section 369 of the banking law, as amended by chapter 151 of  the
    26  laws  of  1945,  subdivision  1 as amended by chapter 233 of the laws of
    27  2005, subdivisions 4 and 5 as amended by chapter  132  of  the  laws  of
    28  1969, subdivision 6 as amended by chapter 164 of the laws of 2003, para-
    29  graph (b) of subdivision 6 as amended by section 6 of part LL of chapter
    30  56 of the laws of 2010, and subdivision 7 as added by chapter 485 of the
    31  laws of 1947, is amended to read as follows:
    32    § 369. Conditions precedent to issuing license; issuance and filing of
    33  license;  posting  license. 1. If the superintendent shall find that the
    34  financial responsibility, experience, character, and general fitness  of
    35  the applicant, and of the members thereof if the applicant be a co-part-
    36  nership [or], association or limited liability company, and of the offi-
    37  cers  and  directors thereof if the applicant be a corporation, are such
    38  as to command the confidence of the community and to warrant belief that
    39  the business will be operated honestly, fairly, and  efficiently  within
    40  the  purposes of this article, and if the superintendent shall find that
    41  the granting of such application will promote the convenience and advan-
    42  tage of the area in which such business is to be conducted, and  if  the
    43  superintendent shall find that the applicant has available for the oper-
    44  ation  of  such  business  for  each location and for each [mobile unit]
    45  limited station specified in the application liquid assets of  at  least
    46  ten  thousand  dollars,  the  superintendent  shall  thereupon execute a
    47  primary license and if applicable one or more supplemental  licenses  in
    48  duplicate  to  permit  the  [cashing of checks, drafts and money orders]
    49  delivery of financial services in accordance with the provisions of this
    50  article at the location or locations or in the area or  areas  specified
    51  in such application. In finding whether the application will promote the
    52  convenience and advantage to the public, the superintendent shall deter-
    53  mine  whether  there  is  a  community  need  for  a new licensee in the
    54  proposed area or areas to be served. No license shall be  issued  to  an
    55  applicant  for  a  license, at a location to be licensed which is closer
    56  than one thousand five hundred eighty-four feet (three-tenths of a mile)
        A. 7393                             4
     1  from an existing licensee, except  with  the  written  consent  of  such
     2  existing  licensee  or  pursuant  to  subdivision three of section three
     3  hundred seventy of this article, subject to any restriction or condition
     4  as  the  superintendent may promulgate by regulation; provided, however,
     5  the superintendent may permit a location to be licensed that  is  closer
     6  than  three-tenths  of  a  mile  from an existing licensee provided such
     7  applicant engages in the cashing of checks, drafts or money orders  only
     8  for  payees  of  such checks, drafts or money orders that are other than
     9  natural persons at the location to be licensed and  such  applicant  was
    10  engaged in the cashing of such checks, drafts or money orders for payees
    11  that  are  other  than natural persons at such location on or before the
    12  fourteenth day of July, two thousand four,  and  provided  further  that
    13  upon  licensing any such location by the superintendent, such license as
    14  it pertains solely to such location shall not be affected thereafter  by
    15  any  change of control of such license pursuant to section three hundred
    16  seventy-a of this article, provided that the licensee  continues  there-
    17  after  to  engage  at  that location in the cashing of checks, drafts or
    18  money orders only for payees that are other  than  natural  persons  and
    19  provided further that such license shall bear a legend stating that such
    20  location  is restricted to the cashing of checks, drafts or money orders
    21  only for payees that are other than natural persons. The three-tenths of
    22  a mile distance requirement as set forth in this section shall not apply
    23  in cases where the existing licensee is a restricted location as author-
    24  ized in the preceding sentence, or is any other licensed  location  that
    25  engages solely in the cashing of checks, drafts or money orders only for
    26  payees  that  are  other  than  natural  persons.  For  purposes of this
    27  section, such distance shall be measured on a straight  line  along  the
    28  street  between the nearest point of the store fronts of the check cash-
    29  ing facilities. The primary business of the licensee, at the location to
    30  be licensed, shall be financial services. The superintendent shall tran-
    31  smit one copy of such license to the applicant and file another  in  the
    32  office  of  the  department. Notwithstanding the foregoing provisions of
    33  this subdivision, the superintendent, upon application by  an  applicant
    34  and  for  good  cause  shown,  may  permit a reduction from ten thousand
    35  dollars to not less than five thousand dollars of minimum liquid  assets
    36  required for each location.
