S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6778--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 17, 2021
                                ___________
 
 Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks  --  recommitted  to
   the  Committee  on  Banks  in accordance with Senate Rule 6, sec. 8 --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee

 AN  ACT  to  amend  the  banking  law, in relation to earned wage access
   services
 
   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
                        EARNED WAGE ACCESS SERVICES
 SECTION 374-AA. DEFINITIONS.
         374-BB. REGISTRATION REQUIREMENTS FOR EARNED WAGE ACCESS SERVICE
                   PROVIDERS.
         374-CC. OTHER  REQUIREMENTS  FOR  EARNED  WAGE  ACCESS  SERVICES
                   PROVIDED IN THIS STATE.
         374-DD. ANNUAL REPORT.
         374-EE. AUTHORITY OF THE SUPERINTENDENT.
   §  374-AA.  DEFINITIONS.  AS USED IN THIS ARTICLE, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "CONSUMER" MEANS A NATURAL PERSON RESIDING  IN  THE  STATE  OF  NEW
 YORK.
   2.  "EARNED  BUT  UNPAID  INCOME" MEANS FUNDS THAT ARE BASED ON WAGES,
 COMPENSATION, OR INCOME THAT A CONSUMER HAS REPRESENTED,  AND  THAT  THE
 PROVIDER  HAS  REASONABLY DETERMINED HAVE BEEN EARNED OR HAVE ACCRUED TO
 THE BENEFIT OF THE CONSUMER BUT HAVE NOT, AT THE TIME OF THE  REMITTANCE
 OF PROCEEDS, BEEN PAID TO THE CONSUMER BY AN OBLIGOR.
   3.  "EARNED  WAGE  ACCESS  SERVICES"  MEANS THE BUSINESS OF DELIVERING
 PROCEEDS TO A CONSUMER PRIOR TO THE NEXT DATE ON  WHICH  AN  OBLIGOR  IS

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09775-07-2
              

 S. 6778--A                          2
 
 OBLIGATED  TO  PAY  SALARY,  WAGES,  OR  OTHER  MONETARY BENEFITS TO THE
 CONSUMER.
   4.  "NON-RECOURSE"  MEANS  THAT A PROVIDER CANNOT COMPEL OR ATTEMPT TO
 COMPEL REPAYMENT BY A CONSUMER OF OUTSTANDING PROCEEDS OR  NON-MANDATORY
 PAYMENTS  OWED  BY  SUCH  CONSUMER  TO  SUCH PROVIDER THROUGH ANY OF THE
 FOLLOWING MEANS:
   (A) A CIVIL SUIT AGAINST SUCH CONSUMER IN A COURT OF COMPETENT  JURIS-
 DICTION;
   (B)  USE OF A THIRD-PARTY TO PURSUE COLLECTION OF OUTSTANDING PROCEEDS
 OR NON-MANDATORY PAYMENTS ON THE PROVIDER'S BEHALF; AND
   (C) SALE OF OUTSTANDING PROCEEDS TO A THIRD-PARTY  COLLECTOR  OR  DEBT
 PURCHASER.   SUCH TERM DOES NOT PRECLUDE THE USE BY A PROVIDER OF ANY OF
 THE FOREGOING METHODS TO  COMPEL  OR  ATTEMPT  TO  COMPEL  REPAYMENT  OF
 OUTSTANDING AMOUNTS INCURRED BY A CONSUMER THROUGH FRAUDULENT MEANS.
   5.  "OBLIGOR"  MEANS AN EMPLOYER OR ANOTHER PERSON, INCLUDING AN INDE-
 PENDENT CONTRACTOR, WHO IS CONTRACTUALLY OR LEGALLY OBLIGATED TO  PAY  A
 CONSUMER  ANY  SUM  OF  MONEY ON AN HOURLY, PROJECT-BASED, PIECEWORK, OR
 OTHER BASIS. SUCH TERM DOES NOT INCLUDE THE CUSTOMER OF  AN  OBLIGOR  OR
 ANOTHER  THIRD-PARTY  THAT  HAS  AN  OBLIGATION TO MAKE ANY PAYMENT TO A
 CONSUMER BASED SOLELY ON THE CONSUMER'S  AGENCY  RELATIONSHIP  WITH  THE
 OBLIGOR.
