Bill Text: NY A09807 | 2021-2022 | General Assembly | Introduced


Bill Title: Relates to enacting the "community financial services access and modernization act"; 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 13-0)

Status: (Introduced - Dead) 2022-04-19 - referred to banks [A09807 Detail]

Download: New_York-2021-A09807-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          9807

                   IN ASSEMBLY

                                     April 19, 2022
                                       ___________

        Introduced  by  M. of A. CRUZ -- 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 2022"; 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 2022".
     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 or
    23  money orders is to be conducted.
    24    4. The term "person"  means   any individual or  other  legal  entity,
    25  including any corporation, partnership, association or limited liability
    26  company.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04514-07-2

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     1    §  4. Section 367 of the banking law, as amended by chapter 151 of the
     2  laws of 1945, subdivision 3 as amended by section 7 of part D-1 of chap-
     3  ter 109 of the laws of 2006, and subdivision 4 as amended by chapter  96
     4  of the laws of 1981, is amended to read as follows:
     5    § 367.   License  requirements;  fees;  capital  requirements.  1.  No
     6  person[, partnership, association or corporation] shall  engage  in  the
     7  business  of  cashing checks, drafts or money orders for a consideration
     8  without first obtaining a license from the superintendent.
     9    2. Application for such license shall be in writing, under  oath,  and
    10  in  the  form  prescribed  by  the superintendent, and shall contain the
    11  name, and the address both of the residence and place  of  business,  of
    12  the  applicant,  and  if the applicant is a co-partnership [or], associ-
    13  ation or limited liability company, of every member thereof,  and  if  a
    14  corporation, of each officer and director thereof; also, if the business
    15  is to be conducted at a specific address, the address at which the busi-
    16  ness  is  to be conducted, and if the business is to be conducted from a
    17  [mobile unit] limited station, the New York state registration number or
    18  other identification of such [mobile unit] limited station and the  area
    19  in  which  the  applicant proposes to operate such [mobile unit] limited
    20  station; and also such further information  as  the  superintendent  may
    21  require.
    22    3.  Such applicant at the time of making such application shall pay to
    23  the superintendent a fee as prescribed pursuant to section eighteen-a of
    24  this chapter for investigating the application.  Any licensee requesting
    25  a change of address, shall at the time of making such  request,  pay  to
    26  the superintendent a fee as prescribed pursuant to section eighteen-a of
    27  this  chapter for investigating the new address; provided, however, that
    28  the superintendent may, in his or her discretion,  waive  such  investi-
    29  gation  fee  if  warranted,  and  provided further, that no fee shall be
    30  payable for the relocation of a limited station.
    31    4. Every applicant shall prove, in form  satisfactory  to  the  super-
    32  intendent  that  he  or it has available for the operation of such busi-
    33  ness, for each location and for each [mobile unit] limited station spec-
    34  ified in the  application,  liquid  assets  of  at  least  ten  thousand
    35  dollars,  and  every licensee shall continuously maintain for the opera-
    36  tion of such business for each  location  and  for  each  [mobile  unit]
    37  limited station liquid assets of at least ten thousand dollars. Notwith-
    38  standing  the  foregoing provisions of this subdivision, the superinten-
    39  dent, upon application by an applicant and for  good  cause  shown,  may
    40  permit a reduction from ten thousand dollars to not less than five thou-
    41  sand dollars of minimum liquid assets required for each location.
    42    §  5. Section 369 of the banking law, as amended by chapter 151 of the
    43  laws of 1945, subdivision 1 as amended by chapter 233  of  the  laws  of
    44  2005,  subdivisions  4  and  5  as amended by chapter 132 of the laws of
    45  1969, subdivision 6 as amended by section 1 of subpart A of part  II  of
    46  chapter  55  of  the laws of 2019, and subdivision 7 as added by chapter
    47  485 of the laws of 1947, is amended to read as follows:
    48    § 369. Conditions precedent to issuing license; issuance and filing of
    49  license; posting license. 1. If the superintendent shall find  that  the
    50  financial  responsibility, experience, character, and general fitness of
    51  the applicant, and of the members thereof if the applicant be a co-part-
    52  nership [or], association or limited liability company, and of the offi-
    53  cers and directors thereof if the applicant be a corporation,  are  such
    54  as to command the confidence of the community and to warrant belief that
    55  the  business  will be operated honestly, fairly, and efficiently within
    56  the purposes of this article, and if the superintendent shall find  that

