Relates to enacting the "community financial services access and modernization act of 2017"; 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
________________________________________________________________________
7705--B
2017-2018 Regular Sessions
IN ASSEMBLY
May 10, 2017
___________
Introduced by M. of A. RODRIGUEZ, HEVESI, COOK, SEPULVEDA, WEPRIN,
MONTESANO, DICKENS, D'URSO, VANEL, ARROYO, PICHARDO, RIVERA, ABBATE,
McDONOUGH, GJONAJ, PERRY, MOSLEY -- Multi-Sponsored by -- M. of A.
FARRELL, RAMOS, TITONE -- read once and referred to the Committee on
Banks -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- reported and referred to
the Committee on Codes -- 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 2017"; 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 2017".
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.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11339-09-7
A. 7705--B 2
1 2. The term "licensee" means a licensed casher of checks, drafts
2 and/or money orders.
3 3. The term ["mobile unit"] "limited station" means any vehicle or
4 other movable means from which the business of [cashing checks, drafts
5 or money orders] providing financial services regulated by this article
6 is to be conducted.
7 4. The term "person" means any individual or other legal entity,
8 including any corporation, partnership, association or limited liability
9 company.
10 5. The term "financial services" means offering or providing any of
11 the following financial products or services: (a) the cashing of checks,
12 drafts and/or money orders,
13 (b) money transmission services as defined in article thirteen-B of
14 this chapter, provided, however, a licensed financial services provider
15 offering money transmission pursuant to article thirteen-B of this chap-
16 ter, other than as an agent of a licensee, shall first obtain a license
17 under that article,
18 (c) bill payment services,
19 (d) the sale of prepaid debit cards, and
20 (e) the dispensing of mass transit fare cards, or such other medium or
21 mechanism for the dispensing of mass transit fares.
22 6. The term "primary license" shall mean an original license issued by
23 the superintendent that authorizes a person to engage in the business of
24 cashing of checks and related financial services, and in the case of a
25 licensee who has multiple licensed business locations at the time of the
26 effective date of this subdivision, the initial longest site continuous-
27 ly licensed under this article.
28 7. The term "supplemental license" shall mean a license issued by the
29 superintendent that authorizes a person having a primary license to
30 engage in the business of cashing of checks and related financial
31 services at branch locations, and in the case of a licensee who has
32 multiple licensed business locations at the time of the effective date
33 of this subdivision, any license issued to an existing licensee after
34 the license for the original site.
35 § 4. Section 367 of the banking law, as amended by chapter 151 of the
36 laws of 1945, subdivision 3 as amended by section 7 of part D-1 of chap-
37 ter 109 of the laws of 2006, and subdivision 4 as amended by chapter 96
38 of the laws of 1981, is amended to read as follows:
39 § 367. License requirements; fees; capital requirements. 1. No
40 person[, partnership, association or corporation] shall engage in the
41 business of cashing checks, drafts or money orders for a consideration
42 without first obtaining a license from the superintendent.
43 2. Application for such license shall be in writing, under oath, and
44 in the form prescribed by the superintendent, and shall contain the
45 name, and the address both of the residence and place of business, of
46 the applicant, and if the applicant is a co-partnership [or], associ-
47 ation or limited liability company, of every member thereof, and if a
48 corporation, of each officer and director thereof; also, if the business
49 is to be conducted at a specific address, the address at which the busi-
50 ness is to be conducted, and if the business is to be conducted from a
51 [mobile unit] limited station, the New York state registration number or
52 other identification of such [mobile unit] limited station and the area
53 in which the applicant proposes to operate such [mobile unit] limited
54 station; and also such further information as the superintendent may
55 require.
A. 7705--B 3
1 3. Such applicant at the time of making such application shall pay to
2 the superintendent a fee as prescribed pursuant to section eighteen-a of
3 this chapter for investigating the application. An application for a
4 primary license shall be in writing, under oath, and in the form
5 prescribed by the superintendent and shall contain such information as
6 the superintendent may require by regulation. The application shall set
7 forth all of the locations at which the applicant seeks to conduct busi-
8 ness hereunder. At the time of making the application for a primary
9 license, an existing licensee under this article shall pay to the super-
10 intendent the sum of two hundred fifty dollars for each proposed
11 location as a fee for investigating the application. An applicant that
12 does not currently hold a license under this article at the time of
13 application shall pay to the superintendent an application fee as
14 provided in this chapter for initial applications. Any licensee request-
15 ing a change of address, shall at the time of making such request, pay
16 to the superintendent a fee as prescribed pursuant to section eighteen-a
17 of this chapter for investigating the new address; provided, however,
18 that the superintendent may, in his or her discretion, waive such inves-
19 tigation fee if warranted, and provided further, that no fee shall be
20 payable for the relocation of a limited station.