   6.  "OUTSTANDING  PROCEEDS" MEANS PROCEEDS REMITTED TO A CONSUMER BY A
 PROVIDER BUT HAVE NOT YET BEEN REPAID TO SUCH PROVIDER.
   7. "MANDATORY PAYMENT" MEANS AN AMOUNT DETERMINED BY A PROVIDER  WHICH
 MUST  BE PAID BY A CONSUMER TO SUCH PROVIDER AS A CONDITION OF RECEIVING
 PROCEEDS.
   8. "NON-MANDATORY PAYMENT" MEANS AN AMOUNT PAID BY A  CONSUMER  OR  AN
 OBLIGOR  TO  A  PROVIDER FOR EARNED WAGE ACCESS SERVICES, WHICH DOES NOT
 MEET THE DEFINITION OF A MANDATORY PAYMENT.  FOR PURPOSES OF THIS  ARTI-
 CLE, SUCH TERM INCLUDES, BUT IS NOT LIMITED TO, THE FOLLOWING:
   (A)  A FEE IMPOSED BY A PROVIDER FOR DELIVERY OR EXPEDITED DELIVERY OF
 PROCEEDS TO A CONSUMER, PROVIDED THAT SUCH PROVIDER OFFERS THE  CONSUMER
 AT LEAST ONE OPTION OF RECEIVING PROCEEDS AT NO COST;
   (B)  AN  AMOUNT  PAID  BY  AN  OBLIGOR TO A PROVIDER ON THE CONSUMER'S
 BEHALF, WHICH ENTITLES THE CONSUMER TO RECEIVE PROCEEDS AT  NO  COST  TO
 SUCH CONSUMER;
   (C) A SUBSCRIPTION OR MEMBERSHIP FEE IMPOSED BY A PROVIDER FOR A GROUP
 OF  SERVICES  THAT  INCLUDES  EARNED WAGE ACCESS SERVICES, PROVIDED THAT
 SUCH PROVIDER OFFERS THE CONSUMER  AT  LEAST  ONE  OPTION  OF  RECEIVING
 PROCEEDS AT NO COST; AND
   (D)  A TIP OR GRATUITY PAID BY A CONSUMER TO A PROVIDER, PROVIDED THAT
 SUCH PROVIDER OFFERS THE CONSUMER  AT  LEAST  ONE  OPTION  OF  RECEIVING
 PROCEEDS AT NO COST.
   9.  "PROCEEDS"  MEANS  THE AMOUNT OF EARNED BUT UNPAID INCOME THAT HAS
 BEEN REMITTED TO THE CONSUMER BY A PROVIDER.
   10. "PROVIDER" MEANS A PERSON WHO IS IN THE BUSINESS OF  OFFERING  AND
 PROVIDING EARNED WAGE ACCESS SERVICES TO CONSUMERS.
   §  374-BB.  REGISTRATION  REQUIREMENTS  FOR EARNED WAGE ACCESS SERVICE
 PROVIDERS. 1. NO PERSON SHALL PROVIDE EARNED WAGE ACCESS SERVICES IN THE
 STATE UNLESS SUCH PERSON IS REGISTERED AS A PROVIDER  WITH  THE  DEPART-
 MENT.
   2.  AN  APPLICATION  TO  BECOME  REGISTERED  AS  AN EARNED WAGE ACCESS
 SERVICE PROVIDER SHALL BE IN WRITING, UNDER OATH, IN SUCH FORM AS  SHALL
 BE  PRESCRIBED  BY  THE SUPERINTENDENT. NOTWITHSTANDING ARTICLE THREE OF
 THE STATE TECHNOLOGY LAW OR ANY OTHER LAW TO THE  CONTRARY,  THE  SUPER-
 INTENDENT  MAY  REQUIRE THAT AN APPLICATION FOR, OR RENEWAL OF, A REGIS-
 S. 6778--A                          3
 
 TRATION BE MADE OR EXECUTED BY ELECTRONIC MEANS, INCLUDING  THROUGH  THE
 NATIONAL MORTGAGE LICENSING SYSTEM AND REGISTRY OR OTHER ENTITIES DESIG-
 NATED  BY  THE  NATIONAL MORTGAGE LICENSING SYSTEM AND REGISTRY IF HE OR
 SHE  DEEMS  IT  NECESSARY TO ENSURE THE EFFICIENT AND EFFECTIVE ADMINIS-
 TRATION OF THIS ARTICLE. SUCH APPLICATION SHALL  CONTAIN  THE  NAME  AND
 COMPLETE  BUSINESS  ADDRESS OR ADDRESSES OF THE APPLICANT. SUCH APPLICA-
 TION SHALL ALSO INCLUDE AN AFFIRMATION OF FINANCIAL SOLVENCY NOTING SUCH
 CAPITALIZATION REQUIREMENTS AND ACCESS TO SUCH CREDIT AS MAY BE REQUIRED
 BY THE SUPERINTENDENT, AND SUCH DESCRIPTIONS OF THE BUSINESS ACTIVITIES,
 FINANCIAL RESPONSIBILITY, AND  GENERAL  CHARACTER  AND  FITNESS  OF  THE
 APPLICANT AS MAY BE REQUIRED BY THE SUPERINTENDENT.
