Bill Text: NY A00163 | 2025-2026 | General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced) 2025-01-08 - referred to banks [A00163 Detail]

Download: New_York-2025-A00163-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           163

                               2025-2026 Regular Sessions

                   IN ASSEMBLY

                                       (Prefiled)

                                     January 8, 2025
                                       ___________

        Introduced  by M. of A. CRUZ, COOK, HEVESI, RAMOS, SAYEGH, STERN, DILAN,
          ZINERMAN, DAVILA -- read once and referred to the Committee on Banks

        AN ACT to amend the banking law, in relation to enacting the  "community
          financial  services access and modernization act of 2025"; 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 2025".
     3    § 2. Paragraph (b) of subdivision 5 of section  18-a  of  the  banking
     4  law,  as  amended by chapter 155 of the laws of 2012, is amended to read
     5  as follows:
     6    (b) two thousand dollars when the application relates to the licensing
     7  of an additional location or change of location or the  licensing  of  a
     8  [mobile unit]  limited station of a licensed casher of checks; or
     9    §  3.  Section 366 of the banking law, as amended by chapter 49 of the
    10  laws of 1961, subdivision 1 as amended by chapter 849  of  the  laws  of
    11  1964  and  as  further amended by section 104 of part A of chapter 62 of
    12  the laws of 2011, and subdivisions 2 and 3 as renumbered by chapter  132
    13  of the laws of 1969, is amended to read as follows:
    14    § 366.  Definitions.  When used in this article. 1. The term "licensed
    15  casher of checks" means  any  [individual,  partnership,  unincorporated
    16  association  or  corporation] person duly licensed by the superintendent
    17  of financial services to engage in business pursuant to  the  provisions
    18  of this article.
    19    2.  The  term  "licensee"  means  a  licensed casher of checks, drafts
    20  and/or money orders.
    21    3. The term ["mobile unit"] "limited station"  means  any  vehicle  or
    22  other movable means from which the business of cashing checks, drafts or
    23  money orders is to be conducted.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00735-01-5
        A. 163                              2

     1    4.  The  term "person"   means   any individual or other legal entity,
     2  including any corporation, partnership, association or limited liability
     3  company.
     4    §  4. Section 367 of the banking law, as amended by chapter 151 of the
     5  laws of 1945, subdivision 3 as amended by section 7 of part D-1 of chap-
     6  ter 109 of the laws of 2006, and subdivision 4 as amended by chapter  96
     7  of the laws of 1981, is amended to read as follows:
     8    § 367.   License  requirements;  fees;  capital  requirements.  1.  No
     9  person[, partnership, association or corporation] shall  engage  in  the
    10  business  of  cashing checks, drafts or money orders for a consideration
    11  without first obtaining a license from the superintendent.
    12    2. Application for such license shall be in writing, under  oath,  and
    13  in  the  form  prescribed  by  the superintendent, and shall contain the
    14  name, and the address both of the residence and place  of  business,  of
    15  the  applicant,  and  if the applicant is a co-partnership [or], associ-
    16  ation or limited liability company, of every member thereof,  and  if  a
    17  corporation, of each officer and director thereof; also, if the business
    18  is to be conducted at a specific address, the address at which the busi-
    19  ness  is  to be conducted, and if the business is to be conducted from a
    20  [mobile unit] limited station, the New York state registration number or
    21  other identification of such [mobile unit] limited station and the  area
    22  in  which  the  applicant proposes to operate such [mobile unit] limited
    23  station; and also such further information  as  the  superintendent  may
    24  require.
    25    3.  Such applicant at the time of making such application shall pay to
    26  the superintendent a fee as prescribed pursuant to section eighteen-a of
    27  this chapter for investigating the application.  Any licensee requesting
    28  a change of address, shall at the time of making such  request,  pay  to
    29  the superintendent a fee as prescribed pursuant to section eighteen-a of
    30  this  chapter for investigating the new address; provided, however, that
    31  the superintendent  may,  [in  his  or  her]  at  such  superintendent's
    32  discretion,  waive  such  investigation  fee  if warranted, and provided
    33  further, that no fee shall be payable for the relocation  of  a  limited
    34  station.
    35    4.  Every  applicant  shall  prove, in form satisfactory to the super-
    36  intendent that [he or it] such applicant has available for the operation
    37  of such business, for each location and for each [mobile  unit]  limited
    38  station  specified  in  the  application,  liquid assets of at least ten
    39  thousand dollars, and every licensee shall continuously maintain for the
    40  operation of such business for each location and for each [mobile  unit]
    41  limited station liquid assets of at least ten thousand dollars. Notwith-
    42  standing  the  foregoing provisions of this subdivision, the superinten-
    43  dent, upon application by an applicant and for  good  cause  shown,  may
    44  permit a reduction from ten thousand dollars to not less than five thou-
    45  sand dollars of minimum liquid assets required for each location.
    46    §  5. Section 369 of the banking law, as amended by chapter 151 of the
    47  laws of 1945, subdivision 1 as amended by chapter 233  of  the  laws  of
    48  2005,  subdivisions  4  and  5  as amended by chapter 132 of the laws of
    49  1969, subdivision 6 as amended by section 1 of subpart A of part  II  of
    50  chapter  55  of  the laws of 2019, and subdivision 7 as added by chapter
    51  485 of the laws of 1947, is amended to read as follows:
    52    § 369. Conditions precedent to issuing license; issuance and filing of
    53  license; posting license. 1. If the superintendent shall find  that  the
    54  financial  responsibility, experience, character, and general fitness of
    55  the applicant, and of the members thereof if the applicant be a co-part-
    56  nership [or], association or limited liability company, and of the offi-
        A. 163                              3

