Senate Bill S7420

2023-2024 Legislative Session

Allows the department of financial services to have additional oversight of banks and insurance companies that are not currently licensed

download bill text pdf

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Current 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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2023-S7420 (ACTIVE) - Details

See Assembly Version of this Bill:
A7770
Current Committee:
Assembly Banks
Law Section:
Financial Services Law
Laws Affected:
Amd §§305, 404 & 409, add §408-a, Fin Serv L

2023-S7420 (ACTIVE) - Summary

Allows the department of financial services to have additional oversight of banks and insurance companies that are not currently licensed in this state; provides penalties for violations.

2023-S7420 (ACTIVE) - Sponsor Memo

2023-S7420 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7420
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 24, 2023
                                ___________
 
 Introduced  by  Sen. KRUEGER -- 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 allowing  the
   department of financial services to have additional oversight of banks
   and insurance companies that are not currently licensed

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  legislature  finds  that  it  is  essential  to  the
 protection  of  users  of financial products and services from imprudent
 conduct and harmful business practices in the financial services market-
 place that all persons offering financial products and services  in  New
 York State be sufficiently deterred from disregarding the laws and regu-
 lations  governing  the  offering  of  financial  products  or services,
 regardless of whether they are properly licensed. Furthermore, to ensure
 that the business of, and the persons providing, financial products  and
 services  are  appropriately  supervised,  the  law should not advantage
 persons who disregard licensing requirements. Currently, as  to  engage-
 ment  in  many activities for which a license from the superintendent of
 financial services is required, an unlicensed  person  not  exempt  from
 licensing is not subject to civil penalty for acts that would constitute
 violations subject to penalty if the person were licensed; such an unli-
 censed  person may be subject to only a limited civil penalty for engag-
 ing in activity without a required license.  This  act  remediates  this
 fault  in  the  law by providing that any person engaged in activity for
 which such person must be licensed by the  superintendent  of  financial
 services will be subject to a civil penalty for conducting such activity
 in  a  manner  inconsistent  with  the  law, regardless of such person's
 licensure status.
   § 2. Subdivisions (a) and (b) of section 305 of the financial services
 law are amended to read as follows:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11198-01-3
 S. 7420                             2
              

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