This bill has been amended

Bill S3361-2011

Increases penalties for individuals or companies who engage in the business of cashing checks, drafts or money orders for consideration without a license

Increases penalties for individuals or companies who engage in the business of cashing checks, drafts or money orders for consideration without a license; makes such violation a class E felony; provides for a fine of $2,500 for each transaction.

Details

Actions

  • Feb 17, 2011: REFERRED TO BANKS

Meetings

Memo

BILL NUMBER:S3361

TITLE OF BILL: An act to amend the banking law, in relation to increasing the penalties for individuals or companies who engage in the business of cashing checks, drafts or money orders for consideration without a license

PURPOSE: To create an E felony for those who engage in cashing checks, drafts or money orders without a license.

SUMMARY OF SPECIFIC PROVISIONS: Amends Subdivision 5 of section 373 of the banking law to make it an E Felony to engage in the cashing of checks, drafts or money orders without a license. Current law is an A misdemeanor.

JUSTIFICATION: Unregistered check cashers are by the very nature unregulated by the State Banking Department and therefore do not have to comply with the necessary consumer protections. These individuals charge fees that are unscrupulous and border on usury. By raising the penalty to the level of a Felony we are ensuring that consumers can be sure they are protected to the full extent of the law.

PRIOR LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: One hundred twenty days since effective date.


Text

STATE OF NEW YORK ________________________________________________________________________ 3361 2011-2012 Regular Sessions IN SENATE February 17, 2011 ___________
Introduced by Sen. GRISANTI -- 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 increasing the penalties for individuals or companies who engage in the business of cashing checks, drafts or money orders for consideration without a license THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 5 of section 373 of the banking law, as added by chapter 235 of the laws of 2008, is amended to read as follows: 5. Notwithstanding the provisions of subdivision four of this section, any person, partnership, association or corporation and the several members, officers, directors, agents and employees thereof who shall violate the provisions of subdivision one of section three hundred sixty-seven of this article shall be guilty of a class [A misdemeanor] E FELONY. S 2. This act shall take effect on the one hundred twentieth day after it shall have become a law.

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