NY State Assembly Bill 2021-A6638A

Assembly Bill A6638A

2021-2022 Legislative Session

Requires individuals who perform compliance functions, duties or tasks to obtain a compliance officer or compliance practitioner license

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Archive: Last 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to banks
May 18, 2021	print number 6638a
May 18, 2021	amend and recommit to banks
Mar 23, 2021	referred to banks

Bill Amendments

Original

A (Active)

2021-A6638 - Details

Current Committee:: Assembly Banks
Law Section:: Financial Services Law
Laws Affected:: Add Art 9 §§901 - 909, Fin Serv L
Versions Introduced in Other Legislative Sessions:: 2019-2020: A8908
2023-2024: A7966

2021-A6638 - Summary

Requires individuals who perform compliance functions, duties or tasks to obtain a compliance officer or compliance practitioner license; establishes application and examination requirements to obtain, and continuing education requirements to maintain, licensure; permits the superintendent to issue licensing procedures and to prescribe regulations necessary for the proper supervision of compliance officers and practitioners.

2021-A6638 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6638
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 23, 2021
                                ___________
 
 Introduced by M. of A. CUSICK -- read once and referred to the Committee
   on Banks
 
 AN  ACT to amend the financial services law, in relation to a compliance
   officer or compliance practitioner license
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The financial services law is amended by adding a new arti-
 cle 8 to read as follows:
                                 ARTICLE 8
           COMPLIANCE OFFICER OR COMPLIANCE PRACTITIONER LICENSE
 SECTION 801. DEFINITION.
         802. APPLICABILITY; LICENSE.
         803. LICENSE APPLICATION.
         804. WRITTEN EXAMINATION.
         805. TEMPORARY LICENSE.
         806. FEES.
         807. LICENSE TERM; RENEWAL.
         808. CONTINUING EDUCATION REQUIREMENTS.
         809. RULES AND REGULATIONS; AUTHORITY OF THE SUPERINTENDENT.
   §  801.  DEFINITION.  FOR PURPOSES OF THIS ARTICLE, "COMPLIANCE" SHALL
 MEAN:  (A) DRAFTING, EVALUATING, APPLYING COMPLIANCE OR REGULATORY POLI-
 CIES AND PROCEDURES; (B) DESIGNING, ASSESSING OR IMPLEMENTING COMPLIANCE
 OR REGULATORY CONTROLS OR SYSTEMS;  AND  (C)  SUPERVISING,  SURVEILLING,
 MONITORING,  REVIEWING,  TESTING  OR REPORTING NON-COMPLIANCE OR MISCON-
 DUCT.  FOR PURPOSES OF THIS ARTICLE, COMPLIANCE TASKS, DUTIES AND  FUNC-
 TIONS  SHALL  BE  PERFORMED  ONLY BY AN INDIVIDUAL LICENSED OR OTHERWISE
 AUTHORIZED TO PERFORM SUCH TASKS, DUTIES OR FUNCTIONS UNDER THE TITLE OF
 COMPLIANCE OFFICER, REGULATORY OFFICER, COMPLIANCE  SUPERVISOR,  COMPLI-
 ANCE PRACTITIONER, COMPLIANCE ANALYST, COMPLIANCE CONSULTANT, COMPLIANCE
 COUNSEL,  COMPLIANCE  ADVISOR,  REGULATORY  OFFICER, REGULATORY MANAGER,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05846-01-1

 A. 6638                             2
 
 REGULATORY  SUPERVISOR,  REGULATORY  PRACTITIONER,  REGULATORY  ANALYST,
 REGULATORY CONSULTANT, REGULATORY COUNSEL OR REGULATORY ADVISOR.
   §  802. APPLICABILITY; LICENSE. THE SUPERINTENDENT MAY ISSUE A COMPLI-
 ANCE OFFICER OR COMPLIANCE PRACTITIONER LICENSE TO ANY INDIVIDUAL WHO IS
 TRUSTWORTHY AND COMPETENT TO ACT AS A COMPLIANCE OFFICER  OR  COMPLIANCE
 PRACTITIONER  IN SUCH MANNER AS TO SAFEGUARD THE INTERESTS OF THE PEOPLE
 OF THIS STATE AND WHO HAS COMPLIED WITH  ALL  OF  THE  REQUIREMENTS  SET
 FORTH  IN  THIS  ARTICLE. THE HOLDER OF A LICENSE UNDER THIS SECTION MAY
 ACT AS A COMPLIANCE OFFICER OR COMPLIANCE PRACTITIONER WITHOUT ANY OTHER
 ADDITIONAL LICENSE. EVERY APPLICANT FOR A  LICENSE  UNDER  THIS  SECTION
 SHALL  BE TWENTY-ONE YEARS OF AGE OR OVER AT THE TIME OF THE ISSUANCE OF
 SUCH LICENSE.
   § 803. LICENSE APPLICATION. (A) BEFORE A COMPLIANCE OFFICER OR COMPLI-
 ANCE PRACTITIONER LICENSE OR RENEWAL THEREOF  SHALL  BE  ISSUED  BY  THE
 SUPERINTENDENT, AN APPLICANT SHALL FILE IN THE OFFICE OF THE SUPERINTEN-
 DENT  A  WRITTEN  APPLICATION FOR SUCH LICENSE OR RENEWAL THEREOF.  SUCH
 APPLICATION SHALL BE IN THE FORM AND CONTAIN INFORMATION THAT THE SUPER-
 INTENDENT PRESCRIBES.
   (B) AN INDIVIDUAL SIGNING SUCH APPLICATION  SHALL,  SIMULTANEOUS  WITH
 SUCH  APPLICATION,  SUBMIT  TO THE SUPERINTENDENT FINGERPRINTS OF HIS OR
 HER TWO HANDS RECORDED IN SUCH MANNER AS MAY BE SPECIFIED BY THE  SUPER-
 INTENDENT OR HIS OR HER AUTHORIZED REPRESENTATIVE. BEFORE APPROVING SUCH
 APPLICATION,  IT  SHALL  BE THE DUTY OF THE SUPERINTENDENT OR HIS OR HER
 AUTHORIZED REPRESENTATIVE TO COMPARE SUCH FINGERPRINTS WITH FINGERPRINTS
 FILED WITH THE DIVISION OF CRIMINAL JUSTICE SERVICES. SUCH  FINGERPRINTS
 MAY  ALSO  BE  SUBMITTED  TO  THE  FEDERAL BUREAU OF INVESTIGATION FOR A
 NATIONAL CRIMINAL HISTORY RECORD CHECK.
   (C) NO SUCH LICENSE SHALL BE ISSUED TO ANY  INDIVIDUAL  WHO  HAS  EVER
 BEEN CONVICTED OF A FELONY, OR OF ANY CRIME OR OFFENSE INVOLVING FRAUDU-
 LENT  OR  DISHONEST  PRACTICES NOR SHALL A COMPLIANCE OFFICER OR PRACTI-
 TIONER LICENSED UNDER THIS ARTICLE BE EMPLOYED IF  SUCH  INDIVIDUAL  HAS
 EVER BEEN CONVICTED OF A FELONY, OR OF ANY SUCH CRIME OR OFFENSE.
   (D)  NOTHING CONTAINED IN THIS SECTION SHALL PREVENT THE EMPLOYMENT OF
 A COMPLIANCE OFFICER OR COMPLIANCE PRACTITIONER OR  THE  ISSUANCE  OF  A
 LICENSE  TO  ANY  INDIVIDUAL  WHO,  SUBSEQUENT TO HIS OR HER CONVICTION,
 SHALL HAVE RECEIVED EXECUTIVE PARDON THEREFOR REMOVING SUCH  DISABILITY,
 OR  WHO  HAS  RECEIVED  A  CERTIFICATE  OF RELIEF FROM DISABILITIES OR A
 CERTIFICATE OF GOOD CONDUCT PURSUANT  TO  ARTICLE  TWENTY-THREE  OF  THE
 CORRECTION  LAW  TO  REMOVE THE DISABILITY UNDER THIS ARTICLE BECAUSE OF
 SUCH CONVICTION OR PREVIOUS LICENSE REVOCATION OCCASIONED THEREBY.
   § 804. WRITTEN EXAMINATION. (A) THE SUPERINTENDENT SHALL IN  ORDER  TO
 DETERMINE  THE  TRUSTWORTHINESS  AND  COMPETENCY  TO ACT AS A COMPLIANCE
 OFFICER OR COMPLIANCE PRACTITIONER OF EACH INDIVIDUAL APPLICANT FOR SUCH
 LICENSE, EXCEPT IN THE CASE OF A RENEWAL  LICENSE,  REQUIRE  EVERY  SUCH
 INDIVIDUAL  TO TAKE AND PASS, TO THE SATISFACTION OF THE SUPERINTENDENT,
 A PERSONAL WRITTEN EXAMINATION. NO INDIVIDUAL SHALL BE DEEMED  QUALIFIED
 TO  TAKE  THE EXAMINATION WITHOUT HAVING DEMONSTRATED BY EVIDENCE SATIS-
 FACTORY TO THE SUPERINTENDENT THE FOLLOWING MINIMUM QUALIFICATIONS:  (1)
 TWO  YEARS'  EXPERIENCE  IN  THE  FINANCIAL  INDUSTRY,  IF THE APPLICANT
 POSSESSES A BACHELORS DEGREE FROM AN ACCREDITED SCHOOL OF HIGHER  EDUCA-
 TION,  WITH  INVOLVEMENT IN REGULATORY OVERSIGHT, COMPLIANCE TRAINING OR
 OTHER EXPERIENCE CONSIDERED SUFFICIENT BY THE SUPERINTENDENT, OR IF  THE
 APPLICANT POSSESSES A MINIMUM OF FIVE YEARS' PRACTICAL EXPERIENCE IN THE
 FINANCIAL SERVICES INDUSTRY WITH AN INVOLVEMENT IN REGULATORY OVERSIGHT,
 COMPLIANCE  TRAINING  OR  OTHER  EXPERIENCE CONSIDERED SUFFICIENT BY THE
 SUPERINTENDENT; AND (2) THE APPLICANT SUCCESSFULLY COMPLETED THIRTY-FIVE

