Bill Text: NY S06985 | 2015-2016 | General Assembly | Amended

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".

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Introduced - Dead) 2016-06-13 - PRINT NUMBER 6985B [S06985 Detail]

Download: New_York-2015-S06985-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         6985--A
                    IN SENATE
                                     March 11, 2016
                                       ___________
        Introduced  by  Sens. SAVINO, AVELLA, CARLUCCI -- read twice and ordered
          printed, and when printed to be committed 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 2016"; 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 2016".
     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] finan-
     9  cial services provider; or
    10    § 3. The third undesignated paragraph of section 340  of  the  banking
    11  law,  as  added by chapter 22 of the laws of 1990, is amended to read as
    12  follows:
    13    Nothing in this  article  shall  apply  to  licensed  collateral  loan
    14  brokers or licensed financial services providers.
    15    §  4.  Section 366 of the banking law, as amended by chapter 49 of the
    16  laws of 1961, subdivision 1 as amended by chapter 849  of  the  laws  of
    17  1964  and  as  further amended by section 104 of part A of chapter 62 of
    18  the laws of 2011, subdivisions 2 and 3 as renumbered by chapter  132  of
    19  the laws of 1969, is amended to read as follows:
    20    § 366.  Definitions.  When used in this article. 1. The term "licensed
    21  [casher of checks] financial services provider" means  any  [individual,
    22  partnership,  unincorporated  association  or  corporation]  person duly
    23  licensed by the superintendent of financial services to engage in  busi-
    24  ness pursuant to the provisions of this article.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14451-07-6
        S. 6985--A                          2
     1    2.  The  term  "licensee"  means  a person licensed [casher of checks,
     2  drafts and/or money orders] to provide financial services  regulated  by
     3  this article.
     4    3.  The  term  ["mobile  unit"] "limited station" means any vehicle or
     5  other movable means from which the business of [cashing  checks,  drafts
     6  or  money orders] providing financial services regulated by this article
     7  is to be conducted.
     8    4. The term "person" means  any  individual  or  other  legal  entity,
     9  including any corporation, partnership, association or limited liability
    10  company.
    11    5.  The  term  "conduit  services"  means any activity permitted to be
    12  offered by a licensee under this article to  its  customers  in  collab-
    13  oration with a state or federally chartered bank or credit union subject
    14  to the approval of the superintendent, including but not limited to:
    15    (a)  business  and  commercial  loans  offered  by  licensees that are
    16  licensed under article nine of this chapter;
    17    (b) account access services;
    18    (c) bill payment services; and
    19    (d) assistance in preparation and submission of forms to be  processed
    20  by the collaborating bank or credit union.
    21    6.  The  term  "financial services" means offering or providing any of
    22  the following financial products or services: (a) the cashing of checks,
    23  drafts and/or money orders,
    24    (b) money transmission services as defined in  article  thirteen-B  of
    25  this  chapter, provided, however, a licensed financial services provider
    26  offering money transmission pursuant to article thirteen-B of this chap-
    27  ter, other than as an agent of a licensee, shall first obtain a  license
    28  under that article,
    29    (c) bill payment services,
    30    (d) the sale of prepaid debit cards; and
    31    (e) conduit services as defined in this article.
    32    7.  The term "master license" shall mean an original license issued by
    33  the superintendent that authorizes a person to engage in the business of
    34  cashing of checks and related financial services, and in the case  of  a
    35  licensee who has multiple licensed business locations at the time of the
    36  effective date of this subdivision, the initial longest site continuous-
    37  ly licensed under this article.
    38    8.  The term "supplemental license" shall mean a license issued by the
    39  superintendent that authorizes a  person  having  a  master  license  to
    40  engage  in  the  business  of  cashing  of  checks and related financial
    41  services at branch locations, and in the case of a licensee  who  has  a
    42  multiple  licensed  business locations at the time of the effective date
    43  of this subdivision, any license issued to an  existing  licensee  after
    44  the license for the original site.
    45    §  5. Section 367 of the banking law, as amended by chapter 151 of the
    46  laws of 1945, subdivision 3 as amended by section 7 of part D-1 of chap-
    47  ter 109 of the laws of 2006, subdivision 4 as amended by chapter  96  of
    48  the laws of 1981, is amended to read as follows:
    49    § 367.   License  requirements;  fees;  capital  requirements.  1.  No
    50  person[, partnership, association or corporation] shall  engage  in  the
    51  business  of  cashing checks, drafts or money orders for a consideration
    52  without first obtaining a license from the superintendent.