21 4. Every applicant shall prove, in form satisfactory to the super-
22 intendent that he or it has available for the operation of such busi-
23 ness, for each location and for each [mobile unit] limited station spec-
24 ified in the application, liquid assets of at least ten thousand
25 dollars, and every licensee shall continuously maintain for the opera-
26 tion of such business for each location and for each [mobile unit]
27 limited station liquid assets of at least ten thousand dollars. Notwith-
28 standing the foregoing provisions of this subdivision, the superinten-
29 dent, upon application by an applicant and for good cause shown, may
30 permit a reduction from ten thousand dollars to not less than five thou-
31 sand dollars of minimum liquid assets required for each location.
32 § 5. Section 369 of the banking law, as amended by chapter 151 of the
33 laws of 1945, subdivision 1 as amended by chapter 233 of the laws of
34 2005, subdivisions 4 and 5 as amended by chapter 132 of the laws of
35 1969, subdivision 6 as amended by chapter 164 of the laws of 2003, para-
36 graph (b) of subdivision 6 as amended by section 6 of part LL of chapter
37 56 of the laws of 2010, and subdivision 7 as added by chapter 485 of the
38 laws of 1947, is amended to read as follows:
39 § 369. Conditions precedent to issuing license; issuance and filing of
40 license; posting license. 1. If the superintendent shall find that the
41 financial responsibility, experience, character, and general fitness of
42 the applicant, and of the members thereof if the applicant be a co-part-
43 nership [or], association or limited liability company, and of the offi-
44 cers and directors thereof if the applicant be a corporation, are such
45 as to command the confidence of the community and to warrant belief that
46 the business will be operated honestly, fairly, and efficiently within
47 the purposes of this article, and if the superintendent shall find that
48 the granting of such application will promote the convenience and advan-
49 tage of the area in which such business is to be conducted, and if the
50 superintendent shall find that the applicant has available for the oper-
51 ation of such business for each location and for each [mobile unit]
52 limited station specified in the application liquid assets of at least
53 ten thousand dollars, the superintendent shall thereupon execute a
54 primary license and if applicable one or more supplemental licenses in
55 duplicate to permit the [cashing of checks, drafts and money orders]
56 delivery of financial services in accordance with the provisions of this
A. 7705--B 4
1 article at the location or locations or in the area or areas specified
2 in such application. In finding whether the application will promote the
3 convenience and advantage to the public, the superintendent shall deter-
4 mine whether there is a community need for a new licensee in the
5 proposed area or areas to be served. No license shall be issued to an
6 applicant for a license, at a location to be licensed which is closer
7 than one thousand five hundred eighty-four feet (three-tenths of a mile)
8 from an existing licensee, except with the written consent of such
9 existing licensee or pursuant to subdivision three of section three
10 hundred seventy of this article, subject to any restriction or condition
11 as the superintendent may promulgate by regulation; provided, however,
12 the superintendent may permit a location to be licensed that is closer
13 than three-tenths of a mile from an existing licensee provided such
14 applicant engages in the cashing of checks, drafts or money orders only
15 for payees of such checks, drafts or money orders that are other than
16 natural persons at the location to be licensed and such applicant was
17 engaged in the cashing of such checks, drafts or money orders for payees
18 that are other than natural persons at such location on or before the
19 fourteenth day of July, two thousand four, and provided further that
20 upon licensing any such location by the superintendent, such license as
21 it pertains solely to such location shall not be affected thereafter by
22 any change of control of such license pursuant to section three hundred
23 seventy-a of this article, provided that the licensee continues there-
24 after to engage at that location in the cashing of checks, drafts or
25 money orders only for payees that are other than natural persons and
26 provided further that such license shall bear a legend stating that such
27 location is restricted to the cashing of checks, drafts or money orders
28 only for payees that are other than natural persons. The three-tenths of
29 a mile distance requirement as set forth in this section shall not apply
30 in cases where the existing licensee is a restricted location as author-
31 ized in the preceding sentence, or is any other licensed location that
32 engages solely in the cashing of checks, drafts or money orders only for
33 payees that are other than natural persons. For purposes of this
34 section, such distance shall be measured on a straight line along the
35 street between the nearest point of the store fronts of the check cash-
36 ing facilities. The primary business of the licensee, at the location to
37 be licensed, shall be financial services. The superintendent shall tran-
38 smit one copy of such license to the applicant and file another in the
39 office of the department. Notwithstanding the foregoing provisions of
40 this subdivision, the superintendent, upon application by an applicant
41 and for good cause shown, may permit a reduction from ten thousand
42 dollars to not less than five thousand dollars of minimum liquid assets
43 required for each location.