 A. 6638                             3
 
 HOURS OF FORMAL TRAINING IN A COURSE, PROGRAM OF INSTRUCTION,  OR  SEMI-
 NARS APPROVED BY THE SUPERINTENDENT.
   (B) THE SUPERINTENDENT MAY PRESCRIBE THE TYPES OF WRITTEN EXAMINATIONS
 ACCORDING  TO  THE  KINDS  OF  COMPLIANCE  ISSUES  THE  APPLICANT MAY BE
 SUBJECTED TO IN THE COURSE OF HIS OR HER DUTIES.
   (C) THE SUPERINTENDENT MAY, IN HIS OR HER DISCRETION AND ON SUCH TERMS
 AS HE OR SHE PRESCRIBES, DISPENSE WITH SUCH EXAMINATION IN THE  CASE  OF
 ANY  APPLICANT  WHO  SHALL PREVIOUSLY HAVE HELD A POSITION OF COMPLIANCE
 OFFICER OR COMPLIANCE PRACTITIONER FOR A MINIMUM PERIOD  OF  FIVE  YEARS
 PRIOR  TO THE EFFECTIVE DATE OF THIS ARTICLE; PROVIDED, FURTHER THAT THE
 APPLICANT APPLIES WITHIN TWO YEARS FOLLOWING THE DATE OF TERMINATION  OF
 SUCH LICENSE.
   (D)  AN INDIVIDUAL WHO AT ANY TIME SERVED WITH THE ARMED FORCES OF THE
 UNITED STATES, AND WHO  IMMEDIATELY  PRIOR  TO  ENTERING  SUCH  MILITARY
 SERVICE  HAD  BEEN  CONTINUOUSLY  ENGAGED IN BONA FIDE OPERATION IN THIS
 STATE AS A COMPLIANCE OFFICER OR COMPLIANCE PRACTITIONER FOR A PERIOD OF
 FIVE YEARS, MAY WITHIN ONE  YEAR  AFTER  TERMINATION  OF  SUCH  MILITARY
 SERVICE  FILE  WITH THE SUPERINTENDENT AN APPLICATION IN SUCH FORM AS HE
 OR SHE PRESCRIBES, AND UPON THE PAYMENT OF THE REQUISITE LICENSE FEE  BE
 LICENSED  BY  THE  SUPERINTENDENT  AS A COMPLIANCE OFFICER OR COMPLIANCE
 PRACTITIONER WITHOUT BEING REQUIRED TO TAKE AND PASS SUCH EXAMINATION.
   (E)  THE  SUPERINTENDENT  MAY  EXEMPT  FROM  THE  WRITTEN  EXAMINATION
 REQUIREMENT  AN APPLICANT WHO HOLDS A LICENSE OR CERTIFICATE TO PRACTICE
 COMPLIANCE ISSUED TO THEM UPON EXAMINATION, ACCREDITED AND  ADMINISTERED
 BY  A  REGULATORY  COMPLIANCE ACCREDITATION AGENCY IN ANY OTHER STATE OR
 POLITICAL SUBDIVISION OF THE UNITED STATES OR OTHER COUNTRY PROVIDED THE
 APPLICANT'S QUALIFICATIONS MET THE REQUIREMENTS IN  THIS  STATE  AT  THE
 TIME SUCH LICENSE WAS ISSUED AND THAT JURISDICTION RECOGNIZES RECIPROCI-
 TY OF THE VALIDITY OF A LICENSE ISSUED FROM THE STATE OF NEW YORK.
   (F)  THE  SUPERINTENDENT  SHALL  EXEMPT  FROM  THE WRITTEN EXAMINATION
 REQUIREMENT ANY OFFICIAL OR EMPLOYEE OF A  GOVERNMENT  UNIT,  AGENCY  OR
 INSTRUMENTALITY  WHO  IS  RESPONSIBLE  FOR  PERFORMING COMPLIANCE TASKS,
 DUTIES OR FUNCTIONS AS PART OF HIS OR  HER  OFFICIAL  DUTIES  WITH  SUCH
 GOVERNMENTAL UNIT, AGENCY OR INSTRUMENTALITY.
   §  805. TEMPORARY LICENSE. (A) AN INDIVIDUAL WHO HAS HAD AT LEAST FIVE
 YEARS' EXPERIENCE AS A COMPLIANCE OFFICER OR COMPLIANCE PRACTITIONER  IN
 A  FINANCIAL SERVICES INDUSTRY AND HAS MADE APPLICATION FOR A LICENSE AS
 A COMPLIANCE OFFICER OR COMPLIANCE PRACTITIONER IN  NEW  YORK  MAY  FILE
 WITH  THE SUPERINTENDENT, IN SUCH FORM AS THE SUPERINTENDENT PRESCRIBES,
 A WRITTEN APPLICATION FOR A TEMPORARY PERMIT TO PERFORM  THE  DUTIES  AS
 PRESCRIBED  HEREIN  AS  A  COMPLIANCE OFFICER OR COMPLIANCE PRACTITIONER
 DURING THE PENDENCY OF THE APPLICATION.
   (B) NOTWITHSTANDING ANY PROVISION CONTAINED IN SECTION  EIGHT  HUNDRED
 FOUR  OF  THIS  ARTICLE,  AN  APPLICANT FOR A TEMPORARY LICENSE SHALL BE
 REQUIRED TO TAKE AND PASS A PERSONAL WRITTEN EXAMINATION  IN  ACCORDANCE
 WITH  SUBSECTION  (A)  OF SECTION EIGHT HUNDRED FOUR OF THIS ARTICLE. IF
 SATISFIED THAT THE INDIVIDUAL APPLYING FOR SUCH TEMPORARY PERMIT HAS  IN
 ALL  OTHER RESPECTS MET THE REQUIREMENTS OF THIS ARTICLE WITH RESPECT TO
 THE LICENSING OF A COMPLIANCE OFFICER OR COMPLIANCE PRACTITIONER AND  IS
 QUALIFIED  BY  TRAINING  AND  EXPERIENCE  AS  AN EMPLOYEE OF A FINANCIAL
 SERVICE PROVIDER OR OTHER FINANCIAL INDUSTRY RELATED ENTITY AS A COMPLI-
 ANCE OFFICER OR COMPLIANCE PRACTITIONER, THE SUPERINTENDENT SHALL  ISSUE
 SUCH  TEMPORARY  PERMIT  TO  BE EFFECTIVE FOR SUCH PERIOD OF TIME AS THE
 SUPERINTENDENT MAY SPECIFY THEREIN BUT, IN NO EVENT,  FOR  A  PERIOD  IN
 EXCESS OF ONE HUNDRED TWENTY DAYS.

