Recently, in Sunrise Check Cashing & Payroll Servs., Inc. v Town of Hempstead, 2011 NY Slip Op 08745 (Decided Nov. 29, 2011), the Appellate Division, Second Department, issued an opinion on whether a section of the Town of Hempstead Zoning Code enacted to regulate the location of Check Cashing establishments was preempted by New York State Banking Law and, therefore, invalid and unenforceable. The Town of Hempstead Code provision at issue was Section 302(K) of Article XXXI of the Building Zone Ordinance. Section 302(K) prohibited check-cashing establishments within the Town in any zoning districts other than industrial and light manufacturing districts. Further, Section 302(K) provided a five year amortization period, requiring that any check cashing establishments located outside the permitted districts must close or relocate to a permitted location within such time. The Court held, that based on the doctrine of conflict preemption, the Town Ordinance at issue was preempted by New York State Banking Law, and therefore, invalid. Read the rest of this entry »