Enacts 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.
STATE OF NEW YORK
________________________________________________________________________
3237--A
2023-2024 Regular Sessions
IN SENATE
January 30, 2023
___________
Introduced by Sens. SEPULVEDA, COMRIE, PARKER, SERRANO -- read twice and
ordered printed, and when printed to be committed to the Committee on
Banks -- recommitted to the Committee on Banks in accordance with
Senate Rule 6, sec. 8 -- 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 2024"; 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 and may be cited as
2 the "community financial services access and modernization act of 2024".
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.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02291-02-4
S. 3237--A 2
1 3. The term ["mobile unit"] "limited station" means any vehicle or
2 other movable means from which the business of cashing checks, drafts or
3 money orders is to be conducted.
4 4. The term "person" means any individual or other legal entity,
5 including any corporation, partnership, association or limited liability
6 company.
7 § 4. Section 367 of the banking law, as amended by chapter 151 of the
8 laws of 1945, subdivision 3 as amended by section 7 of part D-1 of chap-
9 ter 109 of the laws of 2006, and subdivision 4 as amended by chapter 96
10 of the laws of 1981, is amended to read as follows:
11 § 367. License requirements; fees; capital requirements. 1. No
12 person[, partnership, association or corporation] shall engage in the
13 business of cashing checks, drafts or money orders for a consideration
14 without first obtaining a license from the superintendent.
15 2. Application for such license shall be in writing, under oath, and
16 in the form prescribed by the superintendent, and shall contain the
17 name, and the address both of the residence and place of business, of
18 the applicant, and if the applicant is a co-partnership [or], associ-
19 ation or limited liability company, of every member thereof, and if a
20 corporation, of each officer and director thereof; also, if the business
21 is to be conducted at a specific address, the address at which the busi-
22 ness is to be conducted, and if the business is to be conducted from a
23 [mobile unit] limited station, the New York state registration number or
24 other identification of such [mobile unit] limited station and the area
25 in which the applicant proposes to operate such [mobile unit] limited
26 station; and also such further information as the superintendent may
27 require.
28 3. Such applicant at the time of making such application shall pay to
29 the superintendent a fee as prescribed pursuant to section eighteen-a of
30 this chapter for investigating the application. Any licensee requesting
31 a change of address, shall at the time of making such request, pay to
32 the superintendent a fee as prescribed pursuant to section eighteen-a of
33 this chapter for investigating the new address; provided, however, that
34 the superintendent may, [in his or her] at such superintendent's
35 discretion, waive such investigation fee if warranted, and provided
36 further, that no fee shall be payable for the relocation of a limited
37 station.
38 4. Every applicant shall prove, in form satisfactory to the super-
39 intendent that [he or it] such applicant has available for the operation
40 of such business, for each location and for each [mobile unit] limited
41 station specified in the application, liquid assets of at least ten
42 thousand dollars, and every licensee shall continuously maintain for the
43 operation of such business for each location and for each [mobile unit]
44 limited station liquid assets of at least ten thousand dollars. Notwith-
45 standing the foregoing provisions of this subdivision, the superinten-
46 dent, upon application by an applicant and for good cause shown, may
47 permit a reduction from ten thousand dollars to not less than five thou-
48 sand dollars of minimum liquid assets required for each location.