 A. 6638                             4
 
   (C)  THE  SUPERINTENDENT MAY SUMMARILY SUSPEND OR REVOKE ANY TEMPORARY
 PERMIT ISSUED PURSUANT TO THIS SECTION UPON TEN DAYS' NOTICE IN  WRITING
 TO THE TEMPORARY PERMITTEE OF THE SUPERINTENDENT'S INTENTION TO DO SO.
   § 806. FEES. (A) AT THE TIME OF APPLICATION FOR EVERY COMPLIANCE OFFI-
 CER  OR  COMPLIANCE  PRACTITIONER LICENSE AND FOR EVERY RENEWAL THEREOF,
 THERE SHALL BE PAID TO THE SUPERINTENDENT BY EACH  APPLICANT  A  FEE  OF
 SEVENTY-FIVE  DOLLARS  FOR  EACH  YEAR  OR  FRACTION  THEREOF IN WHICH A
 LICENSE SHALL BE VALID. UPON PAYMENT OF SUCH  FEE  AND  THE  SUPERINTEN-
 DENT'S  ISSUANCE  OF SUCH LICENSE OR RENEWAL THEREOF, SUCH LICENSE SHALL
 ALSO BE VALID FOR ANY ONE OR MORE OF THE VARIOUS LICENSES ISSUED BY  THE
 SUPERINTENDENT  FOR  THE LICENSING PERIOD OR FRACTION THEREOF COVERED BY
 SUCH PAYMENT.
   (B) NO LICENSE FEE SHALL BE REQUIRED OF ANY INDIVIDUAL WHO SERVED AS A
 MEMBER OF THE ARMED FORCES OF THE UNITED STATES  AT  ANY  TIME  AND  WHO
 SHALL HAVE BEEN DISCHARGED, UNDER CONDITIONS OTHER THAN DISHONORABLE, IN
 A CURRENT LICENSE PERIOD, FOR THE DURATION OF SUCH PERIOD.
   (C)  EVERY  INDIVIDUAL APPLYING TO TAKE A WRITTEN EXAMINATION SHALL AT
 THE TIME OF APPLICATION PAY TO THE SUPERINTENDENT, OR AT THE  DISCRETION
 OF  THE  SUPERINTENDENT,  DIRECTLY  TO  ANY  ORGANIZATION  THAT IS UNDER
 CONTRACT TO PROVIDE EXAMINATION SERVICES, A  NON-REFUNDABLE  EXAMINATION
 FEE  IN AN AMOUNT WHICH IS EQUAL TO THE ACTUAL DOCUMENTED ADMINISTRATIVE
 EXPENSE.  IF, HOWEVER, THE APPLICANT SHOULD WITHDRAW HIS OR HER APPLICA-
 TION OR THE SUPERINTENDENT SHOULD DENY HIS OR HER APPLICATION BEFORE THE
 LICENSE APPLIED FOR IS ISSUED, THE SUPERINTENDENT  MAY  REFUND  THE  FEE
 PAID  BY  THE APPLICANT FOR THE LICENSE APPLIED FOR, EXCEPTING ANY EXAM-
 INATION FEES REQUIRED PURSUANT TO THIS SUBSECTION.
   (D) THE SUPERINTENDENT MAY ISSUE A REPLACEMENT FOR A  CURRENT  LICENSE
 WHICH  HAS BEEN LOST OR DESTROYED. BEFORE SUCH REPLACEMENT LICENSE SHALL
 BE ISSUED, THERE SHALL BE ON FILE IN THE OFFICE OF THE SUPERINTENDENT  A
 WRITTEN APPLICATION FOR SUCH REPLACEMENT LICENSE, AFFIRMING UNDER PENAL-
 TY  OF  PERJURY  THAT  THE  ORIGINAL LICENSE HAS BEEN LOST OR DESTROYED,
 TOGETHER WITH A FEE OF FIFTEEN DOLLARS.
   § 807. LICENSE TERM; RENEWAL. (A) EVERY COMPLIANCE OFFICER LICENSE AND
 COMPLIANCE PRACTITIONER LICENSE ISSUED PURSUANT TO THIS SECTION SHALL BE
 FOR A TERM EXPIRING ON THE THIRTY-FIRST DAY OF DECEMBER OF EVEN NUMBERED
 YEARS, AND MAY BE RENEWED FOR THE ENSUING TWO CALENDAR  YEARS  UPON  THE
 FILING  OF AN APPLICATION IN CONFORMITY WITH SECTION EIGHT HUNDRED THREE
 OF THIS ARTICLE.  IN THE CASE OF A LICENSE ISSUED TO  A  NEW  APPLICANT,
 THE SUPERINTENDENT MAY ISSUE A LICENSE OR A TERM OF MORE THAN TWO YEARS,
 PROVIDED HOWEVER, SUCH TERM SHALL NOT EXCEED THIRTY MONTHS.
   (B)  IF  AN APPLICANT FOR A RENEWAL LICENSE SHALL HAVE BEEN FILED WITH
 THE SUPERINTENDENT BY DECEMBER THIRTY-FIRST OF THE YEAR  OF  EXPIRATION,
 THE LICENSE SOUGHT TO BE RENEWED SHALL CONTINUE IN FULL FORCE AND EFFECT
 EITHER  UNTIL  THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL LICENSE
 APPLIED FOR OR UNTIL FIVE  DAYS  AFTER  THE  SUPERINTENDENT  SHALL  HAVE
 REFUSED  TO  ISSUE  SUCH  RENEWAL LICENSE AND SHALL HAVE GIVEN NOTICE OF
 SUCH REFUSAL TO THE APPLICANT.
   (C) IF SUCH REFUSAL IS BASED ON ANY GROUNDS OTHER THAN FAILURE TO PASS
 A WRITTEN EXAMINATION AND IF THE  APPLICANT  SHALL  WITHIN  THIRTY  DAYS
 AFTER  SUCH  NOTICE IS GIVEN, NOTIFY THE SUPERINTENDENT OF THEIR REQUEST
 FOR A HEARING ON SUCH REFUSAL, THE SUPERINTENDENT SHALL WITHIN A REASON-
 ABLE TIME AFTER RECEIPT OF SUCH NOTICE GRANT SUCH A HEARING, AND  HE  OR
 SHE MAY, IN HIS OR HER DISCRETION, REINSTATE SUCH LICENSE.
   § 808. CONTINUING EDUCATION REQUIREMENTS. (A) THE CONTINUING EDUCATION
 REQUIREMENTS  SET  FORTH IN THIS SECTION SHALL APPLY TO ALL RESIDENT AND
 NON-RESIDENT COMPLIANCE OFFICER OR  COMPLIANCE  PRACTITIONER  LICENSEES,