     1  cers and directors thereof if the applicant be a corporation,  are  such
     2  as to command the confidence of the community and to warrant belief that
     3  the  business  will be operated honestly, fairly, and efficiently within
     4  the  purposes of this article, and if the superintendent shall find that
     5  the granting of such application will promote the convenience and advan-
     6  tage of the area in which such business is to be conducted, and  if  the
     7  superintendent shall find that the applicant has available for the oper-
     8  ation  of  such  business  for  each location and for each [mobile unit]
     9  limited station specified in the application liquid assets of  at  least
    10  ten  thousand  dollars,  the  superintendent  shall  thereupon execute a
    11  license in duplicate to permit the cashing of checks, drafts  and  money
    12  orders in accordance with the provisions of this article at the location
    13  or  in  the  area  specified in such application. In finding whether the
    14  application will promote the convenience and advantage  to  the  public,
    15  the superintendent shall determine whether there is a community need for
    16  a  new  licensee  in the proposed area to be served. No license shall be
    17  issued to an applicant for a license, at a location to be licensed which
    18  is closer than one thousand five hundred eighty-four feet  (three-tenths
    19  of a mile) from an existing licensee, except with the written consent of
    20  such existing licensee or pursuant to subdivision three of section three
    21  hundred seventy of this article, subject to any restriction or condition
    22  as  the  superintendent may promulgate by regulation; provided, however,
    23  the superintendent may permit a location to be licensed that  is  closer
    24  than  three-tenths  of  a  mile  from an existing licensee provided such
    25  applicant engages in the cashing of checks, drafts or money orders  only
    26  for  payees  of  such checks, drafts or money orders that are other than
    27  natural persons at the location to be licensed and  such  applicant  was
    28  engaged in the cashing of such checks, drafts or money orders for payees
    29  that  are  other  than natural persons at such location on or before the
    30  fourteenth day of July, two thousand four,  and  provided  further  that
    31  upon  licensing any such location by the superintendent, such license as
    32  it pertains solely to such location shall not be affected thereafter  by
    33  any  change of control of such license pursuant to section three hundred
    34  seventy-a of this article, provided that the licensee  continues  there-
    35  after  to  engage  at  that location in the cashing of checks, drafts or
    36  money orders only for payees that are other  than  natural  persons  and
    37  provided further that such license shall bear a legend stating that such
    38  location  is restricted to the cashing of checks, drafts or money orders
    39  only for payees that are other than natural persons. The three-tenths of
    40  a mile distance requirement as set forth in this section shall not apply
    41  in cases where the existing licensee is a restricted location as author-
    42  ized in the preceding sentence, or is any other licensed  location  that
    43  engages solely in the cashing of checks, drafts or money orders only for
    44  payees  that  are  other  than  natural  persons.  For  purposes of this
    45  section, such distance shall be measured on a straight  line  along  the
    46  street  between the nearest point of the store fronts of the check cash-
    47  ing facilities. The primary business of the licensee, at the location to
    48  be licensed, shall be financial services. The superintendent shall tran-
    49  smit one copy of such license to the applicant and file another  in  the
    50  office  of  the  department. Notwithstanding the foregoing provisions of
    51  this subdivision, the superintendent, upon application by  an  applicant
    52  and  for  good  cause  shown,  may  permit a reduction from ten thousand
    53  dollars to not less than five thousand dollars of minimum liquid  assets
    54  required for each location.
    55    2.  Such  license  shall  state  the  name of the licensee; and if the
    56  licensee is a co-partnership  [or],  association  or  limited  liability
        A. 163                              4

