4. "NON-RECOURSE" MEANS THAT A PROVIDER CANNOT COMPEL OR ATTEMPT TO
COMPEL REPAYMENT BY A CONSUMER OF OUTSTANDING PROCEEDS OR NON-MANDATORY
PAYMENTS OWED BY SUCH CONSUMER TO SUCH PROVIDER THROUGH ANY OF THE
FOLLOWING MEANS:
(A) A CIVIL SUIT AGAINST SUCH CONSUMER IN A COURT OF COMPETENT JURIS-
DICTION;
(B) USE OF A THIRD-PARTY TO PURSUE COLLECTION OF OUTSTANDING PROCEEDS
OR NON-MANDATORY PAYMENTS ON THE PROVIDER'S BEHALF; AND
(C) SALE OF OUTSTANDING PROCEEDS TO A THIRD-PARTY COLLECTOR OR DEBT
PURCHASER. SUCH TERM DOES NOT PRECLUDE THE USE BY A PROVIDER OF ANY OF
THE FOREGOING METHODS TO COMPEL OR ATTEMPT TO COMPEL REPAYMENT OF
OUTSTANDING AMOUNTS INCURRED BY A CONSUMER THROUGH FRAUDULENT MEANS.
5. "OBLIGOR" MEANS AN EMPLOYER OR ANOTHER PERSON, INCLUDING AN INDE-
PENDENT CONTRACTOR, WHO IS CONTRACTUALLY OR LEGALLY OBLIGATED TO PAY A
CONSUMER ANY SUM OF MONEY ON AN HOURLY, PROJECT-BASED, PIECEWORK, OR
OTHER BASIS. SUCH TERM DOES NOT INCLUDE THE CUSTOMER OF AN OBLIGOR OR
ANOTHER THIRD-PARTY THAT HAS AN OBLIGATION TO MAKE ANY PAYMENT TO A
CONSUMER BASED SOLELY ON THE CONSUMER'S AGENCY RELATIONSHIP WITH THE
OBLIGOR.
6. "OUTSTANDING PROCEEDS" MEANS PROCEEDS REMITTED TO A CONSUMER BY A
PROVIDER BUT HAVE NOT YET BEEN REPAID TO SUCH PROVIDER.
7. "MANDATORY PAYMENT" MEANS AN AMOUNT DETERMINED BY A PROVIDER WHICH
MUST BE PAID BY A CONSUMER TO SUCH PROVIDER AS A CONDITION OF RECEIVING
PROCEEDS.
8. "NON-MANDATORY PAYMENT" MEANS AN AMOUNT PAID BY A CONSUMER OR AN
OBLIGOR TO A PROVIDER FOR EARNED WAGE ACCESS SERVICES, WHICH DOES NOT
MEET THE DEFINITION OF A MANDATORY PAYMENT. FOR PURPOSES OF THIS ARTI-
CLE, SUCH TERM INCLUDES, BUT IS NOT LIMITED TO, THE FOLLOWING:
(A) A FEE IMPOSED BY A PROVIDER FOR DELIVERY OR EXPEDITED DELIVERY OF
PROCEEDS TO A CONSUMER, PROVIDED THAT SUCH PROVIDER OFFERS THE CONSUMER
AT LEAST ONE OPTION OF RECEIVING PROCEEDS AT NO COST;
(B) AN AMOUNT PAID BY AN OBLIGOR TO A PROVIDER ON THE CONSUMER'S
BEHALF, WHICH ENTITLES THE CONSUMER TO RECEIVE PROCEEDS AT NO COST TO
SUCH CONSUMER;
(C) A SUBSCRIPTION OR MEMBERSHIP FEE IMPOSED BY A PROVIDER FOR A GROUP
OF SERVICES THAT INCLUDES EARNED WAGE ACCESS SERVICES, PROVIDED THAT
SUCH PROVIDER OFFERS THE CONSUMER AT LEAST ONE OPTION OF RECEIVING
PROCEEDS AT NO COST; AND
(D) A TIP OR GRATUITY PAID BY A CONSUMER TO A PROVIDER, PROVIDED THAT
SUCH PROVIDER OFFERS THE CONSUMER AT LEAST ONE OPTION OF RECEIVING
PROCEEDS AT NO COST.