    37    2.  Such  license  shall  state  the  name of the licensee; and if the
    38  licensee is a co-partnership  [or],  association  or  limited  liability
    39  company,  the  names  of  the  members thereof; and if the licensee is a
    40  corporation, the date of its incorporation; and if the business is to be
    41  conducted at a specific address, the address at which such  business  is
    42  to  be conducted; and if the business is to be conducted through the use
    43  of a [mobile unit] limited station,  the  New  York  state  registration
    44  number or other identification of such [mobile unit] limited station and
    45  the area in which such [mobile unit] limited station is authorized to do
    46  business.
    47    3.  [Such  license] All licenses issued by the superintendent shall be
    48  kept conspicuously posted in the place of business of the  licensee  or,
    49  in  the case of a [mobile unit] limited station, upon such [mobile unit]
    50  limited station.  Such license shall not be transferable or assignable.
    51    4. Such license shall remain in full force  and  effect  until  it  is
    52  surrendered  by the licensee or revoked or suspended as provided in this
    53  article. In the case of a change of control of a location or a  business
    54  licensed  hereunder,  the  licensee  approved to acquire the business or
    55  location may utilize a true copy of the  existing  license  pending  the
    56  issuance of a new license by the superintendent.
        A. 7393                             5
     1    5.  If  the superintendent shall find that the applicant fails to meet
     2  any of the conditions set forth in subdivision one of this  section,  he
     3  or  she  shall  not  issue  such license, and he or she shall notify the
     4  applicant of the denial.  If an application is denied or withdrawn,  the
     5  superintendent  shall retain the investigation fee to cover the costs of
     6  investigating the application and return the license fee to  the  appli-
     7  cant.
     8    6.  The  superintendent may refuse to issue a license pursuant to this
     9  article if he or she shall find that the applicant, or any person who is
    10  a director, officer, partner, agent, employee or substantial stockholder
    11  of the applicant, (a) has been convicted of a crime in any  jurisdiction
    12  or  (b) is associating or consorting with any person who has, or persons
    13  who have, been convicted of a crime or crimes  in  any  jurisdiction  or
    14  jurisdictions;  provided,  however,  that  the  superintendent shall not
    15  issue such a license if he or she shall find that the applicant, or  any
    16  person  who is a director, officer, partner, agent, employee or substan-
    17  tial stockholder of the applicant, has been convicted of a felony in any
    18  jurisdiction or of a crime which, if committed within this state,  would
    19  constitute  a  felony  under  the laws thereof. For the purposes of this
    20  article, a person shall be deemed to have been convicted of a  crime  if
    21  such person shall have pleaded guilty to a charge thereof before a court
    22  or  magistrate,  or shall have been found guilty thereof by the decision
    23  or judgment of a court or magistrate or by the verdict of a jury,  irre-
    24  spective  of  the  pronouncement  of sentence or the suspension thereof,
    25  unless such plea of guilty, or such decision, judgment or verdict, shall
    26  have been set aside, reversed or otherwise abrogated by lawful  judicial
    27  process  or unless the person convicted of the crime shall have received
    28  a pardon therefor from the president of the United States or the  gover-
    29  nor   or  other  pardoning  authority  in  the  jurisdiction  where  the
    30  conviction was had, or shall have received a certificate of relief  from
    31  disabilities  or a certificate of good conduct pursuant to article twen-
    32  ty-three of the correction law to remove the disability under this arti-
    33  cle because of such conviction. The term "substantial  stockholder,"  as
    34  used in this subdivision, shall be deemed to refer to a person owning or
    35  controlling ten per centum or more of the total outstanding stock of the
    36  corporation  in which such person is a stockholder. In making a determi-
    37  nation pursuant to this subdivision, the  superintendent  shall  require
    38  fingerprinting of the applicant. Such fingerprints shall be submitted to
    39  the  division  of criminal justice services for a state criminal history
    40  record check, as defined in subdivision one of  section  three  thousand
    41  thirty-five  of  the  education law, and may be submitted to the federal
    42  bureau of investigation for a national criminal history record check.