    53    2. Application for such license shall be in writing, under  oath,  and
    54  in  the  form  prescribed  by  the superintendent, and shall contain the
    55  name, and the address both of the residence and place  of  business,  of
    56  the  applicant,  and  if the applicant is a co-partnership [or], associ-
        S. 6985--A                          3
     1  ation or limited liability company, of every member thereof,  and  if  a
     2  corporation, of each officer and director thereof; also, if the business
     3  is to be conducted at a specific address, the address at which the busi-
     4  ness  is  to be conducted, and if the business is to be conducted from a
     5  [mobile unit] limited station, the New York state registration number or
     6  other identification of such [mobile unit] limited station and the  area
     7  in  which  the  applicant proposes to operate such [mobile unit] limited
     8  station; and also such further information  as  the  superintendent  may
     9  require.
    10    3.  Such applicant at the time of making such application shall pay to
    11  the superintendent a fee as prescribed pursuant to section eighteen-a of
    12  this chapter for investigating the application.   An application  for  a
    13  master  license  shall  be  in  writing,  under  oath,  and  in the form
    14  prescribed by the superintendent and shall contain such  information  as
    15  the  superintendent may require by regulation. The application shall set
    16  forth all of the locations at which the applicant seeks to conduct busi-
    17  ness hereunder.  At the time of making  the  application  for  a  master
    18  license, an existing licensee under this article shall pay to the super-
    19  intendent  the  sum  of  two  hundred  fifty  dollars  for each proposed
    20  location as a fee for investigating the application. An  applicant  that
    21  does  not  currently  hold  a  license under this article at the time of
    22  application shall pay  to  the  superintendent  an  application  fee  as
    23  provided in this chapter for initial applications. Any licensee request-
    24  ing  a  change of address, shall at the time of making such request, pay
    25  to the superintendent a fee as prescribed pursuant to section eighteen-a
    26  of this chapter for investigating the new  address;  provided,  however,
    27  that the superintendent may, in his or her discretion, waive such inves-
    28  tigation  fee  if  warranted, and provided further, that no fee shall be
    29  payable for the relocation of a limited station.
    30    4. Every applicant shall prove, in form  satisfactory  to  the  super-
    31  intendent  that  he  or it has available for the operation of such busi-
    32  ness, for each location and for each [mobile unit] limited station spec-
    33  ified in the  application,  liquid  assets  of  at  least  ten  thousand
    34  dollars,  and  every licensee shall continuously maintain for the opera-
    35  tion of such business for each  location  and  for  each  [mobile  unit]
    36  limited station liquid assets of at least ten thousand dollars. Notwith-
    37  standing  the  foregoing provisions of this subdivision, the superinten-
    38  dent, upon application by an applicant and for  good  cause  shown,  may
    39  permit a reduction from ten thousand dollars to not less than five thou-
    40  sand dollars of minimum liquid assets required for each location.
    41    §  6. Section 369 of the banking law, as amended by chapter 151 of the
    42  laws of 1945, subdivision 1 as amended by chapter 233  of  the  laws  of
    43  2005,  subdivisions  4  and  5  as amended by chapter 132 of the laws of
    44  1969, subdivision 6 as amended by chapter 164 of the laws of 2003, para-
    45  graph (b) of subdivision 6 as amended by section 6 of part LL of chapter
    46  56 of the laws of 2010, and subdivision 7 as added by chapter 485 of the
    47  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
        S. 6985--A                          4
     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  master license and if applicable one or more  supplemental  licenses  in
     8  duplicate  to  permit  the  [cashing of checks, drafts and money orders]
     9  delivery of financial services in accordance with the provisions of this
    10  article at the location or locations or in the area or  areas  specified
    11  in such application. In finding whether the application will promote the
    12  convenience and advantage to the public, the superintendent shall deter-
    13  mine  whether  there  is  a  community  need  for  a new licensee in the
    14  proposed area or areas to be served. No license shall be  issued  to  an
    15  applicant  for  a  license, at a location to be licensed which is closer
    16  than one thousand five hundred eighty-four feet (three-tenths of a mile)