9. "PROCEEDS" MEANS THE AMOUNT OF EARNED BUT UNPAID INCOME THAT HAS
BEEN REMITTED TO THE CONSUMER BY A PROVIDER.
10. "PROVIDER" MEANS A PERSON WHO IS IN THE BUSINESS OF OFFERING AND
PROVIDING EARNED WAGE ACCESS SERVICES TO CONSUMERS.
§ 374-BB. REGISTRATION REQUIREMENTS FOR EARNED WAGE ACCESS SERVICE
PROVIDERS. 1. NO PERSON SHALL PROVIDE EARNED WAGE ACCESS SERVICES IN THE
STATE UNLESS SUCH PERSON IS REGISTERED AS A PROVIDER WITH THE DEPART-
MENT.
2. AN APPLICATION TO BECOME REGISTERED AS AN EARNED WAGE ACCESS
SERVICE PROVIDER SHALL BE IN WRITING, UNDER OATH, IN SUCH FORM AS SHALL
BE PRESCRIBED BY THE SUPERINTENDENT. NOTWITHSTANDING ARTICLE THREE OF
THE STATE TECHNOLOGY LAW OR ANY OTHER LAW TO THE CONTRARY, THE SUPER-
INTENDENT MAY REQUIRE THAT AN APPLICATION FOR, OR RENEWAL OF, A REGIS-
TRATION BE MADE OR EXECUTED BY ELECTRONIC MEANS, INCLUDING THROUGH THE
NATIONAL MORTGAGE LICENSING SYSTEM AND REGISTRY OR OTHER ENTITIES DESIG-
S. 916 3
NATED BY THE NATIONAL MORTGAGE LICENSING SYSTEM AND REGISTRY IF HE OR
SHE DEEMS IT NECESSARY TO ENSURE THE EFFICIENT AND EFFECTIVE ADMINIS-
TRATION OF THIS ARTICLE. SUCH APPLICATION SHALL CONTAIN THE NAME AND
COMPLETE BUSINESS ADDRESS OR ADDRESSES OF THE APPLICANT. SUCH APPLICA-
TION SHALL ALSO INCLUDE AN AFFIRMATION OF FINANCIAL SOLVENCY NOTING SUCH
CAPITALIZATION REQUIREMENTS AND ACCESS TO SUCH CREDIT AS MAY BE REQUIRED
BY THE SUPERINTENDENT, AND SUCH DESCRIPTIONS OF THE BUSINESS ACTIVITIES,
FINANCIAL RESPONSIBILITY, AND GENERAL CHARACTER AND FITNESS OF THE
APPLICANT AS MAY BE REQUIRED BY THE SUPERINTENDENT.
3. AS A CONDITION FOR THE ISSUANCE AND RETENTION OF A REGISTRATION,
AND SUBJECT TO SUCH REGULATIONS AS THE SUPERINTENDENT SHALL PRESCRIBE,
APPLICANTS FOR A REGISTRATION SHALL FILE WITH THE SUPERINTENDENT A SURE-
TY BOND OR MAKE A DEPOSIT IN AN AMOUNT AND FORM PRESCRIBED BY REGU-
LATIONS OF THE SUPERINTENDENT. SUCH REGULATIONS SHALL PROVIDE FOR A
VARYING BOND AMOUNT BASED UPON A REGISTRANT'S VOLUME OF BUSINESS AND ANY
OTHER RELEVANT FACTORS AS DETERMINED BY THE SUPERINTENDENT, BUT IN NO
CASE SHALL SUCH BOND BE LESS THAN TEN THOUSAND DOLLARS NOR MORE THAN
FIFTY THOUSAND DOLLARS; PROVIDED HOWEVER THAT IF THE SUPERINTENDENT
DETERMINES, IN HIS OR HER SOLE DISCRETION, THAT A REGISTRANT HAS ENGAGED
IN A PATTERN OF CONDUCT RESULTING IN BONA FIDE CONSUMER COMPLAINTS OF
MISCONDUCT, THE SUPERINTENDENT MAY REQUIRE SUCH REGISTRANT TO POST A
SURETY BOND, OR KEEP ON DEPOSIT AS PROVIDED IN THIS SUBDIVISION, TWICE