49 § 5. Section 369 of the banking law, as amended by chapter 151 of the
50 laws of 1945, subdivision 1 as amended by chapter 233 of the laws of
51 2005, subdivisions 4 and 5 as amended by chapter 132 of the laws of
52 1969, subdivision 6 as amended by section 1 of subpart A of part II of
53 chapter 55 of the laws of 2019, and subdivision 7 as added by chapter
54 485 of the laws of 1947, is amended to read as follows:
55 § 369. Conditions precedent to issuing license; issuance and filing of
56 license; posting license. 1. If the superintendent shall find that the
S. 3237--A 3
1 financial responsibility, experience, character, and general fitness of
2 the applicant, and of the members thereof if the applicant be a co-part-
3 nership [or], association or limited liability company, and of the offi-
4 cers and directors thereof if the applicant be a corporation, are such
5 as to command the confidence of the community and to warrant belief that
6 the business will be operated honestly, fairly, and efficiently within
7 the purposes of this article, and if the superintendent shall find that
8 the granting of such application will promote the convenience and advan-
9 tage of the area in which such business is to be conducted, and if the
10 superintendent shall find that the applicant has available for the oper-
11 ation of such business for each location and for each [mobile unit]
12 limited station specified in the application liquid assets of at least
13 ten thousand dollars, the superintendent shall thereupon execute a
14 license in duplicate to permit the cashing of checks, drafts and money
15 orders in accordance with the provisions of this article at the location
16 or in the area specified in such application. In finding whether the
17 application will promote the convenience and advantage to the public,
18 the superintendent shall determine whether there is a community need for
19 a new licensee in the proposed area to be served. No license shall be
20 issued to an applicant for a license, at a location to be licensed which
21 is closer than one thousand five hundred eighty-four feet (three-tenths
22 of a mile) from an existing licensee, except with the written consent of
23 such existing licensee or pursuant to subdivision three of section three
24 hundred seventy of this article, subject to any restriction or condition
25 as the superintendent may promulgate by regulation; provided, however,
26 the superintendent may permit a location to be licensed that is closer
27 than three-tenths of a mile from an existing licensee provided such
28 applicant engages in the cashing of checks, drafts or money orders only
29 for payees of such checks, drafts or money orders that are other than
30 natural persons at the location to be licensed and such applicant was
31 engaged in the cashing of such checks, drafts or money orders for payees
32 that are other than natural persons at such location on or before the
33 fourteenth day of July, two thousand four, and provided further that
34 upon licensing any such location by the superintendent, such license as
35 it pertains solely to such location shall not be affected thereafter by
36 any change of control of such license pursuant to section three hundred
37 seventy-a of this article, provided that the licensee continues there-
38 after to engage at that location in the cashing of checks, drafts or
39 money orders only for payees that are other than natural persons and
40 provided further that such license shall bear a legend stating that such
41 location is restricted to the cashing of checks, drafts or money orders
42 only for payees that are other than natural persons. The three-tenths of
43 a mile distance requirement as set forth in this section shall not apply
44 in cases where the existing licensee is a restricted location as author-
45 ized in the preceding sentence, or is any other licensed location that
46 engages solely in the cashing of checks, drafts or money orders only for
47 payees that are other than natural persons. For purposes of this
48 section, such distance shall be measured on a straight line along the
49 street between the nearest point of the store fronts of the check cash-
50 ing facilities. The primary business of the licensee, at the location to
51 be licensed, shall be financial services. The superintendent shall tran-
52 smit one copy of such license to the applicant and file another in the
53 office of the department. Notwithstanding the foregoing provisions of
54 this subdivision, the superintendent, upon application by an applicant
55 and for good cause shown, may permit a reduction from ten thousand
S. 3237--A 4
1 dollars to not less than five thousand dollars of minimum liquid assets
2 required for each location.
3 2. Such license shall state the name of the licensee; and if the
4 licensee is a co-partnership [or], association or limited liability
5 company, the names of the members thereof; and if the licensee is a
6 corporation, the date of its incorporation; and if the business is to be
7 conducted at a specific address, the address at which such business is
8 to be conducted; and if the business is to be conducted through the use
9 of a [mobile unit] limited station, the New York state registration
10 number or other identification of such [mobile unit] limited station and
11 the area in which such [mobile unit] limited station is authorized to do
12 business.
13 3. Such license shall be kept conspicuously posted in the place of
14 business of the licensee or, in the case of a [mobile unit] limited
15 station, upon such [mobile unit] limited station. Such license shall
16 not be transferable or assignable.
17 4. Such license shall remain in full force and effect until it is
18 surrendered by the licensee or revoked or suspended as provided in this
19 article.
20 5. If the superintendent shall find that the applicant fails to meet
21 any of the conditions set forth in subdivision one of this section, [he]
22 such superintendent shall not issue such license, and [he] such super-
23 intendent shall notify the applicant of the denial. If an application
24 is denied or withdrawn, the superintendent shall retain the investi-
25 gation fee to cover the costs of investigating the application and
26 return the license fee to the applicant.
