NY State Senate Bill 2017-S7819

Senate Bill S7819

2017-2018 Legislative Session

Relates to instituting a twelve month limitation on compliance audits and examinations by the department of financial services

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 20, 2018	committed to rules
Mar 19, 2018	advanced to third reading
Mar 15, 2018	2nd report cal.
Mar 14, 2018	1st report cal.651
Feb 28, 2018	referred to banks

Votes

- Mar 14, 2018 - Banks Committee Vote
  S7819
  
  14
  
  Aye
  
  0
  
  Nay
  
  5
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Banks Committee Vote: Mar 14, 2018
      
      aye (14)
      
      Akshar
      
      Amedore
      
      Breslin
      
      Hamilton
      
      Helming
      
      Jacobs
      
      Kennedy
      
      Marcellino
      
      Murphy
      
      O'Mara
      
      Parker
      
      Peralta
      
      Savino
      
      Tedisco
      
      aye wr (5)
      
      Benjamin
      
      Bonacic
      
      Kavanagh
      
      Marchione
      
      Sanders Jr.

2017-S7819 (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Financial Services Law
Laws Affected:: Add §307, Fin Serv L

2017-S7819 (ACTIVE) - Summary

Relates to instituting a twelve month limitation on compliance audits and examinations by the department of financial services; requires a preliminary and final report during any compliance audit or examination.

2017-S7819 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7819

SPONSOR: HAMILTON
 
TITLE OF BILL:  An act to amend the financial services law, in
relation to instituting a twelve month limitation on compliance audits
and examinations by the department of financial services

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. The financial services law is amended by adding a new section
307

*The legislation would require any compliance audit or examination of a
financial product or service be completed no later than twelve months
after it is commenced.

*The department shall provide a copy to subject of a preliminary compli-
ance audit within six months of the commencement of the audit or exam-
ination.

*The department shall provide a copy to subject of a final compliance
audit within twelve months of commencement of the audit or examination.

*Any audit not completed within twelve months shall be deemed in compli-
ance and no information that was part of that audit or examination shall
be used by the department in a subsequent compliance audit or examina-
tion.

Section 2. This act shall take effect on the thirtieth day after it
shall have become a law.

 
JUSTIFICATION:

A supervising agency has a responsibility to examine and comment on the
compliance and procedures of the institutions it oversees in a timely
fashion. The audits will sometimes penalize a licensee for continuing to
act in a manner that is inconsistent with regulations of the Department
of Financial Services. In the overwhelming majority of cases, there is
no reasonable argument that a compliance audit and report on such audit
cannot be completed and given to the recipient within twelve months.
Compliance audits have in excess of thirty-six months to be completed
resulting in the recipient being penalized for continued behavior when
they were never informed of irregularities during the course of the
compliance audit.

 
PRIOR LEGISLATIVE HISTORY:

New Legislation.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become a law.

2017-S7819 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7819
 
                             I N  S E N A T E
 
                             February 28, 2018
                                ___________
 
 Introduced  by Sen. HAMILTON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks
 
 AN ACT to amend the financial services law, in relation to instituting a
   twelve month limitation on compliance audits and examinations  by  the
   department of financial services
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The financial services law  is  amended  by  adding  a  new
 section 307 to read as follows:
   §  307.  LIMITATIONS  ON  AUDITS  AND EXAMINATIONS. (A) ANY COMPLIANCE
 AUDIT OR EXAMINATION  BY  THE  DEPARTMENT  OF  A  FINANCIAL  PRODUCT  OR
 SERVICE, OR ANY REGULATED PERSON SHALL BE COMPLETED NO LATER THAN TWELVE
 MONTHS AFTER COMMENCEMENT OF SUCH COMPLIANCE AUDIT OR EXAMINATION.
   (B)  THE DEPARTMENT SHALL PROVIDE TO THE SUBJECT OF A COMPLIANCE AUDIT
 OR EXAMINATION:
   (1) A PRELIMINARY ANALYSIS OF  THE  FINDINGS  OF  THE  DEPARTMENT  SIX
 MONTHS AFTER COMMENCEMENT OF SUCH COMPLIANCE AUDIT OR EXAMINATION; AND
   (2)  A  FINAL  REPORT  OF THE FINDINGS OF THE DEPARTMENT TWELVE MONTHS
 AFTER COMMENCEMENT OF SUCH COMPLIANCE AUDIT OR EXAMINATION.
   (C) ANY COMPLIANCE AUDIT OR EXAMINATION NOT COMPLETED BY  THE  DEPART-
 MENT  WITHIN  TWELVE MONTHS OF COMMENCEMENT SHALL BE RESOLVED BY FINDING
 THE FINANCIAL PRODUCT OR SERVICE, OR REGULATED PERSON IN COMPLIANCE.  NO
 INFORMATION DISCOVERED BY THE DEPARTMENT DURING SUCH COMPLIANCE AUDIT OR
 EXAMINATION SHALL BE USED BY THE DEPARTMENT IN ANY SUBSEQUENT COMPLIANCE
 AUDIT OR EXAMINATION.
   §  2.  This  act shall take effect on the thirtieth day after it shall
 have become a law.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14215-01-8

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