S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    916
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2023
                                ___________
 
 Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks
 
 AN ACT to amend the banking law,  in  relation  to  earned  wage  access
   services
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The banking law is amended by adding a new article  9-B  to
 read as follows:
                                ARTICLE 9-B
                        EARNED WAGE ACCESS SERVICES
 SECTION 374-AA. DEFINITIONS.
         374-BB. REGISTRATION REQUIREMENTS FOR EARNED WAGE ACCESS SERVICE
                   PROVIDERS.
         374-CC. OTHER  REQUIREMENTS  FOR  EARNED  WAGE  ACCESS  SERVICES
                   PROVIDED IN THIS STATE.
         374-DD. ANNUAL REPORT.
         374-EE. AUTHORITY OF THE SUPERINTENDENT.
   § 374-AA. DEFINITIONS. AS USED IN THIS ARTICLE,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "CONSUMER"  MEANS  A  NATURAL  PERSON RESIDING IN THE STATE OF NEW
 YORK.
   2. "EARNED BUT UNPAID INCOME" MEANS FUNDS THAT  ARE  BASED  ON  WAGES,
 COMPENSATION,  OR  INCOME  THAT A CONSUMER HAS REPRESENTED, AND THAT THE
 PROVIDER HAS REASONABLY DETERMINED HAVE BEEN EARNED OR HAVE  ACCRUED  TO
 THE  BENEFIT OF THE CONSUMER BUT HAVE NOT, AT THE TIME OF THE REMITTANCE
 OF PROCEEDS, BEEN PAID TO THE CONSUMER BY AN OBLIGOR.
   3. "EARNED WAGE ACCESS SERVICES"  MEANS  THE  BUSINESS  OF  DELIVERING
 PROCEEDS  TO  A  CONSUMER  PRIOR TO THE NEXT DATE ON WHICH AN OBLIGOR IS
 OBLIGATED TO PAY SALARY,  WAGES,  OR  OTHER  MONETARY  BENEFITS  TO  THE
 CONSUMER.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02550-01-3
 S. 916                              2
              

 
   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.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  916--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2023
                                ___________
 
 Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Banks  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to  amend  the banking law, in relation to providing for income
   access services in the state

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The banking law is amended by adding a new article 9-B to
 read as follows:
                                   IX-B
                          INCOME ACCESS SERVICES
 SECTION 374-AA. DEFINITIONS.
         374-BB. LICENSE.
         374-CC. ACTION BY SUPERINTENDENT ON APPLICATION.
         374-DD. LICENSE PROVISIONS AND POSTING.
         374-EE. GROUNDS FOR SUSPENSION OR REVOCATION OF LICENSE;  PROCE-
                   DURE.
         374-FF. INVESTIGATIONS AND EXAMINATIONS.
         374-GG. COMPLIANCE.
         374-HH. ADVERTISING.
         374-II. REGULATIONS AND RULINGS.
         374-JJ. CHANGES IN CONTROL.
         374-KK. VIOLATION AND PENALTIES.
         374-LL. BOOKS AND RECORDS; REPORTS.
         374-MM. SEVERABILITY.
   §  374-AA.  DEFINITIONS.  AS USED IN THIS ARTICLE, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "CONSUMER" MEANS AN INDIVIDUAL WHO IS A RESIDENT OF  THE  STATE  OF
 NEW YORK.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02550-03-3
 S. 916--A                           2
              

   2.  "DEBT COLLECTION ACTIVITY" MEANS THE BUSINESS OF COLLECTION OF ANY
 DEBTS, DIRECTLY OR INDIRECTLY, OWED OR DUE OR ASSERTED TO BE OWED OR DUE
 ANOTHER AND THE BUSINESS OF A BUYER OF DEBTS WHO SEEKS TO  COLLECT  SUCH
 DEBTS  EITHER  DIRECTLY  OR  INDIRECTLY,  AS WELL AS THE BUSINESS OF ANY
 CREDITOR  COLLECTING  ITS OWN DEBTS IF SUCH CREDITOR USES ANY NAME OTHER
 THAN ITS OWN THAT WOULD SUGGEST OR INDICATE THAT SOMEONE OTHER THAN SUCH
 CREDITOR IS COLLECTING OR ATTEMPTING TO COLLECT SUCH DEBTS.
   3. "EARNED BUT UNPAID INCOME" MEANS WAGES OR  COMPENSATION  THAT  HAVE
 BEEN  EARNED  OR  HAVE ACCRUED TO THE BENEFIT OF A CONSUMER BUT HAVE NOT
 BEEN PAID BY AN OBLIGOR TO THAT CONSUMER FOR LABOR OR SERVICES PERFORMED
 FOR OR ON BEHALF OF AN OBLIGOR.
   4. "EARNED INCOME ACCESS RATE CAP" MEANS THE LIMIT ON THE AMOUNT  THAT
 MAY  BE  CHARGED  FOR AN EARNED INCOME ACCESS TRANSACTION THAT IS ESTAB-
 LISHED BY THE SUPERINTENDENT BY REGULATION.
   5. "EARNED INCOME ACCESS TRANSACTION" MEANS THE PAYMENT OF EARNED  BUT
 UNPAID  INCOME TO A CONSUMER AT A TIME OTHER THAN THE CONSUMER'S REGULAR
 PAYDAY OR OTHER REGULARLY SCHEDULED TIME ON WHICH THE  OBLIGOR  PAYS  TO
 THE  CONSUMER  WAGES  OR COMPENSATION EARNED OR THAT HAVE ACCRUED TO THE
 BENEFIT OF SUCH CONSUMER.
   6. "EARNED INCOME ACCESS PROVIDER" OR "PROVIDER"  MEANS  A  PERSON  OR
 ENTITY THAT:
   (A)  PROVIDES,  OR  OFFERS  TO PROVIDE, ON BEHALF OF AN OBLIGOR EARNED
 INCOME ACCESS TRANSACTIONS TO CONSUMERS EARNING  WAGES  OR  COMPENSATION
 FROM THE OBLIGOR; OR
   (B) OFFERS EARNED INCOME ACCESS TRANSACTIONS TO, OR ENTERS INTO EARNED
 INCOME TRANSACTIONS WITH, CONSUMERS.
   7.  "EXEMPT ORGANIZATION" SHALL MEAN ANY BANKING ORGANIZATION, FOREIGN
 BANKING CORPORATION LICENSED BY THE SUPERINTENDENT OR THE COMPTROLLER OF
 THE CURRENCY TO TRANSACT BUSINESS IN THIS STATE, NATIONAL BANK,  FEDERAL
 SAVINGS  BANK,  FEDERAL  SAVINGS  AND  LOAN  ASSOCIATION, FEDERAL CREDIT
 UNION, OR ANY BANK, TRUST COMPANY, SAVINGS BANK, SAVINGS AND LOAN  ASSO-
 CIATION,  OR CREDIT UNION ORGANIZED UNDER THE LAWS OF ANY OTHER STATE OR
 ANY INSTRUMENTALITY CREATED BY THE UNITED STATES OR ANY STATE  WITH  THE
 POWER  TO  MAKE  MORTGAGE  LOANS.  SUBJECT TO SUCH REGULATIONS AS MAY BE
 PROMULGATED  BY  THE  SUPERINTENDENT,  "EXEMPT  ORGANIZATION"  MAY  ALSO
 INCLUDE ANY SUBSIDIARY OF SUCH ENTITIES.
   8.  "NON-RECOURSE"  MEANS  THE  UNAVAILABILITY  OF  ANY LEGAL CAUSE OF
 ACTION OR REMEDY AGAINST A CONSUMER RELATING TO AN EARNED INCOME  ACCESS
 TRANSACTION.
   9. "NOTICE" MEANS COMMUNICATION FROM THE PROVIDER TO THE CONSUMER IN A
 CLEAR AND CONSPICUOUS MANNER.
   10.  "OBLIGOR"  MEANS  A  PERSON  OR  ENTITY WHO IS OBLIGATED TO PAY A
 CONSUMER ANY SUM OF MONEY ON AN  HOURLY,  PROJECT-BASED,  PIECEWORK,  OR
 OTHER  BASIS  FOR  LABOR OR SERVICES PERFORMED BY THE CONSUMER FOR OR ON
 BEHALF OF THAT PERSON OR ENTITY. OBLIGOR 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.
   11. "FEES" MEANS ANY AMOUNT CHARGED BY A PROVIDER TO A CONSUMER FOR AN
 EARNED INCOME ACCESS  TRANSACTION,  INCLUDING  AMOUNTS  TO  BE  PAID  AS
 DESCRIBED  IN  PARAGRAPH (I) OF SUBDIVISION TWO OF SECTION THREE HUNDRED
 SEVENTY-FOUR-GG OF THIS ARTICLE.
   12. "PROCEEDS" MEANS FUNDS RECEIVED  BY  A  CONSUMER  PURSUANT  TO  AN
 EARNED INCOME ACCESS TRANSACTION.
   § 374-BB. LICENSE. 1. NO PERSON OR ENTITY, EXCEPT FOR AN EXEMPT ORGAN-
 IZATION  AS  DEFINED  IN  THIS  ARTICLE, SHALL ENGAGE IN THE BUSINESS OF
 S. 916--A                           3
 