THE AMOUNT OF SUCH BOND OR DEPOSIT AS IS REQUIRED CONSISTENT WITH SUCH
REGULATIONS. IN THE EVENT OF THE INSOLVENCY, LIQUIDATION OR BANKRUPTCY
OF SUCH REGISTRANT, OR THE SURRENDER OR REVOCATION OF SUCH PROVIDER'S
REGISTRATION, OR WHERE THE SUPERINTENDENT TAKES POSSESSION OF SUCH
REGISTRANT, THE PROCEEDS OF EACH BOND OR DEPOSIT SHALL CONSTITUTE A
TRUST FUND TO BE USED EXCLUSIVELY TO REIMBURSE CONSUMER FEES OR OTHER
CHARGES DETERMINED BY THE SUPERINTENDENT TO BE IMPROPERLY CHARGED OR
COLLECTED AND TO PAY PAST DUE DEPARTMENT OF FINANCIAL SERVICES EXAMINA-
TION COSTS AND ASSESSMENTS CHARGED TO THE REGISTRANT, UNPAID PENALTIES,
OR OTHER OBLIGATIONS OF THE REGISTRANT. THE SUPERINTENDENT IS AUTHORIZED
TO PROMULGATE SUCH REGULATIONS AS ARE NECESSARY AND DESIRABLE TO DEFINE
AND IMPLEMENT THE PROVISIONS OF THIS SUBDIVISION. PERSONS AND ENTITIES
REGISTERED PRIOR TO THE EFFECTIVE DATE OF ANY REGULATIONS OF THE SUPER-
INTENDENT IMPLEMENTING OR MODIFYING THE BONDING REQUIREMENT AUTHORIZED
BY THIS SUBDIVISION SHALL FILE SUCH BOND OR ESTABLISH SUCH DEPOSIT WITH-
IN SIX MONTHS OF THE EFFECTIVE DATE OF SUCH REGULATIONS.
4. UPON THE FILING OF AN APPLICATION FOR REGISTRATION, IF THE SUPER-
INTENDENT SHALL FIND THAT THE FINANCIAL RESPONSIBILITY, EXPERIENCE,
CHARACTER, AND GENERAL FITNESS OF THE APPLICANT, AND OF THE MEMBERS
THEREOF IF THE APPLICANT IS A CO-PARTNERSHIP OR ASSOCIATION, AND OF THE
OFFICERS AND DIRECTORS THEREOF IF THE APPLICANT IS 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 PURPOSE OF THIS ARTICLE, THE SUPERINTENDENT SHALL THEREUPON
REGISTER THE APPLICANT AS AN EARNED WAGE ACCESS SERVICE PROVIDER ON A
ROLL MAINTAINED FOR THAT PURPOSE AT THE DEPARTMENT, AND ISSUE A CERTIF-
ICATE ATTESTING TO SUCH REGISTRATION IN DUPLICATE. IF THE SUPERINTENDENT
SHALL NOT SO FIND, THE SUPERINTENDENT SHALL NOT REGISTER SUCH APPLICANT,
AND SHALL NOTIFY THE APPLICANT OF THE DENIAL. THE SUPERINTENDENT SHALL
TRANSMIT ONE COPY OF SUCH CERTIFICATE TO THE APPLICANT AND FILE ANOTHER
IN THE OFFICE OF THE DEPARTMENT. UPON RECEIPT OF SUCH CERTIFICATE AN
EARNED WAGE ACCESS SERVICE PROVIDER SHALL BE AUTHORIZED TO ENGAGE IN THE
BUSINESS OF PROVIDING EARNED WAGE ACCESS SERVICES. SUCH REGISTRATION
SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL IT IS SURRENDERED BY THE
S. 916 4
REGISTRANT OR REVOKED OR SUSPENDED AS HEREINAFTER PROVIDED, EXCEPT THAT
SUCH REGISTRATION SHALL EXPIRE UPON THE REGISTRANT'S FAILURE TO PAY THE
REQUIRED ASSESSMENT THIRTY DAYS AFTER THE DATE OR DATES SUCH PAYMENT OR
