- Summary
- Actions
- Committee Votes
- Floor Votes
- Memo
- Text
- LFIN
- Chamber Video/Transcript
S07532 Summary:
BILL NO | S07532 |
  | |
SAME AS | SAME AS A07428-A |
  | |
SPONSOR | SANDERS |
  | |
COSPNSR | WEBB |
  | |
MLTSPNSR | |
  | |
Rpld & add 41, Bank L | |
  | |
Provides for the removal and prohibition of directors, trustees, officers, members or partners of certain entities. |
S07532 Actions:
BILL NO | S07532 | |||||||||||||||||||||||||||||||||||||||||||||||||
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06/03/2023 | REFERRED TO RULES | |||||||||||||||||||||||||||||||||||||||||||||||||
06/07/2023 | ORDERED TO THIRD READING CAL.1726 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/07/2023 | PASSED SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
06/07/2023 | DELIVERED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
06/07/2023 | referred to banks | |||||||||||||||||||||||||||||||||||||||||||||||||
01/03/2024 | died in assembly | |||||||||||||||||||||||||||||||||||||||||||||||||
01/03/2024 | returned to senate | |||||||||||||||||||||||||||||||||||||||||||||||||
01/03/2024 | REFERRED TO BANKS | |||||||||||||||||||||||||||||||||||||||||||||||||
04/09/2024 | 1ST REPORT CAL.783 | |||||||||||||||||||||||||||||||||||||||||||||||||
04/11/2024 | 2ND REPORT CAL. | |||||||||||||||||||||||||||||||||||||||||||||||||
04/15/2024 | ADVANCED TO THIRD READING | |||||||||||||||||||||||||||||||||||||||||||||||||
05/15/2024 | PASSED SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
05/15/2024 | DELIVERED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
05/16/2024 | referred to banks | |||||||||||||||||||||||||||||||||||||||||||||||||
06/03/2024 | substituted for a7428a | |||||||||||||||||||||||||||||||||||||||||||||||||
06/03/2024 | ordered to third reading cal.209 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/03/2024 | passed assembly | |||||||||||||||||||||||||||||||||||||||||||||||||
06/03/2024 | returned to senate |
S07532 Committee Votes:
Go to topS07532 Floor Votes:
Yes
Alvarez
No
Byrnes
Yes
Fall
Yes
Kelles
Yes
Otis
No
Simpson
Yes
Anderson
Yes
Carroll
No
Fitzpatrick
Yes
Kim
ER
Palmesano
No
Slater
No
Angelino
Yes
Chandler-Waterm
No
Flood
Yes
Lavine
Yes
Paulin
No
Smith
Yes
Ardila
Yes
Chang
Yes
Forrest
Yes
Lee
Yes
Peoples-Stokes
No
Smullen
Yes
Aubry
Yes
Clark
No
Friend
Yes
Lemondes
Yes
Pheffer Amato
Yes
Solages
No
Barclay
Yes
Colton
Yes
Gallagher
Yes
Levenberg
No
Pirozzolo
Yes
Steck
Yes
Barrett
Yes
Conrad
No
Gallahan
Yes ‡
Lucas
Yes
Pretlow
Yes
Stern
No
Beephan
Yes
Cook
No
Gandolfo
Yes
Lunsford
No
Ra
Yes ‡
Stirpe
No
Bendett
Yes
Cruz
Yes
Gibbs
Yes
Lupardo
Yes
Raga
No
Tague
Yes
Benedetto
Yes
Cunningham
No
Giglio JA
Yes
Magnarelli
Yes
Rajkumar
No
Tannousis
Yes
Berger
Yes
Curran
No
Giglio JM
ER
Maher
Yes
Ramos
Yes
Tapia
Yes
Bichotte Hermel
Yes
Dais
Yes
Glick
Yes
Mamdani
No
Reilly
Yes
Taylor
No
Blankenbush
Yes
Darling
Yes
Gonzalez-Rojas
No
Manktelow
Yes
Reyes
Yes
Thiele
ER
Blumencranz
Yes
Davila
No
Goodell
Yes
McDonald
Yes
Rivera
Yes
Vanel
Yes
Bores
Yes
De Los Santos
No
Gray
No ‡
McDonough
Yes
Rosenthal
Yes
Walker
No
Brabenec
No
DeStefano
Yes
Gunther
No
McGowan
Yes
Rozic
Yes
Wallace
Yes
Braunstein
ER
Dickens
No
Hawley
Yes
McMahon
Yes
Santabarbara
No
Walsh
Yes
Bronson
Yes
Dilan
Yes
Hevesi
Yes
Meeks
Yes
Sayegh
Yes
Weinstein
No
Brook-Krasny
Yes
Dinowitz
Yes
Hunter
No
Mikulin
Yes
Seawright
Yes
Weprin
No
Brown EA
No ‡
DiPietro
Yes
Hyndman
No
Miller
Yes
Septimo
Yes
Williams
No
Brown K
No
Durso
ER
Jackson
Yes
Mitaynes
Yes
Shimsky
Yes
Woerner
Yes
Burdick
Yes
Eachus
Yes
Jacobson
No
Morinello
Yes
Shrestha
Yes
Zaccaro
Yes
Burgos
Yes
Eichenstein
Yes
Jean-Pierre
No
Norris
Yes
Sillitti
Yes
Zebrowski
Yes
Burke
Yes
Epstein
No
Jensen
No
Novakhov
Yes
Simon
Yes
Zinerman
No
Buttenschon
Yes
Fahy
No
Jones
Yes
O'Donnell
Yes
Simone
Yes
Mr. Speaker
‡ Indicates voting via videoconference
S07532 Text:
Go to top STATE OF NEW YORK ________________________________________________________________________ 7532 2023-2024 Regular Sessions IN SENATE June 3, 2023 ___________ Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the banking law, in relation to removal and prohibition of directors, trustees, officers, members or partners of certain enti- ties; and to repeal certain provisions of such law related thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 41 of the banking law is REPEALED and a new section 2 41 is added to read as follows: 3 § 41. Removal and prohibition. 1. Grounds for enforcement action. 