Assembly Bill A7770A

2023-2024 Legislative Session

Allows the department of financial services to impose penalties on unlawfully unlicensed entities

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Sponsored By

Current Bill Status - In Assembly 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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Bill Amendments

co-Sponsors

2023-A7770 - Details

Current Committee:
Assembly Banks
Law Section:
Banking Law
Laws Affected:
Amd §44, Bank L

2023-A7770 - Summary

Allows the department of financial services to impose penalties on any entity engaging in an activity in this state for which a license or authorization by the superintendent of financial services is required without such license or approval.

2023-A7770 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7770
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 9, 2023
                                ___________
 
 Introduced  by  M.  of  A. BORES, ROZIC -- read once and referred to the
   Committee on Banks
 
 AN ACT to amend the financial services law, in relation to allowing  the
   department of financial services to have additional oversight of banks
   and insurance companies that are not currently licensed

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  legislature  finds  that  it  is  essential  to  the
 protection  of  users  of financial products and services from imprudent
 conduct and harmful business practices in the financial services market-
 place that all persons offering financial products and services  in  New
 York State be sufficiently deterred from disregarding the laws and regu-
 lations  governing  the  offering  of  financial  products  or services,
 regardless of whether they are properly licensed. Furthermore, to ensure
 that the business of, and the persons providing, financial products  and
 services  are  appropriately  supervised,  the  law should not advantage
 persons who disregard licensing requirements. Currently, as  to  engage-
 ment  in  many activities for which a license from the superintendent of
 financial services is required, an unlicensed  person  not  exempt  from
 licensing is not subject to civil penalty for acts that would constitute
 violations subject to penalty if the person were licensed; such an unli-
 censed  person may be subject to only a limited civil penalty for engag-
 ing in activity without a required license.  This  act  remediates  this
 fault  in  the  law by providing that any person engaged in activity for
 which such person must be licensed by the  superintendent  of  financial
 services will be subject to a civil penalty for conducting such activity
 in  a  manner  inconsistent  with  the  law, regardless of such person's
 licensure status.
   § 2. Subdivisions (a) and (b) of section 305 of the financial services
 law are amended to read as follows:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11198-01-3
 A. 7770                             2
              

co-Sponsors

2023-A7770A (ACTIVE) - Details

Current Committee:
Assembly Banks
Law Section:
Banking Law
Laws Affected:
Amd §44, Bank L

2023-A7770A (ACTIVE) - Summary

Allows the department of financial services to impose penalties on any entity engaging in an activity in this state for which a license or authorization by the superintendent of financial services is required without such license or approval.

2023-A7770A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7770--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 9, 2023
                                ___________
 
 Introduced  by  M. of A. BORES, ROZIC, BURDICK -- read once and referred
   to the Committee on Banks -- recommitted to the Committee on Banks  in
   accordance  with Assembly Rule 3, sec. 2 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee

 AN  ACT to amend the banking law, in relation to allowing the department
   of financial services to impose  penalties  on  unlawfully  unlicensed
   entities
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 1, 2, 3 and 4 of section  44  of  the  banking
 law, subdivisions 1, 3, 4, and paragraph (b) of subdivision 2 as amended
 by  section 9 of part O of chapter 59 of the laws of 2006, paragraph (a)
 of subdivision 1 as amended by section 4 of part L of chapter 58 of  the
 laws  of  2019,  subdivision  2 as amended by chapter 356 of the laws of
 2004, paragraph (a) of subdivision 2 as amended by chapter  155  of  the
 laws  of  2012, are amended and a new subdivision 10 is added to read as
 follows:
   1. (a) Without limiting any power granted to the superintendent  under
 any  other  provision  of  this  chapter,  the  superintendent may, in a
 proceeding after notice and a hearing, require any safe deposit company,
 licensed lender, licensed  casher  of  checks,  licensed  sales  finance
 company, licensed insurance premium finance agency, licensed transmitter
 of  money,  licensed  mortgage  banker,  licensed student loan servicer,
 registered mortgage broker, licensed mortgage  loan  originator,  regis-
 tered mortgage loan servicer [or], licensed budget planner OR UNLAWFULLY
 UNLICENSED  ENTITY  to pay to the people of this state a penalty for any
 violation of this chapter, any regulation  promulgated  thereunder,  any
 final  or temporary order issued pursuant to section thirty-nine of this
 article, any condition imposed  in  writing  by  the  superintendent  in

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11198-06-4
 A. 7770--A                          2
              

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