New York A 1222: Allows the department of financial services to impose penalties on unlawfully unlicensed entities

Bill Text

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A01222 Summary:

BILL NOA01222A

&nbsp

SAME ASSAME AS S01290

&nbsp

SPONSORBores

&nbsp

COSPNSRRozic, Burdick, Vanel

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MLTSPNSR

&nbsp

Amd §§305, 404 & 409, add §408-a, Fin Serv L

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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.

Go to top A01222 Actions:

BILL NOA01222A

&nbsp

01/09/2025referred to banks

05/20/2025amend and recommit to banks

05/20/2025print number 1222a

01/07/2026referred to banks

Go to topA01222 Committee&nbspVotes:

Go to topA01222 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA01222 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 1222--A

 2025-2026 Regular Sessions

 IN ASSEMBLY

 January 9, 2025
 ___________

 Introduced by M. of A. BORES, ROZIC, BURDICK, VANEL -- read once and
 referred to the Committee on Banks -- committee discharged, bill
 amended, ordered reprinted as amended and recommitted to said commit-
 tee

 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:

 1 Section 1. The legislature finds that it is essential to the
 2 protection of users of financial products and services from imprudent
 3 conduct and harmful business practices in the financial services market-
 4 place that all persons offering financial products and services in New
 5 York State be sufficiently deterred from disregarding the laws and regu-
 6 lations governing the offering of financial products or services,
 7 regardless of whether they are properly licensed. Furthermore, to ensure
 8 that the business of, and the persons providing, financial products and
 9 services are appropriately supervised, the law should not advantage
 10 persons who disregard licensing requirements. Currently, as to engage-
 11 ment in many activities for which a license from the superintendent of
 12 financial services is required, an unlicensed person not exempt from
 13 licensing is not subject to civil penalty for acts that would constitute
 14 violations subject to penalty if the person were licensed; such an unli-
 15 censed person may be subject to only a limited civil penalty for engag-
 16 ing in activity without a required license. This act remediates this
 17 fault in the law by providing that any person engaged in activity for
 18 which such person must be licensed by the superintendent of financial
 19 services will be subject to a civil penalty for conducting such activity
 20 in a manner inconsistent with the law, regardless of such person's
 21 licensure status.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02257-03-5

 A. 1222--A 2

 1 § 2. Subsections (a) and (b) of section 305 of the financial services
 2 law are amended to read as follows:
 3 (a) Unless otherwise provided in this chapter, the banking law, the
 4 insurance law or any other law, any hearing pursuant to any such law may
 5 be held before the superintendent, any deputy superintendent, or any
 6 designated salaried employee of the department authorized by the super-
 7 intendent for such purpose. Any adjudicatory proceeding, including any
 8 hearings to assess civil penalties under section four hundred eight or
 9 four hundred eight-a of this chapter, held pursuant to the provisions of
 10 this chapter, the insurance law or the banking law shall be noticed,
 11 conducted and administered in compliance with the state administrative
 12 procedure act.
 13 (b) The person conducting such hearing shall have power to administer
 14 oaths, examine and cross-examine witnesses and receive documentary
 15 evidence, and shall report [his or her] such person's findings, orally
 16 or in writing, to the superintendent with or without recommendation.
 17 Such report, if adopted by the superintendent may be the basis of any
 18 determination made by the superintendent. One hundred twenty days after
 19 the effective date of a determina