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S8339Senate2017-2018 SessionSame asA10523

Extend Bank Exemption Limits

Official title

“Extends certain provisions of law relating to limiting the check cashing exemption for national banks and other regulated entities”

Sponsor Elaine PhillipsSD-7+1 co-sponsorAffects Finance
Status
Signed by Governor
Impact
2/10
Minimal
Outcome
Signed into law

Bill progress

Signed into law

What's happening

This bill extends the expiration of the check cashing exemption for national banks and regulated entities from 2018 to 2023.

Why it matters

  1. Maintains Consumer Protections. By extending the expiration date for the check cashing exemption, the bill ensures that only national banks and regulated entities retain certain privileges for cashing checks, helping to prevent unregulated actors from entering this market and potentially exploiting consumers.

  2. Regulatory Stability for Banks. The extension provides national banks and other regulated financial institutions with continued regulatory clarity and operational stability, allowing them to plan and offer check cashing services without abrupt changes in the legal framework.

  3. Potential Impact on Access and Fees. For individuals who rely on check cashing at banks rather than independent check cashers, this exemption may influence the availability, convenience, and cost of these services, potentially keeping fees lower than they might be in a less regulated environment.

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Who cares

Headline styles

Extend Bank Exemption Limits

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Elaine Phillips

Senator · Senate District 7

Chair, EthicsChair, Ethics And Internal GovernanceChair, Ethics And Internal Governance CommitteeChair, Infrastructure And Capital Investment

1 Co-sponsor

History

  1. Signed chap.182
  2. Delivered to governor
  3. Returned to senate
  4. Passed assembly
  5. Ordered to third reading cal.1054
  6. Substituted for A10523
  7. Referred to banks
  8. Delivered to assembly
  9. Passed senateVote 61–0
  10. Advanced to third reading
  11. 2nd report cal.
  12. 1st report cal.1139
Show 1 earlier action
  1. Referred to banks

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A10523Assembly

Extend Bank Check Cashing Limits

Assembly Floor Calendar · Sponsor Walter T. Mosley

Impact 3 · Low0% to pass

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

8339

IN SENATE

May 2, 2018

Introduced by Sen. PHILLIPS -- read twice and ordered printed, and when printed to be committed to the Committee on Banks

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

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Section 2 of 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, as amended by chapter 33 of the laws of 2013, is amended to read as follows:

§ 2. This act shall take effect immediately and shall expire and be deemed repealed August 1, [2018] 2023.

§ 2. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD15661-01-8

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend chapter 591 of the laws of 2001 amend- ing the banking law relating to limiting the check cashing exemption for national banks and other regulated entities, in relation to the effec- tiveness 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, 2023.

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, 2018.

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, 2018, 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 17 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.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.