    17  from an existing licensee, except  with  the  written  consent  of  such
    18  existing  licensee  or  pursuant  to  subdivision three of section three
    19  hundred seventy of this article, subject to any restriction or condition
    20  as the superintendent may promulgate by regulation;  provided,  however,
    21  the  superintendent  may permit a location to be licensed that is closer
    22  than three-tenths of a mile from  an  existing  licensee  provided  such
    23  applicant  engages in the cashing of checks, drafts or money orders only
    24  for payees of such checks, drafts or money orders that  are  other  than
    25  natural  persons  at  the location to be licensed and such applicant was
    26  engaged in the cashing of such checks, drafts or money orders for payees
    27  that are other than natural persons at such location on  or  before  the
    28  fourteenth  day  of  July,  two thousand four, and provided further that
    29  upon licensing any such location by the superintendent, such license  as
    30  it  pertains solely to such location shall not be affected thereafter by
    31  any change of control of such license pursuant to section three  hundred
    32  seventy-a  of  this article, provided that the licensee continues there-
    33  after to engage at that location in the cashing  of  checks,  drafts  or
    34  money  orders  only  for  payees that are other than natural persons and
    35  provided further that such license shall bear a legend stating that such
    36  location is restricted to the cashing of checks, drafts or money  orders
    37  only for payees that are other than natural persons. The three-tenths of
    38  a mile distance requirement as set forth in this section shall not apply
    39  in cases where the existing licensee is a restricted location as author-
    40  ized  in  the preceding sentence, or is any other licensed location that
    41  engages solely in the cashing of checks, drafts or money orders only for
    42  payees that are  other  than  natural  persons.  For  purposes  of  this
    43  section,  such  distance  shall be measured on a straight line along the
    44  street between the nearest point of the store fronts of the check  cash-
    45  ing facilities. The primary business of the licensee, at the location to
    46  be licensed, shall be financial services. The superintendent shall tran-
    47  smit  one  copy of such license to the applicant and file another in the
    48  office of the department. Notwithstanding the  foregoing  provisions  of
    49  this  subdivision,  the superintendent, upon application by an applicant
    50  and for good cause shown, may  permit  a  reduction  from  ten  thousand
    51  dollars  to not less than five thousand dollars of minimum liquid assets
    52  required for each location.
    53    2. Such license shall state the name  of  the  licensee;  and  if  the
    54  licensee  is  a  co-partnership  [or], association, or limited liability
    55  company, the names of the members thereof; and  if  the  licensee  is  a
    56  corporation, the date of its incorporation; and if the business is to be
        S. 6985--A                          5
     1  conducted  at  a specific address, the address at which such business is
     2  to be conducted; and if the business is to be conducted through the  use
     3  of  a  [mobile  unit]  limited  station, the New York state registration
     4  number or other identification of such [mobile unit] limited station and
     5  the area in which such [mobile unit] limited station is authorized to do
     6  business.
     7    3.  [Such  license] All licenses issued by the superintendent shall be
     8  kept conspicuously posted in the place of business of the  licensee  or,
     9  in  the case of a [mobile unit] limited station, upon such [mobile unit]
    10  limited station.  Such license shall not be transferable or assignable.
    11    4. Such license shall remain in full force  and  effect  until  it  is
    12  surrendered  by the licensee or revoked or suspended as provided in this
    13  article. In the case of a change of control of a location or a  business
    14  licensed  hereunder,  the  licensee  approved to acquire the business or
    15  location may utilize a true copy of the  existing  license  pending  the
    16  issuance of a new license by the superintendent.
    17    5.  If  the superintendent shall find that the applicant fails to meet
    18  any of the conditions set forth in subdivision one of this  section,  he
    19  shall  not  issue such license, and he shall notify the applicant of the
    20  denial.  If an application is denied or  withdrawn,  the  superintendent
    21  shall  retain  the investigation fee to cover the costs of investigating
    22  the application and return the license fee to the applicant.
