The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9807
 
                           I N  A S S E M B L Y
 
                              April 19, 2022
                                ___________
 
 Introduced  by  M. of A. CRUZ -- 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 2022"; 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:
 
   Section 1. Short title. This act shall be known as and may be cited as
 the "community financial services access and modernization act of 2022".
   §  2.  Paragraph  (b)  of subdivision 5 of section 18-a of the banking
 law, as amended by chapter 155 of the laws of 2012, is amended  to  read
 as follows:
   (b) two thousand dollars when the application relates to the licensing
 of  an  additional  location or change of location or the licensing of a
 [mobile unit]  LIMITED STATION of a licensed casher of checks; or
   § 3. Section 366 of the banking law, as amended by chapter 49  of  the
 laws  of  1961,  subdivision  1 as amended by chapter 849 of the laws of
 1964 and as further amended by section 104 of part A of  chapter  62  of
 the  laws of 2011, and subdivisions 2 and 3 as renumbered by chapter 132
 of the laws of 1969, is amended to read as follows:
   § 366. Definitions. When used in this article. 1. The  term  "licensed
 casher  of  checks"  means  any [individual, partnership, unincorporated
 association or corporation] PERSON duly licensed by  the  superintendent
 of  financial  services to engage in business pursuant to the provisions
 of this article.
   2. The term "licensee" means  a  licensed  casher  of  checks,  drafts
 and/or money orders.
   3.  The  term  ["mobile  unit"] "LIMITED STATION" means any vehicle or
 other movable means from which the business of cashing checks, drafts or
 money orders is to be conducted.
   4. THE TERM "PERSON"  MEANS   ANY INDIVIDUAL OR  OTHER  LEGAL  ENTITY,
 INCLUDING ANY CORPORATION, PARTNERSHIP, ASSOCIATION OR LIMITED LIABILITY
 COMPANY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04514-07-2

 A. 9807                             2
 
   §  4. Section 367 of the banking law, as amended by chapter 151 of the
 laws of 1945, subdivision 3 as amended by section 7 of part D-1 of chap-
 ter 109 of the laws of 2006, and subdivision 4 as amended by chapter  96
 of the laws of 1981, is amended to read as follows:
   § 367.   License  requirements;  fees;  capital  requirements.  1.  No
 person[, partnership, association or corporation] shall  engage  in  the
 business  of  cashing checks, drafts or money orders for a consideration
 without first obtaining a license from the superintendent.
   2. Application for such license shall be in writing, under  oath,  and
 in  the  form  prescribed  by  the superintendent, and shall contain the
 name, and the address both of the residence and place  of  business,  of
 the  applicant,  and  if the applicant is a co-partnership [or], associ-
 ation OR LIMITED LIABILITY COMPANY, of every member thereof,  and  if  a
 corporation, of each officer and director thereof; also, if the business
 is to be conducted at a specific address, the address at which the busi-
 ness  is  to be conducted, and if the business is to be conducted from a
 [mobile unit] LIMITED STATION, the New York state registration number or
 other identification of such [mobile unit] LIMITED STATION and the  area
 in  which  the  applicant proposes to operate such [mobile unit] LIMITED
 STATION; and also such further information  as  the  superintendent  may
 require.
   3.  Such applicant at the time of making such application shall pay to
 the superintendent a fee as prescribed pursuant to section eighteen-a of
 this chapter for investigating the application.  Any licensee requesting
 a change of address, shall at the time of making such  request,  pay  to
 the superintendent a fee as prescribed pursuant to section eighteen-a of
 this  chapter for investigating the new address; provided, however, that
 the superintendent may, in his or her discretion,  waive  such  investi-
 gation  fee  if  warranted,  and  provided further, that no fee shall be
 payable for the relocation of a limited station.