    43    7. No license pursuant to this article shall be issued to  any  appli-
    44  cant  to  do  business  at the place specified in the application as the
    45  place where the business is to be conducted if, within the twelve months
    46  preceding such application, a license to engage in business pursuant  to
    47  this article at such place shall have been revoked.
    48    §  6. Section 370 of the banking law, as amended by chapter 151 of the
    49  laws of 1945, subdivision 2 as amended by section 38 of part O of  chap-
    50  ter  59  of the laws of 2006 and subdivision 3 as amended by chapter 703
    51  of the laws of 2006, is amended to read as follows:
    52    § 370. Restrictions as to place or area of doing business;  establish-
    53  ment of stations; change of location. 1. No more than one place of busi-
    54  ness  or one [mobile unit] limited station shall be maintained under the
    55  same license; provided, however, that  more  than  one  license  may  be
    56  issued to the same licensee [upon compliance with the provisions of this
        A. 7393                             6

     1  article  for each new license] and if the superintendent determines that
     2  an existing licensee is in good standing  and  in  compliance  with  the
     3  provisions  of  this  article,  a subsequent application for a second or
     4  multiple  supplemental  licenses  at  different, separate and additional
     5  locations shall be expedited by the superintendent provided the  minimum
     6  liquidity  requirements and community need criteria set forth in section
     7  three hundred sixty-nine of this article have been demonstrated  in  the
     8  application for the additional location or locations.
     9    2.  Any  licensed  casher of checks may open and maintain, within this
    10  state, one or more limited stations for the purpose of  cashing  checks,
    11  drafts  or  money orders for the particular group or groups specified in
    12  the license authorizing  each  such  station.  Such  stations  shall  be
    13  licensed  pursuant to and be subject to all the provisions of this chap-
    14  ter applicable to licensed cashers of  checks,  except  that  (a)  [such
    15  station  shall  not  be  subject to the distance limitation set forth in
    16  subdivision one of section three hundred  sixty-nine  of  this  article,
    17  (b)] the fee for investigating the application for a station shall be as
    18  prescribed pursuant to section eighteen-a of this chapter, and [(c)] (b)
    19  where  such a station is at the premises of a specified employer for the
    20  purpose of cashing checks, drafts and money orders for the employees  of
    21  such  employer,  the fees and charges for cashing such checks, drafts or
    22  money orders shall not be subject to the limitations of subdivision  one
    23  of  section  three  hundred seventy-two of this article if such fees and
    24  charges are paid by such employer.
    25    3. A licensee may make a written application to the superintendent for
    26  leave to change his or her place of  business,  or  in  the  case  of  a
    27  [mobile unit] limited station, the area in which such unit is authorized
    28  to  be operated, stating the reasons for such proposed change and in the
    29  case where the applicant currently holds a primary license to operate  a
    30  business  established  under  this  article,  the  superintendent  shall
    31  streamline and reduce the information required from such applicant. Such
    32  application may be approved for relocation from  a  site  within  three-
    33  tenths of a mile of another licensee to another site within three-tenths
    34  of  a mile of such other licensee provided that such new site is farther
    35  from such existing licensee than the site from which permission to relo-
    36  cate is sought. Only in situations in which a licensee seeks  to  change
    37  its  place  of  business  due  to extraordinary circumstances, as may be
    38  determined by the superintendent pursuant to regulations, may the super-
    39  intendent, in his or her discretion, determine that an  application  may
    40  be  approved for relocation from a site within three-tenths of a mile of
    41  another licensee to a new site which is closer to such existing licensee
    42  than the site from which permission to relocate is sought. Notwithstand-
    43  ing any other provision of this subdivision,  a  licensee  may  relocate
    44  from  any  location  to a location that is within three-tenths of a mile
    45  from another licensee with the written consent of the other licensee. If
    46  the superintendent approves such application he or she shall issue a new
    47  license in duplicate in accordance with the provisions of section  three
    48  hundred  sixty-nine  of  this  article, stating the new location of such
    49  licensee or, in the case of a [mobile unit]  limited  station,  the  new
    50  area in which such [mobile unit] limited station may be operated.