44 2. Such license shall state the name of the licensee; and if the
45 licensee is a co-partnership [or], association or limited liability
46 company, the names of the members thereof; and if the licensee is a
47 corporation, the date of its incorporation; and if the business is to be
48 conducted at a specific address, the address at which such business is
49 to be conducted; and if the business is to be conducted through the use
50 of a [mobile unit] limited station, the New York state registration
51 number or other identification of such [mobile unit] limited station and
52 the area in which such [mobile unit] limited station is authorized to do
53 business.
54 3. [Such license] All licenses issued by the superintendent shall be
55 kept conspicuously posted in the place of business of the licensee or,
A. 7705--B 5
1 in the case of a [mobile unit] limited station, upon such [mobile unit]
2 limited station. Such license shall not be transferable or assignable.
3 4. Such license shall remain in full force and effect until it is
4 surrendered by the licensee or revoked or suspended as provided in this
5 article. In the case of a change of control of a location or a business
6 licensed hereunder, the licensee approved to acquire the business or
7 location may utilize a true copy of the existing license pending the
8 issuance of a new license by the superintendent.
9 5. If the superintendent shall find that the applicant fails to meet
10 any of the conditions set forth in subdivision one of this section, he
11 or she shall not issue such license, and he or she shall notify the
12 applicant of the denial. If an application is denied or withdrawn, the
13 superintendent shall retain the investigation fee to cover the costs of
14 investigating the application and return the license fee to the appli-
15 cant.
16 6. The superintendent may refuse to issue a license pursuant to this
17 article if he or she shall find that the applicant, or any person who is
18 a director, officer, partner, agent, employee or substantial stockholder
19 of the applicant, (a) has been convicted of a crime in any jurisdiction
20 or (b) is associating or consorting with any person who has, or persons
21 who have, been convicted of a crime or crimes in any jurisdiction or
22 jurisdictions; provided, however, that the superintendent shall not
23 issue such a license if he or she shall find that the applicant, or any
24 person who is a director, officer, partner, agent, employee or substan-
25 tial stockholder of the applicant, has been convicted of a felony in any
26 jurisdiction or of a crime which, if committed within this state, would
27 constitute a felony under the laws thereof. For the purposes of this
28 article, a person shall be deemed to have been convicted of a crime if
29 such person shall have pleaded guilty to a charge thereof before a court
30 or magistrate, or shall have been found guilty thereof by the decision
31 or judgment of a court or magistrate or by the verdict of a jury, irre-
32 spective of the pronouncement of sentence or the suspension thereof,
33 unless such plea of guilty, or such decision, judgment or verdict, shall
34 have been set aside, reversed or otherwise abrogated by lawful judicial
35 process or unless the person convicted of the crime shall have received
36 a pardon therefor from the president of the United States or the gover-
37 nor or other pardoning authority in the jurisdiction where the
38 conviction was had, or shall have received a certificate of relief from
39 disabilities or a certificate of good conduct pursuant to article twen-
40 ty-three of the correction law to remove the disability under this arti-
41 cle because of such conviction. The term "substantial stockholder," as
42 used in this subdivision, shall be deemed to refer to a person owning or
43 controlling ten per centum or more of the total outstanding stock of the
44 corporation in which such person is a stockholder. In making a determi-
45 nation pursuant to this subdivision, the superintendent shall require
46 fingerprinting of the applicant. Such fingerprints shall be submitted to
47 the division of criminal justice services for a state criminal history
48 record check, as defined in subdivision one of section three thousand
49 thirty-five of the education law, and may be submitted to the federal
50 bureau of investigation for a national criminal history record check.