   4. Every applicant shall prove, in form  satisfactory  to  the  super-
 intendent  that  he  or it has available for the operation of such busi-
 ness, for each location and for each [mobile unit] LIMITED STATION spec-
 ified in the  application,  liquid  assets  of  at  least  ten  thousand
 dollars,  and  every licensee shall continuously maintain for the opera-
 tion of such business for each  location  and  for  each  [mobile  unit]
 LIMITED STATION liquid assets of at least ten thousand dollars. Notwith-
 standing  the  foregoing provisions of this subdivision, the superinten-
 dent, upon application by an applicant and for  good  cause  shown,  may
 permit a reduction from ten thousand dollars to not less than five thou-
 sand dollars of minimum liquid assets required for each location.
   §  5. Section 369 of the banking law, as amended by chapter 151 of the
 laws of 1945, subdivision 1 as amended by chapter 233  of  the  laws  of
 2005,  subdivisions  4  and  5  as amended by chapter 132 of the laws of
 1969, subdivision 6 as amended by section 1 of subpart A of part  II  of
 chapter  55  of  the laws of 2019, and subdivision 7 as added by chapter
 485 of the laws of 1947, is amended to read as follows:
   § 369. Conditions precedent to issuing license; issuance and filing of
 license; posting license. 1. If the superintendent shall find  that  the
 financial  responsibility, experience, character, and general fitness of
 the applicant, and of the members thereof if the applicant be a co-part-
 nership [or], association OR LIMITED LIABILITY COMPANY, and of the offi-
 cers and directors thereof if the applicant be a corporation,  are  such
 as to command the confidence of the community and to warrant belief that
 the  business  will be operated honestly, fairly, and efficiently within
 the purposes of this article, and if the superintendent shall find  that
 A. 9807                             3
 
 the granting of such application will promote the convenience and advan-
 tage  of  the area in which such business is to be conducted, and if the
 superintendent shall find that the applicant has available for the oper-
 ation  of  such  business  for  each location and for each [mobile unit]
 LIMITED STATION specified in the application liquid assets of  at  least
 ten  thousand  dollars,  the  superintendent  shall  thereupon execute a
 license in duplicate to permit the cashing of checks, drafts  and  money
 orders in accordance with the provisions of this article at the location
 or  in  the  area  specified in such application. In finding whether the
 application will promote the convenience and advantage  to  the  public,
 the superintendent shall determine whether there is a community need for
 a  new  licensee  in the proposed area to be served. No license shall be
 issued to an applicant for a license, at a location to be licensed which
 is closer than one thousand five hundred eighty-four feet  (three-tenths
 of a mile) from an existing licensee, except with the written consent of
 such existing licensee or pursuant to subdivision three of section three
 hundred seventy of this article, subject to any restriction or condition
 as  the  superintendent may promulgate by regulation; provided, however,
 the superintendent may permit a location to be licensed that  is  closer
 than  three-tenths  of  a  mile  from an existing licensee provided such
 applicant engages in the cashing of checks, drafts or money orders  only
 for  payees  of  such checks, drafts or money orders that are other than
 natural persons at the location to be licensed and  such  applicant  was
 engaged in the cashing of such checks, drafts or money orders for payees
 that  are  other  than natural persons at such location on or before the
 fourteenth day of July, two thousand four,  and  provided  further  that
 upon  licensing any such location by the superintendent, such license as
 it pertains solely to such location shall not be affected thereafter  by
 any  change of control of such license pursuant to section three hundred
 seventy-a of this article, provided that the licensee  continues  there-
 after  to  engage  at  that location in the cashing of checks, drafts or
 money orders only for payees that are other  than  natural  persons  and
 provided further that such license shall bear a legend stating that such
 location  is restricted to the cashing of checks, drafts or money orders
 only for payees that are other than natural persons. The three-tenths of
 a mile distance requirement as set forth in this section shall not apply
 in cases where the existing licensee is a restricted location as author-
 ized in the preceding sentence, or is any other licensed  location  that
 engages solely in the cashing of checks, drafts or money orders only for
 payees  that  are  other  than  natural  persons.  For  purposes of this
 section, such distance shall be measured on a straight  line  along  the
 street  between the nearest point of the store fronts of the check cash-
 ing facilities. The primary business of the licensee, at the location to
 be licensed, shall be financial services. The superintendent shall tran-
 smit one copy of such license to the applicant and file another  in  the
 office  of  the  department. Notwithstanding the foregoing provisions of
 this subdivision, the superintendent, upon application by  an  applicant
 and  for  good  cause  shown,  may  permit a reduction from ten thousand
 dollars to not less than five thousand dollars of minimum liquid  assets
 required for each location.