     1  company,  the  names  of  the  members thereof; and if the licensee is a
     2  corporation, the date of its incorporation; and if the business is to be
     3  conducted at a specific address, the address at which such  business  is
     4  to  be conducted; and if the business is to be conducted through the use
     5  of a [mobile unit] limited station,  the  New  York  state  registration
     6  number or other identification of such [mobile unit] limited station and
     7  the area in which such [mobile unit] limited station is authorized to do
     8  business.
     9    3.  Such  license  shall  be kept conspicuously posted in the place of
    10  business of the licensee or, in the case  of  a  [mobile  unit]  limited
    11  station,  upon  such  [mobile unit] limited station.  Such license shall
    12  not be transferable or assignable.
    13    4. Such license shall remain in full force  and  effect  until  it  is
    14  surrendered  by the licensee or revoked or suspended as provided in this
    15  article.
    16    5. If the superintendent shall find that the applicant fails  to  meet
    17  any of the conditions set forth in subdivision one of this section, [he]
    18  such  superintendent  shall not issue such license, and [he] such super-
    19  intendent shall notify the applicant of the denial.   If an  application
    20  is  denied  or  withdrawn,  the superintendent shall retain the investi-
    21  gation fee to cover the  costs  of  investigating  the  application  and
    22  return the license fee to the applicant.
    23    6.  The  superintendent may, consistent with article twenty-three-A of
    24  the correction law, refuse to issue a license pursuant to  this  article
    25  if [he] such superintendent shall find that the applicant, or any person
    26  who  is  a  director,  officer,  partner, agent, employee or substantial
    27  stockholder of the applicant, (a) has been convicted of a crime  in  any
    28  jurisdiction  or  (b)  is  associating or consorting with any person who
    29  has, or persons who have, been convicted of a crime  or  crimes  in  any
    30  jurisdiction  or  jurisdictions.  For  the  purposes  of this article, a
    31  person shall be deemed to have been convicted of a crime if such  person
    32  shall  have  pleaded guilty to a charge thereof before a court or magis-
    33  trate, or shall have been found guilty thereof by the decision or  judg-
    34  ment  of a court or magistrate or by the verdict of a jury, irrespective
    35  of the pronouncement of sentence or the  suspension  thereof.  The  term
    36  "substantial  stockholder," as used in this subdivision, shall be deemed
    37  to refer to a person owning or controlling ten per centum or more of the
    38  total outstanding stock of the corporation in which  such  person  is  a
    39  stockholder. In making a determination pursuant to this subdivision, the
    40  superintendent shall require fingerprinting of the applicant. Such fing-
    41  erprints shall be submitted to the division of criminal justice services
    42  for a state criminal history record check, as defined in subdivision one
    43  of  section  three thousand thirty-five of the education law, and may be
    44  submitted to the federal bureau of investigation for a national criminal
    45  history record check.
    46    7. No license pursuant to this article shall be issued to  any  appli-
    47  cant  to  do  business  at the place specified in the application as the
    48  place where the business is to be conducted if, within the twelve months
    49  preceding such application, a license to engage in business pursuant  to
    50  this article at such place shall have been revoked.
    51    §  6. Section 370 of the banking law, as amended by chapter 151 of the
    52  laws of 1945, subdivision 2 as amended by section 38 of part O of  chap-
    53  ter  59  of the laws of 2006 and subdivision 3 as amended by chapter 703
    54  of the laws of 2006, is amended to read as follows:
    55    § 370. Restrictions as to place or area of doing business;  establish-
    56  ment of stations; change of location. 1. No more than one place of busi-
        A. 163                              5