PAYMENTS ARE DUE. IF THE REGISTRANT FAILS TO PAY SUCH CHARGED ASSESSMENT
BY THE DATE OR DATES SUCH PAYMENT OR PAYMENTS ARE DUE, THEN THE REGIS-
TRANT SHALL BE REQUIRED TO PAY, IN ADDITION, A LATE FEE IN THE AMOUNT OF
ONE HUNDRED DOLLARS. SUCH REGISTRATION SHALL BE REINSTATED IF THE REGIS-
TRANT PAYS SUCH ASSESSMENT CHARGED AND ANY APPLICABLE LATE FEES AND/OR
INTEREST WITHIN SIXTY DAYS OF SUCH EXPIRATION. THE SUPERINTENDENT SHALL
APPROVE OR DENY EVERY APPLICATION FOR REGISTRATION HEREUNDER WITHIN
NINETY DAYS FROM THE FILING OF A COMPLETE APPLICATION PROVIDED, HOWEVER,
THAT FAILURE TO ACT WITHIN THE PRESCRIBED PERIOD SHALL NOT BE DEEMED
APPROVAL OF ANY SUCH APPLICATION.
5. THE SUPERINTENDENT MAY REFUSE TO ISSUE A CERTIFICATE PURSUANT TO
THIS ARTICLE IF HE OR SHE SHALL FIND THAT THE APPLICANT, OR ANY PERSON
WHO IS A DIRECTOR OR OFFICER OF THE APPLICANT: (A) HAS BEEN CONVICTED OF
A CRIME INVOLVING AN ACTIVITY WHICH IS A FELONY UNDER THIS CHAPTER OR
UNDER ARTICLE ONE HUNDRED FIFTY-FIVE, ONE HUNDRED SEVENTY, ONE HUNDRED
SEVENTY-FIVE, ONE HUNDRED SEVENTY-SIX, ONE HUNDRED EIGHTY, ONE HUNDRED
EIGHTY-FIVE, ONE HUNDRED EIGHTY-SEVEN, ONE HUNDRED NINETY, TWO HUNDRED,
TWO HUNDRED TEN OR FOUR HUNDRED SEVENTY OF THE PENAL LAW OR ANY COMPARA-
BLE FELONY UNDER THE LAWS OF ANY OTHER STATE OR THE UNITED STATES,
PROVIDED THAT SUCH CRIME WOULD BE A FELONY IF COMMITTED AND PROSECUTED
UNDER THE LAWS OF THIS STATE; OR (B) HAS HAD A LICENSE OR REGISTRATION
REVOKED BY THE SUPERINTENDENT; OR (C) HAS BEEN A DIRECTOR OR OFFICER OF
AN ENTITY WHICH HAS HAD A LICENSE OR REGISTRATION REVOKED BY THE SUPER-
INTENDENT.
6. EACH CERTIFICATE ISSUED TO A REGISTERED EARNED WAGE ACCESS SERVICE
PROVIDER UNDER THIS ARTICLE SHALL STATE THE ADDRESS OR ADDRESSES AT
WHICH THE BUSINESS IS TO BE CONDUCTED, OR SHALL STATE THAT ALL BUSINESS
OF THE APPLICANT IS CONDUCTED ONLINE, AND SHALL STATE FULLY THE NAME OF
THE REGISTRANT, AND THE DATE AND PLACE OF ITS INCORPORATION IF APPLICA-
BLE. A COPY OF SUCH CERTIFICATE SHALL BE PROMINENTLY POSTED IN EACH
PLACE OF BUSINESS OF THE REGISTRANT OR AVAILABLE ONLINE VIA A LINK ON
THE HOMEPAGE OF THE REGISTRANT. SUCH CERTIFICATE SHALL NOT BE TRANSFERA-
BLE OR ASSIGNABLE. IN THE EVENT THE LOCATION AT WHICH THE BUSINESS IS TO
BE CONDUCTED SHALL BE CHANGED, THE REGISTRANT SHALL FORTHWITH NOTIFY THE
SUPERINTENDENT WHO SHALL THEREUPON WITHOUT CHARGE ATTACH TO THE CERTIF-
ICATE AN AMENDMENT CERTIFICATE SETTING FORTH SUCH CHANGED LOCATION.