   2.  Such  license  shall  state  the  name of the licensee; and if the
 licensee is a co-partnership  [or],  association  OR  LIMITED  LIABILITY
 COMPANY,  the  names  of  the  members thereof; and if the licensee is a
 corporation, the date of its incorporation; and if the business is to be
 conducted at a specific address, the address at which such  business  is
 to  be conducted; and if the business is to be conducted through the use
 A. 9807                             4
 
 of a [mobile unit] LIMITED STATION,  the  New  York  state  registration
 number or other identification of such [mobile unit] LIMITED STATION and
 the area in which such [mobile unit] LIMITED STATION is authorized to do
 business.
   3.  Such  license  shall  be kept conspicuously posted in the place of
 business of the licensee or, in the case  of  a  [mobile  unit]  LIMITED
 STATION,  upon  such  [mobile unit] LIMITED STATION.  Such license shall
 not be transferable or assignable.
   4. Such license shall remain in full force  and  effect  until  it  is
 surrendered  by the licensee or revoked or suspended as provided in this
 article.
   5. If the superintendent shall find that the applicant fails  to  meet
 any  of  the conditions set forth in subdivision one of this section, he
 OR SHE shall not issue such license, and he  OR  SHE  shall  notify  the
 applicant  of the denial.  If an application is denied or withdrawn, the
 superintendent shall retain the investigation fee to cover the costs  of
 investigating  the  application and return the license fee to the appli-
 cant.
   6. The superintendent may, consistent with article  twenty-three-A  of
 the  correction  law, refuse to issue a license pursuant to this article
 if he OR SHE shall find that the applicant,  or  any  person  who  is  a
 director,  officer,  partner, agent, employee or substantial stockholder
 of the applicant, (a) has been convicted of a crime in any  jurisdiction
 or  (b) is associating or consorting with any person who has, or persons
 who have, been convicted of a crime or crimes  in  any  jurisdiction  or
 jurisdictions.  For  the  purposes  of  this  article, a person shall be
 deemed to have been convicted of a  crime  if  such  person  shall  have
 pleaded  guilty  to  a  charge  thereof before a court or magistrate, or
 shall have been found guilty thereof by the decision or  judgment  of  a
 court  or  magistrate  or  by the verdict of a jury, irrespective of the
 pronouncement of sentence or the suspension thereof. The term  "substan-
 tial stockholder," as used in this subdivision, shall be deemed to refer
 to  a  person  owning or controlling ten per centum or more of the total
 outstanding stock of the corporation in which such person  is  a  stock-
 holder.  In  making  a  determination  pursuant to this subdivision, the
 superintendent shall require fingerprinting of the applicant. Such fing-
 erprints shall be submitted to the division of criminal justice services
 for a state criminal history record check, as defined in subdivision one
 of section three thousand thirty-five of the education law, and  may  be
 submitted to the federal bureau of investigation for a national criminal
 history record check.
   7.  No  license pursuant to this article shall be issued to any appli-
 cant to do business at the place specified in  the  application  as  the
 place where the business is to be conducted if, within the twelve months
 preceding  such application, a license to engage in business pursuant to
 this article at such place shall have been revoked.