 PROVIDING OR OFFERING EARNED INCOME ACCESS TRANSACTIONS TO CONSUMERS, OR
 ENTER INTO AN EARNED INCOME ACCESS TRANSACTION WITH A CONSUMER,  WITHOUT
 FIRST OBTAINING A LICENSE.
   2.  AN  APPLICATION FOR A LICENSE UNDER THIS ARTICLE SHALL BE IN WRIT-
 ING, UNDER OATH AND IN THE FORM PRESCRIBED BY THE SUPERINTENDENT.
   3. AT THE TIME OF FILING AN APPLICATION FOR A LICENSE,  THE  APPLICANT
 SHALL  PAY TO THE SUPERINTENDENT AN APPLICATION FEE. THE APPLICATION FEE
 SHALL BE AS PRESCRIBED PURSUANT TO SECTION EIGHTEEN-A OF THIS CHAPTER.
   4. A LICENSE GRANTED PURSUANT TO THIS ARTICLE SHALL  BE  VALID  UNLESS
 REVOKED  OR SUSPENDED BY THE SUPERINTENDENT OR SURRENDERED BY THE LICEN-
 SEE.
   § 374-CC. ACTION BY SUPERINTENDENT ON APPLICATION. 1. AFTER THE FILING
 OF AN APPLICATION FOR A LICENSE ACCOMPANIED BY PAYMENT OF THE  FEES  FOR
 LICENSE AND INVESTIGATION, IT SHALL BE SUBSTANTIVELY REVIEWED. AFTER THE
 APPLICATION  IS DEEMED SUFFICIENT AND COMPLETE, THE SUPERINTENDENT SHALL
 ISSUE THE LICENSE, OR THE SUPERINTENDENT MAY REFUSE TO ISSUE THE LICENSE
 IF THE SUPERINTENDENT SHALL  FIND  THAT  THE  FINANCIAL  RESPONSIBILITY,
 EXPERIENCE, CHARACTER AND GENERAL FITNESS OF THE APPLICANT OR ANY PERSON
 ASSOCIATED  WITH THE APPLICANT ARE NOT SUCH AS TO COMMAND THE CONFIDENCE
 OF THE COMMUNITY AND TO WARRANT THE BELIEF THAT  THE  BUSINESS  WILL  BE
 CONDUCTED  HONESTLY,  FAIRLY  AND  EFFICIENTLY  WITHIN  THE PURPOSES AND
 INTENT OF THIS ARTICLE. FOR THE PURPOSE OF THIS SUBDIVISION, THE  APPLI-
 CANT  SHALL  BE DEEMED TO INCLUDE ALL THE MEMBERS OF THE APPLICANT IF IT
 IS A PARTNERSHIP OR UNINCORPORATED ASSOCIATION, AND ALL  THE  STOCKHOLD-
 ERS,  OFFICERS  AND  DIRECTORS  OF THE APPLICANT IF IT IS A CORPORATION.
 SUCH LICENSE TO ENGAGE IN BUSINESS IN ACCORDANCE WITH THE PROVISIONS  OF
 THIS  ARTICLE  AT  THE  LOCATION  SPECIFIED  IN THE APPLICATION SHALL BE
 EXECUTED IN TRIPLICATE BY  THE  SUPERINTENDENT  AND  THE  SUPERINTENDENT
 SHALL  TRANSMIT  ONE  COPY  THEREOF TO THE APPLICANT, FILE A COPY IN THE
 OFFICE OF THE DEPARTMENT OF FINANCIAL SERVICES, AND FILE A COPY  IN  THE
 OFFICE  OF  THE CLERK OF THE COUNTY IN WHICH IS LOCATED THE PLACE DESIG-
 NATED IN SUCH LICENSE.
   2. IF THE SUPERINTENDENT REFUSES TO ISSUE A LICENSE,  THE  SUPERINTEN-
 DENT  SHALL  NOTIFY THE APPLICANT OF THE DENIAL, RETURN TO THE APPLICANT
 THE SUM PAID AS A LICENSE FEE, BUT RETAIN THE INVESTIGATION FEE TO COVER
 THE COSTS OF INVESTIGATING THE APPLICANT.
   3. EACH LICENSE ISSUED PURSUANT TO THIS ARTICLE SHALL REMAIN  IN  FULL
 FORCE UNLESS IT IS SURRENDERED BY THE LICENSEE, REVOKED OR SUSPENDED.
   §  374-DD.  LICENSE  PROVISIONS AND POSTING. 1. A LICENSE ISSUED UNDER
 THIS ARTICLE SHALL STATE THE NAME AND ADDRESS OF THE  LICENSEE,  AND  IF
 THE  LICENSEE  BE  A  CO-PARTNERSHIP  OR  ASSOCIATION,  THE NAMES OF THE
 MEMBERS THEREOF, AND IF A CORPORATION THE DATE AND PLACE OF ITS INCORPO-
 RATION.
   2. SUCH LICENSE SHALL BE KEPT CONSPICUOUSLY POSTED IN  THE  OFFICE  OF
 THE  LICENSEE  AND  ON THE MOBILE APPLICATION OR WEBSITE OF THE LICENSEE
 AND SHALL NOT BE TRANSFERABLE OR ASSIGNABLE.
   § 374-EE. GROUNDS FOR SUSPENSION OR REVOCATION OF LICENSE;  PROCEDURE.
 1.  A LICENSE GRANTED PURSUANT TO THIS SECTION SHALL NOT BE RENEWED, AND
 SHALL BE REVOKED OR SUSPENDED BY THE SUPERINTENDENT UPON A FINDING THAT:
   (A) THE LICENSEE HAS NOT COMPLIED WITH REPORTING REQUIREMENTS;
   (B)  THE  LICENSEE HAS VIOLATED ANY PROVISION OF THIS ARTICLE, THE ACT
 OF CONGRESS ENTITLED "TRUTH IN LENDING ACT" AND THE  REGULATIONS  THERE-
 UNDER,  AS  SUCH ACT AND REGULATIONS MAY FROM TIME TO TIME BE AMENDED OR
 ANY RULE OR REGULATION LAWFULLY MADE BY  THE  SUPERINTENDENT  UNDER  AND
 WITHIN THE AUTHORITY OF THIS ARTICLE;
 S. 916--A                           4
 