     1  ness  or one [mobile unit] limited station shall be maintained under the
     2  same license; provided, however, that  more  than  one  license  may  be
     3  issued  to the same licensee upon compliance with the provisions of this
     4  article for each new license.
     5    2.  Any  licensed  casher of checks may open and maintain, within this
     6  state, one or more limited stations for the purpose of  cashing  checks,
     7  drafts  or  money orders for the particular group or groups specified in
     8  the license authorizing  each  such  station.  Such  stations  shall  be
     9  licensed  pursuant to and be subject to all the provisions of this chap-
    10  ter applicable to licensed cashers  of  checks,  except  that  (a)  such
    11  station  shall  not  be  subject to the distance limitation set forth in
    12  subdivision one of section three hundred sixty-nine of this article, (b)
    13  the fee for investigating the application for  a  station  shall  be  as
    14  prescribed pursuant to section eighteen-a of this chapter, and (c) where
    15  such  a  station  is  at  the  premises  of a specified employer for the
    16  purpose of cashing checks, drafts and money orders for the employees  of
    17  such  employer,  the fees and charges for cashing such checks, drafts or
    18  money orders shall not be subject to the limitations of subdivision  one
    19  of  section  three  hundred seventy-two of this article if such fees and
    20  charges are paid by such employer.
    21    3. A licensee may make a written application to the superintendent for
    22  leave to change [his or her] such licensee's place of  business,  or  in
    23  the case of a [mobile unit] limited station, the area in which such unit
    24  is  authorized  to  be  operated,  stating the reasons for such proposed
    25  change.  Such application may be approved for  relocation  from  a  site
    26  within three-tenths of a mile of another licensee to another site within
    27  three-tenths  of  a  mile  of such other licensee provided that such new
    28  site is farther from such existing licensee than  the  site  from  which
    29  permission to relocate is sought. Only in situations in which a licensee
    30  seeks  to  change  its  place  of  business due to extraordinary circum-
    31  stances, as may be determined by the superintendent  pursuant  to  regu-
    32  lations,  may  the  superintendent,  [in his or her] at such superinten-
    33  dent's discretion, determine that an application  may  be  approved  for
    34  relocation from a site within three-tenths of a mile of another licensee
    35  to  a  new  site which is closer to such existing licensee than the site
    36  from which permission to relocate is sought. Notwithstanding  any  other
    37  provision of this subdivision, a licensee may relocate from any location
    38  to  a location that is within three-tenths of a mile from another licen-
    39  see with the written consent of the other licensee. If  the  superinten-
    40  dent  approves  such  application  [he  or she] the superintendent shall
    41  issue a new license in duplicate in accordance with  the  provisions  of
    42  section  three  hundred  sixty-nine  of  this  article,  stating the new
    43  location of such licensee or, in the case of  a  [mobile  unit]  limited
    44  station, the new area in which such [mobile unit] limited station may be
    45  operated.
    46    §  7.  Subdivision  4 of section 370-a of the banking law, as added by
    47  chapter 142 of the laws of 1992, is amended to read as follows:
    48    4. As used in this section[: (a) the term "person" includes  an  indi-
    49  vidual, partnership, corporation, association or any other organization,
    50  and (b)], the term "control" means the possession, directly or indirect-
    51  ly,  of the power to direct or cause the direction of the management and
    52  policies of a licensee, whether through the ownership of voting stock of
    53  such licensee, the  ownership  of  voting  stock  of  any  person  which
    54  possesses such power or otherwise. Control shall be presumed to exist if
    55  any  person,  directly or indirectly, owns, controls or holds with power
    56  to vote ten per centum or more of the voting stock of any licensee or of
        A. 163                              6