51 7. No license pursuant to this article shall be issued to any appli-
52 cant to do business at the place specified in the application as the
53 place where the business is to be conducted if, within the twelve months
54 preceding such application, a license to engage in business pursuant to
55 this article at such place shall have been revoked.
A. 7705--B 6
1 § 6. Section 370 of the banking law, as amended by chapter 151 of the
2 laws of 1945, subdivision 2 as amended by section 38 of part O of chap-
3 ter 59 of the laws of 2006 and subdivision 3 as amended by chapter 703
4 of the laws of 2006, is amended to read as follows:
5 § 370. Restrictions as to place or area of doing business; establish-
6 ment of stations; change of location. 1. No more than one place of busi-
7 ness or one [mobile unit] limited station shall be maintained under the
8 same license; provided, however, that more than one license may be
9 issued to the same licensee [upon compliance with the provisions of this
10 article for each new license] and if the superintendent determines that
11 an existing licensee is in good standing and in compliance with the
12 provisions of this article, a subsequent application for a second or
13 multiple supplemental licenses at different, separate and additional
14 locations shall be expedited by the superintendent provided the minimum
15 liquidity requirements and community need criteria set forth in section
16 three hundred sixty-nine of this article have been demonstrated in the
17 application for the additional location or locations.
18 2. Any licensed casher of checks may open and maintain, within this
19 state, one or more limited stations for the purpose of cashing checks,
20 drafts or money orders for the particular group or groups specified in
21 the license authorizing each such station. Such stations shall be
22 licensed pursuant to and be subject to all the provisions of this chap-
23 ter applicable to licensed cashers of checks, except that (a) [such
24 station shall not be subject to the distance limitation set forth in
25 subdivision one of section three hundred sixty-nine of this article,
26 (b)] the fee for investigating the application for a station shall be as
27 prescribed pursuant to section eighteen-a of this chapter, and [(c)] (b)
28 where such a station is at the premises of a specified employer for the
29 purpose of cashing checks, drafts and money orders for the employees of
30 such employer, the fees and charges for cashing such checks, drafts or
31 money orders shall not be subject to the limitations of subdivision one
32 of section three hundred seventy-two of this article if such fees and
33 charges are paid by such employer.
34 3. A licensee may make a written application to the superintendent for
35 leave to change his or her place of business, or in the case of a
36 [mobile unit] limited station, the area in which such unit is authorized
37 to be operated, stating the reasons for such proposed change and in the
38 case where the applicant currently holds a primary license to operate a
39 business established under this article, the superintendent shall
40 streamline and reduce the information required from such applicant. Such
41 application may be approved for relocation from a site within three-
42 tenths of a mile of another licensee to another site within three-tenths
43 of a mile of such other licensee provided that such new site is farther
44 from such existing licensee than the site from which permission to relo-
45 cate is sought. Only in situations in which a licensee seeks to change
46 its place of business due to extraordinary circumstances, as may be
47 determined by the superintendent pursuant to regulations, may the super-
48 intendent, in his or her discretion, determine that an application may
49 be approved for relocation from a site within three-tenths of a mile of
50 another licensee to a new site which is closer to such existing licensee
51 than the site from which permission to relocate is sought. Notwithstand-
52 ing any other provision of this subdivision, a licensee may relocate
53 from any location to a location that is within three-tenths of a mile
54 from another licensee with the written consent of the other licensee. If
55 the superintendent approves such application he or she shall issue a new
56 license in duplicate in accordance with the provisions of section three
A. 7705--B 7
1 hundred sixty-nine of this article, stating the new location of such
2 licensee or, in the case of a [mobile unit] limited station, the new
3 area in which such [mobile unit] limited station may be operated.
4 § 7. Section 370-a of the banking law, as added by chapter 142 of the
5 laws of 1992, subdivision 1 as amended by section 39 of part O of chap-
6 ter 59 of the laws of 2006, is amended to read as follows:
7 § 370-a. Changes in control. 1. It shall be unlawful except with the
8 prior approval of the superintendent for any action to be taken which
9 results in a change of control of the business of a licensee. Prior to
10 any change of control, the person desirous of acquiring control of the
11 business of a licensee, if such person is not already a licensee under
12 this article, shall make written application to the superintendent and
13 pay an investigation fee as prescribed pursuant to section eighteen-a of
14 this chapter to the superintendent. The application shall contain such
15 information as the superintendent, by rule or regulation, may prescribe
16 as necessary or appropriate, and in the case where the acquiring person
17 currently holds a primary license to operate a business established
18 under this article, and in the case of a limited station license, the
19 superintendent shall streamline and reduce the information required from
20 such applicant, for the purpose of making the determination required by
21 subdivision two of this section.