   § 6. Section 370 of the banking law, as amended by chapter 151 of  the
 laws  of 1945, subdivision 2 as amended by section 38 of part O of chap-
 ter 59 of the laws of 2006 and subdivision 3 as amended by  chapter  703
 of the laws of 2006, is amended to read as follows:
   § 370.  Restrictions as to place or area of doing business; establish-
 ment of stations; change of location. 1. No more than one place of busi-
 ness or one [mobile unit] LIMITED STATION shall be maintained under  the
 same  license;  provided,  however,  that  more  than one license may be
 issued to the same licensee upon compliance with the provisions of  this
 article for each new license.
 A. 9807                             5
 
   2.  Any  licensed  casher of checks may open and maintain, within this
 state, one or more limited stations for the purpose of  cashing  checks,
 drafts  or  money orders for the particular group or groups specified in
 the license authorizing  each  such  station.  Such  stations  shall  be
 licensed  pursuant to and be subject to all the provisions of this chap-
 ter applicable to licensed cashers  of  checks,  except  that  (a)  such
 station  shall  not  be  subject to the distance limitation set forth in
 subdivision one of section three hundred sixty-nine of this article, (b)
 the fee for investigating the application for  a  station  shall  be  as
 prescribed pursuant to section eighteen-a of this chapter, and (c) where
 such  a  station  is  at  the  premises  of a specified employer for the
 purpose of cashing checks, drafts and money orders for the employees  of
 such  employer,  the fees and charges for cashing such checks, drafts or
 money orders shall not be subject to the limitations of subdivision  one
 of  section  three  hundred seventy-two of this article if such fees and
 charges are paid by such employer.
   3. A licensee may make a written application to the superintendent for
 leave to change his or her place of  business,  or  in  the  case  of  a
 [mobile unit] LIMITED STATION, the area in which such unit is authorized
 to  be  operated,  stating  the  reasons for such proposed change.  Such
 application may be approved for relocation from  a  site  within  three-
 tenths of a mile of another licensee to another site within three-tenths
 of  a mile of such other licensee provided that such new site is farther
 from such existing licensee than the site from which permission to relo-
 cate is sought. Only in situations in which a licensee seeks  to  change
 its  place  of  business  due  to extraordinary circumstances, as may be
 determined by the superintendent pursuant to regulations, may the super-
 intendent, in his or her discretion, determine that an  application  may
 be  approved for relocation from a site within three-tenths of a mile of
 another licensee to a new site which is closer to such existing licensee
 than the site from which permission to relocate is sought. Notwithstand-
 ing any other provision of this subdivision,  a  licensee  may  relocate
 from  any  location  to a location that is within three-tenths of a mile
 from another licensee with the written consent of the other licensee. If
 the superintendent approves such application he or she shall issue a new
 license in duplicate in accordance with the provisions of section  three
 hundred  sixty-nine  of  this  article, stating the new location of such
 licensee or, in the case of a [mobile unit]  LIMITED  STATION,  the  new
 area in which such [mobile unit] LIMITED STATION may be operated.
   §  7.  Subdivision  4 of section 370-a of the banking law, as added by
 chapter 142 of the laws of 1992, is amended to read as follows:
   4. As used in this section[: (a) the term "person" includes  an  indi-
 vidual, partnership, corporation, association or any other organization,
 and (b)], the term "control" means the possession, directly or indirect-
 ly,  of the power to direct or cause the direction of the management and
 policies of a licensee, whether through the ownership of voting stock of
 such licensee, the  ownership  of  voting  stock  of  any  person  which
 possesses such power or otherwise. Control shall be presumed to exist if
 any  person,  directly or indirectly, owns, controls or holds with power
 to vote ten per centum or more of the voting stock of any licensee or of
 any person which owns, controls or holds with  power  to  vote  ten  per
 centum  or more of the voting stock of any licensee, but no person shall
 be deemed to control a licensee solely by reason of being an officer  or
 director  of  such  licensee or person. The superintendent may in his OR
 HER discretion, upon the application of a licensee or  any  person  who,
 directly  or  indirectly,  owns, controls or holds with power to vote or
 A. 9807                             6
 
 seeks to own, control or hold with power to vote  any  voting  stock  of
 such  licensee, determine whether or not the ownership, control or hold-
 ing of such voting stock constitutes or would constitute control of such
 licensee for purposes of this section.