27 6. The superintendent may, consistent with article twenty-three-A of
28 the correction law, refuse to issue a license pursuant to this article
29 if [he] such superintendent shall find that the applicant, or any person
30 who is a director, officer, partner, agent, employee or substantial
31 stockholder of the applicant, (a) has been convicted of a crime in any
32 jurisdiction or (b) is associating or consorting with any person who
33 has, or persons who have, been convicted of a crime or crimes in any
34 jurisdiction or jurisdictions. For the purposes of this article, a
35 person shall be deemed to have been convicted of a crime if such person
36 shall have pleaded guilty to a charge thereof before a court or magis-
37 trate, or shall have been found guilty thereof by the decision or judg-
38 ment of a court or magistrate or by the verdict of a jury, irrespective
39 of the pronouncement of sentence or the suspension thereof. The term
40 "substantial stockholder," as used in this subdivision, shall be deemed
41 to refer to a person owning or controlling ten per centum or more of the
42 total outstanding stock of the corporation in which such person is a
43 stockholder. In making a determination pursuant to this subdivision, the
44 superintendent shall require fingerprinting of the applicant. Such fing-
45 erprints shall be submitted to the division of criminal justice services
46 for a state criminal history record check, as defined in subdivision one
47 of section three thousand thirty-five of the education law, and may be
48 submitted to the federal bureau of investigation for a national criminal
49 history record check.
50 7. No license pursuant to this article shall be issued to any appli-
51 cant to do business at the place specified in the application as the
52 place where the business is to be conducted if, within the twelve months
53 preceding such application, a license to engage in business pursuant to
54 this article at such place shall have been revoked.
55 § 6. Section 370 of the banking law, as amended by chapter 151 of the
56 laws of 1945, subdivision 2 as amended by section 38 of part O of chap-
S. 3237--A 5
1 ter 59 of the laws of 2006 and subdivision 3 as amended by chapter 703
2 of the laws of 2006, is amended to read as follows:
3 § 370. Restrictions as to place or area of doing business; establish-
4 ment of stations; change of location. 1. No more than one place of busi-
5 ness or one [mobile unit] limited station shall be maintained under the
6 same license; provided, however, that more than one license may be
7 issued to the same licensee upon compliance with the provisions of this
8 article for each new license.
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, (b)
17 the fee for investigating the application for a station shall be as
18 prescribed pursuant to section eighteen-a of this chapter, and (c) where
19 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] such licensee's place of business, or in
27 the case of a [mobile unit] limited station, the area in which such unit
28 is authorized to be operated, stating the reasons for such proposed
29 change. Such application may be approved for relocation from a site
30 within three-tenths of a mile of another licensee to another site within
31 three-tenths of a mile of such other licensee provided that such new
32 site is farther from such existing licensee than the site from which
33 permission to relocate is sought. Only in situations in which a licensee
34 seeks to change its place of business due to extraordinary circum-
35 stances, as may be determined by the superintendent pursuant to regu-
36 lations, may the superintendent, [in his or her] at such superinten-
37 dent's discretion, determine that an application may be approved for
38 relocation from a site within three-tenths of a mile of another licensee
39 to a new site which is closer to such existing licensee than the site
40 from which permission to relocate is sought. Notwithstanding any other
41 provision of this subdivision, a licensee may relocate from any location
42 to a location that is within three-tenths of a mile from another licen-
43 see with the written consent of the other licensee. If the superinten-
44 dent approves such application [he or she] the superintendent shall
45 issue a new license in duplicate in accordance with the provisions of
46 section three hundred sixty-nine of this article, stating the new
47 location of such licensee or, in the case of a [mobile unit] limited
48 station, the new area in which such [mobile unit] limited station may be
49 operated.
50 § 7. Subdivision 4 of section 370-a of the banking law, as added by
51 chapter 142 of the laws of 1992, is amended to read as follows:
52 4. As used in this section[: (a) the term "person" includes an indi-
53 vidual, partnership, corporation, association or any other organization,
54 and (b)], the term "control" means the possession, directly or indirect-
55 ly, of the power to direct or cause the direction of the management and
56 policies of a licensee, whether through the ownership of voting stock of
S. 3237--A 6
1 such licensee, the ownership of voting stock of any person which
2 possesses such power or otherwise. Control shall be presumed to exist if
3 any person, directly or indirectly, owns, controls or holds with power
4 to vote ten per centum or more of the voting stock of any licensee or of
5 any person which owns, controls or holds with power to vote ten per
6 centum or more of the voting stock of any licensee, but no person shall
7 be deemed to control a licensee solely by reason of being an officer or
8 director of such licensee or person. The superintendent may [in his] at
9 such superintendent's discretion, upon the application of a licensee or
10 any person who, directly or indirectly, owns, controls or holds with
11 power to vote or seeks to own, control or hold with power to vote any
12 voting stock of such licensee, determine whether or not the ownership,
13 control or holding of such voting stock constitutes or would constitute
14 control of such licensee for purposes of this section.