 A. 6638                             5
 
 INCLUDING  ANY  INDIVIDUAL  PREVIOUSLY LICENSED WHOSE LICENSE WAS NOT IN
 EFFECT ON THE EFFECTIVE  DATE  OF  THIS  ARTICLE  AND  WHO  SUBSEQUENTLY
 OBTAINS A LICENSE PURSUANT TO THE PROVISIONS OF THIS ARTICLE.
   (B)  DURING  EACH  BIENNIAL  LICENSING PERIOD, A COMPLIANCE OFFICER OR
 COMPLIANCE PRACTITIONER LICENSEE SHALL SATISFACTORILY  COMPLETE  COURSES
 OR  PROGRAMS OF INSTRUCTION OR ATTEND SEMINARS AS MAY BE APPROVED BY THE
 SUPERINTENDENT EQUIVALENT TO THIRTY-SIX CREDIT HOURS OF INSTRUCTION.
   (C) A LICENSEE MAY USE ACCUMULATED  CONTINUING  EDUCATION  CREDITS  TO
 MEET  THE  REQUIREMENT SO LONG AS THE EDUCATION CREDITS ARE CERTIFIED AS
 SUCH BY THE SUPERINTENDENT AND ARE APPROVED BY A  REGULATORY  COMPLIANCE
 ACCREDITATION  AGENCY OR ANY OTHER LICENSING AUTHORITY WITHIN THE FINAN-
 CIAL SERVICES INDUSTRY AS A COMMENSURATE COURSE OF STUDY IN  THE  FINAN-
 CIAL INDUSTRY PERTAINING TO COMPLIANCE AND ETHICS.
   (D)  THE FOLLOWING COURSES OR PROGRAMS OF INSTRUCTION, IF SUCCESSFULLY
 COMPLETED, SHALL BE DEEMED TO MEET THE  SUPERINTENDENT'S  STANDARDS  FOR
 CONTINUING EDUCATION:
   (1)  COURSES  OR  PROGRAMS  OF INSTRUCTION OR SEMINARS, APPROVED AS TO
 METHOD AND CONTENT BY THE SUPERINTENDENT COVERING PORTIONS OF  PRINCIPLE
 BRANCHES  OF  THE  FINANCE  INDUSTRY  RELATED  TO  THE KINDS OF SUBJECTS
 COVERED BY THE COMPLIANCE OFFICER OR  COMPLIANCE  PRACTITIONER  LICENSE,
 INCLUDING  BUT  NOT  LIMITED TO COMPLIANCE REGULATION, LAW AND PRACTICE,
 REGULATORY EXAMINATIONS, REGULATORY ENFORCEMENT PROCEEDINGS,  AND  LITI-
 GATION, PROVIDED THAT:
   (A)  SUCH  COURSES OR PROGRAMS SHALL BE GIVEN BY AN ACCREDITED ASSOCI-
 ATION, DEGREE CONFERRING  COLLEGE  OR  UNIVERSITY  WHOSE  CURRICULUM  IS
 REGISTERED  WITH  THE  EDUCATION  DEPARTMENT  AT THE TIME THE INDIVIDUAL
 TAKES THE COURSE, WHETHER SUCH COURSE IS GIVEN AS PART OF  SUCH  CURRIC-
 ULUM  OR  SEPARATELY,  OR  BY  ANY OTHER INSTITUTION, ASSOCIATION, TRADE
 ASSOCIATION  OR  EMPLOYER,  WHICH  MAINTAINS  EQUIVALENT  STANDARDS   OF
 INSTRUCTION  AND  WHICH SHALL HAVE BEEN APPROVED FOR SUCH PURPOSE BY THE
 SUPERINTENDENT;
   (B) THE NUMBER OF CREDIT HOURS ASSIGNED TO EACH COURSE OR  PROGRAM  OF
 INSTRUCTION SHALL BE DETERMINED BY THE SUPERINTENDENT; AND
   (2) CONTINUING EDUCATION AS REQUIRED BY THE STATE IN WHICH A NON-RESI-
 DENT  RESIDES AND MAINTAINS AN OFFICE, PROVIDED THE SUPERINTENDENT DEEMS
 SUCH REQUIREMENTS EQUIVALENT TO NEW YORK CONTINUING  EDUCATION  REQUIRE-
 MENTS;  PROVIDED,  FURTHER,  THAT IF THE STATE IN WHICH THE NON-RESIDENT
 LICENSEE RESIDES AND MAINTAINS AN OFFICE DOES NOT HAVE CONTINUING EDUCA-
 TION REQUIREMENTS, OR IF THE SUPERINTENDENT DOES NOT DEEM SUCH  REQUIRE-
 MENTS EQUIVALENT, THE LICENSEE MUCH SATISFY NEW YORK'S CONTINUING EDUCA-
 TION REQUIREMENTS.
   (E) AN INDIVIDUAL WHO TEACHES AN APPROVED COURSE OF INSTRUCTION OR WHO
 LECTURES  AT AN APPROVED SEMINAR, AND WHO IS SUBJECT TO THESE CONTINUING
 EDUCATION REQUIREMENTS SHALL BE GRANTED THE SAME NUMBER OF CREDIT  HOURS
 AS  WOULD BE GRANTED TO AN INDIVIDUAL TAKING AND SUCCESSFULLY COMPLETING
 SUCH COURSE, SEMINAR OR PROGRAM, PROVIDED THAT SUCH CREDIT  HOURS  SHALL
 BE  CREDITED  ONLY  ONCE  FOR  EACH  APPROVED COURSE DURING ANY BIENNIAL
 LICENSING PERIOD.
   (F) EVERY INDIVIDUAL SUBJECT TO THE CONTINUING EDUCATION  REQUIREMENTS
 SET  FORTH  IN THIS SECTION, SHALL FURNISH IN A FORM SATISFACTORY TO THE
 SUPERINTENDENT  WRITTEN  CERTIFICATION  ATTESTING  TO  THE  COURSES   OR
 PROGRAMS  OF  INSTRUCTION TAKEN AND SUCCESSFULLY COMPLETED BY SUCH INDI-
 VIDUAL. SUCH CERTIFICATION SHALL BE SIGNED BY THE  SPONSORING  ORGANIZA-
 TION OR ITS AUTHORIZED REPRESENTATIVE.
   (G)  (1)  AN  INDIVIDUAL  WHO  DOES NOT MEET THE APPLICABLE CONTINUING
 EDUCATION REQUIREMENTS SHALL  NOT  BE  ELIGIBLE  TO  RENEW  HIS  OR  HER

 A. 6638                             6

 LICENSE.    SUCH  INDIVIDUAL  SHALL NOT BE ELIGIBLE TO BECOME RELICENSED
 DURING THE NEXT BIENNIAL LICENSING PERIOD UNLESS AND UNTIL SUCH INDIVID-
 UAL HAS DEMONSTRATED TO THE SATISFACTION OF THE SUPERINTENDENT THAT  THE
 CONTINUING EDUCATION REQUIREMENTS FOR THE LAST BIENNIAL LICENSING PERIOD
 WERE MET.
   (2)  AN INDIVIDUAL WHOSE LICENSE WAS NOT RENEWED PURSUANT TO PARAGRAPH
 ONE OF THIS SUBSECTION WHO ACCUMULATES SUFFICIENT CREDIT HOURS  FOR  THE
 PRIOR  LICENSING  PERIOD  TO  QUALIFY  FOR  RELICENSING  IN THE BIENNIAL
 LICENSING PERIOD FOLLOWING SUCH NON-RENEWAL, MAY NOT  APPLY  THOSE  SAME
 CREDIT  HOURS  TOWARD  THE  CONTINUING  EDUCATION  REQUIREMENTS  FOR THE
 CURRENT BIENNIAL LICENSING PERIOD.
   (H) (1) ANY ENTITY ELIGIBLE TO PROVIDE CONTINUING  EDUCATION  COURSES,
 PROGRAMS  OF  INSTRUCTION,  OR  SEMINARS  SHALL FILE FOR APPROVAL BY THE
 SUPERINTENDENT ON A  BIENNIAL  BASIS,  TO  CONFORM  WITH  ITS  AREAS  OF
 INSTRUCTION, A PROVIDER ORGANIZATION APPLICATION AND A COURSE SUBMISSION
 APPLICATION FOR EACH COURSE, PROGRAM, AND SEMINAR.
   (2)  THE  PROVIDER ORGANIZATION APPLICATION SHALL INCLUDE THE NAMES OF
 ALL INSTRUCTORS TO BE USED DURING THE  BIENNIAL  LICENSING  PERIOD,  AND
 INSTRUCTORS MAY BE ADDED DURING SUCH PERIOD BY NOTIFYING THE SUPERINTEN-
 DENT AND PAYING THE APPROPRIATE FILING FEE.
   (3)  THE  COMPLETED APPLICATIONS SHALL BE RETURNED IN A TIMELY MANNER,
 AS SPECIFIED BY THE SUPERINTENDENT WITH A NON-REFUNDABLE FILING  FEE  OF
 TWO  HUNDRED  DOLLARS  FOR  EACH  ORGANIZATION,  FIFTY  DOLLARS FOR EACH
 COURSE, PROGRAM, AND SEMINAR, AND FIFTY DOLLARS FOR EACH INSTRUCTOR.
   (4) APPROVAL OF THE APPLICATION SHALL BE  AT  THE  DISCRETION  OF  THE
 SUPERINTENDENT.
   (I)  A  LICENSEE  SHALL  PAY  A  BIENNIAL  FEE  OF TEN DOLLARS FOR ANY
 LICENSE, FOR CONTINUING EDUCATION  CERTIFICATION  FILING  AND  RECORDING
 CHARGES,  TO THE SUPERINTENDENT, OR, AT THE DIRECTION OF THE SUPERINTEN-
 DENT, DIRECTLY TO AN ORGANIZATION UNDER CONTRACT TO  PROVIDE  CONTINUING
 EDUCATION ADMINISTRATIVE SERVICES.
   §  809. RULES AND REGULATIONS; AUTHORITY OF THE SUPERINTENDENT. (A) IN
 ORDER TO CARRY OUT THE PURPOSES OF THIS ARTICLE, THE SUPERINTENDENT MAY:
   (1) PRESCRIBE THE TYPES OF COMPLIANCE LICENSES ACCORDING TO THE  KINDS
 OF COMPLIANCE DUTIES INHERENT IN THE FINANCIAL SERVICES INDUSTRY; AND
   (2)  ISSUE PROTOCOLS AND PROCEDURES FOR LICENSING AND CERTIFYING MINI-
 MUM QUALIFICATIONS FOR COMPLIANCE OFFICERS, COMPLIANCE PRACTITIONERS AND
 OTHER  INDIVIDUALS  TASKED  WITH  MONITORING,  EVALUATING,  TESTING  AND
 REPORTING  NON-COMPLIANCE OR MISCONDUCT IN THE FINANCIAL SERVICES INDUS-
 TRY.
   (B) THE SUPERINTENDENT SHALL ESTABLISH AND PRESCRIBE REGULATIONS  THAT
 ARE  DEEMED NECESSARY FOR THE PROPER AND ADEQUATE SUPERVISION OF COMPLI-
 ANCE OFFICERS AND COMPLIANCE PRACTITIONERS.
   § 2. This act shall take effect on the thirtieth day  after  it  shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal  of  any  rule  or regulation necessary for the implementation of
 this act on its effective date are authorized to be made  and  completed
 on or before such effective date.