   3.  AS  A  CONDITION FOR THE ISSUANCE AND RETENTION OF A REGISTRATION,
 AND SUBJECT TO SUCH REGULATIONS AS THE SUPERINTENDENT  SHALL  PRESCRIBE,
 APPLICANTS FOR A REGISTRATION SHALL FILE WITH THE SUPERINTENDENT A SURE-
 TY  BOND  OR  MAKE  A  DEPOSIT IN AN AMOUNT AND FORM PRESCRIBED BY REGU-
 LATIONS OF THE SUPERINTENDENT. SUCH  REGULATIONS  SHALL  PROVIDE  FOR  A
 VARYING BOND AMOUNT BASED UPON A REGISTRANT'S VOLUME OF BUSINESS AND ANY
 OTHER  RELEVANT  FACTORS  AS DETERMINED BY THE SUPERINTENDENT, BUT IN NO
 CASE SHALL SUCH BOND BE LESS THAN TEN THOUSAND  DOLLARS  NOR  MORE  THAN
 FIFTY  THOUSAND  DOLLARS;  PROVIDED  HOWEVER  THAT IF THE SUPERINTENDENT
 DETERMINES, IN HIS OR HER SOLE DISCRETION, THAT A REGISTRANT HAS ENGAGED
 IN A PATTERN OF CONDUCT RESULTING IN BONA FIDE  CONSUMER  COMPLAINTS  OF
 MISCONDUCT,  THE  SUPERINTENDENT  MAY  REQUIRE SUCH REGISTRANT TO POST A
 SURETY BOND, OR KEEP ON DEPOSIT AS PROVIDED IN THIS  SUBDIVISION,  TWICE
 THE  AMOUNT  OF SUCH BOND OR DEPOSIT AS IS REQUIRED CONSISTENT WITH SUCH
 REGULATIONS. IN THE EVENT OF THE INSOLVENCY, LIQUIDATION  OR  BANKRUPTCY
 OF  SUCH  REGISTRANT,  OR THE SURRENDER OR REVOCATION OF SUCH PROVIDER'S
 REGISTRATION, OR WHERE  THE  SUPERINTENDENT  TAKES  POSSESSION  OF  SUCH
 REGISTRANT,  THE  PROCEEDS  OF  EACH  BOND OR DEPOSIT SHALL CONSTITUTE A
 TRUST FUND TO BE USED EXCLUSIVELY TO REIMBURSE CONSUMER  FEES  OR  OTHER
 CHARGES  DETERMINED  BY  THE  SUPERINTENDENT TO BE IMPROPERLY CHARGED OR
 COLLECTED AND TO PAY PAST DUE DEPARTMENT OF FINANCIAL SERVICES  EXAMINA-
 TION  COSTS AND ASSESSMENTS CHARGED TO THE REGISTRANT, UNPAID PENALTIES,
 OR OTHER OBLIGATIONS OF THE REGISTRANT. THE SUPERINTENDENT IS AUTHORIZED
 TO PROMULGATE SUCH REGULATIONS AS ARE NECESSARY AND DESIRABLE TO  DEFINE
 AND  IMPLEMENT  THE PROVISIONS OF THIS SUBDIVISION. PERSONS AND ENTITIES
 REGISTERED PRIOR TO THE EFFECTIVE DATE OF ANY REGULATIONS OF THE  SUPER-
 INTENDENT  IMPLEMENTING  OR MODIFYING THE BONDING REQUIREMENT AUTHORIZED
 BY THIS SUBDIVISION SHALL FILE SUCH BOND OR ESTABLISH SUCH DEPOSIT WITH-
 IN SIX MONTHS OF THE EFFECTIVE DATE OF SUCH REGULATIONS.