§ 374-CC. OTHER REQUIREMENTS FOR EARNED WAGE ACCESS SERVICES OFFERED
IN THIS STATE. 1. ANY PROVIDER THAT OFFERS EARNED WAGE ACCESS SERVICES
TO A CONSUMER IN THIS STATE SHALL COMPLY WITH THE FOLLOWING:
(A) A PROVIDER SHALL PROVIDE ALL PROCEEDS ON A NON-RECOURSE BASIS AND
SHALL TREAT NON-MANDATORY PAYMENTS AS NON-RECOURSE PAYMENT OBLIGATIONS;
(B) BEFORE PROVIDING PROCEEDS TO A CONSUMER, A PROVIDER SHALL INFORM
THE CONSUMER, IN WRITING, OF ANY NON-MANDATORY PAYMENTS THAT MAY BE
ASSOCIATED WITH THE PROVISION OF EARNED WAGE ACCESS SERVICES BY THAT
PROVIDER;
(C) EVERY TIME A PROVIDER PROVIDES PROCEEDS TO A CONSUMER, THE PROVID-
ER SHALL INFORM THE CONSUMER WHEN THE PROVIDER WILL MAKE ITS FIRST
ATTEMPT TO SEEK REPAYMENT OF THOSE PROCEEDS FROM THE CONSUMER; AND
(D) A PROVIDER THAT SEEKS REPAYMENT OF PROCEEDS FROM A CONSUMER'S
DEPOSITORY INSTITUTION ACCOUNT SHALL COMPLY WITH APPLICABLE NATIONAL
AUTOMATED CLEARINGHOUSE ASSOCIATION RULES.
2. A PROVIDER THAT IS REGISTERED IN THE STATE SHALL NOT:
(A) REQUIRE A CONSUMER TO MAKE A MANDATORY PAYMENT;
S. 916 5
(B) CHARGE A LATE FEE OR ANY OTHER PENALTY CHARGE FOR FAILURE TO REPAY
OUTSTANDING PROCEEDS;
(C) CONDITION THE AMOUNT OF PROCEEDS PROVIDED TO A CONSUMER ON THE
AMOUNT OF A NON-MANDATORY PAYMENT MADE BY SUCH CONSUMER TO SUCH PROVID-
ER. THIS PROHIBITION SHALL NOT BE CONSTRUED TO PROHIBIT A NON-MANDATORY
PAYMENT EQUAL TO A PERCENTAGE OF PROCEEDS PROVIDED, AS LONG AS THE
PERCENTAGE APPLIED DOES NOT VARY BASED ON THE AMOUNT OF PROCEEDS
PROVIDED;
(D) CONDITION THE FREQUENCY WITH WHICH PROCEEDS ARE PROVIDED TO A
CONSUMER ON THE AMOUNT OF A NON-MANDATORY PAYMENT MADE BY SUCH CONSUMER
TO SUCH PROVIDER. THIS PROHIBITION SHALL NOT BE CONSTRUED TO PROHIBIT A
NON-MANDATORY PAYMENT EQUAL TO A PERCENTAGE OF PROCEEDS PROVIDED, AS
LONG AS THE PERCENTAGE APPLIED DOES NOT VARY BASED ON THE AMOUNT OF
PROCEEDS PROVIDED;
(E) REPORT A CONSUMER'S PAYMENT OR FAILED REPAYMENT OF PROCEEDS TO A
CONSUMER CREDIT REPORTING AGENCY OR A DEBT COLLECTOR;
(F) REQUIRE A CREDIT REPORT OR CREDIT SCORE TO DETERMINE A CONSUMER'S
ELIGIBILITY FOR EARNED WAGE ACCESS SERVICES; OR
(G) PROVIDE, SELL, OR OTHERWISE DISCLOSE TO ANY THIRD PARTY, INCLUDING
AN OBLIGOR, ANY NON-PUBLIC PERSONAL INFORMATION COLLECTED FROM OR ABOUT
A CONSUMER, EXCEPT AS NECESSARY TO PROVIDE EARNED WAGE ACCESS SERVICES
TO THE CONSUMER AND AS ALLOWED BY APPLICABLE FEDERAL AND STATE LAW.
