RULE MAKING ACTIVITIES Each rule making is identified by an I.D. No., which consists the meaning of various terms in the existing regulations, clarify existing regulatory language, and bring the regulations into compliance with up- of 13 characters. For example, the I.D. No. AAM-01-96- dates to the act. 00001-E indicates the following: The following is a brief summary of the amendments to the existing regulations. AAM -the abbreviation to identify the adopting agency 1. Addition of a definition of the term “High Cost Area” to Section 01 -the State Register issue number 2160.2 of the Regulations and subsequent definitions in such section are 96 -the year renumbered accordingly. 2. Amendment of Section 2162.1 of the Regulations to update grant 00001 -the Department of State number, assigned upon re- limits to accord with the current statutory provisions found in Section ceipt of notice 1112(1) of the Act. E -Emergency Rule Making—permanent action not 3. Amendment of Sections 2163.1(b) and 2164.5(b) of the Regulations to add a new clause numbered Section 2163.1(b)(6) regarding fair housing intended (This character could also be: A for Adop- law compliance requirements and to add Section 2164.5(b)(6) regarding tion; P for Proposed Rule Making; RP for Revised methods to be employed to ensure fair and equitable access to assistance Rule Making; EP for a combined Emergency and and participation in the Project. Proposed Rule Making; EA for an Emergency Rule Text of proposed rule and any required statements and analyses may be obtained from: Jay Ticker, Associate Counsel, Affordable Housing Making that is permanent and does not expire 90 Corporation, 641 Lexington Ave., New York, NY 10022, (212) 688-0400, days after filing; or C for first Continuation.) e-mail: [email protected] Data, views or arguments may be submitted to: Same as above. Italics contained in text denote new material. Brackets indi- Public comment will be received until: 45 days after publication of this cate material to be deleted. notice. Consensus Rule Making Determination Under Chapter 210 of the Laws of 1998, the New York State Affordable Housing Corporation’s proposed rule changes to the Affordable Home Ownership Development Program (“AHODP”) are consensus rules be- cause no person is likely to object to there adoption. The rule changes are Affordable Housing being made to clarify the meaning of various terms in the existing regula- tions, clarify existing regulatory language, and also to bring the regulations Corporation into compliance with updates to the Private Housing Law, section 1110 et seq. As required, the Corporation will withdraw the consensus rule if it receives any comment objecting to the consensus rule. PROPOSED RULE MAKING Job Impact Statement NO HEARING(S) SCHEDULED 1. Nature of impact The proposed amendments will not have a substantial impact on jobs or Affordable Housing Corporation Program Regulations employment opportunities because the amendments will not involve crea- I.D. No. AHC-01-06-00001-P tion of substantial regulatory costs or burdens. They only refine the admin- istration of an existing state housing subsidy program. PURSUANT TO THE PROVISIONS OF THE State Administrative Pro- 2. Categories and numbers affected cedure Act, NOTICE is hereby given of the following proposed rule: No categories of jobs or employment opportunities will be affected by Proposed action: This is a consensus rule making to amend sections these proposed amendments because they will not involve creation of 2160.2, 2162.1, 2163.1 and 2164.5 of Title 21 NYCRR. substantial regulatory costs or burdens. Statutory authority: Private Housing Finance Law, section 1113(1) 3. Regions of adverse impact Subject: Affordable Housing Corporation Program Regulations. No specific regions of New York State will experience disproportion- Purpose: To clarify existing language in the regulations and bring the ate adverse impact on jobs or employment opportunities because the regulations into compliance with updates in the Private Housing Finance amendments will not involve creation of substantial regulatory costs or Law. burdens. Substance of proposed rule: The New York State Affordable Housing 4. Minimizing adverse impact Corporation (the “Corporation”), a public benefit corporation, was estab- Due to the proposed amendments’ lack of adverse impact on jobs or lished pursuant to Article 19 of the New York State Private Housing employment in the State of New York, the Corporation will not take any Finance Law. The Corporation, a subsidiary of the New York State Hous- measures to minimize adverse impacts. ing Finance Agency, was created to administer the Affordable Home 5. Self-employment opportunities Ownership Development Program (Private Housing Law, section 1110 et Not applicable because of the amendments’ lack of adverse impact on seq., hereinafter the “Act”). The purpose of the amendments is to clarify jobs or employment. 