BILL NUMBER: S6930

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend chapter 591 of the laws of 2001, amending the banking
law relating to limiting the check cashing exemption for national banks
and other regulated entities, in relation to the effectiveness of such
chapter

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide greater certainty and stability to the check cashing industry
by extending the sunset provisions on Chapter 591 of the laws of 2001
until August 1, 2028.

 
SUMMARY OF SPECIFIC PROVISIONS:

This would amend Chapter 591 of the laws of 2001 to extend the limita-
tion of the check cashing exemption for national banks and other regu-
lated entities, until August 1, 2023. This provision, which allows any
separate check cashing facilities established by banking institution to
              

be subject to the existing distance standard, and which applies to the
licensing of check casher operations, is currently scheduled to expire
on August 1, 2023.

 
JUSTIFICATION:

This bill seeks to provide greater certainty, stability and predictabil-
ity in the industry by extending the sunset date on the provisions of
Chapter 591 of the Laws of 2001. Currently scheduled to expire on August
1, 2023, this extender would provide that any separate check cashing
facilities established by banking institutions shall be subject to the
existing distance standard, which applies to the licensing of check
casher operations.

This provision of law has been highly successful since its inception 22
years ago, and strongly merits extension. The financial servicers indus-
try (check cashing) is strictly regulated under New York law, and
provides a very valuable service, especially to the underserved in the
banking community.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill, but this provision of law has been extended contin-
uously since 2001.

 
FISCAL IMPLICATIONS:

None Noted.

 
EFFECTIVE DATE:
This act would take effect immediately.