   §  8.  Section  371 of the banking law, as added by chapter 151 of the
 laws of 1945, is amended to read as follows:
   § 371.  Regulations.  The  superintendent  is  hereby  authorized  and
 empowered to make such rules and regulations, and such specific rulings,
 demands,  and  findings  as  he OR SHE may deem necessary for the proper
 conduct of the business  authorized  and  licensed  under  and  for  the
 enforcement  of  this  article,  in addition hereto and not inconsistent
 herewith.
   § 9. Section 372 of the banking law, as amended by chapter 151 of  the
 laws  of  1945,  the  section  heading  and subdivision 1 as amended and
 subdivision 7 as added by chapter 432 of the laws of 2004,  subdivisions
 2,  3  and  4 as added and subdivisions 5 and 6 as renumbered by chapter
 263 of the laws of 1983, and subdivision 6 as added by  chapter  485  of
 the laws of 1947, is amended to read as follows:
   § 372. Fees and charges; posting schedule; records and reports. 1. The
 superintendent  shall,  by  regulation, establish the maximum fees which
 may be charged by licensees for cashing a check, draft, or money  order.
 No  licensee shall charge or collect any sum for cashing a check, draft,
 or money order in excess of that  established  by  the  superintendent's
 regulations;  provided,  however, that no maximum fee shall apply to the
 charging of fees by licensees for the cashing of checks, drafts or money
 orders for payees of such checks, drafts or money orders that are  other
 than natural persons.
   2. The schedule of fees and charges permitted under this section shall
 be  conspicuously  and  continuously posted in every location and [mobil
 unit] LIMITED STATION licensed under this article.
   3. ONLY IN THE CASE OF AN INTERNET, DIGITAL OR OTHER ELECTRONIC ADVER-
 TISEMENT OR SOLICITATION, A LICENSEE SHALL BE DEEMED TO  HAVE  FULFILLED
 THE  DISCLOSURE REQUIREMENTS REQUIRED BY LAW WITH RESPECT TO SUCH INTER-
 NET, DIGITAL OR OTHER ELECTRONIC ADVERTISEMENT OR SOLICITATION  ONLY  BY
 DISPLAYING  THE DISCLOSURES ON ITS WEBSITE, SO LONG AS THE ADVERTISEMENT
 OR SOLICITATION INCLUDES A LINK DIRECTLY TO SUCH WEBSITE,  AND  PROVIDED
 THIS DOES NOT MODIFY IN-STORE DISCLOSURE REQUIREMENTS.
   4.  No  change in fees shall become effective earlier than thirty days
 after the superintendent shall notify the majority leader of the senate,
 the speaker of the assembly, and the chairmen of  both  the  senate  and
 assembly committees on banks of his OR HER intention to change fees.
   [4.]  5. The fees in effect immediately prior to the effective date of
 this subdivision shall continue to be the maximum allowable  fees  until
 revised by the superintendent's regulations.
   [5.]  6.  Each licensee shall keep and use in its business such books,
 accounts, and records as the superintendent may require  to  carry  into
 effect the provisions of this article and the rules and regulations made
 by  the  superintendent  hereunder.  Every  licensee shall preserve such
 books, accounts and records for at least two years.
   [6.] 7. Before a licensee shall deposit with any banking organization,
 or with any organization engaged in the business of  banking,  a  check,
 draft  or money order cashed by such licensee, the same must be endorsed
 with the actual name under which such licensee  is  doing  business  and
 must  have  the  words  "licensed  casher  of checks" legibly written or
 stamped immediately after or below such name.