        A. 9807                             3

     1  the granting of such application will promote the convenience and advan-
     2  tage  of  the area in which such business is to be conducted, and if the
     3  superintendent shall find that the applicant has available for the oper-
     4  ation  of  such  business  for  each location and for each [mobile unit]
     5  limited station specified in the application liquid assets of  at  least
     6  ten  thousand  dollars,  the  superintendent  shall  thereupon execute a
     7  license in duplicate to permit the cashing of checks, drafts  and  money
     8  orders in accordance with the provisions of this article at the location
     9  or  in  the  area  specified in such application. In finding whether the
    10  application will promote the convenience and advantage  to  the  public,
    11  the superintendent shall determine whether there is a community need for
    12  a  new  licensee  in the proposed area to be served. No license shall be
    13  issued to an applicant for a license, at a location to be licensed which
    14  is closer than one thousand five hundred eighty-four feet  (three-tenths
    15  of a mile) from an existing licensee, except with the written consent of
    16  such existing licensee or pursuant to subdivision three of section three
    17  hundred seventy of this article, subject to any restriction or condition
    18  as  the  superintendent may promulgate by regulation; provided, however,
    19  the superintendent may permit a location to be licensed that  is  closer
    20  than  three-tenths  of  a  mile  from an existing licensee provided such
    21  applicant engages in the cashing of checks, drafts or money orders  only
    22  for  payees  of  such checks, drafts or money orders that are other than
    23  natural persons at the location to be licensed and  such  applicant  was
    24  engaged in the cashing of such checks, drafts or money orders for payees
    25  that  are  other  than natural persons at such location on or before the
    26  fourteenth day of July, two thousand four,  and  provided  further  that
    27  upon  licensing any such location by the superintendent, such license as
    28  it pertains solely to such location shall not be affected thereafter  by
    29  any  change of control of such license pursuant to section three hundred
    30  seventy-a of this article, provided that the licensee  continues  there-
    31  after  to  engage  at  that location in the cashing of checks, drafts or
    32  money orders only for payees that are other  than  natural  persons  and
    33  provided further that such license shall bear a legend stating that such
    34  location  is restricted to the cashing of checks, drafts or money orders
    35  only for payees that are other than natural persons. The three-tenths of
    36  a mile distance requirement as set forth in this section shall not apply
    37  in cases where the existing licensee is a restricted location as author-
    38  ized in the preceding sentence, or is any other licensed  location  that
    39  engages solely in the cashing of checks, drafts or money orders only for
    40  payees  that  are  other  than  natural  persons.  For  purposes of this
    41  section, such distance shall be measured on a straight  line  along  the
    42  street  between the nearest point of the store fronts of the check cash-
    43  ing facilities. The primary business of the licensee, at the location to
    44  be licensed, shall be financial services. The superintendent shall tran-
    45  smit one copy of such license to the applicant and file another  in  the
    46  office  of  the  department. Notwithstanding the foregoing provisions of
    47  this subdivision, the superintendent, upon application by  an  applicant
    48  and  for  good  cause  shown,  may  permit a reduction from ten thousand
    49  dollars to not less than five thousand dollars of minimum liquid  assets
    50  required for each location.
    51    2.  Such  license  shall  state  the  name of the licensee; and if the
    52  licensee is a co-partnership  [or],  association  or  limited  liability
    53  company,  the  names  of  the  members thereof; and if the licensee is a
    54  corporation, the date of its incorporation; and if the business is to be
    55  conducted at a specific address, the address at which such  business  is
    56  to  be conducted; and if the business is to be conducted through the use

