NY State Senate Bill 2021-S7500

Senate Bill S7500

2021-2022 Legislative Session

Requires assessments to defray operating expenses on persons regulated by the department of financial services that engage in virtual currency business activity

download bill text pdf

Archive: Last Bill Status - In Senate Committee Banks 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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to banks
Nov 03, 2021	referred to rules

2021-S7500 (ACTIVE) - Details

See Assembly Version of this Bill:: A7849
Current Committee:: Senate Banks
Law Section:: Financial Services Law
Laws Affected:: Amd §206, Fin Serv L

2021-S7500 (ACTIVE) - Summary

Requires the superintendent of the department of financial services to assess persons regulated under the financial services law that engage in virtual currency business activity for the operating expenses of the department that are solely attributable to regulating such persons.

2021-S7500 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7500                    Revised 11/4/2021

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the financial services law, in relation to requiring
assessments to defray operating expenses on persons regulated by the
department of financial services that engage in virtual currency busi-
ness activity

 
PURPOSE OR GENERAL IDEA OF BILL:

Requires assessments to defray operating expenses on persons regulated
by the department of financial services that engage in virtual currency
business activity

 
SUMMARY OF SPECIFIC PROVISIONS:

Language is added to section 206 of the financial services law which
requires that businesses engaged in virtual currency business, as it is
defined by the superintendent of the Department of Financial Services,
be charged assessments to defray the operating expenses incurred by the

Department for such activities solely attributable to regulating virtual
currency businesses.

 
JUSTIFICATION:

Traditional banks and traditional banking transactions are currently
required to have assessments levied on them for payment to the state to
defray costs of the Department of Financial Services in relation to
their activities in regulating such banks and transactions.  Insti-
tutions involved in cryptocurrency business are presently not paying
such assessments, leaving the Department of Financial services vulner-
able to an influx of unfunded operating expenses in the near future.
This bill will bring cryptocurrency business in New York into conformity
with the traditional banking industry, and the money collected will go
toward helping the state regulate such businesses.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law. 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 on or before
such date.

2021-S7500 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7500
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             November 3, 2021
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the financial services law,  in  relation  to  requiring
   assessments  to  defray operating expenses on persons regulated by the
   department of financial services that engage in virtual currency busi-
   ness activity

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subsection (a) of section 206 of the financial services law
 is amended to read as follows:
   (a) For each fiscal year commencing on or after April first, two thou-
 sand  twelve,  assessments  to  defray operating expenses, including all
 direct and indirect costs, of the department, except  expenses  incurred
 in  the  liquidation  of banking organizations, shall be assessed by the
 superintendent in accordance with  this  subsection.  Persons  regulated
 under  the insurance law shall be assessed by the superintendent for the
 operating expenses of the department that  are  solely  attributable  to
 regulating  persons  under  the  insurance  law, which shall include any
 expenses that were permissible to be assessed in fiscal year  two  thou-
 sand nine-two thousand ten, with the assessments allocated pro rata upon
 all  domestic  insurers and all licensed United States branches of alien
 insurers domiciled in this state within the meaning of paragraph four of
 subsection (b) of section seven  thousand  four  hundred  eight  of  the
 insurance  law,  in  proportion  to  the gross direct premiums and other
 considerations, written or received by them in  this  state  during  the
 calendar year ending December thirty-first immediately preceding the end
 of  the fiscal year for which the assessment is made (less return premi-
 ums and considerations thereon) for policies or contracts  of  insurance
 covering  property  or risks resident or located in this state the issu-
 ance of which policies or contracts requires a license from  the  super-
 intendent.  Persons regulated under the banking law shall be assessed by

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11552-01-1

 S. 7500                             2
 
 the superintendent for the operating expenses of the department that are
 solely attributable to regulating persons under the banking law in  such
 proportions  as  the  superintendent  shall  deem  just  and reasonable.
 PERSONS  REGULATED  UNDER  THIS CHAPTER THAT ENGAGE IN "VIRTUAL CURRENCY
 BUSINESS ACTIVITY," AS THAT TERM IS DEFINED BY THE DEPARTMENT, SHALL  BE
 ASSESSED BY THE SUPERINTENDENT FOR THE OPERATING EXPENSES OF THE DEPART-
 MENT  THAT  ARE  SOLELY  ATTRIBUTABLE TO REGULATING SUCH PERSONS IN SUCH
 PROPORTIONS AS THE SUPERINTENDENT SHALL DEEM JUST AND REASONABLE.  Oper-
 ating  expenses  of  the  department  not covered by the assessments set
 forth above shall be assessed by the superintendent in such  proportions
 as  the  superintendent shall deem just and reasonable upon all domestic
 insurers and all licensed United States branches of alien insurers domi-
 ciled in this state within the meaning of paragraph four  of  subsection
 (b)  of  section seven thousand four hundred eight of the insurance law,
 and upon any regulated person under the banking law, other than mortgage
 loan originators, AND UPON PERSONS REGULATED  UNDER  THIS  CHAPTER  THAT
 ENGAGE  IN  VIRTUAL  CURRENCY  BUSINESS  ACTIVITY,  except  as otherwise
 provided by sections one hundred fifty-one and two hundred  twenty-eight
 of  the  workers' compensation law and by section sixty of the volunteer
 firefighters' benefit law. The provisions of this subsection  shall  not
 be  applicable  to  a  bank  holding company, as that term is defined in
 article three-A of the banking law. Persons regulated under the  banking
 law  will  not be assessed for expenses that the superintendent deems to
 benefit solely persons regulated under the insurance law OR  UNDER  THIS
 CHAPTER  THAT  ENGAGE IN VIRTUAL CURRENCY BUSINESS ACTIVITY, and persons
 regulated under the insurance law will not be assessed for expenses that
 the superintendent deems to benefit solely persons regulated  under  the
 banking  law OR UNDER THIS CHAPTER THAT ENGAGE IN VIRTUAL CURRENCY BUSI-
 NESS ACTIVITY.   PERSONS REGULATED UNDER THIS  CHAPTER  THAT  ENGAGE  IN
 VIRTUAL  CURRENCY  BUSINESS  ACTIVITY  WILL NOT BE ASSESSED FOR EXPENSES
 THAT THE SUPERINTENDENT DEEMS TO BENEFIT SOLELY PERSONS REGULATED  UNDER
 THE INSURANCE LAW OR UNDER THE BANKING LAW.
   §  2. Section 206 of the financial services law is amended by adding a
 new subsection (d-1) to read as follows:
   (D-1) THE EXPENSES OF EVERY EXAMINATION OF THE AFFAIRS OF  ANY  PERSON
 REGULATED PURSUANT TO THIS CHAPTER THAT ENGAGE IN VIRTUAL CURRENCY BUSI-
 NESS  ACTIVITY  SHALL BE BORNE AND PAID BY THE REGULATED PERSON SO EXAM-
 INED, BUT THE SUPERINTENDENT, WITH THE APPROVAL OF THE COMPTROLLER,  MAY
 IN  THE  SUPERINTENDENT'S  DISCRETION  FOR  GOOD  CAUSE SHOWN REMIT SUCH
 CHARGES.
   § 3. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law. 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  on  or  before
 such date.

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