 A. 9807                             7
 
   [7.] 8. Every licensee shall submit to  the  superintendent,  or  such
 person  as  the  superintendent  may designate, such suspicious activity
 reports or currency transaction reports as are required to be  submitted
 to  federal  authorities  pursuant to provisions of the Bank Secrecy Act
 (subchapter  11,  chapter  53,  title  31, United States code) and regu-
 lations and administrative orders related thereto,  as  amended,  within
 the  periods of time as required by such act and regulations. A licensee
 may submit a copy of any such report  to  the  superintendent,  or  such
 person  as  the  superintendent  may  designate, that is filed with such
 federal authorities. The superintendent may adopt  such  regulations  or
 require  such  additional reports as he or she deems necessary to insure
 the effective enforcement of this subdivision.
   § 10. Section 372-a of the banking law, as added by chapter 432 of the
 laws of 2004, is amended to read as follows:
   § 372-a. Superintendent authorized to examine. 1. For the  purpose  of
 discovering  violations of this article or securing information lawfully
 required in this section, the superintendent may at  any  time,  and  as
 often as may be determined, either personally or by a person duly desig-
 nated  by  the  superintendent,  investigate  the [cashing of checks by]
 licensees AND THEIR BUSINESS PRACTICES AS AUTHORIZED BY THIS ARTICLE and
 examine the books, accounts, records, and files used  therein  of  every
 licensee.
   2. For the purpose established in subdivision one of this section, the
 superintendent and his or her duly designated representatives shall have
 free  access  to  the  offices  and places of business, books, accounts,
 papers, records, files, safes and vaults  of  all  such  licensees.  The
 superintendent  shall have authority to require the attendance of and to
 examine under oath all persons whose testimony may be required  relative
 to such cashing of checks or such business.
   § 11. Subdivisions 1 and 2 of section 373 of the banking law, subdivi-
 sion  1  as amended by chapter 432 of the laws of 2004 and subdivision 2
 as amended by chapter 132 of the laws of 1969, are amended  to  read  as
 follows:
   1.  No licensee shall engage in the business of making loans of money,
 credit, goods or things or discounting  of  notes,  bills  of  exchange,
 checks, or other evidences of debt pursuant to the provisions of article
 nine  of  this  chapter, nor shall a loan business or the negotiation of
 loans or the discounting of notes, bills of exchange,  checks  or  other
 evidences  of  debt be conducted on the same premises where the licensee
 is conducting business pursuant  to  the  provisions  of  this  article.
 Except  as  otherwise  provided by regulation of the superintendent, all
 checks, drafts and money orders shall be  deposited  in  the  licensee's
 bank  account not later than the first business day following the day on
 which they were cashed. No licensee shall at any time  cash  or  advance
 any  moneys  on a post-dated check or draft or engage in the business of
 transmitting money or receiving money for transmission; provided, howev-
 er, that a licensee may cash a check [payable on the first banking busi-
 ness day following the date of cashing (a) if such check is drawn by the
 United States, the state of New York, or any  political  subdivision  of
 the  state of New York, or by any department, bureau, agency, authority,
 instrumentality or officer, acting in  his  official  capacity,  of  the