   (C)  ANY FACT OF CONDITION EXISTS WHICH, IF IT HAD EXISTED AT THE TIME
 OF THE  ORIGINAL  APPLICATION  FOR  SUCH  LICENSE,  CLEARLY  WOULD  HAVE
 WARRANTED THE SUPERINTENDENT'S REFUSAL TO ISSUE SUCH LICENSE; OR
   (D)  THE LICENSEE HAS FAILED TO PAY ANY SUM OF MONEY LAWFULLY DEMANDED
 BY THE SUPERINTENDENT OR TO COMPLY WITH ANY DEMAND, RULING  OR  REQUIRE-
 MENT OF THE SUPERINTENDENT.
   2.  ANY LICENSEE MAY SURRENDER ANY LICENSE BY DELIVERING TO THE SUPER-
 INTENDENT WRITTEN NOTICE  THAT  THE  LICENSEE  THEREBY  SURRENDERS  SUCH
 LICENSE,  BUT  SUCH  SURRENDER SHALL NOT AFFECT SUCH LICENSEE'S CIVIL OR
 CRIMINAL LIABILITY FOR ACTS COMMITTED PRIOR TO SUCH SURRENDER.
   3. EVERY LICENSE ISSUED HEREUNDER SHALL REMAIN  IN  FORCE  AND  EFFECT
 UNTIL THE SAME SHALL HAVE BEEN SURRENDERED, REVOKED, SUSPENDED, OR SHALL
 HAVE EXPIRED, IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE, BUT THE
 SUPERINTENDENT  SHALL  HAVE AUTHORITY TO REINSTATE SUSPENDED LICENSES OR
 TO ISSUE NEW LICENSES TO A LICENSEE WHOSE LICENSE OR LICENSES SHALL HAVE
 BEEN REVOKED IF NO FACT OR CONDITION THEN  EXISTS  WHICH  CLEARLY  WOULD
 HAVE WARRANTED THE SUPERINTENDENT'S REFUSAL TO ISSUE SUCH LICENSE.
   4.  WHENEVER  THE  SUPERINTENDENT  SHALL  REVOKE  OR SUSPEND A LICENSE
 ISSUED PURSUANT TO THIS  ARTICLE,  THE  SUPERINTENDENT  SHALL  FORTHWITH
 EXECUTE IN TRIPLICATE A WRITTEN ORDER TO THAT EFFECT. THE SUPERINTENDENT
 SHALL  FILE ONE COPY OF SUCH ORDER IN THE OFFICE OF THE DEPARTMENT, FILE
 ANOTHER IN THE OFFICE OF THE CLERK OF THE COUNTY IN WHICH IS LOCATED THE
 PLACE DESIGNATED IN SUCH LICENSE AND FORTHWITH SERVE THE THIRD COPY UPON
 THE LICENSEE, WHICH ORDER MAY BE REVIEWED  IN  THE  MANNER  PROVIDED  BY
 ARTICLE  SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. SUCH SPECIAL
 PROCEEDING FOR REVIEW AS AUTHORIZED BY THIS SECTION  MUST  BE  COMMENCED
 WITHIN  THIRTY DAYS FROM THE DATE OF SUCH ORDER OF SUSPENSION OR REVOCA-
 TION.
   5. THE SUPERINTENDENT MAY, ON GOOD CAUSE SHOWN, OR WHERE  THERE  IS  A
 SUBSTANTIAL  RISK  OF PUBLIC HARM, WITHOUT NOTICE AND A HEARING, SUSPEND
 ANY LICENSE ISSUED PURSUANT TO THIS ARTICLE FOR A PERIOD  NOT  EXCEEDING
 THIRTY DAYS, PENDING INVESTIGATION. "GOOD CAUSE", AS USED IN THIS SUBDI-
 VISION,  SHALL  EXIST ONLY WHEN THE LICENSEE HAS ENGAGED IN OR IS LIKELY
 TO ENGAGE IN A PRACTICE PROHIBITED BY THIS ARTICLE OR ENGAGES IN DISHON-
 EST OR INEQUITABLE PRACTICES WHICH MAY CAUSE  SUBSTANTIAL  HARM  TO  THE
 PERSONS AFFORDED THE PROTECTION OF THIS ARTICLE.
   § 374-FF. INVESTIGATIONS AND EXAMINATIONS. 1. THE SUPERINTENDENT SHALL
 HAVE  THE  POWER TO MAKE SUCH INVESTIGATIONS AS THE SUPERINTENDENT SHALL
 DEEM NECESSARY TO DETERMINE WHETHER ANY PROVIDER OR ANY OTHER PERSON HAS
 VIOLATED ANY OF THE PROVISIONS OF THIS ARTICLE, OR WHETHER ANY  LICENSEE
 HAS  CONDUCTED  ITSELF IN SUCH MANNER AS WOULD JUSTIFY THE REVOCATION OF
 ITS LICENSE, AND TO THE EXTENT NECESSARY  THEREFOR,  THE  SUPERINTENDENT
 MAY  REQUIRE  THE  ATTENDANCE  OF AND EXAMINE ANY PERSON UNDER OATH, AND
 SHALL HAVE THE POWER TO COMPEL THE PRODUCTION  OF  ALL  RELEVANT  BOOKS,
 RECORDS, ACCOUNTS, AND DOCUMENTS.
   2.  THE  SUPERINTENDENT SHALL HAVE THE POWER TO MAKE SUCH EXAMINATIONS
 OF THE BOOKS, RECORDS, ACCOUNTS AND DOCUMENTS USED IN  THE  BUSINESS  OF
 ANY  LICENSEE  AS  THE  SUPERINTENDENT SHALL DEEM NECESSARY TO DETERMINE
 WHETHER ANY SUCH LICENSEE HAS VIOLATED ANY OF  THE  PROVISIONS  OF  THIS
 ARTICLE.
   3.  THE EXPENSES INCURRED IN MAKING ANY EXAMINATION PURSUANT TO SUBDI-
 VISION TWO OF THIS SECTION SHALL BE ASSESSED AGAINST  AND  PAID  BY  THE
 LICENSEE  SO EXAMINED, EXCEPT THAT TRAVELING AND SUBSISTENCE EXPENSES SO
 INCURRED SHALL  BE  CHARGED  AGAINST  AND  PAID  BY  LICENSEES  IN  SUCH
 PROPORTIONS  AS  THE  SUPERINTENDENT SHALL DEEM JUST AND REASONABLE, AND
 SUCH PROPORTIONATE CHARGES SHALL BE ADDED TO THE ASSESSMENT OF THE OTHER
 S. 916--A                           5
 