     1  any person which owns, controls or holds with  power  to  vote  ten  per
     2  centum  or more of the voting stock of any licensee, but no person shall
     3  be deemed to control a licensee solely by reason of being an officer  or
     4  director  of such licensee or person. The superintendent may [in his] at
     5  such superintendent's discretion, upon the application of a licensee  or
     6  any  person  who,  directly  or indirectly, owns, controls or holds with
     7  power to vote or seeks to own, control or hold with power  to  vote  any
     8  voting  stock  of such licensee, determine whether or not the ownership,
     9  control or holding of such voting stock constitutes or would  constitute
    10  control of such licensee for purposes of this section.
    11    §  8.  Section  371 of the banking law, as added by chapter 151 of the
    12  laws of 1945, is amended to read as follows:
    13    § 371.  Regulations.  The  superintendent  is  hereby  authorized  and
    14  empowered to make such rules and regulations, and such specific rulings,
    15  demands, and findings as [he] such superintendent may deem necessary for
    16  the proper conduct of the business authorized and licensed under and for
    17  the enforcement of this article, in addition hereto and not inconsistent
    18  herewith.
    19    §  9. Section 372 of the banking law, as amended by chapter 151 of the
    20  laws of 1945, the section heading  and  subdivision  1  as  amended  and
    21  subdivision  7 as added by chapter 432 of the laws of 2004, subdivisions
    22  2, 3 and 4 as added and subdivisions 5 and 6 as  renumbered  by  chapter
    23  263  of  the  laws of 1983, and subdivision 6 as added by chapter 485 of
    24  the laws of 1947, is amended to read as follows:
    25    § 372. Fees and charges; posting schedule; records and reports. 1. The
    26  superintendent shall, by regulation, establish the  maximum  fees  which
    27  may  be charged by licensees for cashing a check, draft, or money order.
    28  No licensee shall charge or collect any sum for cashing a check,  draft,
    29  or  money  order  in  excess of that established by the superintendent's
    30  regulations; provided, however, that no maximum fee shall apply  to  the
    31  charging of fees by licensees for the cashing of checks, drafts or money
    32  orders  for payees of such checks, drafts or money orders that are other
    33  than natural persons.
    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. Only in the case of an internet, digital or other electronic adver-
    38  tisement  or  solicitation, a licensee shall be deemed to have fulfilled
    39  the disclosure requirements required by law with respect to such  inter-
    40  net,  digital  or other electronic advertisement or solicitation only by
    41  displaying the disclosures on its website, so long as the  advertisement
    42  or  solicitation  includes a link directly to such website, and provided
    43  this does not modify in-store disclosure requirements.
    44    4. No change in fees shall become effective earlier than  thirty  days
    45  after the superintendent shall notify the majority leader of the senate,
    46  the  speaker  of  the  assembly,  and  the [chairmen] chairs of both the
    47  senate and assembly committees on banks of [his]  such  superintendent's
    48  intention to change fees.
    49    [4.]  5. The fees in effect immediately prior to the effective date of
    50  this subdivision shall continue to be the maximum allowable  fees  until
    51  revised by the superintendent's regulations.
    52    [5.]  6.  Each licensee shall keep and use in its business such books,
    53  accounts, and records as the superintendent may require  to  carry  into
    54  effect the provisions of this article and the rules and regulations made
    55  by  the  superintendent  hereunder.  Every  licensee shall preserve such
    56  books, accounts and records for at least two years.
        A. 163                              7