   4. UPON THE FILING OF AN APPLICATION FOR REGISTRATION, IF  THE  SUPER-
 INTENDENT  SHALL  FIND  THAT  THE  FINANCIAL RESPONSIBILITY, EXPERIENCE,
 CHARACTER, AND GENERAL FITNESS OF THE  APPLICANT,  AND  OF  THE  MEMBERS
 THEREOF  IF THE APPLICANT IS A CO-PARTNERSHIP OR ASSOCIATION, AND OF THE
 OFFICERS AND DIRECTORS THEREOF IF THE APPLICANT IS  A  CORPORATION,  ARE
 SUCH AS TO COMMAND THE CONFIDENCE OF THE COMMUNITY AND TO WARRANT BELIEF
 THAT  THE  BUSINESS  WILL  BE OPERATED HONESTLY, FAIRLY, AND EFFICIENTLY
 WITHIN THE PURPOSE OF THIS ARTICLE, THE SUPERINTENDENT  SHALL  THEREUPON
 REGISTER  THE  APPLICANT  AS AN EARNED WAGE ACCESS SERVICE PROVIDER ON A
 ROLL MAINTAINED FOR THAT PURPOSE AT THE DEPARTMENT, AND ISSUE A  CERTIF-
 ICATE ATTESTING TO SUCH REGISTRATION IN DUPLICATE. IF THE SUPERINTENDENT
 SHALL NOT SO FIND, THE SUPERINTENDENT SHALL NOT REGISTER SUCH APPLICANT,
 AND  SHALL  NOTIFY THE APPLICANT OF THE DENIAL. THE SUPERINTENDENT SHALL
 TRANSMIT ONE COPY OF SUCH CERTIFICATE TO THE APPLICANT AND FILE  ANOTHER
 IN  THE  OFFICE  OF  THE DEPARTMENT. UPON RECEIPT OF SUCH CERTIFICATE AN
 EARNED WAGE ACCESS SERVICE PROVIDER SHALL BE AUTHORIZED TO ENGAGE IN THE
 S. 6778--A                          4
 
 BUSINESS OF PROVIDING EARNED WAGE  ACCESS  SERVICES.  SUCH  REGISTRATION
 SHALL  REMAIN  IN  FULL  FORCE AND EFFECT UNTIL IT IS SURRENDERED BY THE
 REGISTRANT OR REVOKED OR SUSPENDED AS HEREINAFTER PROVIDED, EXCEPT  THAT
 SUCH  REGISTRATION SHALL EXPIRE UPON THE REGISTRANT'S FAILURE TO PAY THE
 REQUIRED ASSESSMENT THIRTY DAYS AFTER THE DATE OR DATES SUCH PAYMENT  OR
 PAYMENTS ARE DUE. IF THE REGISTRANT FAILS TO PAY SUCH CHARGED ASSESSMENT
 BY  THE  DATE OR DATES SUCH PAYMENT OR PAYMENTS ARE DUE, THEN THE REGIS-
 TRANT SHALL BE REQUIRED TO PAY, IN ADDITION, A LATE FEE IN THE AMOUNT OF
 ONE HUNDRED DOLLARS. SUCH REGISTRATION SHALL BE REINSTATED IF THE REGIS-
 TRANT PAYS SUCH ASSESSMENT CHARGED AND ANY APPLICABLE LATE  FEES  AND/OR
 INTEREST  WITHIN SIXTY DAYS OF SUCH EXPIRATION. THE SUPERINTENDENT SHALL
 APPROVE OR DENY EVERY  APPLICATION  FOR  REGISTRATION  HEREUNDER  WITHIN
 NINETY DAYS FROM THE FILING OF A COMPLETE APPLICATION PROVIDED, HOWEVER,
 THAT  FAILURE  TO  ACT  WITHIN THE PRESCRIBED PERIOD SHALL NOT BE DEEMED
 APPROVAL OF ANY SUCH APPLICATION.