 EXPENSES INCURRED UPON EACH EXAMINATION.   UPON WRITTEN  NOTICE  BY  THE
 SUPERINTENDENT  OF  THE  TOTAL  AMOUNT  OF SUCH ASSESSMENT, THE LICENSEE
 SHALL BECOME LIABLE FOR AND SHALL PAY SUCH ASSESSMENT TO THE SUPERINTEN-
 DENT.
   4. ALL REPORTS OF EXAMINATIONS AND INVESTIGATIONS, AND ALL CORRESPOND-
 ENCE  AND  MEMORANDA  CONCERNING  OR ARISING OUT OF SUCH EXAMINATIONS OR
 INVESTIGATIONS, INCLUDING ANY DULY AUTHENTICATED COPY OR COPIES  THEREOF
 IN  THE POSSESSION OF ANY LICENSEE OR THE DEPARTMENT, SHALL BE CONFIDEN-
 TIAL 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 OTHER MATERIAL  REFERRED  TO
 IN  THIS  SUBDIVISION, OR ANY PART THEREOF, IN SUCH MANNER AS THE SUPER-
 INTENDENT MAY DEEM PROPER.
   § 374-GG. COMPLIANCE. 1. AN EARNED INCOME ACCESS  PROVIDER  SHALL  NOT
 OPERATE IN THIS STATE UNLESS:
   (A)  THE  PROVIDER  IS  LICENSED  PURSUANT TO THIS ARTICLE, UNLESS THE
 PROVIDER IS AN EXEMPT ORGANIZATION PURSUANT TO THIS ARTICLE;
   (B) IN THE EVENT A PROVIDER TAKES CUSTODY OF A CONSUMER'S  EARNED  BUT
 UNPAID  INCOME  BEFORE  PAYING  PROCEEDS  TO  THE CONSUMER, THE PROVIDER
 ENSURES THAT THE PROCEEDS ARE  FULLY  INSURED  BY  THE  FEDERAL  DEPOSIT
 INSURANCE CORPORATION AT THE CONSUMER'S INDIVIDUAL ACCOUNT LEVEL;
   (C) THE PROVIDER COMPLIES WITH NATIONAL AUTOMATED CLEARING HOUSE ASSO-
 CIATION RULES, AND WHEN A DEBIT IS INITIATED TO A CONSUMER'S ACCOUNT FOR
 A  PAYMENT,  AND  THE  DEBIT IS RETURNED FOR INSUFFICIENT OR UNCOLLECTED
 FUNDS, THE DEBIT CAN BE REINITIATED ONLY IN  ACCORDANCE  WITH  PARAGRAPH
 (D) OF SUBDIVISION TWO OF THIS SECTION;
   (D)  THE PROVIDER DOES NOT PROVIDE TO ANY THIRD PARTY, INCLUDING OBLI-
 GORS, ANY NON-PUBLIC PERSONAL  INFORMATION  ABOUT  CONSUMERS  EXCEPT  IN
 COMPLIANCE  WITH APPLICABLE FEDERAL AND STATE LAW, AND THE PROVIDER DOES
 NOT SELL, SHARE, OR OTHERWISE DISCLOSE  PERSONAL  INFORMATION  THAT  THE
 PROVIDER SOLICITS OR COLLECTS FROM CONSUMERS IN CONNECTION WITH OFFERING
 EARNED INCOME ACCESS TRANSACTIONS OR RELATED SERVICES;
   (E)  THE  PROVIDER GIVES NOTICE TO THE CONSUMER OF THE COSTS OF EARNED
 INCOME TRANSACTIONS IN ACCORDANCE WITH RULES ESTABLISHED BY  THE  SUPER-
 INTENDENT; AND
   (F)  THE  PROVIDER, NO LESS FREQUENTLY THAN QUARTERLY, DELIVERS NOTICE
 IN WRITING TO EACH CONSUMER TO WHOM IT HAS PAID PROCEEDS IN THAT QUARTER
 CONTAINING INFORMATION TO BE PRESCRIBED BY THE SUPERINTENDENT, INCLUDING
 BUT NOT LIMITED TO AN ITEMIZATION OF TRANSACTIONS AND COSTS,  THE  TOTAL
 AMOUNT  THE  CONSUMER  HAS  PAID  IN  FEES, INFORMATION ON HOW TO REPORT
 COMPLAINTS TO THE PROVIDER AND TO THE DEPARTMENT OF FINANCIAL  SERVICES,
 DEFINITIONS OF TERMS USED IN THE NOTICE, AND AN EXPLANATION OF THE COSTS
 OF THE SERVICES PROVIDED;
   2.  IT  IS  A  VIOLATION  OF  THIS ARTICLE TO CONDUCT AN EARNED INCOME
 ACCESS TRANSACTION UNLESS:
   (A) THE TRANSACTION IS NON-RECOURSE;
   (B) THE PROVIDER HAS A REASONABLE BASIS  TO  BELIEVE  THAT  THE  TOTAL
 AMOUNT OF THE PROCEEDS AND FEES ASSOCIATED WITH THE TRANSACTION DOES NOT
 EXCEED  A PERCENTAGE, TO BE SET BY THE SUPERINTENDENT, OF THE CONSUMER'S
 EARNED BUT UNPAID INCOME;
   (C) THE PROVIDER DOES NOT ENGAGE IN DEBT COLLECTION ACTIVITY OR RETAIN
 THE SERVICES OF  ANOTHER  TO  ENGAGE  IN  DEBT  COLLECTION  ACTIVITY  IN
 CONNECTION WITH THE EARNED INCOME ACCESS TRANSACTION AND DOES NOT CONVEY
 THE DEBT ITSELF;
 S. 916--A                           6
 
