S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7885
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 18, 2017
                                ___________
 
 Introduced by M. of A. TITONE -- read once and referred to the Committee
   on Banks
 
 AN  ACT  to  amend  the  banking law, in relation to refund anticipation
   loans
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  The  banking law is amended by adding a new section 46 to
 read as follows:
   § 46. REFUND ANTICIPATION LOANS. 1. AS USED IN THIS SECTION:
   (A) "BORROWER" MEANS A PERSON WHO RECEIVES THE PROCEEDS  OF  A  REFUND
 ANTICIPATION LOAN;
   (B)  "FACILITATOR" MEANS A PERSON WHO, INDIVIDUALLY, OR IN CONJUNCTION
 OR COOPERATION WITH ANOTHER PERSON, MAKES A  REFUND  ANTICIPATION  LOAN,
 PROCESSES,  RECEIVES OR ACCEPTS FOR DELIVERY AN APPLICATION FOR A REFUND
 ANTICIPATION LOAN, ISSUES A CHECK IN PAYMENT OF REFUND ANTICIPATION LOAN
 PROCEEDS, OR IN ANY OTHER MANNER ACTS TO ALLOW THE MAKING  OF  A  REFUND
 ANTICIPATION  LOAN.  THE  TERM  DOES  NOT INCLUDE A BANK, TRUST COMPANY,
 SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, CREDIT UNION  OR  PERSON  OR
 ENTITY  ISSUED  A  LICENSE  UNDER THE PROVISIONS OF ARTICLE NINE OF THIS
 CHAPTER, OPERATING UNDER THE LAWS OF THE UNITED STATES OR THIS STATE, OR
 ANY PERSON WHO ACTS SOLELY AS AN INTERMEDIARY AND DOES NOT DEAL WITH THE
 PUBLIC IN THE MAKING OF A REFUND ANTICIPATION LOAN;
   (C) "REFUND ANTICIPATION LOAN"  MEANS  A  LOAN  ARRANGED  TO  BE  PAID
 DIRECTLY FROM THE PROCEEDS OF A BORROWER'S INCOME TAX REFUND;
   (D)  "REFUND  ANTICIPATION  LOAN FEE" MEANS ANY CHARGES, FEES OR OTHER
 CONSIDERATION CHARGED OR IMPOSED FOR THE MAKING OF A REFUND ANTICIPATION
 LOAN. THE TERM DOES NOT INCLUDE ANY CHARGES, FEES OR OTHER CONSIDERATION
 CHARGED OR IMPOSED IN THE ORDINARY COURSE OF BUSINESS BY  A  FACILITATOR
 FOR  SERVICES  THAT DO NOT RESULT IN THE MAKING OF A LOAN INCLUDING, BUT
 NOT LIMITED TO, FEES FOR TAX RETURN  PREPARATION  SERVICES  OR  FOR  THE
 ELECTRONIC FILING OF INCOME TAX RETURNS; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11002-01-7