        A. 9807                             4

     1  of a [mobile unit] limited station,  the  New  York  state  registration
     2  number or other identification of such [mobile unit] limited station and
     3  the area in which such [mobile unit] limited station is authorized to do
     4  business.
     5    3.  Such  license  shall  be kept conspicuously posted in the place of
     6  business of the licensee or, in the case  of  a  [mobile  unit]  limited
     7  station,  upon  such  [mobile unit] limited station.  Such license shall
     8  not be transferable or assignable.
     9    4. Such license shall remain in full force  and  effect  until  it  is
    10  surrendered  by the licensee or revoked or suspended as provided in this
    11  article.
    12    5. If the superintendent shall find that the applicant fails  to  meet
    13  any  of  the conditions set forth in subdivision one of this section, he
    14  or she shall not issue such license, and he  or  she  shall  notify  the
    15  applicant  of the denial.  If an application is denied or withdrawn, the
    16  superintendent shall retain the investigation fee to cover the costs  of
    17  investigating  the  application and return the license fee to the appli-
    18  cant.
    19    6. The superintendent may, consistent with article  twenty-three-A  of
    20  the  correction  law, refuse to issue a license pursuant to this article
    21  if he or she shall find that the applicant,  or  any  person  who  is  a
    22  director,  officer,  partner, agent, employee or substantial stockholder
    23  of the applicant, (a) has been convicted of a crime in any  jurisdiction
    24  or  (b) is associating or consorting with any person who has, or persons
    25  who have, been convicted of a crime or crimes  in  any  jurisdiction  or
    26  jurisdictions.  For  the  purposes  of  this  article, a person shall be
    27  deemed to have been convicted of a  crime  if  such  person  shall  have
    28  pleaded  guilty  to  a  charge  thereof before a court or magistrate, or
    29  shall have been found guilty thereof by the decision or  judgment  of  a
    30  court  or  magistrate  or  by the verdict of a jury, irrespective of the
    31  pronouncement of sentence or the suspension thereof. The term  "substan-
    32  tial stockholder," as used in this subdivision, shall be deemed to refer
    33  to  a  person  owning or controlling ten per centum or more of the total
    34  outstanding stock of the corporation in which such person  is  a  stock-
    35  holder.  In  making  a  determination  pursuant to this subdivision, the
    36  superintendent shall require fingerprinting of the applicant. Such fing-
    37  erprints shall be submitted to the division of criminal justice services
    38  for a state criminal history record check, as defined in subdivision one
    39  of section three thousand thirty-five of the education law, and  may  be
    40  submitted to the federal bureau of investigation for a national criminal
    41  history record check.
    42    7.  No  license pursuant to this article shall be issued to any appli-
    43  cant to do business at the place specified in  the  application  as  the
    44  place where the business is to be conducted if, within the twelve months
    45  preceding  such application, a license to engage in business pursuant to
    46  this article at such place shall have been revoked.
    47    § 6. Section 370 of the banking law, as amended by chapter 151 of  the
    48  laws  of 1945, subdivision 2 as amended by section 38 of part O of chap-
    49  ter 59 of the laws of 2006 and subdivision 3 as amended by  chapter  703
    50  of the laws of 2006, is amended to read as follows:
    51    § 370.  Restrictions as to place or area of doing business; establish-
    52  ment of stations; change of location. 1. No more than one place of busi-
    53  ness or one [mobile unit] limited station shall be maintained under  the
    54  same  license;  provided,  however,  that  more  than one license may be
    55  issued to the same licensee upon compliance with the provisions of  this
    56  article for each new license.