1 Rule Making Activities NYS Register/January 4, 2006 drafts, or money orders placed on deposit in such account, as the Superin- tendent in his/her discretion deems necessary, except that this written Banking Department authorization requirement shall not apply (a) with respect to an account maintained in New York or in a State of New York-chartered bank prior to November 1, 2005, unless or until such existing account agreement is amended subsequent to November 1, 2005, or (b) if this requirement is EMERGENCY waived in the Superintendent’s discretion. The licensee shall pay the cost RULE MAKING of any such examination. (4) [(2)] When the number of payroll checks cashed at a limited Licensed Check Cashers station amount to 50 or more, the licensee may present those checks to the I.D. No. BNK-01-06-00017-E drawee bank or the maker of the checks and receive in exchange a single Filing No. 1532 draft, provided full details of the transaction are recorded in a manner Filing date: Dec. 20, 2005 satisfactory to the superintendent. Effective date: Dec. 22, 2005 This notice is intended to serve only as a notice of emergency adoption. This agency intends to adopt this emergency rule as a permanent rule and PURSUANT TO THE PROVISIONS OF THE State Administrative Pro- will publish a notice of proposed rule making in the State Register at some cedure Act, NOTICE is hereby given of the following action: future date. The emergency rule will expire March 19, 2006. Action taken: Amendment of section 400.5(a) of Title 3 NYCRR. Text of emergency rule and any required statements and analyses may Statutory authority: Banking Law, section 371 be obtained from: Sam L. Abram, Secretary to the Banking Board, Finding of necessity for emergency rule: Preservation of general wel- Banking Department, One State St., New York, NY 10004-1417, (212) fare. 709-1658, e-mail: [email protected] Specific reasons underlying the finding of necessity: In order for li- Regulatory Impact Statement censed check cashers to conduct business, it is necessary that such licen- 1. Statutory Authority. Section 371 of the Banking Law authorizes the sees have and maintain a deposit account with a banking institution. Such Superintendent of Banks to adopt such rules and regulations as are neces- an account enables licensees to deposit and clear the checks, drafts and sary to ensure the proper conduct of the business of check cashing. Pursu- money orders that have been cashed for customers, thus recouping for the ant to section 400.5(a) of Title 3 NYCRR, the Superintendent requires licensees the funds paid out to customers. Absent this banking relationship, licensed check cashers to deposit checks, drafts and money orders (hereaf- licensed check cashers would not be able to conduct business. Because of ter “instruments”) in a banking institution in this state no later than the first recent decisions by various banking institutions located within this state to business day after the date on which the instruments were cashed for the end their deposit account relationships with licensed check cashers, it is customers. necessary that the pool of banking institutions that licensees may use for 2. Legislative Objectives. The Legislature, when enacting and periodi- such purposes be expanded. cally amending Article 9-A of the Banking Law, which requires regulatory Subject: Permissible banking institutions with which licensed check supervision of the business of check cashing, has stated as matter of cashers may maintain deposit accounts. legislative intent that such businesses provide an important and vital ser- Purpose: To permit licensed check cashers to maintain bank accounts vice to New York citizens. The regulatory regime applicable to such with banking institutions or their branches located inside or outside this industry is intended to ensure the consumer confidence in such business is state. maintained and the public interest is protected. The regulatory require- Text of emergency rule: Section 400.5(a) of the Superintendent’s Regu- ments addressed in this rule making are necessary to maintain the financial lations is hereby amended to read as follows: stability of the licensees, thus maintaining the public confidence in their § 400.5 Depositing of checks, etc. operations. (1) Except as hereinafter stated all checks, drafts and money orders 3. Needs and Benefits. Section 400.5(a) requires that a check casher must be deposited in the licensee’s bank account in [the banking institution licensee maintain a deposit account with a banking institution in this State. in this State] a branch or principal office of a bank, savings bank, savings Licensees are required to deposit any checks, drafts and money orders and loan association, trust company, national bank, federal savings bank, received into the deposit account within the next business day. The deposit or federal savings and loan association or any other duly chartered depos- of such instruments in New York facilitates the timely clearing process of itory institution that is insured by the Federal Deposit Insurance Corpora- such instruments through the banking system.