   (D)  IF  REPAYMENT  IS  TO  BE  MADE  THROUGH  A DEBIT OF A CONSUMER'S
 ACCOUNT, THE DEBIT IS MADE IN ACCORDANCE WITH RULES ESTABLISHED  BY  THE
 SUPERINTENDENT;
   (E)  THE  PROVIDER  CHARGES  A FEE FOR THE EARNED INCOME ACCESS TRANS-
 ACTION THAT DOES NOT EXCEED THE EARNED INCOME ACCESS RATE CAP OR CHARGES
 NO FEE FOR THE EARNED INCOME ACCESS TRANSACTION;
   (F) NO PORTION OF THE EARNED BUT UNPAID INCOME TO BE PAID AS  PART  OF
 THE  EARNED  INCOME  ACCESS  TRANSACTION  IS  USED BEFORE RECEIPT BY THE
 CONSUMER TO SETTLE OR PAY DOWN AN OBLIGATION ARISING FROM A PRIOR EARNED
 INCOME ACCESS TRANSACTION, AND NO PROCEEDS ROLL OVER OR  ARE  STRUCTURED
 IN  ANY  WAY  TO CREATE ANY CONTINUING OBLIGATION TO THE PROVIDER ON THE
 PART OF A CONSUMER;
   (G) THE CONSUMER RECEIVES THE PROCEEDS NO LESS THAN ONE  BUSINESS  DAY
 PRIOR TO THE NEXT REGULARLY SCHEDULED DATE ON WHICH THE OBLIGOR IS SCHE-
 DULED TO PAY EARNED WAGES OR INCOME TO SUCH CONSUMER;
   (H)  BEFORE  A  CONSUMER  ENTERS  INTO THE EARNED INCOME ACCESS TRANS-
 ACTION, THE PROVIDER GIVES THE CONSUMER NOTICE, IN WRITING, OF ALL  FEES
 ASSOCIATED WITH THE EARNED INCOME ACCESS TRANSACTION AND THE COST OF THE
 TRANSACTION, INCLUDING THE COST EXPRESSED AS AN ANNUAL PERCENTAGE RATE;
   (I)  IF  THE PROVIDER OFFERS CONSUMERS THE OPPORTUNITY TO PAY AN ADDI-
 TIONAL AMOUNT FOR AN EARNED INCOME ACCESS TRANSACTION VOLUNTARILY,  SUCH
 AS  A TIP, (I) THE PROVIDER GIVES NOTICE TO THE CONSUMER IN WRITING THAT
 PAYING SUCH ADDITIONAL AMOUNT  IS  NOT  REQUIRED  FOR  THE  CONSUMER  TO
 RECEIVE  THE  PROCEEDS,  (II) THE PROVIDER DOES NOT SUGGEST AN AMOUNT TO
 THE CONSUMER BY, FOR EXAMPLE, OFFERING AMOUNT  OPTIONS  FROM  WHICH  THE
 CONSUMER  MAY  SELECT  OR  PRE-FILLING AN AMOUNT IN ANY FORM USED IN THE
 TRANSACTION PROCESS, OR OTHERWISE USING A TRANSACTION  PROCESS  DESIGNED
 TO  REQUIRE  THE CONSUMER TO TAKE AFFIRMATIVE ACTION TO AVOID OR OPT OUT
 OF PAYING SUCH ADDITIONAL  AMOUNT,  AND  (III)  SUCH  VOLUNTARY  PAYMENT
 AMOUNTS  DO  NOT, WHEN ADDED TO THE TOTAL COST OF THE TRANSACTION, CAUSE
 THE TOTAL FEES FOR THE EARNED INCOME ACCESS TRANSACTION  TO  EXCEED  THE
 EARNED INCOME ACCESS RATE CAP;
   (J)  THE  PROVIDER DOES NOT CHARGE A LATE FEE OR PREPAYMENT PENALTY ON
 THE EARNED INCOME ACCESS TRANSACTION;
   (K) THE PROVIDER DOES NOT PULL A CREDIT  REPORT  OR  OTHERWISE  ASSESS
 CREDIT RISK OF THE CONSUMER PRIOR TO, DURING, OR AFTER THE EARNED INCOME
 ACCESS  TRANSACTION  EXCEPT  THAT THE PROVIDER MAY VERIFY THE CONSUMER'S
 SOURCE OF INCOME AS PART OF DETERMINING THE AMOUNT OF THE PROCEEDS;
   (L) THE PROVIDER DOES NOT REPORT ON THE EARNED  INCOME  ACCESS  TRANS-
 ACTION  TO  A  CONSUMER  REPORTING AGENCY PRIOR TO, DURING, OR AFTER THE
 TRANSACTION;
   (M) THE PROVIDER DOES NOT REQUIRE A CONSUMER TO  WAIVE  THE  RIGHT  TO
 CLASS ACTION TO ENGAGE IN AN EARNED INCOME ACCESS TRANSACTION;
   (N)  THE  PROVIDER GIVES A CONSUMER WRITTEN NOTICE OF ANY AMENDMENT TO
 THE CONTRACT OR TERMS OF SERVICE FOR EARNED INCOME ACCESS  TRANSACTIONS,
 AND  THE  CONSUMER  AGREES  TO SUCH AMENDMENTS BEFORE PROCEEDING WITH AN
 EARNED INCOME ACCESS TRANSACTION TO WHICH SUCH AMENDMENTS  WOULD  APPLY;
 AND
   (O) THE CONSUMER IS EIGHTEEN YEARS OF AGE OR OLDER.
   3.  TRANSACTIONS  MADE  IN  ACCORDANCE  WITH THIS SECTION SHALL NOT BE
 SUBJECT TO USURY LAWS.
   4. IF A PROVIDER CHARGES INDIRECT TRANSACTION FEES,  SUCH  FEES  SHALL
 NOT EXCEED THE MAXIMUM ALLOWABLE AMOUNT AS SET BY THE SUPERINTENDENT.
   § 374-HH. ADVERTISING. 1. NO ADVERTISEMENT FOR AN EARNED INCOME ACCESS
 TRANSACTION SERVICE SHALL BE MISLEADING OR OTHERWISE DECEPTIVE.
 S. 916--A                           7
 