    23    6. The superintendent may refuse to issue a license pursuant  to  this
    24  article  if  he  shall  find  that the applicant, or any person who is a
    25  director, officer, partner, agent, employee or  substantial  stockholder
    26  of  the applicant, (a) has been convicted of a crime in any jurisdiction
    27  or (b) is associating or consorting with any person who has, or  persons
    28  who  have,  been  convicted  of a crime or crimes in any jurisdiction or
    29  jurisdictions; provided, however,  that  the  superintendent  shall  not
    30  issue  such a license if he shall find that the applicant, or any person
    31  who is a director, officer,  partner,  agent,  employee  or  substantial
    32  stockholder  of  the  applicant,  has  been convicted of a felony in any
    33  jurisdiction or of a crime which, if committed within this state,  would
    34  constitute  a  felony  under  the laws thereof. For the purposes of this
    35  article, a person shall be deemed to have been convicted of a  crime  if
    36  such person shall have pleaded guilty to a charge thereof before a court
    37  or  magistrate,  or shall have been found guilty thereof by the decision
    38  or judgment of a court or magistrate or by the verdict of a jury,  irre-
    39  spective  of  the  pronouncement  of sentence or the suspension thereof,
    40  unless such plea of guilty, or such decision, judgment or verdict, shall
    41  have been set aside, reversed or otherwise abrogated by lawful  judicial
    42  process  or unless the person convicted of the crime shall have received
    43  a pardon therefor from the president of the United States or the  gover-
    44  nor   or  other  pardoning  authority  in  the  jurisdiction  where  the
    45  conviction was had, or shall have received a certificate of relief  from
    46  disabilities  or a certificate of good conduct pursuant to article twen-
    47  ty-three of the correction law to remove the disability under this arti-
    48  cle because of such conviction. The term "substantial  stockholder,"  as
    49  used in this subdivision, shall be deemed to refer to a person owning or
    50  controlling ten per centum or more of the total outstanding stock of the
    51  corporation  in which such person is a stockholder. In making a determi-
    52  nation pursuant to this subdivision, the  superintendent  shall  require
    53  fingerprinting of the applicant. Such fingerprints shall be submitted to
    54  the  division  of criminal justice services for a state criminal history
    55  record check, as defined in subdivision one of  section  three  thousand
        S. 6985--A                          6
     1  thirty-five  of  the  education law, and may be submitted to the federal
     2  bureau of investigation for a national criminal history record check.
     3    7.  No  license pursuant to this article shall be issued to any appli-
     4  cant to do business at the place specified in  the  application  as  the
     5  place where the business is to be conducted if, within the twelve months
     6  preceding  such application, a license to engage in business pursuant to
     7  this article at such place shall have been revoked.
     8    § 7. Section 370 of the banking law, as amended by chapter 151 of  the
     9  laws  of 1945, subdivision 2 as amended by section 38 of part O of chap-
    10  ter 59 of the laws of 2006 and subdivision 3 as amended by  chapter  703
    11  of the laws of 2006, is amended to read as follows:
    12    § 370.  Restrictions as to place or area of doing business; establish-
    13  ment of stations; change of location. 1. No more than one place of busi-
    14  ness or one [mobile unit] limited station shall be maintained under  the
    15  same  license;  provided,  however,  that  more  than one license may be
    16  issued to the same licensee [upon compliance with the provisions of this
    17  article for each new license] and if the superintendent determines  that
    18  an  existing  licensee  is  in  good standing and in compliance with the
    19  provisions of this article, a subsequent application  for  a  second  or
    20  multiple  supplemental  licenses  at  different, separate and additional
    21  locations shall be expedited by the superintendent provided the  minimum
    22  liquidity  requirements and community need criteria set forth in section
    23  three hundred sixty-nine of this article have been demonstrated  in  the
    24  application for the additional location or locations.
    25    2.  Any  licensed  [casher  of checks] financial services provider may
    26  open and maintain, within this state, one or more limited  stations  for
    27  the purpose of cashing checks, drafts or money orders for the particular
    28  group  or groups specified in the license authorizing each such station.
    29  Such stations shall be licensed pursuant to and be subject  to  all  the
    30  provisions  of  this  chapter  applicable to licensed cashers of checks,
    31  except that (a) [such station shall not be subject to the distance limi-
    32  tation set forth in subdivision one of section three hundred  sixty-nine
    33  of  this  article,  (b)] the fee for investigating the application for a
    34  station shall be as prescribed pursuant to section  eighteen-a  of  this
    35  chapter,  and  [(c)]  (b)  where  such a station is at the premises of a
    36  specified employer for the purpose of cashing checks, drafts  and  money
    37  orders  for  the  employees  of  such employer, the fees and charges for
    38  cashing such checks, drafts or money orders shall not be subject to  the
    39  limitations  of  subdivision one of section three hundred seventy-two of
    40  this article if such fees and charges are paid by such employer.