     1    [6.] 7. Before a licensee shall deposit with any banking organization,
     2  or with any organization engaged in the business of  banking,  a  check,
     3  draft  or money order cashed by such licensee, the same must be endorsed
     4  with the actual name under which such licensee  is  doing  business  and
     5  must  have  the  words  "licensed  casher  of checks" legibly written or
     6  stamped immediately after or below such name.
     7    [7.] 8. Every licensee shall submit to  the  superintendent,  or  such
     8  person  as  the  superintendent  may designate, such suspicious activity
     9  reports or currency transaction reports as are required to be  submitted
    10  to  federal  authorities  pursuant to provisions of the Bank Secrecy Act
    11  (subchapter 11, chapter 53, title 31,  United  States  code)  and  regu-
    12  lations  and  administrative  orders related thereto, as amended, within
    13  the periods of time as required by such act and regulations. A  licensee
    14  may  submit  a  copy  of  any such report to the superintendent, or such
    15  person as the superintendent may designate,  that  is  filed  with  such
    16  federal  authorities.  The  superintendent may adopt such regulations or
    17  require such additional reports as [he or she] such superintendent deems
    18  necessary to insure the effective enforcement of this subdivision.
    19    § 10. Section 372-a of the banking law, as added by chapter 432 of the
    20  laws of 2004, is amended to read as follows:
    21    § 372-a. Superintendent authorized to examine. 1. For the  purpose  of
    22  discovering  violations of this article or securing information lawfully
    23  required in this section, the superintendent may at  any  time,  and  as
    24  often as may be determined, either personally or by a person duly desig-
    25  nated  by  the  superintendent,  investigate  the [cashing of checks by]
    26  licensees and their business practices as authorized by this article and
    27  examine the books, accounts, records, and files used  therein  of  every
    28  licensee.
    29    2. For the purpose established in subdivision one of this section, the
    30  superintendent  and  [his  or her] such superintendent's duly designated
    31  representatives shall have free access to  the  offices  and  places  of
    32  business,  books,  accounts, papers, records, files, safes and vaults of
    33  all such licensees. The superintendent shall have authority  to  require
    34  the  attendance of and to examine under oath all persons whose testimony
    35  may be required relative to such cashing of checks or such business.
    36    § 11. Subdivisions 1 and 2 of section 373 of the banking law, subdivi-
    37  sion 1 as amended by chapter 432 of the laws of 2004 and  subdivision  2
    38  as  amended  by  chapter 132 of the laws of 1969, are amended to read as
    39  follows:
    40    1. No licensee shall engage in the business of making loans of  money,
    41  credit,  goods  or  things  or  discounting of notes, bills of exchange,
    42  checks, or other evidences of debt pursuant to the provisions of article
    43  nine of this chapter, nor shall a loan business or  the  negotiation  of
    44  loans  or  the  discounting of notes, bills of exchange, checks or other
    45  evidences of debt be conducted on the same premises where  the  licensee
    46  is  conducting  business  pursuant  to  the  provisions of this article.
    47  Except as otherwise provided by regulation of  the  superintendent,  all
    48  checks,  drafts  and  money  orders shall be deposited in the licensee's
    49  bank account not later than the first business day following the day  on
    50  which  they  were  cashed. No licensee shall at any time cash or advance
    51  any moneys on a post-dated check or draft or engage in the  business  of
    52  transmitting money or receiving money for transmission; provided, howev-
    53  er, that a licensee may cash a check [payable on the first banking busi-
    54  ness day following the date of cashing (a) if such check is drawn by the
    55  United  States,  the  state of New York, or any political subdivision of
    56  the state of New York, or by any department, bureau, agency,  authority,
        A. 163                              8