 United  States  or of the state of New York or of any political subdivi-
 sion of the state of New York, or (b) if such check is a  payroll  check
 drawn  by  an  employer  to  the  order  of  its employee in payment for
 services  performed  by  such  employee]  WITHOUT  REGARD  TO  THE  DATE
 IMPRINTED  ON THE CHECK AS LONG AS THE CHECK IS DATED NOT MORE THAN FIVE
 A. 9807                             8
 
 BUSINESS DAYS AFTER THE DATE OF PRESENTMENT AND AS LONG AS THE CHECK  IS
 DEPOSITED  IN THE LICENSEE'S BANK ACCOUNT NOT LATER THAN THE FIRST BUSI-
 NESS DAY FOLLOWING THE DAY ON WHICH IT WAS CASHED THAT IS:  (A)  PAYABLE
 NO MORE THAN FIVE BANKING BUSINESS DAYS FOLLOWING THE DATE OF CASHING IF
 SUCH  CHECK IS DRAWN BY THE UNITED STATES, THE STATE OF NEW YORK, OR ANY
 POLITICAL SUBDIVISION OF THE STATE OF NEW YORK, OR  BY  ANY  DEPARTMENT,
 BUREAU,  AGENCY, AUTHORITY, INSTRUMENTALITY OR OFFICER, ACTING IN HIS OR
 HER OFFICIAL CAPACITY, OF THE UNITED STATES OR OF THE STATE OF NEW  YORK
 OR OF ANY POLITICAL SUBDIVISION OF THE STATE OF NEW YORK; (B) PAYABLE NO
 MORE  THAN  FIVE  BANKING BUSINESS DAYS FOLLOWING THE DATE OF CASHING IF
 SUCH CHECK IS PAYABLE TO A NATURAL  PERSON  AND  IS  IN  AN  AMOUNT  NOT
 EXCEEDING  ONE  THOUSAND  DOLLARS;  OR  (C) PAYABLE ON THE FIRST BANKING
 BUSINESS DAY FOLLOWING THE DATE OF CASHING IF SUCH CHECK  IS  A  PAYROLL
 CHECK  DRAWN  BY AN EMPLOYER TO THE ORDER OF ITS EMPLOYEE IN PAYMENT FOR
 SERVICES PERFORMED BY SUCH EMPLOYEE. ANY LICENSEE WHO CASHES  POST-DATED
 CHECKS  PURSUANT TO PARAGRAPH (A) OR (B) OF THIS SUBDIVISION SHALL DO SO
 SUBJECT TO THE  SAFETY  AND  SOUNDNESS  REQUIREMENTS  OF  THIS  ARTICLE,
 INCLUDING  ESTABLISHMENT  OF POLICIES AND PROCEDURES TO IMPLEMENT ROBUST
 DUE DILIGENCE, RISK MANAGEMENT, LIQUIDITY MANAGEMENT, STRUCTURED  TRANS-
 ACTIONS  AND  FRAUD PREVENTION.  No licensee shall cash any check, draft
 or money order if the face amount for which it is drawn is in excess  of
 [fifteen]   TWENTY   thousand  dollars;  provided,  however,  that  this
 restriction shall not apply to the cashing of checks,  drafts  or  money
 orders  drawn  by  the United States, any state thereof or any political
 subdivision of any such state, or by  any  department,  bureau,  agency,
 authority,  instrumentality  or  officer,  acting in his OR HER official
 capacity, of the United States,  any  state  thereof  or  any  political
 subdivision  of  any such state, or any [banking] FINANCIAL institution,
 or to any check or draft drawn by OR ON ACCOUNT OF any insurance  compa-
 ny,  attorney  for  the  settlement of claims, or to any check which has
 been certified OR GUARANTEED by the [banking] FINANCIAL  institution  on
 which  it has been drawn, OR IF SUCH CHECK IS DRAWN ON A BONA FIDE WORK-
 ERS' COMPENSATION FUND ISSUED BY A THIRD-PARTY PAYOR, OR IF  SUCH  CHECK
 IS  DRAWN  BY  AN  EMPLOYER FROM A PENSION OR PROFIT SHARING FUND, OR IF
 SUCH CHECK IS DRAWN BY A UNION FROM A PENSION OR BENEFIT FUND OR IF SUCH
 CHECK IS DRAWN BY A UNION; provided  further,  however,  that  any  such
 restriction  upon the maximum face amount that may be cashed by a licen-
 see shall not apply to the cashing of checks, drafts or money orders  by
 licensees  for  payees  of  such checks, drafts or money orders that are
 other than natural persons. For purposes of this subdivision, "[banking]
 FINANCIAL institution" means any  bank,  trust  company,  savings  bank,
 savings  and  loan  association  [or],  credit  union OR OTHER FINANCIAL
 INSTITUTION which is incorporated, chartered [or], organized OR LICENSED
 under the laws of this state or any other state or the United States.