4 Whenever the superintendent has reason to believe that any director, 5 trustee, officer, member or partner, or, in the case of a foreign bank- 6 ing corporation, the person in charge, or an officer, of a branch or 7 agency (for purposes of this section, each a "covered individual"), of 8 any bank, trust company, limited purpose trust company, private bank, 9 savings bank, safe deposit company, savings and loan association, credit 10 union, investment company, bank holding company (as such term is defined 11 in article three-A of this chapter), foreign banking corporation, 12 licensed lender, licensed casher of checks, budget planner, mortgage 13 banker, mortgage loan servicer, mortgage broker, licensed transmitter of 14 money or student loan servicer (for purposes of this section, each a 15 "covered entity") has, directly or indirectly: (a) caused, facilitated, 16 permitted or participated in any violation by a covered entity of a law 17 or regulation, order issued by the superintendent or any written agree- 18 ment between such covered entity or covered individual and the super- 19 intendent; (b) engaged or participated in any unsafe or unsound practice 20 in connection with any covered entity; or (c) engaged or participated in 21 any willful material act or omitted to take any material act that 22 directly contributed to the failure of a covered entity; the superinten- 23 dent may bring an action to remove such covered individual from office. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11595-03-3S. 7532 2 1 2. Notice and hearing. (a) Whenever the superintendent has reason to 2 believe that any grounds exist to remove a covered individual, the 3 superintendent may serve a statement of the charges against such covered 4 individual, either personally or, upon a finding that such individual 5 cannot be served personally within this state, by registered mail at the 6 last address of such individual shown on the department's records, and a 7 notice of an opportunity to appear before the superintendent to show 8 cause why such covered individual should not be removed from office. A 9 copy of such notice shall also be sent to any affected covered entity. 10 (b) If after notice and a hearing, the superintendent finds that the 11 covered individual has engaged in conduct described in subdivision one 12 of this section, or if such covered individual waives a hearing, or 13 fails to appear in person or by a duly authorized representative without 14 good cause shown at the time and place set for the hearing, the super- 15 intendent may issue an order removing the covered individual from office 16 and prohibiting the covered individual's employment or the performance 17 of any contractual agreements with any covered entity. 18 (c) Such order and the findings of fact upon which it is based shall 19 be effective upon service on such covered individual personally or, upon 20 a finding that such individual cannot be served personally within this 21 state, by registered mail, and may not be made public or disclosed to 22 anyone, except as provided in subdivision ten of section thirty-six of 23 this article or in connection with proceedings relating to a violation 24 of this section. Such order shall also be served upon any affected 25 covered entity served with the statement of charges in the proceeding 26 resulting in the order. Any such order shall remain in effect, unless it 27 is amended or rescinded by the superintendent or a court of competent 28 jurisdiction, or replaced by an order issued pursuant to subdivision 29 three of this section. 30 (d) To the extent consistent with the requirements in this section, a 31 proceeding to remove a covered individual pursuant to this section shall 32 be conducted in accordance with the requirements of article three of the 33 financial services law and regulations promulgated pursuant thereto. 34 3. Suspension pending determination of charges. Upon, or at any time 35 after service of written notice pursuant to subdivision two of this 36 section, the superintendent may suspend, pending the determination of 37 the charges, a covered individual from office or prohibit such individ- 38 ual from participating in any manner in the conduct of the affairs of 39 any covered entity for a period of up to one hundred eighty days if the 40 superintendent has reason to believe that by reason of the conduct 41 described in subdivision one of this section: (a) a covered entity has 42 suffered or will probably suffer financial loss that impacts its ability 43 to operate in a safe and sound manner; (b) the interests of the depos- 44 itors at a covered entity have been or could be prejudiced; or (c) the 45 covered individual demonstrates willful disregard for the safety and 46 soundness of a covered entity. The superintendent may extend the suspen- 47 sion for additional periods of up to one hundred eighty days if the 48 hearing is not completed within the prior suspension period due to the 49 request of the covered individual. 50 4. Effect of order for removal or suspension. Any covered individual 51 subject to an order issued pursuant to this section shall be prohibited 52 from participating, in any manner, in the conduct of the affairs of any 53 covered entity unless permitted to, in writing, by the superintendent. 54 Any covered individual who thereafter, without permission of the super- 55 intendent, participates in any manner in the management of a covered 56 entity shall be guilty of a misdemeanor.S. 7532 3 1 5. Manner of review. Any order issued pursuant to this section may be 2 reviewed in the manner provided by article seventy-eight of the civil 3 practice law and rules. 4 § 2. This act shall take effect immediately.