     1  instrumentality  or  officer,  acting  in  his official capacity, of the
     2  United States or of the state of New York or of any  political  subdivi-
     3  sion  of  the state of New York, or (b) if such check is a payroll check
     4  drawn  by  an  employer  to  the  order  of  its employee in payment for
     5  services  performed  by  such  employee]  without  regard  to  the  date
     6  imprinted  on the check as long as the check is dated not more than five
     7  business days after the date of presentment and as long as the check  is
     8  deposited  in the licensee's bank account not later than the first busi-
     9  ness day following the day on which it was cashed that is:  (a)  payable
    10  no more than five banking business days following the date of cashing if
    11  such  check is drawn by the United States, the state of New York, or any
    12  political subdivision of the state of New York, or  by  any  department,
    13  bureau,  agency,  authority,  instrumentality or officer, acting in such
    14  officer's official capacity, of the United States or of the state of New
    15  York or of any political subdivision of the state of New York; (b) paya-
    16  ble no more than five banking business days following the date of  cash-
    17  ing if such check is payable to a natural person and is in an amount not
    18  exceeding  one  thousand  dollars;  or  (c) payable on the first banking
    19  business day following the date of cashing if such check  is  a  payroll
    20  check  drawn  by an employer to the order of its employee in payment for
    21  services performed by such employee. Any licensee who cashes  post-dated
    22  checks  pursuant to paragraph (a) or (b) of this subdivision shall do so
    23  subject to the  safety  and  soundness  requirements  of  this  article,
    24  including  establishment  of policies and procedures to implement robust
    25  due diligence, risk management, liquidity management, structured  trans-
    26  actions  and  fraud prevention.  No licensee shall cash any check, draft
    27  or money order if the face amount for which it is drawn is in excess  of
    28  [fifteen]   twenty   thousand  dollars;  provided,  however,  that  this
    29  restriction shall not apply to the cashing of checks,  drafts  or  money
    30  orders  drawn  by  the United States, any state thereof or any political
    31  subdivision of any such state, or by  any  department,  bureau,  agency,
    32  authority,  instrumentality  or  officer, acting in [his] such officer's
    33  official capacity, of the United States, any state thereof or any  poli-
    34  tical subdivision of any such state, or any [banking] financial institu-
    35  tion,  or  to any check or draft drawn by or on account of any insurance
    36  company, attorney for the settlement of claims, or to  any  check  which
    37  has  been certified or guaranteed by the [banking] financial institution
    38  on which it has been drawn, or if such check is drawn  on  a  bona  fide
    39  workers'  compensation  fund  issued  by a third-party payor, or if such
    40  check is drawn by an employer from a pension or profit-sharing fund,  or
    41  if  such  check is drawn by a union from a pension or benefit fund or if
    42  such check is drawn by a union; provided further, however, that any such
    43  restriction upon the maximum face amount that may be cashed by a  licen-
    44  see  shall not apply to the cashing of checks, drafts or money orders by
    45  licensees for payees of such checks, drafts or  money  orders  that  are
    46  other than natural persons. For purposes of this subdivision, "[banking]
    47  financial  institution"  means  any  bank,  trust company, savings bank,
    48  savings and loan association  [or],  credit  union  or  other  financial
    49  institution which is incorporated, chartered [or], organized or licensed
    50  under the laws of this state or any other state or the United States.
    51    2.  The  superintendent  may suspend or revoke any license or licenses
    52  issued pursuant to this article if, after notice  and  a  hearing,  [he]
    53  such  superintendent  shall find that the licensee (a) has committed any
    54  fraud, engaged in any dishonest  activities  or  made  any  misrepresen-
    55  tation;  or  (b)  has  violated any provisions of the banking law or any
    56  regulation issued pursuant thereto, or has violated any other law in the
        A. 163                              9