    51    §  7. Section 370-a of the banking law, as added by chapter 142 of the
    52  laws of 1992, subdivision 1 as amended by section 39 of part O of  chap-
    53  ter 59 of the laws of 2006, is amended to read as follows:
    54    § 370-a.  Changes  in control. 1. It shall be unlawful except with the
    55  prior approval of the superintendent for any action to  be  taken  which
    56  results  in a change of control of the business of a licensee.  Prior to
        A. 7393                             7
     1  any change of control, the person desirous of acquiring control  of  the
     2  business  of  a licensee, if such person is not already a licensee under
     3  this article, shall make written application to the  superintendent  and
     4  pay an investigation fee as prescribed pursuant to section eighteen-a of
     5  this  chapter  to the superintendent. The application shall contain such
     6  information as the superintendent, by rule or regulation, may  prescribe
     7  as  necessary or appropriate, and in the case where the acquiring person
     8  currently holds a primary license  to  operate  a  business  established
     9  under  this  article,  and in the case of a limited station license, the
    10  superintendent shall streamline and reduce the information required from
    11  such applicant, for the purpose of making the determination required  by
    12  subdivision two of this section.
    13    2.  The superintendent shall approve or disapprove the proposed change
    14  of control of a licensee in accordance with the provisions  of  subdivi-
    15  sions  one  and six of section three hundred sixty-nine of this article.
    16  The superintendent shall approve or disapprove the application in  writ-
    17  ing  within ninety days after the date the application is filed with the
    18  superintendent.
    19    3. For a period of six months from the date of  qualification  thereof
    20  and  for  such  additional  period  of  time  as  the superintendent may
    21  prescribe, in writing, the provisions of subdivisions  one  and  two  of
    22  this  section  shall  not apply to a transfer of control by operation of
    23  law to the legal representative, as hereinafter defined, of one who  has
    24  control  of  a  licensee.  Thereafter,  such  legal representative shall
    25  comply with the provisions of subdivisions one and two of this  section.
    26  The  provisions  of  subdivisions  one  and two of this section shall be
    27  applicable to an application made under such section by a  legal  repre-
    28  sentative.
    29    The  term  "legal  representative",  for the purposes of this section,
    30  shall mean one duly appointed by a court of  competent  jurisdiction  to
    31  act  as  executor,  administrator,  trustee,  committee,  conservator or
    32  receiver, including one who succeeds  a  legal  representative  and  one
    33  acting   in  an  ancillary  capacity  thereto  in  accordance  with  the
    34  provisions of such court appointment.
    35    4. As used in this section: (a) the term "person" includes an individ-
    36  ual, partnership, corporation, association, limited  liability  company,
    37  or  any  other  organization,  and  (b)  the  term  "control"  means the
    38  possession, directly or indirectly, of the power to direct or cause  the
    39  direction  of the management and policies of a licensee, whether through
    40  the ownership of voting stock of such licensee, the ownership of  voting
    41  stock  of  any  person  which possesses such power or otherwise. Control
    42  shall be presumed to exist if any person, directly or indirectly,  owns,
    43  controls  or  holds  with  power  to  vote ten per centum or more of the
    44  voting stock of any licensee or of any person which  owns,  controls  or
    45  holds  with  power to vote ten per centum or more of the voting stock of
    46  any licensee, but no person shall be deemed to control a licensee solely
    47  by reason of being an officer or director of such  licensee  or  person.
    48  The superintendent may in his or her discretion, upon the application of
    49  a  licensee or any person who, directly or indirectly, owns, controls or
    50  holds with power to vote or seeks to own, control or hold with power  to
    51  vote  any  voting  stock  of such licensee, determine whether or not the
    52  ownership, control or holding of such voting stock constitutes or  would
    53  constitute control of such licensee for purposes of this section.
