|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|May 29, 2014||referred to banks|
delivered to assembly
|May 13, 2014||advanced to third reading|
|May 12, 2014||2nd report cal.|
|May 07, 2014||1st report cal.596|
|Jan 08, 2014||referred to banks|
returned to senate
died in assembly
|Jun 12, 2013||referred to banks|
delivered to assembly
|Jun 11, 2013||advanced to third reading|
|Jun 10, 2013||2nd report cal.|
|Jun 05, 2013||1st report cal.1131|
|Feb 27, 2013||referred to banks|
senate Bill S3930
Requires agents of licensed money transmitters to remit moneys to the licensee within the time frame provided in the contract between the agent and the licensee
Archive: Last Bill Status - Passed Senate
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
view actions (16)
May 29, 2014 - floor VoteS3930590floor59Aye0Nay0Absent2Excused0Abstained
show floor vote details
Floor Vote: May 29, 2014aye (59)
May 7, 2014 - Banks committee VoteS3930190committee19Aye0Nay0Aye with Reservations0Absent0Excused0Abstained
Jun 12, 2013 - floor VoteS3930601floor60Aye1Nay0Absent2Excused0Abstained
show floor vote details
Floor Vote: Jun 12, 2013aye (60)
Jun 5, 2013 - Banks committee VoteS3930140committee14Aye0Nay5Aye with Reservations0Absent0Excused0Abstained
- show floor vote details
S3930 - Bill Details
- See Assembly Version of this Bill:
- Current Committee:
- Law Section:
- Banking Law
- Laws Affected:
- Amd §651-a, Bank L
S3930 - Bill Texts
Requires agents of licensed money transmitters to remit moneys to the licensee within the time frame provided in the contract between the agent and the licensee; makes agents liable for treble damages for failure to remit moneys in a timely manner.
view sponsor memo
TITLE OF BILL: An act to amend the banking law, in relation to
remittances of moneys by agents of licensed transmitters of money
PURPOSE: To authorize treble damages in order to deter agents of
licensed money transmitters from abusing business relationships and
consumer trust by absconding with funds.
SUMMARY OF PROVISIONS:
Section 1 amends the banking law to impose treble damages for agents
of money transmitters who fail to remit moneys within a time period to
be established by the superintendent.
Section 2 establishes the effective date.
JUSTIFICATION: Money transmitters play a critical role in the economy
of New York State, providing consumers with safe and secure financial
services including money orders, bill payments, and secure local,
national and international funds transfers. In order to reach a broad
spectrum of consumers, money transmitters transact business through
agents who, in turn, provide direct services to a local customer base.
As soon as the agent receives funds from the customer, the money
transmitter is legally obligated to pay the funds to a beneficiary as
directed by the customer, whether or not the money transmitter ever
receives the funds from the agent. These agents are legitimized in the
eyes of consumers by their relationships with known and reliable money
transmitters. Unfortunately, despite the best efforts at screening, an
alarming number of agents abscond with funds collected from customers
and fail to remit the funds to the transmitter. This leaves the money
transmitter legally obligated to pay for the instrument the rogue
agent sold despite never having received the funds from the agent for
the transaction and forces the money transmitter to take costly
measures to attempt to recoup the funds from the dishonest agents.
Moreover, these bad actors abuse the public trust and drive up the
cost of doing business, which hurts consumers.
This bill, modeled after existing law in jurisdictions including New
Jersey, North Carolina, Illinois and the District of Columbia, would
serve to deter these bad actors by authorizing treble damages against
agents who abscond with funds owed to the money transmitting
companies. This legislation is necessary to protect both money
transmitters and consumers because prosecuting agencies most often
consider these actions to be civil matters, leaving money transmitters
no recourse but to undertake costly litigation and pass at least some
of the costs onto consumers. The threat of treble damages will change
the calculus for potential bad actors, help make wronged money
transmitters whole, and provide potentially significant savings to
LEGISLATIVE HISTORY: This is a new bill.
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect on the one hundred
eightieth day after it shall have become law; provided that, effective
immediately, any rules and regulations necessary to implement the
provisions of this act on its effective date are authorized and
directed to be completed on or before such date.
view full text
S T A T E O F N E W Y O R K ________________________________________________________________________ 3930 2013-2014 Regular Sessions I N S E N A T E February 27, 2013 ___________ Introduced by Sen. PERALTA -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the banking law, in relation to remittances of moneys by agents of licensed transmitters of money THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The opening paragraph of section 651-a of the banking law is designated subdivision 1 and a new subdivision 2 is added to read as follows: 2. EVERY AGENT OF A LICENSEE SHALL REMIT ALL MONEYS OWED SUCH LICENSEE IN ACCORDANCE WITH THE TERMS OF THE CONTRACT BETWEEN THE LICENSEE AND SUCH AGENT. ANY FAILURE OF AN AGENT TO REMIT ALL MONEYS DUE AND OWING THE LICENSEE WITHIN THE TIME PROVIDED IN SUCH CONTRACT SHALL RESULT IN THE AGENT'S CIVIL LIABILITY TO THE LICENSEE FOR THREE TIMES THE LICENSEE'S DAMAGES. THE SUPERINTENDENT MAY, BY RULE, ESTABLISH THE MAXI- MUM PERIOD OF TIME FOR REMITTANCE. S 2. This act shall take effect on the one hundred eightieth day after it shall have become a law; provided, that, effective immediately, any rules and regulations necessary to implement the provisions of this act on its effective date are authorized and directed to be completed on or before such date. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09338-01-3
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