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BILL NUMBER:S715

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 OR GENERAL IDEA OF BILL: To create an E felony and monetary penalties 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 (1) to make it an E Felony to engage in the cashing of checks, drafts or money orders without a license, and (2) to impose a penalty of $2,500 for each violation of this subdivision. 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 and by imposing monetary penalties we are ensuring that consumers will be protected to the full extent of the law.

PRIOR LEGISLATIVE HISTORY: S.3361A of 2011-12 - Referred to Banks

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: One hundred twenty days since effective date.

Text

STATE OF NEW YORK
________________________________________________________________________

715

2013-2014 Regular Sessions

IN SENATE

(PREFILED)

January 9, 2013
___________

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 AND SHALL BE PUNISHABLE BY A FINE OF TWO  THOUSAND  FIVE  HUNDRED
DOLLARS FOR EACH TRANSACTION MADE IN VIOLATION OF SUCH SUBDIVISION.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04601-01-3