2021-A6638A (ACTIVE) - Details

Current Committee:: Assembly Banks
Law Section:: Financial Services Law
Laws Affected:: Add Art 9 §§901 - 909, Fin Serv L
Versions Introduced in Other Legislative Sessions:: 2019-2020: A8908
2023-2024: A7966

2021-A6638A (ACTIVE) - Summary

2021-A6638A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6638--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 23, 2021
                                ___________
 
 Introduced by M. of A. CUSICK -- read once and referred to the Committee
   on  Banks  -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the financial services law, in relation to a  compliance
   officer or compliance practitioner license

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The financial services law is amended by adding a new arti-
 cle 9 to read as follows:
                                 ARTICLE 9
           COMPLIANCE OFFICER OR COMPLIANCE PRACTITIONER LICENSE
 SECTION 901. DEFINITIONS.
         902. APPLICABILITY; LICENSE.
         903. LICENSE APPLICATION.
         904. WRITTEN EXAMINATION.
         905. TEMPORARY LICENSE.
         906. FEES.
         907. LICENSE TERM; RENEWAL.
         908. CONTINUING EDUCATION REQUIREMENTS.
         909. RULES AND REGULATIONS; AUTHORITY OF THE SUPERINTENDENT.
   § 901. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
   (A) "COMPLIANCE" SHALL  MEAN:    (1)  DRAFTING,  EVALUATING,  APPLYING
 COMPLIANCE OR REGULATORY POLICIES AND PROCEDURES; (2) DESIGNING, ASSESS-
 ING  OR  IMPLEMENTING  COMPLIANCE OR REGULATORY CONTROLS OR SYSTEMS; AND
 (3) SUPERVISING, SURVEILLING, MONITORING, REVIEWING, TESTING OR  REPORT-
 ING NON-COMPLIANCE OR MISCONDUCT.  FOR PURPOSES OF THIS ARTICLE, COMPLI-
 ANCE  TASKS, DUTIES AND FUNCTIONS SHALL BE PERFORMED ONLY BY AN INDIVID-
 UAL LICENSED OR OTHERWISE AUTHORIZED TO PERFORM SUCH  TASKS,  DUTIES  OR
 FUNCTIONS  UNDER  THE  TITLE  OF COMPLIANCE OFFICER, REGULATORY OFFICER,
 COMPLIANCE  SUPERVISOR,  COMPLIANCE  PRACTITIONER,  COMPLIANCE  ANALYST,
 COMPLIANCE CONSULTANT, COMPLIANCE COUNSEL, COMPLIANCE ADVISOR, REGULATO-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD05846-03-1

 A. 6638--A                          2
 
 RY  OFFICER, REGULATORY MANAGER, REGULATORY SUPERVISOR, REGULATORY PRAC-
 TITIONER, REGULATORY ANALYST, REGULATORY CONSULTANT, REGULATORY  COUNSEL
 OR REGULATORY ADVISOR.
   (B)  "FINANCIAL  INDUSTRY" AND "FINANCIAL SERVICES INDUSTRY" SHALL NOT
 INCLUDE ANY PORTION OF THE  FINANCIAL  INDUSTRY  OR  FINANCIAL  SERVICES
 INDUSTRY INVOLVING ANNUITIES.
   §  902. APPLICABILITY; LICENSE. THE SUPERINTENDENT MAY ISSUE A COMPLI-
 ANCE OFFICER OR COMPLIANCE PRACTITIONER LICENSE TO ANY INDIVIDUAL WHO IS
 TRUSTWORTHY AND COMPETENT TO ACT AS A COMPLIANCE OFFICER  OR  COMPLIANCE
 PRACTITIONER  IN SUCH MANNER AS TO SAFEGUARD THE INTERESTS OF THE PEOPLE
 OF THIS STATE AND WHO HAS COMPLIED WITH  ALL  OF  THE  REQUIREMENTS  SET
 FORTH  IN  THIS  ARTICLE. THE HOLDER OF A LICENSE UNDER THIS SECTION MAY
 ACT AS A COMPLIANCE OFFICER OR COMPLIANCE PRACTITIONER WITHOUT ANY OTHER
 ADDITIONAL LICENSE. EVERY APPLICANT FOR A  LICENSE  UNDER  THIS  SECTION
 SHALL  BE TWENTY-ONE YEARS OF AGE OR OVER AT THE TIME OF THE ISSUANCE OF
 SUCH LICENSE.
   § 903. LICENSE APPLICATION. (A) BEFORE A COMPLIANCE OFFICER OR COMPLI-
 ANCE PRACTITIONER LICENSE OR RENEWAL THEREOF  SHALL  BE  ISSUED  BY  THE
 SUPERINTENDENT, AN APPLICANT SHALL FILE IN THE OFFICE OF THE SUPERINTEN-
 DENT  A  WRITTEN  APPLICATION FOR SUCH LICENSE OR RENEWAL THEREOF.  SUCH
 APPLICATION SHALL BE IN THE FORM AND CONTAIN INFORMATION THAT THE SUPER-
 INTENDENT PRESCRIBES.
   (B) AN INDIVIDUAL SIGNING SUCH APPLICATION  SHALL,  SIMULTANEOUS  WITH
 SUCH  APPLICATION,  SUBMIT  TO THE SUPERINTENDENT FINGERPRINTS OF HIS OR
 HER TWO HANDS RECORDED IN SUCH MANNER AS MAY BE SPECIFIED BY THE  SUPER-
 INTENDENT OR HIS OR HER AUTHORIZED REPRESENTATIVE. BEFORE APPROVING SUCH
 APPLICATION,  IT  SHALL  BE THE DUTY OF THE SUPERINTENDENT OR HIS OR HER
 AUTHORIZED REPRESENTATIVE TO COMPARE SUCH FINGERPRINTS WITH FINGERPRINTS
 FILED WITH THE DIVISION OF CRIMINAL JUSTICE SERVICES. SUCH  FINGERPRINTS
 MAY  ALSO  BE  SUBMITTED  TO  THE  FEDERAL BUREAU OF INVESTIGATION FOR A
 NATIONAL CRIMINAL HISTORY RECORD CHECK.
   (C) NO SUCH LICENSE SHALL BE ISSUED TO ANY  INDIVIDUAL  WHO  HAS  EVER
 BEEN CONVICTED OF A FELONY, OR OF ANY CRIME OR OFFENSE INVOLVING FRAUDU-
 LENT  OR  DISHONEST  PRACTICES NOR SHALL A COMPLIANCE OFFICER OR PRACTI-
 TIONER LICENSED UNDER THIS ARTICLE BE EMPLOYED IF  SUCH  INDIVIDUAL  HAS
 EVER BEEN CONVICTED OF A FELONY, OR OF ANY SUCH CRIME OR OFFENSE.
   (D)  NOTHING CONTAINED IN THIS SECTION SHALL PREVENT THE EMPLOYMENT OF
 A COMPLIANCE OFFICER OR COMPLIANCE PRACTITIONER OR  THE  ISSUANCE  OF  A
 LICENSE  TO  ANY  INDIVIDUAL  WHO,  SUBSEQUENT TO HIS OR HER CONVICTION,
 SHALL HAVE RECEIVED EXECUTIVE PARDON THEREFOR REMOVING SUCH  DISABILITY,
 OR  WHO  HAS  RECEIVED  A  CERTIFICATE  OF RELIEF FROM DISABILITIES OR A
 CERTIFICATE OF GOOD CONDUCT PURSUANT  TO  ARTICLE  TWENTY-THREE  OF  THE
 CORRECTION  LAW  TO  REMOVE THE DISABILITY UNDER THIS ARTICLE BECAUSE OF
 SUCH CONVICTION OR PREVIOUS LICENSE REVOCATION OCCASIONED THEREBY.
   § 904. WRITTEN EXAMINATION. (A) THE SUPERINTENDENT SHALL IN  ORDER  TO
 DETERMINE  THE  TRUSTWORTHINESS  AND  COMPETENCY  TO ACT AS A COMPLIANCE
 OFFICER OR COMPLIANCE PRACTITIONER OF EACH INDIVIDUAL APPLICANT FOR SUCH
 LICENSE, EXCEPT IN THE CASE OF A RENEWAL  LICENSE,  REQUIRE  EVERY  SUCH
 INDIVIDUAL  TO TAKE AND PASS, TO THE SATISFACTION OF THE SUPERINTENDENT,
 A PERSONAL WRITTEN EXAMINATION. NO INDIVIDUAL SHALL BE DEEMED  QUALIFIED
 TO  TAKE  THE EXAMINATION WITHOUT HAVING DEMONSTRATED BY EVIDENCE SATIS-
 FACTORY TO THE SUPERINTENDENT THE FOLLOWING MINIMUM QUALIFICATIONS:  (1)
 TWO  YEARS'  EXPERIENCE  IN  THE  FINANCIAL  INDUSTRY,  IF THE APPLICANT
 POSSESSES A BACHELORS DEGREE FROM AN ACCREDITED SCHOOL OF HIGHER  EDUCA-
 TION,  WITH  INVOLVEMENT IN REGULATORY OVERSIGHT, COMPLIANCE TRAINING OR
 OTHER EXPERIENCE CONSIDERED SUFFICIENT BY THE SUPERINTENDENT, OR IF  THE