    41    3. A licensee may make a written application to the superintendent for
    42  leave to change his or her place of  business,  or  in  the  case  of  a
    43  [mobile unit] limited station, the area in which such unit is authorized
    44  to  be operated, stating the reasons for such proposed change and in the
    45  case where the applicant currently holds a master license to  operate  a
    46  business  established  under  this  article,  the  superintendent  shall
    47  streamline and reduce the information required from such applicant. Such
    48  application may be approved for relocation from  a  site  within  three-
    49  tenths of a mile of another licensee to another site within three-tenths
    50  of  a mile of such other licensee provided that such new site is farther
    51  from such existing licensee than the site from which permission to relo-
    52  cate is sought. Only in situations in which a licensee seeks  to  change
    53  its  place  of  business  due  to extraordinary circumstances, as may be
    54  determined by the superintendent pursuant to regulations, may the super-
    55  intendent, in his or her discretion, determine that an  application  may
    56  be  approved for relocation from a site within three-tenths of a mile of
        S. 6985--A                          7
     1  another licensee to a new site which is closer to such existing licensee
     2  than the site from which permission to relocate is sought. Notwithstand-
     3  ing any other provision of this subdivision,  a  licensee  may  relocate
     4  from  any  location  to a location that is within three-tenths of a mile
     5  from another licensee with the written consent of the other licensee. If
     6  the superintendent approves such application he or she shall issue a new
     7  license in duplicate in accordance with the provisions of section  three
     8  hundred  sixty-nine  of  this  article, stating the new location of such
     9  licensee or, in the case of a [mobile unit]  limited  station,  the  new
    10  area in which such [mobile unit] limited station may be operated.
    11    §  8. Section 370-a of the banking law, as added by chapter 142 of the
    12  laws of 1992, subdivision 1 as amended by section 39 of part O of  chap-
    13  ter 59 of the laws of 2006, is amended to read as follows:
    14    § 370-a.  Changes  in control. 1. It shall be unlawful except with the
    15  prior approval of the superintendent for any action to  be  taken  which
    16  results  in a change of control of the business of a licensee.  Prior to
    17  any change of control, the person desirous of acquiring control  of  the
    18  business  of  a licensee, if such person is not already a licensee under
    19  this article, shall make written application to the  superintendent  and
    20  pay an investigation fee as prescribed pursuant to section eighteen-a of
    21  this  chapter  to the superintendent. The application shall contain such
    22  information as the superintendent, by rule or regulation, may  prescribe
    23  as  necessary or appropriate, and in the case where the acquiring person
    24  currently holds a master license to operate a business established under
    25  this article, and in the case of a limited station license,  the  super-
    26  intendent shall streamline and reduce the information required from such
    27  applicant,  for  the  purpose  of  making  the determination required by
    28  subdivision two of this section.
    29    2. The superintendent shall approve or disapprove the proposed  change
    30  of  control  of a licensee in accordance with the provisions of subdivi-
    31  sions one and six of section three hundred sixty-nine of  this  article.
    32  The  superintendent shall approve or disapprove the application in writ-
    33  ing within ninety days after the date the application is filed with  the
    34  superintendent.
    35    3.  For  a period of six months from the date of qualification thereof
    36  and for such  additional  period  of  time  as  the  superintendent  may
    37  prescribe,  in  writing,  the  provisions of subdivisions one and two of
    38  this section shall not apply to a transfer of control  by  operation  of
    39  law  to the legal representative, as hereinafter defined, of one who has
    40  control of a  licensee.  Thereafter,  such  legal  representative  shall
    41  comply  with the provisions of subdivisions one and two of this section.
    42  The provisions of subdivisions one and two  of  this  section  shall  be
    43  applicable  to  an application made under such section by a legal repre-
    44  sentative.
    45    The term "legal representative", for the  purposes  of  this  section,
    46  shall  mean  one  duly appointed by a court of competent jurisdiction to
    47  act as  executor,  administrator,  trustee,  committee,  conservator  or
    48  receiver,  including  one  who  succeeds  a legal representative and one
    49  acting  in  an  ancillary  capacity  thereto  in  accordance  with   the
    50  provisions of such court appointment.
    51    4. As used in this section: (a) the term "person" includes an individ-
    52  ual,  partnership,  corporation, association, limited liability company,
    53  or any  other  organization,  and  (b)  the  term  "control"  means  the
    54  possession,  directly or indirectly, of the power to direct or cause the
    55  direction of the management and policies of a licensee, whether  through
    56  the  ownership of voting stock of such licensee, the ownership of voting
        S. 6985--A                          8
     1  stock of any person which possesses such  power  or  otherwise.  Control
     2  shall  be presumed to exist if any person, directly or indirectly, owns,
     3  controls or holds with power to vote ten  per  centum  or  more  of  the
     4  voting  stock  of  any licensee or of any person which owns, controls or
     5  holds with power to vote ten per centum or more of the voting  stock  of
     6  any licensee, but no person shall be deemed to control a licensee solely
     7  by  reason  of  being an officer or director of such licensee or person.