   5. THE SUPERINTENDENT MAY REFUSE TO ISSUE A  CERTIFICATE  PURSUANT  TO
 THIS  ARTICLE  IF HE OR SHE SHALL FIND THAT THE APPLICANT, OR ANY PERSON
 WHO IS A DIRECTOR OR OFFICER OF THE APPLICANT: (A) HAS BEEN CONVICTED OF
 A CRIME INVOLVING AN ACTIVITY WHICH IS A FELONY UNDER  THIS  CHAPTER  OR
 UNDER  ARTICLE  ONE HUNDRED FIFTY-FIVE, ONE HUNDRED SEVENTY, ONE HUNDRED
 SEVENTY-FIVE, ONE HUNDRED SEVENTY-SIX, ONE HUNDRED EIGHTY,  ONE  HUNDRED
 EIGHTY-FIVE,  ONE HUNDRED EIGHTY-SEVEN, ONE HUNDRED NINETY, TWO HUNDRED,
 TWO HUNDRED TEN OR FOUR HUNDRED SEVENTY OF THE PENAL LAW OR ANY COMPARA-
 BLE FELONY UNDER THE LAWS OF ANY  OTHER  STATE  OR  THE  UNITED  STATES,
 PROVIDED  THAT  SUCH CRIME WOULD BE A FELONY IF COMMITTED AND PROSECUTED
 UNDER THE LAWS OF THIS STATE; OR (B) HAS HAD A LICENSE  OR  REGISTRATION
 REVOKED  BY THE SUPERINTENDENT; OR (C) HAS BEEN A DIRECTOR OR OFFICER OF
 AN ENTITY WHICH HAS HAD A LICENSE OR REGISTRATION REVOKED BY THE  SUPER-
 INTENDENT.
   6.  EACH CERTIFICATE ISSUED TO A REGISTERED EARNED WAGE ACCESS SERVICE
 PROVIDER UNDER THIS ARTICLE SHALL STATE  THE  ADDRESS  OR  ADDRESSES  AT
 WHICH  THE BUSINESS IS TO BE CONDUCTED, OR SHALL STATE THAT ALL BUSINESS
 OF THE APPLICANT IS CONDUCTED ONLINE, AND SHALL STATE FULLY THE NAME  OF
 THE  REGISTRANT, AND THE DATE AND PLACE OF ITS INCORPORATION IF APPLICA-
 BLE. A COPY OF SUCH CERTIFICATE SHALL  BE  PROMINENTLY  POSTED  IN  EACH
 PLACE  OF  BUSINESS  OF THE REGISTRANT OR AVAILABLE ONLINE VIA A LINK ON
 THE HOMEPAGE OF THE REGISTRANT. SUCH CERTIFICATE SHALL NOT BE TRANSFERA-
 BLE OR ASSIGNABLE. IN THE EVENT THE LOCATION AT WHICH THE BUSINESS IS TO
 BE CONDUCTED SHALL BE CHANGED, THE REGISTRANT SHALL FORTHWITH NOTIFY THE
 SUPERINTENDENT WHO SHALL THEREUPON WITHOUT CHARGE ATTACH TO THE  CERTIF-
 ICATE AN AMENDMENT CERTIFICATE SETTING FORTH SUCH CHANGED LOCATION.