        A. 9807                             5

     1    2.  Any  licensed  casher of checks may open and maintain, within this
     2  state, one or more limited stations for the purpose of  cashing  checks,
     3  drafts  or  money orders for the particular group or groups specified in
     4  the license authorizing  each  such  station.  Such  stations  shall  be
     5  licensed  pursuant to and be subject to all the provisions of this chap-
     6  ter applicable to licensed cashers  of  checks,  except  that  (a)  such
     7  station  shall  not  be  subject to the distance limitation set forth in
     8  subdivision one of section three hundred sixty-nine of this article, (b)
     9  the fee for investigating the application for  a  station  shall  be  as
    10  prescribed pursuant to section eighteen-a of this chapter, and (c) where
    11  such  a  station  is  at  the  premises  of a specified employer for the
    12  purpose of cashing checks, drafts and money orders for the employees  of
    13  such  employer,  the fees and charges for cashing such checks, drafts or
    14  money orders shall not be subject to the limitations of subdivision  one
    15  of  section  three  hundred seventy-two of this article if such fees and
    16  charges are paid by such employer.
    17    3. A licensee may make a written application to the superintendent for
    18  leave to change his or her place of  business,  or  in  the  case  of  a
    19  [mobile unit] limited station, the area in which such unit is authorized
    20  to  be  operated,  stating  the  reasons for such proposed change.  Such
    21  application may be approved for relocation from  a  site  within  three-
    22  tenths of a mile of another licensee to another site within three-tenths
    23  of  a mile of such other licensee provided that such new site is farther
    24  from such existing licensee than the site from which permission to relo-
    25  cate is sought. Only in situations in which a licensee seeks  to  change
    26  its  place  of  business  due  to extraordinary circumstances, as may be
    27  determined by the superintendent pursuant to regulations, may the super-
    28  intendent, in his or her discretion, determine that an  application  may
    29  be  approved for relocation from a site within three-tenths of a mile of
    30  another licensee to a new site which is closer to such existing licensee
    31  than the site from which permission to relocate is sought. Notwithstand-
    32  ing any other provision of this subdivision,  a  licensee  may  relocate
    33  from  any  location  to a location that is within three-tenths of a mile
    34  from another licensee with the written consent of the other licensee. If
    35  the superintendent approves such application he or she shall issue a new
    36  license in duplicate in accordance with the provisions of section  three
    37  hundred  sixty-nine  of  this  article, stating the new location of such
    38  licensee or, in the case of a [mobile unit]  limited  station,  the  new
    39  area in which such [mobile unit] limited station may be operated.
    40    §  7.  Subdivision  4 of section 370-a of the banking law, as added by
    41  chapter 142 of the laws of 1992, is amended to read as follows:
    42    4. As used in this section[: (a) the term "person" includes  an  indi-
    43  vidual, partnership, corporation, association or any other organization,
    44  and (b)], the term "control" means the possession, directly or indirect-
    45  ly,  of the power to direct or cause the direction of the management and
    46  policies of a licensee, whether through the ownership of voting stock of
    47  such licensee, the  ownership  of  voting  stock  of  any  person  which
    48  possesses such power or otherwise. Control shall be presumed to exist if
    49  any  person,  directly or indirectly, owns, controls or holds with power
    50  to vote ten per centum or more of the voting stock of any licensee or of
    51  any person which owns, controls or holds with  power  to  vote  ten  per
    52  centum  or more of the voting stock of any licensee, but no person shall
    53  be deemed to control a licensee solely by reason of being an officer  or
    54  director  of  such  licensee or person. The superintendent may in his or
    55  her discretion, upon the application of a licensee or  any  person  who,
    56  directly  or  indirectly,  owns, controls or holds with power to vote or