     8  The superintendent may in his discretion,  upon  the  application  of  a
     9  licensee  or  any  person who, directly or indirectly, owns, controls or
    10  holds with power to vote or seeks to own, control or hold with power  to
    11  vote  any  voting  stock  of such licensee, determine whether or not the
    12  ownership, control or holding of such voting stock constitutes or  would
    13  constitute control of such licensee for purposes of this section.
    14    §  9.  Section  371 of the banking law, as added by chapter 151 of the
    15  laws of 1945, is amended to read as follows:
    16    § 371.  Regulations.  The  superintendent  is  hereby  authorized  and
    17  empowered  to  make such rules and regulations, and such specific neces-
    18  sary rulings, demands, and findings as he or she may deem necessary  for
    19  the proper conduct of the business authorized and licensed under and for
    20  the enforcement of this article, in addition hereto and not inconsistent
    21  herewith.
    22    § 10. Section 372 of the banking law, as amended by chapter 151 of the
    23  laws  of  1945,  the  section  heading  and subdivision 1 as amended and
    24  subdivision 7 as added by chapter 432 of the laws of 2004,  subdivisions
    25  2,  3,  and 4 as added and subdivisions 5 and 6 as renumbered by chapter
    26  263 of the laws of 1983, and subdivision 6 as added by  chapter  485  of
    27  the laws of 1947, is amended to read as follows:
    28    § 372. Fees and charges; posting schedule; records and reports. 1. The
    29  superintendent  shall,  by  regulation, establish the maximum fees which
    30  may be charged by licensees for cashing a check, draft, or money  order.
    31  No  licensee shall charge or collect any sum for cashing a check, draft,
    32  or money order in excess of that  established  by  the  superintendent's
    33  regulations;  provided,  however, that no maximum fee shall apply to the
    34  charging of fees by licensees for the cashing of checks, drafts or money
    35  orders for payees of such checks, drafts or money orders that are  other
    36  than natural persons. The licensee shall pay to every customer tendering
    37  any  check, draft or money order to be cashed, the entire face amount of
    38  such instrument, less any charges permitted by  the  superintendent,  in
    39  such  form  and by such means as agreed upon by the customer on the same
    40  date upon which such instrument is presented.
    41    2. The schedule of fees and charges permitted under this section shall
    42  be conspicuously and continuously posted in every  location  and  [mobil
    43  unit]  limited  station licensed under this article. Whenever a licensee
    44  hereunder is authorized under this  article  to  offer  other  financial
    45  services,  the  posting and signage requirements thereunder shall super-
    46  sede other signage requirements under this article.
    47    3. No change in fees shall become effective earlier than  thirty  days
    48  after the superintendent shall notify the majority leader of the senate,
    49  the  speaker  of  the  assembly, and the chairmen of both the senate and
    50  assembly committees on banks of his intention to change fees.
    51    4. The fees in effect immediately prior to the effective date of  this
    52  subdivision  shall  continue  to  be  the  maximum  allowable fees until
    53  revised by the superintendent's regulations.
    54    5. Each licensee shall keep  and  use  in  its  business  such  books,
    55  accounts,  and  records  as the superintendent may require to carry into
    56  effect the provisions of this article and the rules and regulations made
        S. 6985--A                          9
     1  by the superintendent hereunder.  Every  licensee  shall  preserve  such
     2  books, accounts and records for at least two years.  A licensee shall be
     3  deemed  to  be in compliance with this requirement if the licensee main-
     4  tains  all  information  related  to the financial services transactions
     5  conducted by said licensee in electronic format readily available to the
     6  superintendent upon reasonable notice.
     7    6. Before a licensee shall deposit with any banking  organization,  or
     8  with any organization engaged in the business of banking, a check, draft
     9  or  money  order cashed by such licensee, the same must be endorsed with
    10  the actual name under which such licensee is  doing  business  and  must
    11  have the words "licensed [casher of checks] financial services provider"
    12  legibly written or stamped immediately after or below such name.