    54    §  8.  Section  371 of the banking law, as added by chapter 151 of the
    55  laws of 1945, is amended to read as follows:
        A. 7393                             8
     1    § 371.  Regulations.  The  superintendent  is  hereby  authorized  and
     2  empowered to make such rules and regulations, and such specific rulings,
     3  demands,  and  findings  as  he or she may deem necessary for the proper
     4  conduct of the business  authorized  and  licensed  under  and  for  the
     5  enforcement  of  this  article,  in addition hereto and not inconsistent
     6  herewith.
     7    § 9. Section 372 of the banking law, as amended by chapter 151 of  the
     8  laws  of  1945,  the  section  heading  and subdivision 1 as amended and
     9  subdivision 7 as added by chapter 432 of the laws of 2004,  subdivisions
    10  2,  3  and  4 as added and subdivisions 5 and 6 as renumbered by chapter
    11  263 of the laws of 1983, and subdivision 6 as added by  chapter  485  of
    12  the laws of 1947, is amended to read as follows:
    13    § 372. Fees and charges; posting schedule; records and reports. 1. The
    14  superintendent  shall,  by  regulation, establish the maximum fees which
    15  may be charged by licensees for cashing a check, draft, or money  order.
    16  No  licensee shall charge or collect any sum for cashing a check, draft,
    17  or money order in excess of that  established  by  the  superintendent's
    18  regulations;  provided,  however, that no maximum fee shall apply to the
    19  charging of fees by licensees for the cashing of checks, drafts or money
    20  orders for payees of such checks, drafts or money orders that are  other
    21  than natural persons. The licensee shall pay to every customer tendering
    22  any  check, draft or money order to be cashed, the entire face amount of
    23  such instrument, less any charges permitted by  the  superintendent,  in
    24  such  form  and by such means as agreed upon by the customer on the same
    25  date upon which such instrument is presented.
    26    2. The schedule of fees and charges permitted under this section shall
    27  be conspicuously and continuously posted in every  location  and  [mobil
    28  unit] limited station licensed under this article.
    29    3.  In the case of an internet, digital or other electronic advertise-
    30  ment or solicitation, a licensee shall be deemed to have  fulfilled  the
    31  disclosure requirements required by law by displaying the disclosures on
    32  its  website,  so  long  as the advertisement or solicitation includes a
    33  link directly to such website.
    34    4. No change in fees shall become effective earlier than  thirty  days
    35  after the superintendent shall notify the majority leader of the senate,
    36  the  speaker  of  the  assembly, and the chairmen of both the senate and
    37  assembly committees on banks of his or her intention to change fees.
    38    [4.] 5. The fees in effect immediately prior to the effective date  of
    39  this  subdivision  shall continue to be the maximum allowable fees until
    40  revised by the superintendent's regulations.
    41    [5.] 6. Each licensee shall keep and use in its business  such  books,
    42  accounts,  and  records  as the superintendent may require to carry into
    43  effect the provisions of this article and the rules and regulations made
    44  by the superintendent hereunder.  Every  licensee  shall  preserve  such
    45  books, accounts and records for at least two years.
    46    [6.] 7. Before a licensee shall deposit with any banking organization,
    47  or  with  any  organization engaged in the business of banking, a check,
    48  draft or money order cashed by such licensee, the same must be  endorsed
    49  with  the  actual  name  under which such licensee is doing business and
    50  must have the words "licensed  casher  of  checks"  legibly  written  or
    51  stamped immediately after or below such name.