        A. 9807                             6

     1  seeks to own, control or hold with power to vote  any  voting  stock  of
     2  such  licensee, determine whether or not the ownership, control or hold-
     3  ing of such voting stock constitutes or would constitute control of such
     4  licensee for purposes of this section.
     5    §  8.  Section  371 of the banking law, as added by chapter 151 of the
     6  laws of 1945, is amended to read as follows:
     7    § 371.  Regulations.  The  superintendent  is  hereby  authorized  and
     8  empowered to make such rules and regulations, and such specific rulings,
     9  demands,  and  findings  as  he or she may deem necessary for the proper
    10  conduct of the business  authorized  and  licensed  under  and  for  the
    11  enforcement  of  this  article,  in addition hereto and not inconsistent
    12  herewith.
    13    § 9. Section 372 of the banking law, as amended by chapter 151 of  the
    14  laws  of  1945,  the  section  heading  and subdivision 1 as amended and
    15  subdivision 7 as added by chapter 432 of the laws of 2004,  subdivisions
    16  2,  3  and  4 as added and subdivisions 5 and 6 as renumbered by chapter
    17  263 of the laws of 1983, and subdivision 6 as added by  chapter  485  of
    18  the laws of 1947, is amended to read as follows:
    19    § 372. Fees and charges; posting schedule; records and reports. 1. The
    20  superintendent  shall,  by  regulation, establish the maximum fees which
    21  may be charged by licensees for cashing a check, draft, or money  order.
    22  No  licensee shall charge or collect any sum for cashing a check, draft,
    23  or money order in excess of that  established  by  the  superintendent's
    24  regulations;  provided,  however, that no maximum fee shall apply to the
    25  charging of fees by licensees for the cashing of checks, drafts or money
    26  orders for payees of such checks, drafts or money orders that are  other
    27  than natural persons.
    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. Only in the case of an internet, digital or other electronic adver-
    32  tisement or solicitation, a licensee shall be deemed to  have  fulfilled
    33  the  disclosure requirements required by law with respect to such inter-
    34  net, digital or other electronic advertisement or solicitation  only  by
    35  displaying  the disclosures on its website, so long as the advertisement
    36  or solicitation includes a link directly to such website,  and  provided
    37  this does not modify in-store disclosure requirements.
    38    4.  No  change in fees shall become effective earlier than thirty days
    39  after the superintendent shall notify the majority leader of the senate,
    40  the speaker of the assembly, and the chairmen of  both  the  senate  and
    41  assembly committees on banks of his or her intention to change fees.
    42    [4.]  5. The fees in effect immediately prior to the effective date of
    43  this subdivision shall continue to be the maximum allowable  fees  until
    44  revised by the superintendent's regulations.
    45    [5.]  6.  Each licensee shall keep and use in its business such books,
    46  accounts, and records as the superintendent may require  to  carry  into
    47  effect the provisions of this article and the rules and regulations made
    48  by  the  superintendent  hereunder.  Every  licensee shall preserve such
    49  books, accounts and records for at least two years.
    50    [6.] 7. Before a licensee shall deposit with any banking organization,
    51  or with any organization engaged in the business of  banking,  a  check,
    52  draft  or money order cashed by such licensee, the same must be endorsed
    53  with the actual name under which such licensee  is  doing  business  and
    54  must  have  the  words  "licensed  casher  of checks" legibly written or
    55  stamped immediately after or below such name.

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     1    [7.] 8. Every licensee shall submit to  the  superintendent,  or  such
     2  person  as  the  superintendent  may designate, such suspicious activity
     3  reports or currency transaction reports as are required to be  submitted
     4  to  federal  authorities  pursuant to provisions of the Bank Secrecy Act
     5  (subchapter  11,  chapter  53,  title  31, United States code) and regu-
     6  lations and administrative orders related thereto,  as  amended,  within
     7  the  periods of time as required by such act and regulations. A licensee
     8  may submit a copy of any such report  to  the  superintendent,  or  such
     9  person  as  the  superintendent  may  designate, that is filed with such
    10  federal authorities. The superintendent may adopt  such  regulations  or
    11  require  such  additional reports as he or she deems necessary to insure
    12  the effective enforcement of this subdivision.
    13    § 10. Section 372-a of the banking law, as added by chapter 432 of the
    14  laws of 2004, is amended to read as follows:
    15    § 372-a. Superintendent authorized to examine. 1. For the  purpose  of
    16  discovering  violations of this article or securing information lawfully
    17  required in this section, the superintendent may at  any  time,  and  as
    18  often as may be determined, either personally or by a person duly desig-
    19  nated  by  the  superintendent,  investigate  the [cashing of checks by]
    20  licensees and their business practices as authorized by this article and
    21  examine the books, accounts, records, and files used  therein  of  every
    22  licensee.
    23    2. For the purpose established in subdivision one of this section, the
    24  superintendent and his or her duly designated representatives shall have
    25  free  access  to  the  offices  and places of business, books, accounts,
    26  papers, records, files, safes and vaults  of  all  such  licensees.  The
    27  superintendent  shall have authority to require the attendance of and to
    28  examine under oath all persons whose testimony may be required  relative
    29  to such cashing of checks or such business.
    30    § 11. Subdivisions 1 and 2 of section 373 of the banking law, subdivi-
    31  sion  1  as amended by chapter 432 of the laws of 2004 and subdivision 2
    32  as amended by chapter 132 of the laws of 1969, are amended  to  read  as
    33  follows:
    34    1.  No licensee shall engage in the business of making loans of money,
    35  credit, goods or things or discounting  of  notes,  bills  of  exchange,
    36  checks, or other evidences of debt pursuant to the provisions of article
    37  nine  of  this  chapter, nor shall a loan business or the negotiation of
    38  loans or the discounting of notes, bills of exchange,  checks  or  other
    39  evidences  of  debt be conducted on the same premises where the licensee
    40  is conducting business pursuant  to  the  provisions  of  this  article.
    41  Except  as  otherwise  provided by regulation of the superintendent, all
    42  checks, drafts and money orders shall be  deposited  in  the  licensee's
    43  bank  account not later than the first business day following the day on
    44  which they were cashed. No licensee shall at any time  cash  or  advance
    45  any  moneys  on a post-dated check or draft or engage in the business of
    46  transmitting money or receiving money for transmission; provided, howev-
    47  er, that a licensee may cash a check [payable on the first banking busi-
    48  ness day following the date of cashing (a) if such check is drawn by the
    49  United States, the state of New York, or any  political  subdivision  of
    50  the  state of New York, or by any department, bureau, agency, authority,
    51  instrumentality or officer, acting in  his  official  capacity,  of  the
    52  United  States  or of the state of New York or of any political subdivi-
    53  sion of the state of New York, or (b) if such check is a  payroll  check
    54  drawn  by  an  employer  to  the  order  of  its employee in payment for
    55  services  performed  by  such  employee]  without  regard  to  the  date
    56  imprinted  on the check as long as the check is dated not more than five