    13    7.  Every  licensee shall submit to the superintendent, or such person
    14  as the superintendent may designate, such suspicious activity reports or
    15  currency transaction reports as are required to be submitted to  federal
    16  authorities  pursuant  to provisions of the Bank Secrecy Act (subchapter
    17  11, chapter 53, title 31, United States code) and regulations and admin-
    18  istrative orders related thereto, as amended, within the periods of time
    19  as required by such act and regulations. A licensee may submit a copy of
    20  any such report to the superintendent, or such person as the superinten-
    21  dent may designate, that is filed with  such  federal  authorities.  The
    22  superintendent  may  adopt  such  regulations or require such additional
    23  reports as he or she deems necessary to insure the effective enforcement
    24  of this subdivision.
    25    § 11. Section 372-a of the banking law, as added by chapter 432 of the
    26  laws of 2004, is amended to read as follows:
    27    § 372-a. Superintendent authorized to examine. 1. For the  purpose  of
    28  discovering  violations of this article or securing information lawfully
    29  required in this section, the superintendent may at  any  time,  and  as
    30  often as may be determined, either personally or by a person duly desig-
    31  nated  by  the  superintendent,  investigate  the  [cashing of checks by
    32  licensees] business practices of a licensee rendering financial services
    33  authorized by this article and examine the books, accounts, records, and
    34  files used therein of every licensee.
    35    2. For the purpose established in subdivision one of this section, the
    36  superintendent and his or her duly designated representatives shall have
    37  free access to the offices and  places  of  business,  books,  accounts,
    38  papers,  records,  files,  safes  and  vaults of all such licensees. The
    39  superintendent shall have authority to require the attendance of and  to
    40  examine  under oath all persons whose testimony may be required relative
    41  to such cashing of checks or such business.
    42    § 12. Subdivisions 1 and 2 of section 373 of the banking law, subdivi-
    43  sion 1 as amended by chapter 432 of the laws of 2004 and  subdivision  2
    44  as  amended  by  chapter 132 of the laws of 1969, are amended to read as
    45  follows:
    46    1. [No licensee shall engage in the business of making loans of money,
    47  credit, goods or things or discounting  of  notes,  bills  of  exchange,
    48  checks, or other evidences of debt pursuant to the provisions of article
    49  nine  of  this  chapter, nor shall a loan business or the negotiation of
    50  loans or the discounting of notes, bills of exchange,  checks  or  other
    51  evidences  of  debt be conducted on the same premises where the licensee
    52  is conducting business pursuant to the provisions of  this  article.]  A
    53  licensee  may  engage  in the business of making business and commercial
    54  loans pursuant to this article provided the licensee has first  obtained
    55  a license from the superintendent pursuant to article nine of this chap-
    56  ter;  provided, however, no licensee shall make any loans to individuals
        S. 6985--A                         10
     1  for personal, family, household or investment purposes. Except as other-
     2  wise provided by regulation of the superintendent,  all  checks,  drafts
     3  and  money  orders shall be deposited in the licensee's bank account not
     4  later  than  the first business day following the day on which they were
     5  cashed. No licensee shall at any time cash or advance any  moneys  on  a
     6  post-dated  check  or  draft  or  engage in the business of transmitting
     7  money or receiving money for transmission;  provided,  however,  that  a
     8  licensee  may  cash  a  check [payable on the first banking business day
     9  following the date of cashing (a) if such check is drawn by  the  United
    10  States, the state of New York, or any political subdivision of the state
    11  of New York, or by any department, bureau, agency, authority, instrumen-
    12  tality or officer, acting in his official capacity, of the United States
    13  or of the state of New York or of any political subdivision of the state
    14  of New York, or (b) if such check is a payroll check drawn by an employ-
    15  er  to  the  order  of its employee in payment for services performed by
    16  such employee] without regard to the date imprinted on the check as long
    17  as the check is deposited in the licensee's bank account not later  than
    18  the  first  business  day  following  the day on which it was cashed. No
    19  licensee shall cash any check, draft or money order if the  face  amount
    20  for  which  it  is  drawn is in excess of [fifteen] twenty-five thousand
    21  dollars; provided, however, that this restriction shall not apply to the
    22  cashing of checks, drafts or money orders drawn by  the  United  States,
    23  any  state thereof or any political subdivision of any such state, or by
    24  any department, bureau, agency, authority, instrumentality  or  officer,
    25  acting in his official capacity, of the United States, any state thereof
    26  or  any political subdivision of any such state, or any banking institu-
    27  tion, or to any check or draft  drawn  by  any  insurance  company,  any
    28  broker or dealer registered with the securities and exchange commission,
    29  or  any attorney for the settlement of claims, or to any check issued as
    30  an advance to a lawsuit or as part of a structured settlement, or to any
    31  check which has been certified by the banking institution  on  which  it
    32  has  been  drawn,  or  if  such  check  is drawn on a bona fide workers'
    33  compensation fund issued by a third-party payor, or  if  such  check  is
    34  drawn  by  an employer from a pension or profit sharing fund, or if such
    35  check is drawn by a union from  a  pension  or  benefit  fund;  provided
    36  further, however, that any such restriction upon the maximum face amount
    37  that  may  be  cashed  by  a  licensee shall not apply to the cashing of
    38  checks, drafts or money orders by licensees for payees of  such  checks,
    39  drafts or money orders that are other than natural persons. For purposes
    40  of  this subdivision, "banking institution" means any bank, trust compa-
    41  ny, savings bank, savings and loan association or credit union which  is
    42  incorporated, chartered or organized under the laws of this state or any
    43  other state or the United States.