     1  course of [its or his] such licensee's dealings as a licensed casher  of
     2  checks;  or  (c)  has made a false statement in the application for such
     3  license or failed to give a true reply to a question  in  such  applica-
     4  tion;  or (d) has demonstrated [his or its] such licensee's incompetency
     5  or untrustworthiness to act as a licensed casher of checks;  or  (e)  is
     6  not  doing  sufficient  business pursuant to this article to justify the
     7  continuance of the license, or if [he] such  superintendent  shall  find
     8  that  any  ground  or  grounds  exist which would require or warrant the
     9  refusal of an application for the issuance of the  license  if  such  an
    10  application  were then before [him] such superintendent.  Such a hearing
    11  shall be held in the manner and upon such notice as may be prescribed by
    12  the superintendent. Pending  an  investigation  or  a  hearing  for  the
    13  suspension  or  revocation of any license or licenses issued pursuant to
    14  this article, the superintendent may temporarily suspend such license or
    15  licenses for a period not to exceed ninety  days,  provided  the  super-
    16  intendent  shall  find that such a temporary suspension is in the public
    17  interest.
    18    § 12.  Subdivision 3 of section 37 of the banking law, as  amended  by
    19  chapter 360 of the laws of 1984, is amended to read as follows:
    20    3. In addition to any reports expressly required by this chapter to be
    21  made,  the superintendent may require any banking organization, licensed
    22  lender, licensed casher of checks,  licensed  mortgage  banker,  foreign
    23  banking  corporation  licensed  by  the superintendent to do business in
    24  this state, bank holding company and any non-banking subsidiary thereof,
    25  corporate affiliate of a corporate banking organization within the mean-
    26  ing of subdivision six of section thirty-six of  this  article  and  any
    27  non-banking  subsidiary  of  a  corporation  which  is an affiliate of a
    28  corporate banking organization within the meaning of  subdivision  six-a
    29  of  section  thirty-six of this article to make special reports to [him]
    30  the superintendent  at  such  times  as  [he]  such  superintendent  may
    31  prescribe.
    32    §  13.    Within  ninety  days  of the effective date of this act, the
    33  superintendent of financial services shall commence  a  review  of  such
    34  superintendent's  current  system  of issuing licenses for check cashing
    35  licensees, the establishment of new check  cashing  locations,  for  the
    36  relocation  of  check  cashing  locations, and for changes of control of
    37  existing check cashing licensees, and will issue a report to the  gover-
    38  nor,  the  [chairman]  chair  of  the  assembly banks committee, and the
    39  [chairman] chair of the senate  banks  committee,  regarding  the  costs
    40  (including application fees, preparation fees, and other costs) incurred
    41  by  applicants to prepare and submit applications, the costs incurred by
    42  the department of financial services to review and process applications,
    43  the length of time required for the review and  processing  of  applica-
    44  tions  by such department, and recommendations to improve the efficiency
    45  and lessen the costs, burdens, and length of such department's licensing
    46  processes. The superintendent of financial services shall report to  the
    47  governor  and  to  the  respective  committee  chairs within one hundred
    48  eighty days of the date of commencement of such superintendent's review.
    49  The superintendent of financial services shall consult with and  receive
    50  input  from  check  cashing  licensees in the preparation of such super-
    51  intendent's analysis and report.
    52    § 14.  This act shall take effect on the  one  hundred  eightieth  day
    53  after it shall have become a law; provided, however, that:
    54    (a)  the  amendments to section 373 of the banking law made by section
    55  eleven of this act shall expire and be deemed repealed  June  30,  2030;
    56  and
        A. 163                             10

     1    (b)  any  contract,  instrument, agreement or other written obligation
     2  entered into by a financial services provider authorized  under  section
     3  373  of the banking law prior to June 30, 2030 shall be deemed valid and
     4  enforceable after such date.
     5    Effective  immediately,  the  addition, amendment and/or repeal of any
     6  rule or regulation necessary for the implementation of this act  on  its
     7  effective date are authorized to be made and completed on or before such
     8  effective date.