BILL NUMBER: S8279
SPONSOR: SEPULVEDA
 
TITLE OF BILL:
An act directing the superintendent of financial services to conduct an
analysis of the financial stability of the check cashing industry and
review the current system of licensing for such industry
 
PURPOSE OR GENERAL IDEA OF THE BILL:
To authorize a prompt and comprehensive review and assessment by the
Superintendent of Financial Services of the delivery of check cashing
services within the State and its regulatory framework for doing so.
 
SUMMARY OF PROVISIONS:
Section 1. Mandates commencement within 90 days of enactment an analysis
by the Superintendent of licensee's reports annually required by Article
9-A of the Banking Law.
Section 2. Mandates a comprehensive review within 90 days of enactment a
comprehensive review of the licensure application process and adminis-
trative oversight by the Department of Financial Services of check cash-
ing enterprises licensed by the Department. If further mandates that a
report to the Governor and Chairs of the Banking Committee Chairs in
each house of the Legislature be submitted by the Superintendent within
one hundred eighty days of enactment.
Section 3. States the bill has an immediate effective date.
 
JUSTIFICATION:
The delivery of financial services to consumers has been revolutionized
by modern technological advances such as widespread access to the Inter-
net, smart phone capacity, electronic debit cards, ATM terminals and
other developments. Traditional banks have routinely shuttered brick and
mortar locations and increased electronic delivery of services to their
customers and account holders. The rules, regulations and oversight by
the Department of Financial of the licensed check casher enterprises has
not been comprehensively reviewed to permit the check casher enterprises
it licenses to diversify the methods and modes of delivery of services
by them to their customers. This bill would encourage the modernization
of the oversight rendered by the Department of Financial Services to
check casher licensees operating within the State.
 
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS:
None, it is anticipated that existing personnel can complete the
mandated reports in this bill.