senate Bill S8206

2019-2020 Legislative Session

Relates to the regulation and licensing of on-demand pay providers

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Apr 15, 2020 referred to banks

Co-Sponsors

S8206 (ACTIVE) - Details

See Assembly Version of this Bill:
A10309
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Add Art 9-B §§374-aa - 374-ee, Bank L
Versions Introduced in 2021-2022 Legislative Session:
A3570

S8206 (ACTIVE) - Summary

Relates to the regulation and licensing of employer-integrated and non-verified on-demand pay providers.

S8206 (ACTIVE) - Sponsor Memo

S8206 (ACTIVE) - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8206

                            I N  S E N A T E

                             April 15, 2020
                               ___________

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

AN ACT to amend the banking law, in relation to on-demand pay providers

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The banking law is amended by adding a new article 9-B to
read as follows:
                               ARTICLE 9-B
                         ON-DEMAND PAY PROVIDERS
SECTION 374-AA. DEFINITIONS.
        374-BB. EMPLOYER-INTEGRATED ON-DEMAND PAY PROVIDERS.
        374-CC. NON-VERIFIED ON-DEMAND PAY PROVIDERS.
        374-DD. CERTAIN ON-DEMAND PAY SERVICES TO BE CONSIDERED LOANS.
        374-EE. PENALTIES.
  § 374-AA. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  1. "EARNED BUT UNPAID INCOME" MEANS EARNED INCOME  THAT  HAS  NOT  YET
BEEN PAID TO A USER BY AN EMPLOYER.
  2.  "EARNED INCOME" MEANS MONEYS THAT HAVE ACCRUED TO THE BENEFIT OF A
USER FOR SERVICES RENDERED TO AN EMPLOYER.
  3. "EMPLOYER" MEANS ANY PERSON, CORPORATION, LIMITED LIABILITY  COMPA-
NY,  OR ASSOCIATION EMPLOYING A USER IN ANY OCCUPATION, INDUSTRY, TRADE,
BUSINESS OR SERVICE, OR ANY OTHER PERSON WHO IS CONTRACTUALLY  OBLIGATED
TO  PAY  A USER ANY SUM OF MONEY ON AN HOURLY, PROJECT-BASED, PIECEWORK,
OR OTHER BASIS FOR LABOR OR SERVICES PROVIDED BY SUCH USER.   "EMPLOYER"
SHALL  NOT  INCLUDE A CUSTOMER OF AN EMPLOYER OR OTHER THIRD PARTY WHOSE
OBLIGATION TO MAKE ANY PAYMENT TO A USER IS BASED SOLELY ON SUCH  USER'S
AGENCY RELATIONSHIP WITH THE EMPLOYER.
  4. "EMPLOYER-INTEGRATED ON-DEMAND PAY PROVIDER" MEANS AN ON-DEMAND PAY
PROVIDER  THAT  OFFERS  ON-DEMAND  PAY  SERVICES  THROUGH  A CONTRACTUAL
ARRANGEMENT WITH (I) AN EMPLOYER, OR  (II)  A  SERVICE  PROVIDER  TO  AN
EMPLOYER, IN WHICH PROVIDER VERIFIES A USER'S EARNED INCOME THROUGH DATA
OR INFORMATION PROVIDED BY OR THROUGH SUCH EMPLOYER OR SERVICE PROVIDER.

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

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