3. PROCEEDS PROVIDED TO A CONSUMER BY A PROVIDER IN ACCORDANCE WITH
THIS ARTICLE SHALL NOT BE CONSIDERED CREDIT, THE PROVIDER OF THOSE
PROCEEDS SHALL NOT BE CONSIDERED A CREDITOR, AND NON-MANDATORY PAYMENTS
PAID TO SUCH PROVIDER SHALL NOT BE CONSIDERED FINANCE CHARGES, FOR
PURPOSES OF THE FEDERAL TRUTH IN LENDING ACT.
4. PROCEEDS PROVIDED TO A CONSUMER BY A PROVIDER IN ACCORDANCE WITH
THIS ARTICLE SHALL NOT BE CONSIDERED WAGE DEDUCTIONS FOR PURPOSES OF
SECTION ONE HUNDRED NINETY-THREE OF THE LABOR LAW AND SHALL NOT BE
SUBJECT TO REGULATION BY THE SUPERINTENDENT UNDER ARTICLE NINE OF THIS
CHAPTER. FURTHER, THE PROVIDER OF THOSE PROCEEDS SHALL NOT BE REQUIRED
TO OBTAIN A LICENSE UNDER ARTICLE NINE OF THIS CHAPTER.
§ 374-DD. ANNUAL REPORT. 1. ON OR BEFORE THE FIRST DAY OF APRIL OF
EACH YEAR, A PROVIDER SHALL SUBMIT AN ANNUAL REPORT TO THE SUPERINTEN-
DENT THAT INCLUDES ALL OF THE FOLLOWING INFORMATION FOR EARNED WAGE
ACCESS SERVICES PROVIDED BY SUCH PROVIDER DURING THE PRIOR CALENDAR
YEAR:
(A) GROSS REVENUE ATTRIBUTABLE TO EARNED WAGE ACCESS SERVICES;
(B) THE TOTAL NUMBER OF TRANSACTIONS IN WHICH PROCEEDS WERE REMITTED
TO CONSUMERS;
(C) THE TOTAL NUMBER OF UNIQUE CONSUMERS TO WHOM PROCEEDS WERE REMIT-
TED;
(D) THE TOTAL DOLLAR AMOUNT OF PROCEEDS THE PROVIDER REMITTED TO
CONSUMERS;
(E) THE TOTAL DOLLAR AMOUNT OF NON-MANDATORY PAYMENTS THE PROVIDER
RECEIVED FROM CONSUMERS;
(F) THE TOTAL NUMBER OF TRANSACTIONS IN WHICH PROCEEDS WERE REMITTED
TO CONSUMERS FOR WHICH THE PROVIDER DID NOT RECEIVE REPAYMENT OF ANY
OUTSTANDING PROCEEDS, AND THE TOTAL DOLLAR AMOUNT OF SUCH TRANSACTIONS;
(G) THE TOTAL NUMBER OF TRANSACTIONS IN WHICH PROCEEDS WERE REMITTED
TO CONSUMERS, FOR WHICH THE PROVIDER RECEIVED PARTIAL REPAYMENT OF
OUTSTANDING PROCEEDS, THE TOTAL DOLLAR AMOUNT OF SUCH TRANSACTIONS, AND
THE TOTAL DOLLAR AMOUNT OF OUTSTANDING PROCEEDS ATTRIBUTABLE TO SUCH
TRANSACTIONS; AND
S. 916 6
(H) THE TOTAL NUMBER OF TRANSACTIONS IN WHICH OUTSTANDING PROCEEDS
WERE REPAID AFTER THE ORIGINAL, SCHEDULED REPAYMENT DATE, AND THE TOTAL
DOLLAR AMOUNT OF SUCH TRANSACTIONS.