        A. 9807                             8

     1  business days after the date of presentment and as long as the check  is
     2  deposited  in the licensee's bank account not later than the first busi-
     3  ness day following the day on which it was cashed that is:  (a)  payable
     4  no more than five banking business days following the date of cashing if
     5  such  check is drawn by the United States, the state of New York, or any
     6  political subdivision of the state of New York, or  by  any  department,
     7  bureau,  agency, authority, instrumentality or officer, acting in his or
     8  her official capacity, of the United States or of the state of New  York
     9  or of any political subdivision of the state of New York; (b) payable no
    10  more  than  five  banking business days following the date of cashing if
    11  such check is payable to a natural  person  and  is  in  an  amount  not
    12  exceeding  one  thousand  dollars;  or  (c) payable on the first banking
    13  business day following the date of cashing if such check  is  a  payroll
    14  check  drawn  by an employer to the order of its employee in payment for
    15  services performed by such employee. Any licensee who cashes  post-dated
    16  checks  pursuant to paragraph (a) or (b) of this subdivision shall do so
    17  subject to the  safety  and  soundness  requirements  of  this  article,
    18  including  establishment  of policies and procedures to implement robust
    19  due diligence, risk management, liquidity management, structured  trans-
    20  actions  and  fraud prevention.  No licensee shall cash any check, draft
    21  or money order if the face amount for which it is drawn is in excess  of
    22  [fifteen]   twenty   thousand  dollars;  provided,  however,  that  this
    23  restriction shall not apply to the cashing of checks,  drafts  or  money
    24  orders  drawn  by  the United States, any state thereof or any political
    25  subdivision of any such state, or by  any  department,  bureau,  agency,
    26  authority,  instrumentality  or  officer,  acting in his or her official
    27  capacity, of the United States,  any  state  thereof  or  any  political
    28  subdivision  of  any such state, or any [banking] financial institution,
    29  or to any check or draft drawn by or on account of any insurance  compa-
    30  ny,  attorney  for  the  settlement of claims, or to any check which has
    31  been certified or guaranteed by the [banking] financial  institution  on
    32  which  it has been drawn, or if such check is drawn on a bona fide work-
    33  ers' compensation fund issued by a third-party payor, or if  such  check
    34  is  drawn  by  an  employer from a pension or profit sharing fund, or if
    35  such check is drawn by a union from a pension or benefit fund or if such
    36  check is drawn by a union; provided  further,  however,  that  any  such
    37  restriction  upon the maximum face amount that may be cashed by a licen-
    38  see shall not apply to the cashing of checks, drafts or money orders  by
    39  licensees  for  payees  of  such checks, drafts or money orders that are
    40  other than natural persons. For purposes of this subdivision, "[banking]
    41  financial institution" means any  bank,  trust  company,  savings  bank,
    42  savings  and  loan  association  [or],  credit  union or other financial
    43  institution which is incorporated, chartered [or], organized or licensed
    44  under the laws of this state or any other state or the United States.
    45    2. The superintendent may suspend or revoke any  license  or  licenses
    46  issued  pursuant  to  this article if, after notice and a hearing, he or
    47  she shall find that the licensee (a) has committed any fraud, engaged in
    48  any dishonest activities or  made  any  misrepresentation;  or  (b)  has
    49  violated  any  provisions  of  the  banking law or any regulation issued
    50  pursuant thereto, or has violated any other law in the course of its  or
    51  his  or  her  dealings as a licensed casher of checks; or (c) has made a
    52  false statement in the application for such license or failed to give  a
    53  true  reply  to  a question in such application; or (d) has demonstrated
    54  his or its incompetency or untrustworthiness to act as a licensed casher
    55  of checks; or (e) is not doing  sufficient  business  pursuant  to  this
    56  article to justify the continuance of the license, or if he or she shall

