A09634 - Community Financial Services Access and Modernization Act of 2016

• Renames "casher of checks" to "financial services provider" throughout banking law and expands permissible services to include money transmission, bill payment, prepaid debit cards, and conduit services with banks and credit unions.

• Establishes master and supplemental license structure allowing existing licensees in good standing to expedite applications for multiple locations, reducing regulatory burden for expansion.

• Authorizes financial services providers to offer business and commercial loans under Article 9 of banking law, provided they first offer loan applicants options from collaborating banks or credit unions and maintain strict underwriting standards to prevent personal use.

• Increases maximum check-cashing amount from $15,000 to $25,000 and expands exceptions for eligible checks, including those from workers' compensation funds, pension funds, and lawsuit advances.

• Requires licensees engaged in business lending to submit annual reports to the superintendent beginning January 1, 2018 on loan volume, default rates, and costs; superintendent must report findings to governor and legislature starting April 1, 2018, with provisions expiring June 30, 2021.