    52    [7.]  8.  Every  licensee  shall submit to the superintendent, or such
    53  person as the superintendent may  designate,  such  suspicious  activity
    54  reports  or currency transaction reports as are required to be submitted
    55  to federal authorities pursuant to provisions of the  Bank  Secrecy  Act
    56  (subchapter  11,  chapter  53,  title  31, United States code) and regu-
        A. 7393                             9
     1  lations and administrative orders related thereto,  as  amended,  within
     2  the  periods of time as required by such act and regulations. A licensee
     3  may submit a copy of any such report  to  the  superintendent,  or  such
     4  person  as  the  superintendent  may  designate, that is filed with such
     5  federal authorities. The superintendent may adopt  such  regulations  or
     6  require  such  additional reports as he or she deems necessary to insure
     7  the effective enforcement of this subdivision.
     8    § 10. Section 372-a of the banking law, as added by chapter 432 of the
     9  laws of 2004, is amended to read as follows:
    10    § 372-a. Superintendent authorized to examine. 1. For the  purpose  of
    11  discovering  violations of this article or securing information lawfully
    12  required in this section, the superintendent may at  any  time,  and  as
    13  often as may be determined, either personally or by a person duly desig-
    14  nated  by  the  superintendent,  investigate  the  [cashing of checks by
    15  licensees] business practices of a licensee rendering financial services
    16  authorized by this article and examine the books, accounts, records, and
    17  files used therein of every licensee.
    18    2. For the purpose established in subdivision one of this section, the
    19  superintendent and his or her duly designated representatives shall have
    20  free access to the offices and  places  of  business,  books,  accounts,
    21  papers,  records,  files,  safes  and  vaults of all such licensees. The
    22  superintendent shall have authority to require the attendance of and  to
    23  examine  under oath all persons whose testimony may be required relative
    24  to such cashing of checks or such business.
    25    § 11. Subdivisions 1 and 2 of section 373 of the banking law, subdivi-
    26  sion 1 as amended by chapter 432 of the laws of 2004 and  subdivision  2
    27  as  amended  by  chapter 132 of the laws of 1969, are amended to read as
    28  follows:
    29    1. No licensee shall engage in the business of making loans of  money,
    30  credit,  goods  or  things  or  discounting of notes, bills of exchange,
    31  checks, or other evidences of debt pursuant to the provisions of article
    32  nine of this chapter, nor shall a loan business or  the  negotiation  of
    33  loans  or  the  discounting of notes, bills of exchange, checks or other
    34  evidences of debt be conducted on the same premises where  the  licensee
    35  is  conducting  business  pursuant  to  the  provisions of this article.
    36  Except as otherwise provided by regulation of  the  superintendent,  all
    37  checks,  drafts  and  money  orders shall be deposited in the licensee's
    38  bank account not later than the first business day following the day  on
    39  which  they  were  cashed. No licensee shall at any time cash or advance
    40  any moneys on a post-dated check or draft or engage in the  business  of
    41  transmitting money or receiving money for transmission; provided, howev-
    42  er, that a licensee may cash a check [payable on the first banking busi-
    43  ness day following the date of cashing (a) if such check is drawn by the
    44  United  States,  the  state of New York, or any political subdivision of
    45  the state of New York, or by any department, bureau, agency,  authority,
    46  instrumentality  or  officer,  acting  in  his official capacity, of the
    47  United States or of the state of New York or of any  political  subdivi-
    48  sion  of  the state of New York, or (b) if such check is a payroll check
    49  drawn by an employer to  the  order  of  its  employee  in  payment  for
    50  services  performed  by  such  employee]  without  regard  to  the  date
    51  imprinted on the check  as  long  as  the  check  is  deposited  in  the
    52  licensee's  bank account not later than the first business day following
    53  the day on which it was cashed. No licensee shall cash any check,  draft
    54  or  money order if the face amount for which it is drawn is in excess of
    55  [fifteen]  twenty  thousand  dollars;  provided,  however,   that   this
    56  restriction  shall  not  apply to the cashing of checks, drafts or money
        A. 7393                            10
     1  orders drawn by the United States, any state thereof  or  any  political
     2  subdivision  of  any  such  state, or by any department, bureau, agency,
     3  authority, instrumentality or officer, acting in his official  capacity,
     4  of  the United States, any state thereof or any political subdivision of
     5  any such state, or any [banking] financial institution, or to any  check
     6  or  draft  drawn by or on account of any insurance company, attorney for
     7  the settlement of claims, or to any check which has  been  certified  or
     8  guaranteed  by the banking institution on which it has been drawn, or if
     9  such check is drawn on a bona fide workers' compensation fund issued  by
    10  a  third-party  payor,  or  if such check is drawn by an employer from a
    11  pension or profit sharing fund, or if such check is  drawn  by  a  union
    12  from  a  pension  or  benefit fund or if such check is drawn by a union;
    13  provided further, however, that any such restriction  upon  the  maximum
    14  face  amount  that  may  be  cashed by a licensee shall not apply to the
    15  cashing of checks, drafts or money orders by  licensees  for  payees  of
    16  such checks, drafts or money orders that are other than natural persons.