 A. 6638--A                          3
 
 APPLICANT POSSESSES A MINIMUM OF FIVE YEARS' PRACTICAL EXPERIENCE IN THE
 FINANCIAL SERVICES INDUSTRY WITH AN INVOLVEMENT IN REGULATORY OVERSIGHT,
 COMPLIANCE  TRAINING  OR  OTHER  EXPERIENCE CONSIDERED SUFFICIENT BY THE
 SUPERINTENDENT; AND (2) THE APPLICANT SUCCESSFULLY COMPLETED THIRTY-FIVE
 HOURS  OF  FORMAL TRAINING IN A COURSE, PROGRAM OF INSTRUCTION, OR SEMI-
 NARS APPROVED BY THE SUPERINTENDENT.
   (B) THE SUPERINTENDENT MAY PRESCRIBE THE TYPES OF WRITTEN EXAMINATIONS
 ACCORDING TO THE  KINDS  OF  COMPLIANCE  ISSUES  THE  APPLICANT  MAY  BE
 SUBJECTED TO IN THE COURSE OF HIS OR HER DUTIES.
   (C) THE SUPERINTENDENT MAY, IN HIS OR HER DISCRETION AND ON SUCH TERMS
 AS  HE  OR SHE PRESCRIBES, DISPENSE WITH SUCH EXAMINATION IN THE CASE OF
 ANY APPLICANT WHO SHALL PREVIOUSLY HAVE HELD A  POSITION  OF  COMPLIANCE
 OFFICER  OR  COMPLIANCE  PRACTITIONER FOR A MINIMUM PERIOD OF FIVE YEARS
 PRIOR TO THE EFFECTIVE DATE OF THIS ARTICLE; PROVIDED, FURTHER THAT  THE
 APPLICANT  APPLIES WITHIN TWO YEARS FOLLOWING THE DATE OF TERMINATION OF
 SUCH LICENSE.
   (D) AN INDIVIDUAL WHO AT ANY TIME SERVED WITH THE ARMED FORCES OF  THE
 UNITED  STATES,  AND  WHO  IMMEDIATELY  PRIOR  TO ENTERING SUCH MILITARY
 SERVICE HAD BEEN CONTINUOUSLY ENGAGED IN BONA  FIDE  OPERATION  IN  THIS
 STATE AS A COMPLIANCE OFFICER OR COMPLIANCE PRACTITIONER FOR A PERIOD OF
 FIVE  YEARS,  MAY  WITHIN  ONE  YEAR  AFTER TERMINATION OF SUCH MILITARY
 SERVICE FILE WITH THE SUPERINTENDENT AN APPLICATION IN SUCH FORM  AS  HE
 OR  SHE PRESCRIBES, AND UPON THE PAYMENT OF THE REQUISITE LICENSE FEE BE
 LICENSED BY THE SUPERINTENDENT AS A  COMPLIANCE  OFFICER  OR  COMPLIANCE
 PRACTITIONER WITHOUT BEING REQUIRED TO TAKE AND PASS SUCH EXAMINATION.
   (E)  THE  SUPERINTENDENT  MAY  EXEMPT  FROM  THE  WRITTEN  EXAMINATION
 REQUIREMENT AN APPLICANT WHO HOLDS A LICENSE OR CERTIFICATE TO  PRACTICE
 COMPLIANCE  ISSUED TO THEM UPON EXAMINATION, ACCREDITED AND ADMINISTERED
 BY A REGULATORY COMPLIANCE ACCREDITATION AGENCY IN ANY  OTHER  STATE  OR
 POLITICAL SUBDIVISION OF THE UNITED STATES OR OTHER COUNTRY PROVIDED THE
 APPLICANT'S  QUALIFICATIONS  MET  THE  REQUIREMENTS IN THIS STATE AT THE
 TIME SUCH LICENSE WAS ISSUED AND THAT JURISDICTION RECOGNIZES RECIPROCI-
 TY OF THE VALIDITY OF A LICENSE ISSUED FROM THE STATE OF NEW YORK.
   (F) THE SUPERINTENDENT  SHALL  EXEMPT  FROM  THE  WRITTEN  EXAMINATION
 REQUIREMENT  ANY  OFFICIAL  OR  EMPLOYEE OF A GOVERNMENT UNIT, AGENCY OR
 INSTRUMENTALITY WHO IS  RESPONSIBLE  FOR  PERFORMING  COMPLIANCE  TASKS,
 DUTIES  OR  FUNCTIONS  AS  PART  OF HIS OR HER OFFICIAL DUTIES WITH SUCH
 GOVERNMENTAL UNIT, AGENCY OR INSTRUMENTALITY.
   § 905. TEMPORARY LICENSE. (A) AN INDIVIDUAL WHO HAS HAD AT LEAST  FIVE
 YEARS'  EXPERIENCE AS A COMPLIANCE OFFICER OR COMPLIANCE PRACTITIONER IN
 A FINANCIAL SERVICES INDUSTRY AND HAS MADE APPLICATION FOR A LICENSE  AS
 A  COMPLIANCE  OFFICER  OR  COMPLIANCE PRACTITIONER IN NEW YORK MAY FILE
 WITH THE SUPERINTENDENT, IN SUCH FORM AS THE SUPERINTENDENT  PRESCRIBES,
 A  WRITTEN  APPLICATION  FOR A TEMPORARY PERMIT TO PERFORM THE DUTIES AS
 PRESCRIBED HEREIN AS A COMPLIANCE  OFFICER  OR  COMPLIANCE  PRACTITIONER
 DURING THE PENDENCY OF THE APPLICATION.
   (B)  NOTWITHSTANDING  ANY  PROVISION CONTAINED IN SECTION NINE HUNDRED
 FOUR OF THIS ARTICLE, AN APPLICANT FOR  A  TEMPORARY  LICENSE  SHALL  BE
 REQUIRED  TO  TAKE AND PASS A PERSONAL WRITTEN EXAMINATION IN ACCORDANCE
 WITH SUBSECTION (A) OF SECTION NINE HUNDRED FOUR  OF  THIS  ARTICLE.  IF
 SATISFIED  THAT THE INDIVIDUAL APPLYING FOR SUCH TEMPORARY PERMIT HAS IN
 ALL OTHER RESPECTS MET THE REQUIREMENTS OF THIS ARTICLE WITH RESPECT  TO
 THE  LICENSING OF A COMPLIANCE OFFICER OR COMPLIANCE PRACTITIONER AND IS
 QUALIFIED BY TRAINING AND EXPERIENCE  AS  AN  EMPLOYEE  OF  A  FINANCIAL
 SERVICE PROVIDER OR OTHER FINANCIAL INDUSTRY RELATED ENTITY AS A COMPLI-
 ANCE  OFFICER OR COMPLIANCE PRACTITIONER, THE SUPERINTENDENT SHALL ISSUE