   2. AN ADVERTISEMENT FOR EARNED INCOME ACCESS TRANSACTION SERVICE SHALL
 CLEARLY AND ACCURATELY DISCLOSE THE COSTS OF THE SERVICE TO CONSUMERS.
   3.  THE  SUPERINTENDENT  SHALL  ADOPT  RULES  GOVERNING ADVERTISING OF
 EARNED INCOME TRANSACTION SERVICES CONSISTENT WITH THE PURPOSES OF  THIS
 SECTION.
   §  374-II.  REGULATIONS  AND  RULINGS.  THE  SUPERINTENDENT  IS HEREBY
 AUTHORIZED AND EMPOWERED TO MAKE SUCH  RULES  AND  REGULATIONS,  CONDUCT
 HEARINGS AND MAKE SUCH SPECIFIC RULINGS, ORDERS, DEMANDS AND FINDINGS AS
 MAY  BE  NECESSARY FOR THE PROPER CONDUCT OF THE BUSINESS AUTHORIZED AND
 LICENSED UNDER AND FOR THE ENFORCEMENT OF THIS ARTICLE.
   § 374-JJ. CHANGES IN CONTROL. 1. IT SHALL BE UNLAWFUL EXCEPT WITH  THE
 PRIOR  APPROVAL  OF  THE SUPERINTENDENT FOR ANY ACTION TO BE TAKEN WHICH
 RESULTS IN A CHANGE OF CONTROL OF THE BUSINESS OF A LICENSEE.  PRIOR  TO
 ANY  CHANGE  OF CONTROL, THE PERSON DESIROUS OF ACQUIRING CONTROL OF THE
 BUSINESS OF A LICENSEE SHALL MAKE WRITTEN APPLICATION TO THE SUPERINTEN-
 DENT AND PAY AN INVESTIGATION FEE  AS  PRESCRIBED  PURSUANT  TO  SECTION
 EIGHTEEN-A  OF THIS CHAPTER TO THE SUPERINTENDENT. THE APPLICATION SHALL
 CONTAIN SUCH INFORMATION AS THE SUPERINTENDENT, BY RULE  OR  REGULATION,
 MAY  PRESCRIBE AS NECESSARY OR APPROPRIATE FOR THE PURPOSE OF MAKING THE
 DETERMINATION REQUIRED BY SUBDIVISION TWO OF THIS SECTION.
   2. THE SUPERINTENDENT SHALL APPROVE OR DISAPPROVE THE PROPOSED  CHANGE
 OF  CONTROL  OF A LICENSEE IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVI-
 SION ONE OF THIS SECTION.
   3. FOR A PERIOD OF SIX MONTHS FROM THE DATE OF  QUALIFICATION  THEREOF
 AND  FOR  SUCH  ADDITIONAL  PERIOD  OF  TIME  AS  THE SUPERINTENDENT MAY
 PRESCRIBE, IN WRITING, THE PROVISIONS OF SUBDIVISIONS  ONE  AND  TWO  OF
 THIS  SECTION  SHALL  NOT APPLY TO A TRANSFER OF CONTROL BY OPERATION OF
 LAW TO THE LEGAL REPRESENTATIVE, AS HEREINAFTER DEFINED, OF ONE WHO  HAS
 CONTROL  OF  A  LICENSEE.  THEREAFTER,  SUCH  LEGAL REPRESENTATIVE SHALL
 COMPLY WITH THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS  SECTION.
 THE  PROVISIONS  OF  SUBDIVISIONS  ONE  AND TWO OF THIS SECTION SHALL BE
 APPLICABLE TO AN APPLICATION MADE UNDER SUCH SECTION BY A  LEGAL  REPRE-
 SENTATIVE.
   4.  THE TERM "LEGAL REPRESENTATIVE", FOR THE PURPOSES OF THIS SECTION,
 SHALL MEAN ONE DULY APPOINTED BY A COURT OF  COMPETENT  JURISDICTION  TO
 ACT  AS  EXECUTOR,  ADMINISTRATOR,  TRUSTEE,  COMMITTEE,  CONSERVATOR OR
 RECEIVER, INCLUDING ONE WHO SUCCEEDS  A  LEGAL  REPRESENTATIVE  AND  ONE
 ACTING   IN  AN  ANCILLARY  CAPACITY  THERETO  IN  ACCORDANCE  WITH  THE
 PROVISIONS OF SUCH COURT APPOINTMENT.
   5. AS USED IN THIS SECTION: (A) THE TERM "PERSON" INCLUDES AN INDIVID-
 UAL, PARTNERSHIP, CORPORATION, ASSOCIATION OR  ANY  OTHER  ORGANIZATION,
 AND (B) THE TERM "CONTROL" MEANS THE POSSESSION, DIRECTLY OR INDIRECTLY,
 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 THE
 SUPERINTENDENT'S DISCRETION, UPON THE APPLICATION OF A LICENSEE  OR  ANY
 PERSON  WHO,  DIRECTLY OR INDIRECTLY, OWNS, CONTROLS OR HOLDS WITH POWER
 TO VOTE OR SEEKS TO OWN, CONTROL OR HOLD WITH POWER TO VOTE  ANY  VOTING
 STOCK  OF SUCH LICENSEE, DETERMINE WHETHER OR NOT THE OWNERSHIP, CONTROL
 S. 916--A                           8
 