22 2. The superintendent shall approve or disapprove the proposed change
23 of control of a licensee in accordance with the provisions of subdivi-
24 sions one and six of section three hundred sixty-nine of this article.
25 The superintendent shall approve or disapprove the application in writ-
26 ing within ninety days after the date the application is filed with the
27 superintendent.
28 3. For a period of six months from the date of qualification thereof
29 and for such additional period of time as the superintendent may
30 prescribe, in writing, the provisions of subdivisions one and two of
31 this section shall not apply to a transfer of control by operation of
32 law to the legal representative, as hereinafter defined, of one who has
33 control of a licensee. Thereafter, such legal representative shall
34 comply with the provisions of subdivisions one and two of this section.
35 The provisions of subdivisions one and two of this section shall be
36 applicable to an application made under such section by a legal repre-
37 sentative.
38 The term "legal representative", for the purposes of this section,
39 shall mean one duly appointed by a court of competent jurisdiction to
40 act as executor, administrator, trustee, committee, conservator or
41 receiver, including one who succeeds a legal representative and one
42 acting in an ancillary capacity thereto in accordance with the
43 provisions of such court appointment.
44 4. As used in this section: (a) the term "person" includes an individ-
45 ual, partnership, corporation, association, limited liability company,
46 or any other organization, and (b) the term "control" means the
47 possession, directly or indirectly, of the power to direct or cause the
48 direction of the management and policies of a licensee, whether through
49 the ownership of voting stock of such licensee, the ownership of voting
50 stock of any person which possesses such power or otherwise. Control
51 shall be presumed to exist if any person, directly or indirectly, owns,
52 controls or holds with power to vote ten per centum or more of the
53 voting stock of any licensee or of any person which owns, controls or
54 holds with power to vote ten per centum or more of the voting stock of
55 any licensee, but no person shall be deemed to control a licensee solely
56 by reason of being an officer or director of such licensee or person.
A. 7705--B 8
1 The superintendent may in his or her discretion, upon the application of
2 a licensee or any person who, directly or indirectly, owns, controls or
3 holds with power to vote or seeks to own, control or hold with power to
4 vote any voting stock of such licensee, determine whether or not the
5 ownership, control or holding of such voting stock constitutes or would
6 constitute control of such licensee for purposes of this section.
7 § 8. Section 371 of the banking law, as added by chapter 151 of the
8 laws of 1945, is amended to read as follows:
9 § 371. Regulations. The superintendent is hereby authorized and
10 empowered to make such rules and regulations, and such specific rulings,
11 demands, and findings as he or she may deem necessary for the proper
12 conduct of the business authorized and licensed under and for the
13 enforcement of this article, in addition hereto and not inconsistent
14 herewith.
15 § 9. Section 372 of the banking law, as amended by chapter 151 of the
16 laws of 1945, the section heading and subdivision 1 as amended and
17 subdivision 7 as added by chapter 432 of the laws of 2004, subdivisions
18 2, 3 and 4 as added and subdivisions 5 and 6 as renumbered by chapter
19 263 of the laws of 1983, and subdivision 6 as added by chapter 485 of
20 the laws of 1947, is amended to read as follows:
21 § 372. Fees and charges; posting schedule; records and reports. 1. The
22 superintendent shall, by regulation, establish the maximum fees which
23 may be charged by licensees for cashing a check, draft, or money order.
24 No licensee shall charge or collect any sum for cashing a check, draft,
25 or money order in excess of that established by the superintendent's
26 regulations; provided, however, that no maximum fee shall apply to the
27 charging of fees by licensees for the cashing of checks, drafts or money
28 orders for payees of such checks, drafts or money orders that are other
29 than natural persons. The licensee shall pay to every customer tendering
30 any check, draft or money order to be cashed, the entire face amount of
31 such instrument, less any charges permitted by the superintendent, in
32 such form and by such means as agreed upon by the customer on the same
33 date upon which such instrument is presented.
34 2. The schedule of fees and charges permitted under this section shall
35 be conspicuously and continuously posted in every location and [mobil
36 unit] limited station licensed under this article.