   2. The superintendent may suspend or revoke any  license  or  licenses
 issued  pursuant  to  this article if, after notice and a hearing, he OR
 SHE shall find that the licensee (a) has committed any fraud, engaged in
 any dishonest activities or  made  any  misrepresentation;  or  (b)  has
 violated  any  provisions  of  the  banking law or any regulation issued
 pursuant thereto, or has violated any other law in the course of its  or
 his  OR  HER  dealings as a licensed casher of checks; or (c) has made a
 false statement in the application for such license or failed to give  a
 true  reply  to  a question in such application; or (d) has demonstrated
 his or its incompetency or untrustworthiness to act as a licensed casher
 of checks; or (e) is not doing  sufficient  business  pursuant  to  this
 article to justify the continuance of the license, or if he OR SHE shall
 A. 9807                             9
 
 find that any ground or grounds exist which would require or warrant the
 refusal  of  an  application  for the issuance of the license if such an
 application were then before him OR HER.  Such a hearing shall  be  held
 in  the  manner  and upon such notice as may be prescribed by the super-
 intendent. Pending an investigation or a hearing for the  suspension  or
 revocation  of  any license or licenses issued pursuant to this article,
 the superintendent may temporarily suspend such license or licenses  for
 a  period  not  to exceed ninety days, provided the superintendent shall
 find that such a temporary suspension is in the public interest.
   § 12.  Subdivision 3 of section 37 of the banking law, as  amended  by
 chapter 360 of the laws of 1984, is amended to read as follows:
   3. In addition to any reports expressly required by this chapter to be
 made,  the superintendent may require any banking organization, licensed
 lender, licensed casher of checks,  licensed  mortgage  banker,  foreign
 banking  corporation  licensed  by  the superintendent to do business in
 this state, bank holding company and any non-banking subsidiary thereof,
 corporate affiliate of a corporate banking organization within the mean-
 ing of subdivision six of section thirty-six of  this  article  and  any
 non-banking  subsidiary  of  a  corporation  which  is an affiliate of a
 corporate banking organization within the meaning of  subdivision  six-a
 of  section thirty-six of this article to make special reports to him OR
 HER at such times as he OR SHE may prescribe.
   § 13.   Within ninety days of the effective  date  of  this  act,  the
 superintendent  of  financial  services  shall  commence a review of its
 current system of issuing licenses  for  check  cashing  licensees,  the
 establishment  of  new  check  cashing  locations, for the relocation of
 check cashing locations, and for changes of control  of  existing  check
 cashing licensees, and will issue a report to the governor, the chairman
 of  the  assembly  banks committee, and the chairman of the senate banks
 committee, regarding the costs (including application fees,  preparation
 fees,  and  other  costs)  incurred  by applicants to prepare and submit
 applications, the costs incurred by the department of financial services
 to review and process applications, the length of time required for  the
 review  and processing of applications by such department, and recommen-
 dations to improve the efficiency and lessen  the  costs,  burdens,  and
 length  of  such department's licensing processes. The superintendent of
 financial services shall report to the governor and  to  the  respective
 committee chairs within one hundred eighty days of the date of commence-
 ment  of  his  or  her  review. The superintendent of financial services
 shall consult with and receive input from check cashing licensees in the
 preparation of its analysis and report.
   § 14.  This act shall take effect on the  one  hundred  eightieth  day
 after it shall have become a law; provided, however, that:
   (a)  the  amendments to section 373 of the banking law made by section
 eleven of this act shall expire and be deemed repealed  June  30,  2026;
 and
   (b)  any  contract,  instrument,  argument or other written obligation
 entered into by a financial service provider  authorized  under  section
 373  of the banking law prior to June 30, 2026 shall be deemed valid and
 enforceable after such date.
   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 to be made and completed on or before such
 effective date.