 OR HOLDING OF SUCH VOTING STOCK CONSTITUTES OR WOULD CONSTITUTE  CONTROL
 OF SUCH LICENSEE FOR PURPOSES OF THIS SECTION.
   §  374-KK.  VIOLATION  AND  PENALTIES.  1.  ANY  PERSON, INCLUDING ANY
 MEMBER, OFFICER, DIRECTOR OR EMPLOYEE OF A  PROVIDER,  WHO  VIOLATES  OR
 PARTICIPATES  IN  THE VIOLATION OF ANY PROVISION OF THIS ARTICLE, OR WHO
 KNOWINGLY MAKES ANY INCORRECT STATEMENT OF A MATERIAL FACT IN ANY APPLI-
 CATION, REPORT OR STATEMENT FILED PURSUANT TO THIS ARTICLE, OR WHO KNOW-
 INGLY OMITS TO STATE ANY MATERIAL FACT NECESSARY TO GIVE THE SUPERINTEN-
 DENT ANY INFORMATION LAWFULLY REQUIRED BY THE SUPERINTENDENT OR  REFUSES
 TO  PERMIT ANY LAWFUL INVESTIGATION OR EXAMINATION, SHALL BE GUILTY OF A
 MISDEMEANOR AND, UPON CONVICTION, SHALL BE  FINED  NOT  MORE  THAN  FIVE
 HUNDRED  DOLLARS  OR IMPRISONED FOR NOT MORE THAN SIX MONTHS OR BOTH, IN
 THE DISCRETION OF THE COURT.
   2. NO PROVIDER SHALL MAKE, DIRECTLY OR INDIRECTLY, ORALLY OR IN  WRIT-
 ING,  OR  BY  ANY METHOD, PRACTICE OR DEVICE, A REPRESENTATION THAT SUCH
 PROVIDER IS LICENSED UNDER THE BANKING LAW EXCEPT THAT A LICENSEE  UNDER
 THIS  CHAPTER MAY MAKE A REPRESENTATION THAT THE LICENSEE IS LICENSED AS
 AN EARNED INCOME ACCESS PROVIDER UNDER THIS CHAPTER.
   § 374-LL. BOOKS AND RECORDS; REPORTS. 1. THE PROVIDER SHALL  KEEP  AND
 USE  IN ITS BUSINESS SUCH BOOKS, ACCOUNTS AND RECORDS AS WILL ENABLE THE
 SUPERINTENDENT TO DETERMINE WHETHER SUCH PROVIDER IS COMPLYING WITH  THE
 PROVISIONS  OF  THIS ARTICLE AND WITH THE RULES AND REGULATIONS LAWFULLY
 MADE BY THE SUPERINTENDENT HEREUNDER. EVERY PROVIDER SHALL PRESERVE SUCH
 BOOKS, ACCOUNTS AND RECORDS FOR AT LEAST  SIX  YEARS  AFTER  MAKING  THE
 FINAL  ENTRY  IN  RESPECT TO ANY EARNED WAGE ACCESS TRANSACTION RECORDED
 THEREIN; PROVIDED, HOWEVER, THE  PRESERVATION  OF  PHOTOGRAPHIC  REPROD-
 UCTIONS THEREOF OR RECORDS IN PHOTOGRAPHIC FORM SHALL CONSTITUTE COMPLI-
 ANCE WITH THIS REQUIREMENT.
   2.  BY  A  DATE  TO  BE SET BY THE SUPERINTENDENT, EACH PROVIDER SHALL
 ANNUALLY FILE A REPORT WITH THE SUPERINTENDENT GIVING  SUCH  INFORMATION
 AS THE SUPERINTENDENT MAY REQUIRE CONCERNING THE BUSINESS AND OPERATIONS
 DURING  THE  PRECEDING  CALENDAR  YEAR  OF THE PROVIDER WITHIN THE STATE
 UNDER THE AUTHORITY OF THIS ARTICLE. SUCH REPORT SHALL BE SUBSCRIBED AND
 AFFIRMED AS TRUE BY THE PROVIDER UNDER THE PENALTIES OF PERJURY  AND  BE
 IN THE FORM PRESCRIBED BY THE SUPERINTENDENT. IN ADDITION TO SUCH ANNUAL
 REPORTS,  THE  SUPERINTENDENT  MAY  REQUIRE OF PROVIDERS SUCH ADDITIONAL
 REGULAR OR SPECIAL REPORTS AS THE SUPERINTENDENT MAY DEEM  NECESSARY  TO
 THE  PROPER SUPERVISION OF PROVIDERS UNDER THIS ARTICLE. SUCH ADDITIONAL
 REPORTS SHALL BE IN THE FORM PRESCRIBED BY THE SUPERINTENDENT AND  SHALL
 BE SUBSCRIBED AND AFFIRMED AS TRUE UNDER THE PENALTIES OF PERJURY.
   § 374-MM. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE OR THE APPLI-
 CATION THEREOF TO ANY PERSON OR CIRCUMSTANCES IS HELD INVALID, THE INVA-
 LIDITY  THEREOF SHALL NOT AFFECT OTHER PROVISIONS OR APPLICATIONS OF THE
 ARTICLE WHICH CAN BE GIVEN  EFFECT  WITHOUT  THE  INVALID  PROVISION  OR
 APPLICATION,  AND TO THIS END THE PROVISIONS OF THIS ARTICLE ARE SEVERA-
 BLE.
   § 2. Subdivision 1 of section 36 of the banking  law,  as  amended  by
 chapter 146 of the laws of 1961, is amended to read as follows:
   1.  The  superintendent  shall have the power to examine every banking
 organization, every bank holding company and any non-banking  subsidiary
 thereof  (as  such terms "bank holding company" and "non-banking subsid-
 iary" are defined in article three-A of this chapter) and every licensed
 lender AND LICENSED EARNED INCOME ACCESS PROVIDER at any time  prior  to
 its  dissolution  whenever in his judgment such examination is necessary
 or advisable.
 S. 916--A                           9
 
   § 3. Subdivisions 3 and 5 of section 37 of the banking law, as amended
 by chapter 360 of the laws of 1984, are 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 EARNED  INCOME  ACCESS  PROVIDER,  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  corpo-
 rate  banking  organization  within  the  meaning  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  at  such  times  as he may
 prescribe.
   5. The superintendent may extend at his  discretion  the  time  within
 which  a  banking  organization, foreign banking corporation licensed by
 the superintendent to do business in this state, bank holding company or
 any non-banking subsidiary thereof, licensed casher of checks,  licensed
 mortgage  banker, private banker, LICENSED EARNED INCOME ACCESS PROVIDER
 or licensed lender is required to make and file any report to the super-
 intendent.
   § 4. Section 39 of the banking law, as amended by section 3 of part  L
 of chapter 58 of the laws of 2019, is amended to read as follows:
   § 39.  Orders  of superintendent. 1. To appear and explain an apparent
 violation. Whenever it shall appear to the superintendent that any bank-
 ing organization, bank  holding  company,  registered  mortgage  broker,
 licensed  mortgage  banker,  licensed  student loan servicer, registered
 mortgage loan servicer,  licensed  mortgage  loan  originator,  licensed
 lender,  LICENSED  EARNED  INCOME  ACCESS  PROVIDER,  licensed casher of
 checks, licensed  sales  finance  company,  licensed  insurance  premium
 finance  agency, licensed transmitter of money, licensed budget planner,
 out-of-state state bank that maintains a branch or branches or represen-
 tative or other offices in this state, or  foreign  banking  corporation
 licensed  by  the  superintendent to do business or maintain a represen-
 tative office in this state has violated any law or  regulation,  he  or
 she may, in his or her discretion, issue an order describing such appar-
 ent  violation  and  requiring  such  banking organization, bank holding
 company, registered mortgage broker, licensed mortgage banker,  licensed
 student loan servicer, licensed mortgage loan originator, licensed lend-
 er,  LICENSED  EARNED INCOME ACCESS PROVIDER, licensed casher of checks,
 licensed sales finance company, licensed insurance premium finance agen-
 cy, licensed transmitter of money, licensed budget planner, out-of-state
 state bank that maintains a branch  or  branches  or  representative  or
 other  offices  in  this state, or foreign banking corporation to appear
 before him or her, at a time and place fixed in said order,  to  present
 an explanation of such apparent violation.
   2.  To discontinue unauthorized or unsafe and unsound practices. When-
 ever it shall appear to the superintendent that  any  banking  organiza-
 tion,  bank  holding company, registered mortgage broker, licensed mort-
 gage banker, licensed student loan servicer,  registered  mortgage  loan
 servicer,  licensed  mortgage loan originator, licensed lender, LICENSED
 EARNED INCOME ACCESS PROVIDER, licensed casher of checks, licensed sales
 finance company, licensed insurance  premium  finance  agency,  licensed
 transmitter  of  money, licensed budget planner, out-of-state state bank
 that maintains a branch or branches or representative or  other  offices
 in  this  state,  or  foreign banking corporation licensed by the super-
 S. 916--A                          10
 