   §  374-CC.  OTHER REQUIREMENTS FOR EARNED WAGE ACCESS SERVICES OFFERED
 IN THIS STATE. 1. ANY PROVIDER THAT OFFERS EARNED WAGE  ACCESS  SERVICES
 TO A CONSUMER IN THIS STATE SHALL COMPLY WITH THE FOLLOWING:
   (A)  A PROVIDER SHALL PROVIDE ALL PROCEEDS ON A NON-RECOURSE BASIS AND
 SHALL TREAT NON-MANDATORY PAYMENTS AS NON-RECOURSE PAYMENT OBLIGATIONS;
   (B) BEFORE PROVIDING PROCEEDS TO A CONSUMER, A PROVIDER  SHALL  INFORM
 THE  CONSUMER,  IN  WRITING,  OF  ANY NON-MANDATORY PAYMENTS THAT MAY BE
 ASSOCIATED WITH THE PROVISION OF EARNED WAGE  ACCESS  SERVICES  BY  THAT
 PROVIDER;
   (C) EVERY TIME A PROVIDER PROVIDES PROCEEDS TO A CONSUMER, THE PROVID-
 ER  SHALL  INFORM  THE  CONSUMER  WHEN  THE PROVIDER WILL MAKE ITS FIRST
 ATTEMPT TO SEEK REPAYMENT OF THOSE PROCEEDS FROM THE CONSUMER; AND
   (D) A PROVIDER THAT SEEKS REPAYMENT  OF  PROCEEDS  FROM  A  CONSUMER'S
 DEPOSITORY  INSTITUTION  ACCOUNT  SHALL  COMPLY WITH APPLICABLE NATIONAL
 AUTOMATED CLEARINGHOUSE ASSOCIATION RULES.
 S. 6778--A                          5
 
   2. A PROVIDER THAT IS REGISTERED IN THE STATE SHALL NOT:
   (A) REQUIRE A CONSUMER TO MAKE A MANDATORY PAYMENT;
   (B) CHARGE A LATE FEE OR ANY OTHER PENALTY CHARGE FOR FAILURE TO REPAY
 OUTSTANDING PROCEEDS;
   (C)  CONDITION  THE  AMOUNT  OF PROCEEDS PROVIDED TO A CONSUMER ON THE
 AMOUNT OF A NON-MANDATORY PAYMENT MADE BY SUCH CONSUMER TO SUCH  PROVID-
 ER.  THIS PROHIBITION SHALL NOT BE CONSTRUED TO PROHIBIT A NON-MANDATORY
 PAYMENT  EQUAL  TO  A  PERCENTAGE  OF  PROCEEDS PROVIDED, AS LONG AS THE
 PERCENTAGE APPLIED DOES  NOT  VARY  BASED  ON  THE  AMOUNT  OF  PROCEEDS
 PROVIDED;
   (D)  CONDITION  THE  FREQUENCY  WITH  WHICH PROCEEDS ARE PROVIDED TO A
 CONSUMER ON THE AMOUNT OF A NON-MANDATORY PAYMENT MADE BY SUCH  CONSUMER
 TO  SUCH PROVIDER. THIS PROHIBITION SHALL NOT BE CONSTRUED TO PROHIBIT A
 NON-MANDATORY PAYMENT EQUAL TO A PERCENTAGE  OF  PROCEEDS  PROVIDED,  AS
 LONG  AS  THE  PERCENTAGE  APPLIED  DOES NOT VARY BASED ON THE AMOUNT OF
 PROCEEDS PROVIDED;
   (E) REPORT A CONSUMER'S PAYMENT OR FAILED REPAYMENT OF PROCEEDS  TO  A
 CONSUMER CREDIT REPORTING AGENCY OR A DEBT COLLECTOR;
   (F)  REQUIRE A CREDIT REPORT OR CREDIT SCORE TO DETERMINE A CONSUMER'S
 ELIGIBILITY FOR EARNED WAGE ACCESS SERVICES; OR
   (G) PROVIDE, SELL, OR OTHERWISE DISCLOSE TO ANY THIRD PARTY, INCLUDING
 AN OBLIGOR, ANY NON-PUBLIC PERSONAL INFORMATION COLLECTED FROM OR  ABOUT
 A  CONSUMER,  EXCEPT AS NECESSARY TO PROVIDE EARNED WAGE ACCESS SERVICES
 TO THE CONSUMER AND AS ALLOWED BY APPLICABLE FEDERAL AND STATE LAW.
   3. PROCEEDS PROVIDED TO A CONSUMER BY A PROVIDER  IN  ACCORDANCE  WITH
 THIS  ARTICLE  SHALL  NOT  BE  CONSIDERED  CREDIT, THE PROVIDER OF THOSE
 PROCEEDS SHALL NOT BE CONSIDERED A CREDITOR, AND NON-MANDATORY  PAYMENTS
 PAID  TO  SUCH  PROVIDER  SHALL  NOT  BE CONSIDERED FINANCE CHARGES, FOR
 PURPOSES OF THE FEDERAL TRUTH IN LENDING ACT.