 A. 6638--A                          4
 
 SUCH TEMPORARY PERMIT TO BE EFFECTIVE FOR SUCH PERIOD  OF  TIME  AS  THE
 SUPERINTENDENT  MAY  SPECIFY  THEREIN  BUT, IN NO EVENT, FOR A PERIOD IN
 EXCESS OF ONE HUNDRED TWENTY DAYS.
   (C)  THE  SUPERINTENDENT MAY SUMMARILY SUSPEND OR REVOKE ANY TEMPORARY
 PERMIT ISSUED PURSUANT TO THIS SECTION UPON TEN DAYS' NOTICE IN  WRITING
 TO THE TEMPORARY PERMITTEE OF THE SUPERINTENDENT'S INTENTION TO DO SO.
   § 906. FEES. (A) AT THE TIME OF APPLICATION FOR EVERY COMPLIANCE OFFI-
 CER  OR  COMPLIANCE  PRACTITIONER LICENSE AND FOR EVERY RENEWAL THEREOF,
 THERE SHALL BE PAID TO THE SUPERINTENDENT BY EACH  APPLICANT  A  FEE  OF
 SEVENTY-FIVE  DOLLARS  FOR  EACH  YEAR  OR  FRACTION  THEREOF IN WHICH A
 LICENSE SHALL BE VALID. UPON PAYMENT OF SUCH  FEE  AND  THE  SUPERINTEN-
 DENT'S  ISSUANCE  OF SUCH LICENSE OR RENEWAL THEREOF, SUCH LICENSE SHALL
 ALSO BE VALID FOR ANY ONE OR MORE OF THE VARIOUS LICENSES ISSUED BY  THE
 SUPERINTENDENT  FOR  THE LICENSING PERIOD OR FRACTION THEREOF COVERED BY
 SUCH PAYMENT.
   (B) NO LICENSE FEE SHALL BE REQUIRED OF ANY INDIVIDUAL WHO SERVED AS A
 MEMBER OF THE ARMED FORCES OF THE UNITED STATES  AT  ANY  TIME  AND  WHO
 SHALL HAVE BEEN DISCHARGED, UNDER CONDITIONS OTHER THAN DISHONORABLE, IN
 A CURRENT LICENSE PERIOD, FOR THE DURATION OF SUCH PERIOD.
   (C)  EVERY  INDIVIDUAL APPLYING TO TAKE A WRITTEN EXAMINATION SHALL AT
 THE TIME OF APPLICATION PAY TO THE SUPERINTENDENT, OR AT THE  DISCRETION
 OF  THE  SUPERINTENDENT,  DIRECTLY  TO  ANY  ORGANIZATION  THAT IS UNDER
 CONTRACT TO PROVIDE EXAMINATION SERVICES, A  NON-REFUNDABLE  EXAMINATION
 FEE  IN AN AMOUNT WHICH IS EQUAL TO THE ACTUAL DOCUMENTED ADMINISTRATIVE
 EXPENSE.  IF, HOWEVER, THE APPLICANT SHOULD WITHDRAW HIS OR HER APPLICA-
 TION OR THE SUPERINTENDENT SHOULD DENY HIS OR HER APPLICATION BEFORE THE
 LICENSE APPLIED FOR IS ISSUED, THE SUPERINTENDENT  MAY  REFUND  THE  FEE
 PAID  BY  THE APPLICANT FOR THE LICENSE APPLIED FOR, EXCEPTING ANY EXAM-
 INATION FEES REQUIRED PURSUANT TO THIS SUBSECTION.
   (D) THE SUPERINTENDENT MAY ISSUE A REPLACEMENT FOR A  CURRENT  LICENSE
 WHICH  HAS BEEN LOST OR DESTROYED. BEFORE SUCH REPLACEMENT LICENSE SHALL
 BE ISSUED, THERE SHALL BE ON FILE IN THE OFFICE OF THE SUPERINTENDENT  A
 WRITTEN APPLICATION FOR SUCH REPLACEMENT LICENSE, AFFIRMING UNDER PENAL-
 TY  OF  PERJURY  THAT  THE  ORIGINAL LICENSE HAS BEEN LOST OR DESTROYED,
 TOGETHER WITH A FEE OF FIFTEEN DOLLARS.
   § 907. LICENSE TERM; RENEWAL. (A) EVERY COMPLIANCE OFFICER LICENSE AND
 COMPLIANCE PRACTITIONER LICENSE ISSUED PURSUANT TO THIS SECTION SHALL BE
 FOR A TERM EXPIRING ON THE THIRTY-FIRST DAY OF DECEMBER OF EVEN NUMBERED
 YEARS, AND MAY BE RENEWED FOR THE ENSUING TWO CALENDAR  YEARS  UPON  THE
 FILING  OF  AN APPLICATION IN CONFORMITY WITH SECTION NINE HUNDRED THREE
 OF THIS ARTICLE.  IN THE CASE OF A LICENSE ISSUED TO  A  NEW  APPLICANT,
 THE SUPERINTENDENT MAY ISSUE A LICENSE OR A TERM OF MORE THAN TWO YEARS,
 PROVIDED HOWEVER, SUCH TERM SHALL NOT EXCEED THIRTY MONTHS.
   (B)  IF  AN APPLICANT FOR A RENEWAL LICENSE SHALL HAVE BEEN FILED WITH
 THE SUPERINTENDENT BY DECEMBER THIRTY-FIRST OF THE YEAR  OF  EXPIRATION,
 THE LICENSE SOUGHT TO BE RENEWED SHALL CONTINUE IN FULL FORCE AND EFFECT
 EITHER  UNTIL  THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL LICENSE
 APPLIED FOR OR UNTIL FIVE  DAYS  AFTER  THE  SUPERINTENDENT  SHALL  HAVE
 REFUSED  TO  ISSUE  SUCH  RENEWAL LICENSE AND SHALL HAVE GIVEN NOTICE OF
 SUCH REFUSAL TO THE APPLICANT.
   (C) IF SUCH REFUSAL IS BASED ON ANY GROUNDS OTHER THAN FAILURE TO PASS
 A WRITTEN EXAMINATION AND IF THE  APPLICANT  SHALL  WITHIN  THIRTY  DAYS
 AFTER  SUCH  NOTICE IS GIVEN, NOTIFY THE SUPERINTENDENT OF THEIR REQUEST
 FOR A HEARING ON SUCH REFUSAL, THE SUPERINTENDENT SHALL WITHIN A REASON-
 ABLE TIME AFTER RECEIPT OF SUCH NOTICE GRANT SUCH A HEARING, AND  HE  OR
 SHE MAY, IN HIS OR HER DISCRETION, REINSTATE SUCH LICENSE.