 intendent to do business in this state  is  conducting  business  in  an
 unauthorized  or unsafe and unsound manner, he or she may, in his or her
 discretion, issue an order directing the discontinuance  of  such  unau-
 thorized or unsafe and unsound practices, and fixing a time and place at
 which  such banking organization, bank holding company, registered mort-
 gage broker, licensed mortgage banker, licensed student  loan  servicer,
 registered  mortgage  loan  servicer, licensed mortgage loan originator,
 licensed lender, LICENSED EARNED INCOME ACCESS PROVIDER, licensed casher
 of checks, licensed sales finance company,  licensed  insurance  premium
 finance  agency, licensed transmitter of money, licensed budget planner,
 out-of-state state bank that maintains a branch or branches or represen-
 tative or other offices in this state, or  foreign  banking  corporation
 may  voluntarily  appear before him or her to present any explanation in
 defense of the practices directed in said order to be discontinued.
   3. To make good impairment of capital or  to  ensure  compliance  with
 financial  requirements.  Whenever it shall appear to the superintendent
 that the capital or capital stock  of  any  banking  organization,  bank
 holding  company  or any subsidiary thereof which is organized, licensed
 or registered pursuant to this chapter, is impaired,  or  the  financial
 requirements  imposed by subdivision one of section two hundred two-b of
 this chapter or any regulation of the superintendent on  any  branch  or
 agency  of  a  foreign banking corporation or the financial requirements
 imposed by this chapter or any regulation of the superintendent  on  any
 licensed  lender,  LICENSED  EARNED  INCOME  ACCESS PROVIDER, registered
 mortgage broker, licensed mortgage banker, licensed student loan  servi-
 cer, licensed casher of checks, licensed sales finance company, licensed
 insurance   premium  finance  agency,  licensed  transmitter  of  money,
 licensed budget planner or private banker are not satisfied, the  super-
 intendent  may,  in  the  superintendent's  discretion,  issue  an order
 directing that such banking organization, bank holding  company,  branch
 or  agency of a foreign banking corporation, registered mortgage broker,
 licensed mortgage banker, licensed student loan servicer, licensed lend-
 er, LICENSED EARNED INCOME ACCESS PROVIDER, licensed casher  of  checks,
 licensed sales finance company, licensed insurance premium finance agen-
 cy,  licensed  transmitter of money, licensed budget planner, or private
 banker make good such deficiency forthwith or within a time specified in
 such order.
   4. To make good encroachments on reserves. Whenever it shall appear to
 the superintendent that either the total reserves or reserves on hand of
 any banking organization, branch or agency of a foreign  banking  corpo-
 ration  are  below the amount required by or pursuant to this chapter or
 any other applicable provision of law or regulation to be maintained, or
 that such banking organization, branch or agency of  a  foreign  banking
 corporation  is  not  keeping  its  reserves on hand as required by this
 chapter or any other applicable provision of law or  regulation,  he  or
 she  may,  in  his or her discretion, issue an order directing that such
 banking organization, branch or agency of a foreign banking  corporation
 make  good  such  reserves  forthwith or within a time specified in such
 order, or that it keep its reserves on hand as required by this chapter.
   5. To keep books and accounts as prescribed. Whenever it shall  appear
 to the superintendent that any banking organization, bank holding compa-
 ny,  registered  mortgage  broker,  licensed  mortgage  banker, licensed
 student loan servicer, registered mortgage loan servicer, licensed mort-
 gage loan originator, licensed lender,  LICENSED  EARNED  INCOME  ACCESS
 PROVIDER,  licensed  casher  of  checks, licensed sales finance company,
 licensed insurance  premium  finance  agency,  licensed  transmitter  of
 S. 916--A                          11

 money,  licensed  budget  planner, agency or branch of a foreign banking
 corporation licensed by the superintendent to do business in this state,
 does not keep its books and accounts in such manner as to enable him  or
 her  to  readily  ascertain its true condition, he or she may, in his or
 her discretion, issue an order requiring such banking organization, bank
 holding company, registered mortgage broker, licensed  mortgage  banker,
 licensed  student  loan  servicer,  registered  mortgage  loan servicer,
 licensed mortgage loan  originator,  licensed  lender,  LICENSED  EARNED
 INCOME  ACCESS  PROVIDER,  licensed  casher  of  checks,  licensed sales
 finance company, licensed insurance  premium  finance  agency,  licensed
 transmitter of money, licensed budget planner, or foreign banking corpo-
 ration,  or  the officers or agents thereof, or any of them, to open and
 keep such books or accounts as he or she may, in his or her  discretion,
 determine  and prescribe for the purpose of keeping accurate and conven-
 ient records of its transactions and accounts.
   6. As used in this section, "bank holding company" shall have the same
 meaning as that term is defined in section one hundred forty-one of this
 chapter.
   § 5. Paragraph (a) of subdivision 1 of section 44 of the banking  law,
 as  amended by section 4 of part L of chapter 58 of the laws of 2019, is
 amended to read as follows:
   (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  EARNED  INCOME  ACCESS  PROVIDER,  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, registered mortgage loan servicer or  licensed
 budget  planner  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
 connection  with the grant of any application or request, or any written
 agreement entered into with the superintendent.
   § 6. This act shall take effect on the one hundred eightieth 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.