37 3. In the case of an internet, digital or other electronic advertise-
38 ment or solicitation, a licensee shall be deemed to have fulfilled the
39 disclosure requirements required by law by displaying the disclosures on
40 its website, so long as the advertisement or solicitation includes a
41 link directly to such website.
42 4. No change in fees shall become effective earlier than thirty days
43 after the superintendent shall notify the majority leader of the senate,
44 the speaker of the assembly, and the chairmen of both the senate and
45 assembly committees on banks of his or her intention to change fees.
46 [4.] 5. The fees in effect immediately prior to the effective date of
47 this subdivision shall continue to be the maximum allowable fees until
48 revised by the superintendent's regulations.
49 [5.] 6. Each licensee shall keep and use in its business such books,
50 accounts, and records as the superintendent may require to carry into
51 effect the provisions of this article and the rules and regulations made
52 by the superintendent hereunder. Every licensee shall preserve such
53 books, accounts and records for at least two years.
54 [6.] 7. Before a licensee shall deposit with any banking organization,
55 or with any organization engaged in the business of banking, a check,
56 draft or money order cashed by such licensee, the same must be endorsed
A. 7705--B 9
1 with the actual name under which such licensee is doing business and
2 must have the words "licensed casher of checks" legibly written or
3 stamped immediately after or below such name.
4 [7.] 8. Every licensee shall submit to the superintendent, or such
5 person as the superintendent may designate, such suspicious activity
6 reports or currency transaction reports as are required to be submitted
7 to federal authorities pursuant to provisions of the Bank Secrecy Act
8 (subchapter 11, chapter 53, title 31, United States code) and regu-
9 lations and administrative orders related thereto, as amended, within
10 the periods of time as required by such act and regulations. A licensee
11 may submit a copy of any such report to the superintendent, or such
12 person as the superintendent may designate, that is filed with such
13 federal authorities. The superintendent may adopt such regulations or
14 require such additional reports as he or she deems necessary to insure
15 the effective enforcement of this subdivision.
16 § 10. Section 372-a of the banking law, as added by chapter 432 of the
17 laws of 2004, is amended to read as follows:
18 § 372-a. Superintendent authorized to examine. 1. For the purpose of
19 discovering violations of this article or securing information lawfully
20 required in this section, the superintendent may at any time, and as
21 often as may be determined, either personally or by a person duly desig-
22 nated by the superintendent, investigate the [cashing of checks by
23 licensees] business practices of a licensee rendering financial services
24 authorized by this article and examine the books, accounts, records, and
25 files used therein of every licensee.
26 2. For the purpose established in subdivision one of this section, the
27 superintendent and his or her duly designated representatives shall have
28 free access to the offices and places of business, books, accounts,
29 papers, records, files, safes and vaults of all such licensees. The
30 superintendent shall have authority to require the attendance of and to
31 examine under oath all persons whose testimony may be required relative
32 to such cashing of checks or such business.
33 § 11. Subdivisions 1 and 2 of section 373 of the banking law, subdivi-
34 sion 1 as amended by chapter 432 of the laws of 2004 and subdivision 2
35 as amended by chapter 132 of the laws of 1969, are amended to read as
36 follows:
37 1. No licensee shall engage in the business of making loans of money,
38 credit, goods or things or discounting of notes, bills of exchange,
39 checks, or other evidences of debt pursuant to the provisions of article
40 nine of this chapter, nor shall a loan business or the negotiation of
41 loans or the discounting of notes, bills of exchange, checks or other
42 evidences of debt be conducted on the same premises where the licensee
43 is conducting business pursuant to the provisions of this article.
