NY State Senate Bill 2023-S5879

Senate Bill S5879

2023-2024 Legislative Session

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

download bill text pdf

Current Bill Status - In Senate Committee Banks 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 03, 2024	referred to banks
Mar 20, 2023	referred to banks

2023-S5879 (ACTIVE) - Details

See Assembly Version of this Bill:: A7966
Current Committee:: Senate Banks
Law Section:: Financial Services Law
Laws Affected:: Add Art 9 §§901 - 909, Fin Serv L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S4965, A8908
2021-2022: S1661, A6638

2023-S5879 (ACTIVE) - 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.

2023-S5879 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5879

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the financial services law, in relation to a compliance
officer or compliance practitioner license

 
PURPOSE:

To provide authority for the superintendent of financial services to
enact regulations, oversight of licensing and establishing minimum
requirements for continuing education of compliance officers and compli-
ance practitioners in the financial services industry

 
SUMMARY OF PROVISIONS:

This act shall add a new article 7 to the financial services law;

Section 701, definition of "compliance' and those who are tasked with
conducting compliance related duties.

Section 702, Applicability; license, authorizing the superintendent to
issue a compliance officer and/or compliance practitioners license.

Section 703, License application, requires those individuals who perform
the duties of compliance officer or compliance practitioner to file an
application to the superintendent for a license to perform said duties.
Section 704, Written examination, shall be required to meet minimum
qualifications in knowledge and responsibilities of a compliance officer
and/or compliance practitioner. Section 705, Temporary License, author-
izes the superintendent to issue a temporary license to compliance offi-
cer or compliance practitioner pending approval of issuing an actual
license after completion of all requirements under this act.

Section 706, Fees, authorizes the superintendent to issue fee require-
ments for licensing, renewals and those certified to teach courses
approved by the superintendent to meet the education requirements under
the act.

Section 707, License term; renewal, sets the length of time a compliance
officer or compliance practitioner license remains valid.

Section 708, Continuing education requirements, all licensees shall be
required to fulfill continuing education during each biennial period of
licensure.

Section 709, Rules and regulations, the superintendent shall have
authority to establish regulations and procedures to carry out the
intent of this act including protocols and procedures for licensing and
certifying minimum qualifications for compliance officers and compliance
practitioners and any other individuals tasked with monitoring, evaluat-
ing, testing and reporting non-compliance or misconduct in the financial
services industry.

 
JUSTIFICATION:

Throughout past three decades, a myriad of institutions including banks,
investment firms, mortgage companies and publicly held companies have
been party to criminal and civil prosecutions as the result of unscrupu-
lous activities within the financial industry. As the result, federal
and state regulators have instituted laws and regulations to re-establ-
ish the public trust in the way financial business is conducted. As part
of the evolution of regulatory schemes enacted to secure public confi-
dence, the concept of institutional compliance with ethics and antifraud
provisions have ensured that transparency and ethical practices have
become bedrock principles of conduct within the financial industry.

Although every individual in the financial industry is encouraged to
follow the tenets of best practices as dictated by regulations, individ-
uals tasked as compliance officers or compliance practitioners or other
descriptive titles have become recognized as industry standard positions
to ensure compliance with enforcement and reporting activities. In order
to maintain a higher degree experience and expertise in the field of
compliance, this legislation shall recognize the importance of maintain-
ing minimum standards and licensing in New York State.

 
LEGISLATIVE HISTORY:

Senate: 2020 - S4965 Referred to Banks

Assembly: 2020 - A8908 Referred to Banks

 
FISCAL IMPLICATIONS:

Fees established to cover costs of administration of this law.

 
EFFECTIVE DATE:
Immediate.

2023-S5879 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5879
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 20, 2023
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed 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 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-
 RY  OFFICER, REGULATORY MANAGER, REGULATORY SUPERVISOR, REGULATORY PRAC-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04560-01-3

 S. 5879                             2
 
 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
 APPLICANT POSSESSES A MINIMUM OF FIVE YEARS' PRACTICAL EXPERIENCE IN THE
 S. 5879                             3
 
 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
 SUCH TEMPORARY PERMIT TO BE EFFECTIVE FOR SUCH PERIOD  OF  TIME  AS  THE
 S. 5879                             4
 
 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.
 S. 5879                             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-
 S. 5879                             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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