        A. 9807                             9

     1  find that any ground or grounds exist which would require or warrant the
     2  refusal  of  an  application  for the issuance of the license if such an
     3  application were then before him or her.  Such a hearing shall  be  held
     4  in  the  manner  and upon such notice as may be prescribed by the super-
     5  intendent. Pending an investigation or a hearing for the  suspension  or
     6  revocation  of  any license or licenses issued pursuant to this article,
     7  the superintendent may temporarily suspend such license or licenses  for
     8  a  period  not  to exceed ninety days, provided the superintendent shall
     9  find that such a temporary suspension is in the public interest.
    10    § 12.  Subdivision 3 of section 37 of the banking law, as  amended  by
    11  chapter 360 of the laws of 1984, is amended to read as follows:
    12    3. In addition to any reports expressly required by this chapter to be
    13  made,  the superintendent may require any banking organization, licensed
    14  lender, licensed casher of checks,  licensed  mortgage  banker,  foreign
    15  banking  corporation  licensed  by  the superintendent to do business in
    16  this state, bank holding company and any non-banking subsidiary thereof,
    17  corporate affiliate of a corporate banking organization within the mean-
    18  ing of subdivision six of section thirty-six of  this  article  and  any
    19  non-banking  subsidiary  of  a  corporation  which  is an affiliate of a
    20  corporate banking organization within the meaning of  subdivision  six-a
    21  of  section thirty-six of this article to make special reports to him or
    22  her at such times as he or she may prescribe.
    23    § 13.   Within ninety days of the effective  date  of  this  act,  the
    24  superintendent  of  financial  services  shall  commence a review of its
    25  current system of issuing licenses  for  check  cashing  licensees,  the
    26  establishment  of  new  check  cashing  locations, for the relocation of
    27  check cashing locations, and for changes of control  of  existing  check
    28  cashing licensees, and will issue a report to the governor, the chairman
    29  of  the  assembly  banks committee, and the chairman of the senate banks
    30  committee, regarding the costs (including application fees,  preparation
    31  fees,  and  other  costs)  incurred  by applicants to prepare and submit
    32  applications, the costs incurred by the department of financial services
    33  to review and process applications, the length of time required for  the
    34  review  and processing of applications by such department, and recommen-
    35  dations to improve the efficiency and lessen  the  costs,  burdens,  and
    36  length  of  such department's licensing processes. The superintendent of
    37  financial services shall report to the governor and  to  the  respective
    38  committee chairs within one hundred eighty days of the date of commence-
    39  ment  of  his  or  her  review. The superintendent of financial services
    40  shall consult with and receive input from check cashing licensees in the
    41  preparation of its analysis and report.
    42    § 14.  This act shall take effect on the  one  hundred  eightieth  day
    43  after it shall have become a law; provided, however, that:
    44    (a)  the  amendments to section 373 of the banking law made by section
    45  eleven of this act shall expire and be deemed repealed  June  30,  2026;
    46  and
    47    (b)  any  contract,  instrument,  argument or other written obligation
    48  entered into by a financial service provider  authorized  under  section
    49  373  of the banking law prior to June 30, 2026 shall be deemed valid and
    50  enforceable after such date.
    51    Effective immediately the addition, amendment  and/or  repeal  of  any
    52  rule  or  regulation necessary for the implementation of this act on its
    53  effective date are authorized to be made and completed on or before such
    54  effective date.
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