Bill Text: NY S03237 | 2023-2024 | General Assembly | Amended

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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 4-0)

Status: (Introduced) 2024-04-02 - PRINT NUMBER 3237A [S03237 Detail]

Download: New_York-2023-S03237-Amended.html

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                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.