 A. 6638--A                          5
 
   § 908. CONTINUING EDUCATION REQUIREMENTS. (A) THE CONTINUING EDUCATION
 REQUIREMENTS  SET  FORTH IN THIS SECTION SHALL APPLY TO ALL RESIDENT AND
 NON-RESIDENT COMPLIANCE OFFICER OR  COMPLIANCE  PRACTITIONER  LICENSEES,
 INCLUDING  ANY  INDIVIDUAL  PREVIOUSLY LICENSED WHOSE LICENSE WAS NOT IN
 EFFECT  ON  THE  EFFECTIVE  DATE  OF  THIS  ARTICLE AND WHO SUBSEQUENTLY
 OBTAINS A LICENSE PURSUANT TO THE PROVISIONS OF THIS ARTICLE.
   (B) DURING EACH BIENNIAL LICENSING PERIOD,  A  COMPLIANCE  OFFICER  OR
 COMPLIANCE  PRACTITIONER  LICENSEE SHALL SATISFACTORILY COMPLETE COURSES
 OR PROGRAMS OF INSTRUCTION OR ATTEND SEMINARS AS MAY BE APPROVED BY  THE
 SUPERINTENDENT EQUIVALENT TO THIRTY-SIX CREDIT HOURS OF INSTRUCTION.
   (C)  A  LICENSEE  MAY  USE ACCUMULATED CONTINUING EDUCATION CREDITS TO
 MEET THE REQUIREMENT SO LONG AS THE EDUCATION CREDITS ARE  CERTIFIED  AS
 SUCH  BY  THE SUPERINTENDENT AND ARE APPROVED BY A REGULATORY COMPLIANCE
 ACCREDITATION AGENCY OR ANY OTHER LICENSING AUTHORITY WITHIN THE  FINAN-
 CIAL  SERVICES  INDUSTRY AS A COMMENSURATE COURSE OF STUDY IN THE FINAN-
 CIAL INDUSTRY PERTAINING TO COMPLIANCE AND ETHICS.
   (D) THE FOLLOWING COURSES OR PROGRAMS OF INSTRUCTION, IF  SUCCESSFULLY
 COMPLETED,  SHALL  BE  DEEMED TO MEET THE SUPERINTENDENT'S STANDARDS FOR
 CONTINUING EDUCATION:
   (1) COURSES OR PROGRAMS OF INSTRUCTION OR  SEMINARS,  APPROVED  AS  TO
 METHOD  AND CONTENT BY THE SUPERINTENDENT COVERING PORTIONS OF PRINCIPLE
 BRANCHES OF THE FINANCE  INDUSTRY  RELATED  TO  THE  KINDS  OF  SUBJECTS
 COVERED  BY  THE  COMPLIANCE OFFICER OR COMPLIANCE PRACTITIONER LICENSE,
 INCLUDING BUT NOT LIMITED TO COMPLIANCE REGULATION,  LAW  AND  PRACTICE,
 REGULATORY  EXAMINATIONS,  REGULATORY ENFORCEMENT PROCEEDINGS, AND LITI-
 GATION, PROVIDED THAT:
   (A) SUCH COURSES OR PROGRAMS SHALL BE GIVEN BY AN  ACCREDITED  ASSOCI-
 ATION,  DEGREE  CONFERRING  COLLEGE  OR  UNIVERSITY  WHOSE CURRICULUM IS
 REGISTERED WITH THE EDUCATION DEPARTMENT  AT  THE  TIME  THE  INDIVIDUAL
 TAKES  THE  COURSE, WHETHER SUCH COURSE IS GIVEN AS PART OF SUCH CURRIC-
 ULUM OR SEPARATELY, OR BY  ANY  OTHER  INSTITUTION,  ASSOCIATION,  TRADE
 ASSOCIATION   OR  EMPLOYER,  WHICH  MAINTAINS  EQUIVALENT  STANDARDS  OF
 INSTRUCTION AND WHICH SHALL HAVE BEEN APPROVED FOR SUCH PURPOSE  BY  THE
 SUPERINTENDENT;
   (B)  THE  NUMBER OF CREDIT HOURS ASSIGNED TO EACH COURSE OR PROGRAM OF
 INSTRUCTION SHALL BE DETERMINED BY THE SUPERINTENDENT; AND
   (2) CONTINUING EDUCATION AS REQUIRED BY THE STATE IN WHICH A NON-RESI-
 DENT RESIDES AND MAINTAINS AN OFFICE, PROVIDED THE SUPERINTENDENT  DEEMS
 SUCH  REQUIREMENTS  EQUIVALENT TO NEW YORK CONTINUING EDUCATION REQUIRE-
 MENTS; PROVIDED, FURTHER, THAT IF THE STATE IN  WHICH  THE  NON-RESIDENT
 LICENSEE RESIDES AND MAINTAINS AN OFFICE DOES NOT HAVE CONTINUING EDUCA-
 TION  REQUIREMENTS, OR IF THE SUPERINTENDENT DOES NOT DEEM SUCH REQUIRE-
 MENTS EQUIVALENT, THE LICENSEE MUCH SATISFY NEW YORK'S CONTINUING EDUCA-
 TION REQUIREMENTS.
   (E) AN INDIVIDUAL WHO TEACHES AN APPROVED COURSE OF INSTRUCTION OR WHO
 LECTURES AT AN APPROVED SEMINAR, AND WHO IS SUBJECT TO THESE  CONTINUING
 EDUCATION  REQUIREMENTS SHALL BE GRANTED THE SAME NUMBER OF CREDIT HOURS
 AS WOULD BE GRANTED TO AN INDIVIDUAL TAKING AND SUCCESSFULLY  COMPLETING
 SUCH  COURSE,  SEMINAR OR PROGRAM, PROVIDED THAT SUCH CREDIT HOURS SHALL
 BE CREDITED ONLY ONCE FOR  EACH  APPROVED  COURSE  DURING  ANY  BIENNIAL
 LICENSING PERIOD.
   (F)  EVERY INDIVIDUAL SUBJECT TO THE CONTINUING EDUCATION REQUIREMENTS
 SET FORTH IN THIS SECTION, SHALL FURNISH IN A FORM SATISFACTORY  TO  THE
 SUPERINTENDENT   WRITTEN  CERTIFICATION  ATTESTING  TO  THE  COURSES  OR
 PROGRAMS OF INSTRUCTION TAKEN AND SUCCESSFULLY COMPLETED BY  SUCH  INDI-

 A. 6638--A                          6
 
 VIDUAL.  SUCH  CERTIFICATION SHALL BE SIGNED BY THE SPONSORING ORGANIZA-
 TION OR ITS AUTHORIZED REPRESENTATIVE.
   (G)  (1)  AN  INDIVIDUAL  WHO  DOES NOT MEET THE APPLICABLE CONTINUING
 EDUCATION REQUIREMENTS SHALL  NOT  BE  ELIGIBLE  TO  RENEW  HIS  OR  HER
 LICENSE.    SUCH  INDIVIDUAL  SHALL NOT BE ELIGIBLE TO BECOME RELICENSED
 DURING THE NEXT BIENNIAL LICENSING PERIOD UNLESS AND UNTIL SUCH INDIVID-
 UAL HAS DEMONSTRATED TO THE SATISFACTION OF THE SUPERINTENDENT THAT  THE
 CONTINUING EDUCATION REQUIREMENTS FOR THE LAST BIENNIAL LICENSING PERIOD
 WERE MET.
   (2)  AN INDIVIDUAL WHOSE LICENSE WAS NOT RENEWED PURSUANT TO PARAGRAPH
 ONE OF THIS SUBSECTION WHO ACCUMULATES SUFFICIENT CREDIT HOURS  FOR  THE
 PRIOR  LICENSING  PERIOD  TO  QUALIFY  FOR  RELICENSING  IN THE BIENNIAL
 LICENSING PERIOD FOLLOWING SUCH NON-RENEWAL, MAY NOT  APPLY  THOSE  SAME
 CREDIT  HOURS  TOWARD  THE  CONTINUING  EDUCATION  REQUIREMENTS  FOR THE
 CURRENT BIENNIAL LICENSING PERIOD.
   (H) (1) ANY ENTITY ELIGIBLE TO PROVIDE CONTINUING  EDUCATION  COURSES,
 PROGRAMS  OF  INSTRUCTION,  OR  SEMINARS  SHALL FILE FOR APPROVAL BY THE
 SUPERINTENDENT ON A  BIENNIAL  BASIS,  TO  CONFORM  WITH  ITS  AREAS  OF
 INSTRUCTION, A PROVIDER ORGANIZATION APPLICATION AND A COURSE SUBMISSION
 APPLICATION FOR EACH COURSE, PROGRAM, AND SEMINAR.
   (2)  THE  PROVIDER ORGANIZATION APPLICATION SHALL INCLUDE THE NAMES OF
 ALL INSTRUCTORS TO BE USED DURING THE  BIENNIAL  LICENSING  PERIOD,  AND
 INSTRUCTORS MAY BE ADDED DURING SUCH PERIOD BY NOTIFYING THE SUPERINTEN-
 DENT AND PAYING THE APPROPRIATE FILING FEE.
   (3)  THE  COMPLETED APPLICATIONS SHALL BE RETURNED IN A TIMELY MANNER,
 AS SPECIFIED BY THE SUPERINTENDENT WITH A NON-REFUNDABLE FILING  FEE  OF
 TWO  HUNDRED  DOLLARS  FOR  EACH  ORGANIZATION,  FIFTY  DOLLARS FOR EACH
 COURSE, PROGRAM, AND SEMINAR, AND FIFTY DOLLARS FOR EACH INSTRUCTOR.
   (4) APPROVAL OF THE APPLICATION SHALL BE  AT  THE  DISCRETION  OF  THE
 SUPERINTENDENT.
   (I)  A  LICENSEE  SHALL  PAY  A  BIENNIAL  FEE  OF TEN DOLLARS FOR ANY
 LICENSE, FOR CONTINUING EDUCATION  CERTIFICATION  FILING  AND  RECORDING
 CHARGES,  TO THE SUPERINTENDENT, OR, AT THE DIRECTION OF THE SUPERINTEN-
 DENT, DIRECTLY TO AN ORGANIZATION UNDER CONTRACT TO  PROVIDE  CONTINUING
 EDUCATION ADMINISTRATIVE SERVICES.
   §  909. RULES AND REGULATIONS; AUTHORITY OF THE SUPERINTENDENT. (A) IN
 ORDER TO CARRY OUT THE PURPOSES OF THIS ARTICLE, THE SUPERINTENDENT MAY:
   (1) PRESCRIBE THE TYPES OF COMPLIANCE LICENSES ACCORDING TO THE  KINDS
 OF COMPLIANCE DUTIES INHERENT IN THE FINANCIAL SERVICES INDUSTRY; AND
   (2)  ISSUE PROTOCOLS AND PROCEDURES FOR LICENSING AND CERTIFYING MINI-
 MUM QUALIFICATIONS FOR COMPLIANCE OFFICERS, COMPLIANCE PRACTITIONERS AND
 OTHER  INDIVIDUALS  TASKED  WITH  MONITORING,  EVALUATING,  TESTING  AND
 REPORTING  NON-COMPLIANCE OR MISCONDUCT IN THE FINANCIAL SERVICES INDUS-
 TRY.
   (B) THE SUPERINTENDENT SHALL ESTABLISH AND PRESCRIBE REGULATIONS  THAT
 ARE  DEEMED NECESSARY FOR THE PROPER AND ADEQUATE SUPERVISION OF COMPLI-
 ANCE OFFICERS AND COMPLIANCE PRACTITIONERS.
   § 2. This act shall take effect on the thirtieth day  after  it  shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal  of  any  rule  or regulation necessary for the implementation of
 this act on its effective date are authorized to be made  and  completed
 on or before such effective date.

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