15 § 8. Section 371 of the banking law, as added by chapter 151 of the
16 laws of 1945, is amended to read as follows:
17 § 371. Regulations. The superintendent is hereby authorized and
18 empowered to make such rules and regulations, and such specific rulings,
19 demands, and findings as [he] such superintendent may deem necessary for
20 the proper conduct of the business authorized and licensed under and for
21 the enforcement of this article, in addition hereto and not inconsistent
22 herewith.
23 § 9. Section 372 of the banking law, as amended by chapter 151 of the
24 laws of 1945, the section heading and subdivision 1 as amended and
25 subdivision 7 as added by chapter 432 of the laws of 2004, subdivisions
26 2, 3 and 4 as added and subdivisions 5 and 6 as renumbered by chapter
27 263 of the laws of 1983, and subdivision 6 as added by chapter 485 of
28 the laws of 1947, is amended to read as follows:
29 § 372. Fees and charges; posting schedule; records and reports. 1. The
30 superintendent shall, by regulation, establish the maximum fees which
31 may be charged by licensees for cashing a check, draft, or money order.
32 No licensee shall charge or collect any sum for cashing a check, draft,
33 or money order in excess of that established by the superintendent's
34 regulations; provided, however, that no maximum fee shall apply to the
35 charging of fees by licensees for the cashing of checks, drafts or money
36 orders for payees of such checks, drafts or money orders that are other
37 than natural persons.
38 2. The schedule of fees and charges permitted under this section shall
39 be conspicuously and continuously posted in every location and [mobil
40 unit] limited station licensed under this article.
41 3. Only in the case of an internet, digital or other electronic adver-
42 tisement or solicitation, a licensee shall be deemed to have fulfilled
43 the disclosure requirements required by law with respect to such inter-
44 net, digital or other electronic advertisement or solicitation only by
45 displaying the disclosures on its website, so long as the advertisement
46 or solicitation includes a link directly to such website, and provided
47 this does not modify in-store disclosure requirements.
48 4. No change in fees shall become effective earlier than thirty days
49 after the superintendent shall notify the majority leader of the senate,
50 the speaker of the assembly, and the chairmen of both the senate and
51 assembly committees on banks of [his] such superintendent's intention to
52 change fees.
53 [4.] 5. The fees in effect immediately prior to the effective date of
54 this subdivision shall continue to be the maximum allowable fees until
55 revised by the superintendent's regulations.
S. 3237--A 7
1 [5.] 6. Each licensee shall keep and use in its business such books,
2 accounts, and records as the superintendent may require to carry into
3 effect the provisions of this article and the rules and regulations made
4 by the superintendent hereunder. Every licensee shall preserve such
5 books, accounts and records for at least two years.
6 [6.] 7. Before a licensee shall deposit with any banking organization,
7 or with any organization engaged in the business of banking, a check,
8 draft or money order cashed by such licensee, the same must be endorsed
9 with the actual name under which such licensee is doing business and
10 must have the words "licensed casher of checks" legibly written or
11 stamped immediately after or below such name.
12 [7.] 8. Every licensee shall submit to the superintendent, or such
13 person as the superintendent may designate, such suspicious activity
14 reports or currency transaction reports as are required to be submitted
15 to federal authorities pursuant to provisions of the Bank Secrecy Act
16 (subchapter 11, chapter 53, title 31, United States code) and regu-
17 lations and administrative orders related thereto, as amended, within
18 the periods of time as required by such act and regulations. A licensee
19 may submit a copy of any such report to the superintendent, or such
20 person as the superintendent may designate, that is filed with such
21 federal authorities. The superintendent may adopt such regulations or
22 require such additional reports as [he or she] such superintendent deems
23 necessary to insure the effective enforcement of this subdivision.
24 § 10. Section 372-a of the banking law, as added by chapter 432 of the
25 laws of 2004, is amended to read as follows:
26 § 372-a. Superintendent authorized to examine. 1. For the purpose of
27 discovering violations of this article or securing information lawfully
28 required in this section, the superintendent may at any time, and as
29 often as may be determined, either personally or by a person duly desig-
30 nated by the superintendent, investigate the [cashing of checks by]
31 licensees and their business practices as authorized by this article and
32 examine the books, accounts, records, and files used therein of every
33 licensee.