44 Except as otherwise provided by regulation of the superintendent, all
45 checks, drafts and money orders shall be deposited in the licensee's
46 bank account not later than the first business day following the day on
47 which they were cashed. No licensee shall at any time cash or advance
48 any moneys on a post-dated check or draft or engage in the business of
49 transmitting money or receiving money for transmission; provided, howev-
50 er, that a licensee may cash a check [payable on the first banking busi-
51 ness day following the date of cashing (a) if such check is drawn by the
52 United States, the state of New York, or any political subdivision of
53 the state of New York, or by any department, bureau, agency, authority,
54 instrumentality or officer, acting in his official capacity, of the
55 United States or of the state of New York or of any political subdivi-
56 sion of the state of New York, or (b) if such check is a payroll check
A. 7705--B 10
1 drawn by an employer to the order of its employee in payment for
2 services performed by such employee] without regard to the date
3 imprinted on the check as long as the check is deposited in the
4 licensee's bank account not later than the first business day following
5 the day on which it was cashed. No licensee shall cash any check, draft
6 or money order if the face amount for which it is drawn is in excess of
7 [fifteen] twenty thousand dollars; provided, however, that this
8 restriction shall not apply to the cashing of checks, drafts or money
9 orders drawn by the United States, any state thereof or any political
10 subdivision of any such state, or by any department, bureau, agency,
11 authority, instrumentality or officer, acting in his official capacity,
12 of the United States, any state thereof or any political subdivision of
13 any such state, or any [banking] financial institution, or to any check
14 or draft drawn by or on account of any insurance company, attorney for
15 the settlement of claims, or to any check which has been certified or
16 guaranteed by the banking institution on which it has been drawn, or if
17 such check is drawn on a bona fide workers' compensation fund issued by
18 a third-party payor, or if such check is drawn by an employer from a
19 pension or profit sharing fund, or if such check is drawn by a union
20 from a pension or benefit fund or if such check is drawn by a union;
21 provided further, however, that any such restriction upon the maximum
22 face amount that may be cashed by a licensee shall not apply to the
23 cashing of checks, drafts or money orders by licensees for payees of
24 such checks, drafts or money orders that are other than natural persons.
25 For purposes of this subdivision, "[banking] financial institution"
26 means any bank, trust company, savings bank, savings and loan associ-
27 ation [or], credit union or other financial institution which is incor-
28 porated, chartered [or], organized or licensed under the laws of this
29 state or any other state or the United States.
30 2. The superintendent may suspend or revoke any license or licenses
31 issued pursuant to this article if, after notice and a hearing, he or
32 she shall find that the licensee (a) has committed any fraud, engaged in
33 any dishonest activities or made any misrepresentation; or (b) has
34 violated any provisions of the banking law or any regulation issued
35 pursuant thereto, or has violated any other law in the course of its or
36 his dealings as a licensed casher of checks; or (c) has made a false
37 statement in the application for such license or failed to give a true
38 reply to a question in such application; or (d) has demonstrated his or
39 its incompetency or untrustworthiness to act as a licensed casher of
40 checks; or (e) is not doing sufficient business pursuant to this article
41 to justify the continuance of the license, or if he or she shall find
42 that any ground or grounds exist which would require or warrant the
43 refusal of an application for the issuance of the license if such an
44 application were then before him or her. Such a hearing shall be held
45 in the manner and upon such notice as may be prescribed by the super-
46 intendent. Pending an investigation or a hearing for the suspension or
47 revocation of any license or licenses issued pursuant to this article,
48 the superintendent may temporarily suspend such license or licenses for
49 a period not to exceed ninety days, provided the superintendent shall
50 find that such a temporary suspension is in the public interest.
51 § 12. Subdivision 3 of section 37 of the banking law, as amended by
52 chapter 360 of the laws of 1984, is amended to read as follows:
53 3. In addition to any reports expressly required by this chapter to be
54 made, the superintendent may require any banking organization, licensed
55 lender, licensed casher of checks, licensed mortgage banker, foreign
56 banking corporation licensed by the superintendent to do business in
A. 7705--B 11
1 this state, bank holding company and any non-banking subsidiary thereof,
2 corporate affiliate of a corporate banking organization within the mean-
3 ing of subdivision six of section thirty-six of this article and any
4 non-banking subsidiary of a corporation which is an affiliate of a
5 corporate banking organization within the meaning of subdivision six-a
6 of section thirty-six of this article to make special reports to him or
7 her at such times as he or she may prescribe.
8 § 13. This act shall take effect on the one hundred eightieth day
9 after it shall have become a law; provided, however, that:
10 (a) effective immediately, any rules and regulations necessary to
11 implement the provisions of this act on its effective date shall be
12 added, amended and/or repealed on or before such date;
13 (b) the amendments to section 373 of the banking law made by section
14 eleven of this act shall expire and be deemed repealed June 30, 2022;
15 and
16 (c) any contract, instrument, argument or other written obligation
17 entered into by a financial service provider authorized under section
18 373 of the banking law prior to June 30, 2022 shall be deemed valid and
19 enforceable after such date.