2. FAILURE OF A PROVIDER TO SUBMIT A REPORT ON A TIMELY BASIS IN
ACCORDANCE WITH THIS ARTICLE MAY CONSTITUTE GROUNDS FOR DISCIPLINARY
ACTION BY THE SUPERINTENDENT.
§ 374-EE. AUTHORITY OF THE SUPERINTENDENT. 1. THE SUPERINTENDENT IS
HEREBY AUTHORIZED AND EMPOWERED TO MAKE SUCH GENERAL RULES AND REGU-
LATIONS, AND SUCH SPECIFIC RULINGS, DEMANDS, AND FINDINGS AS MAY BE
NECESSARY FOR THE PROPER CONDUCT OF THE BUSINESS AUTHORIZED AND REGIS-
TERED UNDER AND FOR THE ENFORCEMENT OF THIS ARTICLE, IN ADDITION HERETO
AND NOT INCONSISTENT HEREWITH.
2. THE SUPERINTENDENT SHALL HAVE THE POWER TO MAKE SUCH INVESTIGATIONS
AND CONDUCT SUCH HEARINGS AS HE OR SHE SHALL DEEM NECESSARY TO DETERMINE
WHETHER ANY REGISTRANT OR ANY OTHER PERSON HAS VIOLATED ANY OF THE
PROVISIONS OF THIS ARTICLE, OR WHETHER ANY REGISTRANT HAS CONDUCTED
ITSELF IN SUCH MANNER AS WOULD JUSTIFY THE SUSPENSION OR REVOCATION OF
ITS REGISTRATION.
3. IN MAKING ANY INVESTIGATION OR CONDUCTING ANY HEARING PURSUANT TO
THE PROVISIONS OF THIS ARTICLE, THE SUPERINTENDENT, OR ANY PERSON DULY
DESIGNATED BY HIM OR HER, SHALL HAVE THE POWER AT ALL TIMES TO SUBPOENA
WITNESSES; TO TAKE DEPOSITIONS OF WITNESSES RESIDING WITHOUT THE STATE,
IN THE MANNER PROVIDED FOR IN CIVIL ACTIONS IN COURTS OF RECORD; TO PAY
SUCH WITNESSES THE FEES AND MILEAGE FOR THEIR ATTENDANCE PROVIDED FOR
WITNESSES IN CIVIL ACTIONS IN COURTS OF RECORD; AND TO ADMINISTER OATHS.
HE OR SHE SHALL ALSO HAVE THE POWER TO COMPEL BY ORDER OR SUBPOENA THE
PRODUCTION OF AND TO EXAMINE ALL RELEVANT BOOKS, RECORDS, ACCOUNTS AND
OTHER DOCUMENTS. ANY PERSON WHO FAILS TO OBEY THE COMMAND OF THE SUBPOE-
NA WITHOUT REASONABLE EXCUSE, OR REFUSES WITHOUT REASONABLE CAUSE TO BE
SERVED OR TO BE EXAMINED OR TO ANSWER A QUESTION OR TO PRODUCE A BOOK OR
PAPER WHEN ORDERED SO TO DO, OR FAILS TO PERFORM ANY ACT REQUIRED HERE-
UNDER TO BE PERFORMED, SHALL BE SUBJECT TO THE COMPULSIONS IN SUCH CASES
MADE AND PROVIDED BY LAW, AND IF THE PERSON BE REGISTERED HEREUNDER, THE
SUPERINTENDENT SHALL HAVE THE RIGHT TO SUSPEND OR REVOKE THE REGISTRA-
TION.
4. THE SUPERINTENDENT MAY REQUIRE OF ANY REGISTRANT SUCH REPORTS,
UNDER OATH OR OTHERWISE, CONCERNING THE REGISTRANT'S BUSINESS IN THIS
STATE, AS HE OR SHE MAY DEEM NECESSARY FOR THE ENFORCEMENT OF THIS ARTI-
CLE.