34 2. For the purpose established in subdivision one of this section, the
35 superintendent and [his or her] such superintendent's duly designated
36 representatives shall have free access to the offices and places of
37 business, books, accounts, papers, records, files, safes and vaults of
38 all such licensees. The superintendent shall have authority to require
39 the attendance of and to examine under oath all persons whose testimony
40 may be required relative to such cashing of checks or such business.
41 § 11. Subdivisions 1 and 2 of section 373 of the banking law, subdivi-
42 sion 1 as amended by chapter 432 of the laws of 2004 and subdivision 2
43 as amended by chapter 132 of the laws of 1969, are amended to read as
44 follows:
45 1. No licensee shall engage in the business of making loans of money,
46 credit, goods or things or discounting of notes, bills of exchange,
47 checks, or other evidences of debt pursuant to the provisions of article
48 nine of this chapter, nor shall a loan business or the negotiation of
49 loans or the discounting of notes, bills of exchange, checks or other
50 evidences of debt be conducted on the same premises where the licensee
51 is conducting business pursuant to the provisions of this article.
52 Except as otherwise provided by regulation of the superintendent, all
53 checks, drafts and money orders shall be deposited in the licensee's
54 bank account not later than the first business day following the day on
55 which they were cashed. No licensee shall at any time cash or advance
56 any moneys on a post-dated check or draft or engage in the business of
S. 3237--A 8
1 transmitting money or receiving money for transmission; provided, howev-
2 er, that a licensee may cash a check [payable on the first banking busi-
3 ness day following the date of cashing (a) if such check is drawn by the
4 United States, the state of New York, or any political subdivision of
5 the state of New York, or by any department, bureau, agency, authority,
6 instrumentality or officer, acting in his official capacity, of the
7 United States or of the state of New York or of any political subdivi-
8 sion of the state of New York, or (b) if such check is a payroll check
9 drawn by an employer to the order of its employee in payment for
10 services performed by such employee] without regard to the date
11 imprinted on the check as long as the check is dated not more than five
12 business days after the date of presentment and as long as the check is
13 deposited in the licensee's bank account not later than the first busi-
14 ness day following the day on which it was cashed that is: (a) payable
15 no more than five banking business days following the date of cashing if
16 such check is drawn by the United States, the state of New York, or any
17 political subdivision of the state of New York, or by any department,
18 bureau, agency, authority, instrumentality or officer, acting in such
19 officer's official capacity, of the United States or of the state of New
20 York or of any political subdivision of the state of New York; (b) paya-
21 ble no more than five banking business days following the date of cash-
22 ing if such check is payable to a natural person and is in an amount not
23 exceeding one thousand dollars; or (c) payable on the first banking
24 business day following the date of cashing if such check is a payroll
25 check drawn by an employer to the order of its employee in payment for
26 services performed by such employee. Any licensee who cashes post-dated
27 checks pursuant to paragraph (a) or (b) of this subdivision shall do so
28 subject to the safety and soundness requirements of this article,
29 including establishment of policies and procedures to implement robust
30 due diligence, risk management, liquidity management, structured trans-
31 actions and fraud prevention. No licensee shall cash any check, draft
32 or money order if the face amount for which it is drawn is in excess of
33 [fifteen] twenty thousand dollars; provided, however, that this
34 restriction shall not apply to the cashing of checks, drafts or money
35 orders drawn by the United States, any state thereof or any political
36 subdivision of any such state, or by any department, bureau, agency,
37 authority, instrumentality or officer, acting in [his] such officer's
38 official capacity, of the United States, any state thereof or any poli-
39 tical subdivision of any such state, or any [banking] financial institu-
40 tion, or to any check or draft drawn by or on account of any insurance
41 company, attorney for the settlement of claims, or to any check which
42 has been certified or guaranteed by the [banking] financial institution
43 on which it has been drawn, or if such check is drawn on a bona fide
44 workers' compensation fund issued by a third-party payor, or if such
45 check is drawn by an employer from a pension or profit-sharing fund, or
46 if such check is drawn by a union from a pension or benefit fund or if
47 such check is drawn by a union; provided further, however, that any such
48 restriction upon the maximum face amount that may be cashed by a licen-
49 see shall not apply to the cashing of checks, drafts or money orders by
50 licensees for payees of such checks, drafts or money orders that are
51 other than natural persons. For purposes of this subdivision, "[banking]
52 financial institution" means any bank, trust company, savings bank,
53 savings and loan association [or], credit union or other financial
54 institution which is incorporated, chartered [or], organized or licensed
55 under the laws of this state or any other state or the United States.