    44    2.  The  superintendent  may suspend or revoke any license or licenses
    45  issued pursuant to this article if, after notice and a hearing, he shall
    46  find that the licensee (a) has  committed  any  fraud,  engaged  in  any
    47  dishonest  activities or made any misrepresentation; or (b) has violated
    48  any provisions of the banking law  or  any  regulation  issued  pursuant
    49  thereto, or has violated any other law in the course of its or his deal-
    50  ings  as a [licensed casher of checks] licensee delivering check cashing
    51  and related financial services to the public pursuant to  this  article;
    52  or (c) has made a false statement in the application for such license or
    53  failed  to  give  a true reply to a question in such application; or (d)
    54  has demonstrated his or its incompetency or untrustworthiness to act  as
    55  a  [licensed casher of checks] licensee delivering financial services to
    56  the public pursuant to this article; or  (e)  is  not  doing  sufficient
        S. 6985--A                         11
     1  business  pursuant  to  this  article  to justify the continuance of the
     2  license, or if he shall find that any  ground  or  grounds  exist  which
     3  would  require or warrant the refusal of an application for the issuance
     4  of the license if such an application were then before him. Such a hear-
     5  ing  shall  be  held  in  the  manner  and  upon  such  notice as may be
     6  prescribed by the superintendent. Pending an investigation or a  hearing
     7  for  the  suspension  or  revocation  of  any license or licenses issued
     8  pursuant to this article, the  superintendent  may  temporarily  suspend
     9  such  license  or  licenses  for  a  period  not  to exceed ninety days,
    10  provided the superintendent shall find that such a temporary  suspension
    11  is in the public interest.
    12    § 13. The banking law is amended by adding a new section 373-a to read
    13  as follows:
    14    §  373-a. Report of lending activity. 1. Any licensee who issues busi-
    15  ness or commercial loans pursuant to the authority  granted  in  section
    16  three  hundred seventy-three of this article shall submit information to
    17  the superintendent annually beginning January first, two thousand  eigh-
    18  teen regarding the following:
    19    (a) the number of loans issued the previous year;
    20    (b) the default rate, if any, with respect to such loans;
    21    (c)  the average cost of such loans, including fees and interest rates
    22  charged; and
    23    (d) such other information as the superintendent deems relevant.
    24    2. The superintendent shall thereafter issue a report to the governor,
    25  temporary president of the senate and speaker of the assembly  on  April
    26  first,  two  thousand  eighteen  and  annually  thereafter compiling and
    27  analyzing the information received pursuant to subdivision one  of  this
    28  section.
    29    §  14.  This  act  shall  take effect on the one hundred eightieth day
    30  after it shall have become a law; provided, however, that:
    31    (a) effective immediately, any  rules  and  regulations  necessary  to
    32  implement  the  provisions  of  this  act on its effective date shall be
    33  added, amended and/or repealed on or before such date;
    34    (b) the amendments to section 373 of the banking law made  by  section
    35  twelve of this act shall expire and be deemed repealed on June 30, 2021;
    36    (c)  section  373-a of the banking law as added by section thirteen of
    37  this act shall expire and be deemed repealed on June 30, 2021; and
    38    (d) any contract, instrument, argument  or  other  written  obligation
    39  entered  into  by  a financial service provider authorized under section
    40  373 of the banking law prior to June 30, 2021 shall be deemed valid  and
    41  enforceable after such date.