5. ALL REPORTS OF INVESTIGATIONS AND OTHER REPORTS RENDERED PURSUANT
TO THIS SECTION, AND ALL CORRESPONDENCE AND MEMORANDA CONCERNING OR
ARISING OUT OF SUCH INVESTIGATIONS OR REPORTS, INCLUDING ANY DULY
AUTHENTICATED COPY OR COPIES THEREOF IN THE POSSESSION OF ANY REGISTRANT
OR THE DEPARTMENT, SHALL BE CONFIDENTIAL COMMUNICATIONS, SHALL NOT BE
SUBJECT TO SUBPOENA AND SHALL NOT BE MADE PUBLIC UNLESS, IN THE JUDGMENT
OF THE SUPERINTENDENT, THE ENDS OF JUSTICE AND THE PUBLIC ADVANTAGE WILL
BE SUBSERVED BY THE PUBLICATION THEREOF, IN WHICH EVENT THE SUPERINTEN-
DENT MAY PUBLISH OR AUTHORIZE THE PUBLICATION OF A COPY OF ANY SUCH
REPORT OR OTHER MATERIAL REFERRED TO IN THIS SUBDIVISION, OR ANY PART
THEREOF, IN SUCH MANNER AS MAY BE DEEMED PROPER. FOR PURPOSES OF THIS
SUBDIVISION, "REPORTS OF INVESTIGATIONS, AND OTHER REPORTS RENDERED
PURSUANT TO THIS SECTION AND ALL CORRESPONDENCE AND MEMORANDA CONCERNING
OR ARISING OUT OF SUCH INVESTIGATIONS OR REPORTS" SHALL HAVE THE SAME
MEANING AS SUCH TERMS ARE DEFINED PURSUANT TO SUBDIVISION TEN OF SECTION
THIRTY-SIX OF THIS CHAPTER.
S. 916 7
6. 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, IMPOSE PENALTIES ON EARNED WAGE ACCESS
PROVIDERS WHO VIOLATE THIS ARTICLE OR ANY RULES PROMULGATED HEREUNDER.
SECTION FORTY-FOUR OF THIS CHAPTER SHALL GOVERN THE AMOUNT AND NATURE OF
THOSE PENALTIES.
§ 2. Subdivision 10 of section 36 of the banking law, as amended by
section 2 of part L of chapter 58 of the laws of 2019, is amended to
read as follows:
10. All reports of examinations and investigations, correspondence and
memoranda concerning or arising out of such examination and investi-
gations, including any duly authenticated copy or copies thereof in the
possession of any banking organization, bank holding company or any
subsidiary thereof (as such terms "bank holding company" and "subsid-
iary" are defined in article three-A of this chapter), any corporation
or any other entity affiliated with a banking organization within the
meaning of subdivision six of this section and any non-banking subsid-
iary of a corporation or any other entity which is an affiliate of a
banking organization within the meaning of subdivision six-a of this
section, foreign banking corporation, licensed lender, licensed casher
of checks, licensed mortgage banker, registered mortgage broker,
licensed mortgage loan originator, licensed sales finance company,
registered mortgage loan servicer, licensed student loan servicer,
licensed insurance premium finance agency, licensed transmitter of
money, licensed budget planner, REGISTERED EARNED WAGE ACCESS SERVICE
PROVIDER, any other person or entity subject to supervision under this
chapter, or the department, shall be confidential communications, shall
not be subject to subpoena and shall not be made public unless, in the
judgment of the superintendent, the ends of justice and the public
advantage will be subserved by the publication thereof, in which event
the superintendent may publish or authorize the publication of a copy of
any such report or any part thereof in such manner as may be deemed
proper or unless such laws specifically authorize such disclosure. For
the purposes of this subdivision, "reports of examinations and investi-
gations, and any correspondence and memoranda concerning or arising out
of such examinations and investigations", includes any such materials of
a bank, insurance or securities regulatory agency or any unit of the
federal government or that of this state any other state or that of any
foreign government which are considered confidential by such agency or
unit and which are in the possession of the department or which are
otherwise confidential materials that have been shared by the department
with any such agency or unit and are in the possession of such agency or
unit.
§ 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law. Effective immediately, the addition, amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation of this act on its effective date are authorized to be made and
completed on or before such effective date.