S. 3237--A 9
1 2. The superintendent may suspend or revoke any license or licenses
2 issued pursuant to this article if, after notice and a hearing, [he]
3 such superintendent shall find that the licensee (a) has committed any
4 fraud, engaged in any dishonest activities or made any misrepresen-
5 tation; or (b) has violated any provisions of the banking law or any
6 regulation issued pursuant thereto, or has violated any other law in the
7 course of [its or his] such licensee's dealings as a licensed casher of
8 checks; or (c) has made a false statement in the application for such
9 license or failed to give a true reply to a question in such applica-
10 tion; or (d) has demonstrated [his or its] such licensee's incompetency
11 or untrustworthiness to act as a licensed casher of checks; or (e) is
12 not doing sufficient business pursuant to this article to justify the
13 continuance of the license, or if [he] such superintendent shall find
14 that any ground or grounds exist which would require or warrant the
15 refusal of an application for the issuance of the license if such an
16 application were then before [him] such superintendent. Such a hearing
17 shall be held in the manner and upon such notice as may be prescribed by
18 the superintendent. Pending an investigation or a hearing for the
19 suspension or revocation of any license or licenses issued pursuant to
20 this article, the superintendent may temporarily suspend such license or
21 licenses for a period not to exceed ninety days, provided the super-
22 intendent shall find that such a temporary suspension is in the public
23 interest.
24 § 12. Subdivision 3 of section 37 of the banking law, as amended by
25 chapter 360 of the laws of 1984, is amended to read as follows:
26 3. In addition to any reports expressly required by this chapter to be
27 made, the superintendent may require any banking organization, licensed
28 lender, licensed casher of checks, licensed mortgage banker, foreign
29 banking corporation licensed by the superintendent to do business in
30 this state, bank holding company and any non-banking subsidiary thereof,
31 corporate affiliate of a corporate banking organization within the mean-
32 ing of subdivision six of section thirty-six of this article and any
33 non-banking subsidiary of a corporation which is an affiliate of a
34 corporate banking organization within the meaning of subdivision six-a
35 of section thirty-six of this article to make special reports to [him]
36 the superintendent at such times as [he] such superintendent may
37 prescribe.
38 § 13. Within ninety days of the effective date of this act, the
39 superintendent of financial services shall commence a review of such
40 superintendent's current system of issuing licenses for check cashing
41 licensees, the establishment of new check cashing locations, for the
42 relocation of check cashing locations, and for changes of control of
43 existing check cashing licensees, and will issue a report to the gover-
44 nor, the chairman of the assembly banks committee, and the chairman of
45 the senate banks committee, regarding the costs (including application
46 fees, preparation fees, and other costs) incurred by applicants to
47 prepare and submit applications, the costs incurred by the department of
48 financial services to review and process applications, the length of
49 time required for the review and processing of applications by such
50 department, and recommendations to improve the efficiency and lessen the
51 costs, burdens, and length of such department's licensing processes. The
52 superintendent of financial services shall report to the governor and to
53 the respective committee chairs within one hundred eighty days of the
54 date of commencement of such superintendent's review. The superintendent
55 of financial services shall consult with and receive input from check
S. 3237--A 10
1 cashing licensees in the preparation of such superintendent's analysis
2 and report.
3 § 14. This act shall take effect on the one hundred eightieth day
4 after it shall have become a law; provided, however, that:
5 (a) the amendments to section 373 of the banking law made by section
6 eleven of this act shall expire and be deemed repealed June 30, 2029;
7 and
8 (b) any contract, instrument, agreement or other written obligation
9 entered into by a financial services provider authorized under section
10 373 of the banking law prior to June 30, 2029 shall be deemed valid and
11 enforceable after such date.
12 Effective immediately the addition, amendment and/or repeal of any
13 rule or regulation necessary for the implementation of this act on its
14 effective date are authorized to be made and completed on or before such
15 effective date.