 A. 7885                             2
 
   (E)  "ANNUAL  PERCENTAGE RATE" SHALL HAVE THE SAME MEANING AS PROVIDED
 IN PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION SIX-L OF THIS CHAPTER.
   2.  AT  THE  TIME A BORROWER APPLIES FOR A REFUND ANTICIPATION LOAN, A
 FACILITATOR SHALL DISCLOSE TO SUCH BORROWER ON A DOCUMENT THAT IS  SEPA-
 RATE FROM THE LOAN APPLICATION:
   (A)  THE  ESTIMATED  FEE  FOR  PREPARING  AND ELECTRONICALLY FILING AN
 INCOME TAX RETURN;
   (B) THE REFUND ANTICIPATION LOAN FEE SCHEDULE;
   (C) THE ANNUAL PERCENTAGE RATE FOR THE LOAN;
   (D) THE ESTIMATED TOTAL COST TO THE BORROWER FOR  UTILIZING  A  REFUND
 ANTICIPATION LOAN;
   (E)  THE ESTIMATED NUMBER OF DAYS WITHIN WHICH THE LOAN PROCEEDS SHALL
 BE PAID TO THE BORROWER IF THE LOAN IS APPROVED;
   (F) THE BORROWER IS RESPONSIBLE FOR REPAYMENT OF THE LOAN AND  RELATED
 FEES IN THE EVENT THE INCOME TAX REFUND IS NOT PAID OR NOT PAID IN FULL;
 AND
   (G)  THE AVAILABILITY OF ELECTRONIC FILING OF THE INCOME TAX RETURN OF
 THE BORROWER AND THE AVERAGE TIME  ANNOUNCED  BY  THE  INTERNAL  REVENUE
 SERVICE  WITHIN WHICH THE BORROWER CAN EXPECT TO RECEIVE A REFUND IF THE
 BORROWER'S RETURN IS ELECTRONICALLY FILED  AND  THE  BORROWER  DOES  NOT
 OBTAIN A REFUND ANTICIPATION LOAN.
   3.  NO  REFUND  ANTICIPATION  LOAN SHALL BE MADE AT ANY LOCATION OTHER
 THAN A LOCATION IN WHICH THE PRINCIPAL BUSINESS IS TAX PREPARATION.  ALL
 DISCLOSURE  DOCUMENTS  REQUIRED BY SUBDIVISION TWO OF THIS SECTION SHALL
 BE AVAILABLE IN ENGLISH, SPANISH AND IN ANY  OTHER  LANGUAGE  SPOKEN  BY
 MORE  THAN  FIVE  PERCENT  OF  THE  POPULATION  IN  THE  VICINITY OF THE
 FACILITATOR'S LOCATION.
   4. NOTWITHSTANDING ANY OTHER PROVISION  OF  THE  BANKING  LAW  OR  THE
 GENERAL  OBLIGATIONS  LAW,  THE  INTEREST RATE FOR A REFUND ANTICIPATION
 LOAN SHALL NOT EXCEED (A) SIXTY PERCENT PER ANNUM FOR THE INITIAL  TWEN-
 TY-ONE DAYS OF SUCH LOAN, AND (B) TWENTY PERCENT PER ANNUM FOR THE PERI-
 OD  COMMENCING  ON  THE TWENTY-SECOND DAY OF SUCH LOAN AND ENDING ON THE
 DATE OF PAYMENT.
   5. ANY FACILITATOR WHO VIOLATES ANY PROVISION OF THIS SECTION SHALL BE
 SUBJECT TO A CIVIL PENALTY OF NOT MORE THAN  FIVE  HUNDRED  DOLLARS  FOR
 EACH  SUCH  VIOLATION. SUCH PENALTY SHALL BE ASSESSED BY THE SUPERINTEN-
 DENT AS PROVIDED IN SECTION FORTY-FOUR OF THIS ARTICLE. IN ADDITION, ANY
 FACILITATOR WHO VIOLATES ANY PROVISION OF THIS SECTION SHALL  BE  LIABLE
 TO  ANY  AGGRIEVED BORROWER IN AN AMOUNT EQUAL TO THREE TIMES THE AMOUNT
 OF THE REFUND ANTICIPATION LOAN FEE, PLUS REASONABLE ATTORNEY'S FEES, IN
 A CIVIL ACTION BROUGHT BY THE AGGRIEVED  BORROWER  OR  BY  THE  ATTORNEY
 GENERAL ON BEHALF OF THE AGGRIEVED BORROWER.
   6.  THE  SUPERINTENDENT  MAY  PRESCRIBE  REGULATIONS  TO CARRY OUT THE
 PROVISIONS AND PURPOSES OF THIS SECTION.
   § 2. Nothing in this act shall be construed to  impair  or  limit  the
 validity  of  any additional local laws or regulations, not inconsistent
 with the provisions of this act, applicable  to  the  making  of  refund
 anticipation loans.
   §  3.  If any clause, sentence, paragraph, section or part of this act
 be adjudged by any court of competent jurisdiction to be  invalid,  such
 judgment shall not affect, impair or invalidate the remainder hereof but
 shall  be  applied  in its operation to the clause, sentence, paragraph,
 section or part hereof directly involved in  the  controversy  in  which
 such judgment shall have been rendered.
   §  4. This act shall take effect on the first of October next succeed-
 ing the date on which it shall have become  a  law;  provided,  however,

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 that effective immediately, the addition, amendment and/or repeal of any
 rule  or  regulation necessary for the implementation of this act on its
 effective date are authorized and directed to be made and  completed  on
 or before such effective date.