    17  For  purposes  of  this  subdivision,  "[banking] financial institution"
    18  means any bank, trust company, savings bank, savings  and  loan  associ-
    19  ation  [or], credit union or other financial institution which is incor-
    20  porated, chartered [or], organized or licensed under the  laws  of  this
    21  state or any other state or the United States.
    22    2.  The  superintendent  may suspend or revoke any license or licenses
    23  issued pursuant to this article if, after notice and a  hearing,  he  or
    24  she shall find that the licensee (a) has committed any fraud, engaged in
    25  any  dishonest  activities  or  made  any  misrepresentation; or (b) has
    26  violated any provisions of the banking  law  or  any  regulation  issued
    27  pursuant  thereto, or has violated any other law in the course of its or
    28  his dealings as a licensed casher of checks; or (c)  has  made  a  false
    29  statement  in  the application for such license or failed to give a true
    30  reply to a question in such application; or (d) has demonstrated his  or
    31  its  incompetency  or  untrustworthiness  to act as a licensed casher of
    32  checks; or (e) is not doing sufficient business pursuant to this article
    33  to justify the continuance of the license, or if he or  she  shall  find
    34  that  any  ground  or  grounds  exist which would require or warrant the
    35  refusal of an application for the issuance of the  license  if  such  an
    36  application  were  then before him or her.  Such a hearing shall be held
    37  in the manner and upon such notice as may be prescribed  by  the  super-
    38  intendent.  Pending  an investigation or a hearing for the suspension or
    39  revocation of any license or licenses issued pursuant to  this  article,
    40  the  superintendent may temporarily suspend such license or licenses for
    41  a period not to exceed ninety days, provided  the  superintendent  shall
    42  find that such a temporary suspension is in the public interest.
    43    §  12.   Subdivision 3 of section 37 of the banking law, as amended by
    44  chapter 360 of the laws of 1984, is amended to read as follows:
    45    3. In addition to any reports expressly required by this chapter to be
    46  made, the superintendent may require any banking organization,  licensed
    47  lender,  licensed  casher  of  checks, licensed mortgage banker, foreign
    48  banking corporation licensed by the superintendent  to  do  business  in
    49  this state, bank holding company and any non-banking subsidiary thereof,
    50  corporate affiliate of a corporate banking organization within the mean-
    51  ing  of  subdivision  six  of section thirty-six of this article and any
    52  non-banking subsidiary of a corporation  which  is  an  affiliate  of  a
    53  corporate  banking  organization within the meaning of subdivision six-a
    54  of section thirty-six of this article to make special reports to him  or
    55  her at such times as he or she may prescribe.
        A. 7393                            11
     1    §  13.    This  act shall take effect on the one hundred eightieth day
     2  after it shall have become a law; provided, however, that:
     3    (a)  the  amendments to section 373 of the banking law made by section
     4  eleven of this act shall expire and be deemed repealed  June  30,  2024;
     5  and
     6    (b)  any  contract,  instrument,  argument or other written obligation
     7  entered into by a financial service provider  authorized  under  section
     8  373  of the banking law prior to June 30, 2024 shall be deemed valid and
     9  enforceable after such date.
    10    Effective immediately the addition, amendment  and/or  repeal  of  any
    11  rule  or  regulation necessary for the implementation of this act on its
    12  effective date are authorized to be made and completed on or before such
    13  effective date.