   4. PROCEEDS PROVIDED TO A CONSUMER BY A PROVIDER  IN  ACCORDANCE  WITH
 THIS  ARTICLE  SHALL  NOT  BE CONSIDERED WAGE DEDUCTIONS FOR PURPOSES OF
 SECTION ONE HUNDRED NINETY-THREE OF THE  LABOR  LAW  AND  SHALL  NOT  BE
 SUBJECT  TO  REGULATION BY THE SUPERINTENDENT UNDER ARTICLE NINE OF THIS
 CHAPTER. FURTHER, THE PROVIDER OF THOSE PROCEEDS SHALL NOT  BE  REQUIRED
 TO OBTAIN A LICENSE UNDER ARTICLE NINE OF THIS CHAPTER.
   §  374-DD.  ANNUAL  REPORT.  1. ON OR BEFORE THE FIRST DAY OF APRIL OF
 EACH YEAR, A PROVIDER SHALL SUBMIT AN ANNUAL REPORT TO  THE  SUPERINTEN-
 DENT  THAT  INCLUDES  ALL  OF  THE FOLLOWING INFORMATION FOR EARNED WAGE
 ACCESS SERVICES PROVIDED BY SUCH  PROVIDER  DURING  THE  PRIOR  CALENDAR
 YEAR:
   (A) GROSS REVENUE ATTRIBUTABLE TO EARNED WAGE ACCESS SERVICES;
   (B)  THE  TOTAL NUMBER OF TRANSACTIONS IN WHICH PROCEEDS WERE REMITTED
 TO CONSUMERS;
   (C) THE TOTAL NUMBER OF UNIQUE CONSUMERS TO WHOM PROCEEDS WERE  REMIT-
 TED;
   (D)  THE  TOTAL  DOLLAR  AMOUNT  OF  PROCEEDS THE PROVIDER REMITTED TO
 CONSUMERS;
   (E) THE TOTAL DOLLAR AMOUNT OF  NON-MANDATORY  PAYMENTS  THE  PROVIDER
 RECEIVED FROM CONSUMERS;
   (F)  THE  TOTAL NUMBER OF TRANSACTIONS IN WHICH PROCEEDS WERE REMITTED
 TO CONSUMERS FOR WHICH THE PROVIDER DID NOT  RECEIVE  REPAYMENT  OF  ANY
 OUTSTANDING PROCEEDS, AND THE TOTAL DOLLAR AMOUNT OF SUCH TRANSACTIONS;
   (G)  THE  TOTAL NUMBER OF TRANSACTIONS IN WHICH PROCEEDS WERE REMITTED
 TO CONSUMERS, FOR WHICH  THE  PROVIDER  RECEIVED  PARTIAL  REPAYMENT  OF
 OUTSTANDING  PROCEEDS, THE TOTAL DOLLAR AMOUNT OF SUCH TRANSACTIONS, AND
 S. 6778--A                          6
 
 THE TOTAL DOLLAR AMOUNT OF OUTSTANDING  PROCEEDS  ATTRIBUTABLE  TO  SUCH
 TRANSACTIONS; AND
   (H)  THE  TOTAL  NUMBER  OF TRANSACTIONS IN WHICH OUTSTANDING PROCEEDS
 WERE REPAID AFTER THE ORIGINAL, SCHEDULED REPAYMENT DATE, AND THE  TOTAL
 DOLLAR AMOUNT OF SUCH TRANSACTIONS.
   2.  FAILURE  OF  A  PROVIDER  TO  SUBMIT A REPORT ON A TIMELY BASIS IN
 ACCORDANCE WITH THIS ARTICLE MAY  CONSTITUTE  GROUNDS  FOR  DISCIPLINARY
 ACTION BY THE SUPERINTENDENT.
   §  374-EE.  AUTHORITY OF THE SUPERINTENDENT.  1. THE SUPERINTENDENT IS
 HEREBY AUTHORIZED AND EMPOWERED TO MAKE SUCH  GENERAL  RULES  AND  REGU-
 LATIONS,  AND  SUCH  SPECIFIC  RULINGS,  DEMANDS, AND FINDINGS AS MAY BE
 NECESSARY FOR THE PROPER CONDUCT OF THE BUSINESS AUTHORIZED  AND  REGIS-
 TERED  UNDER AND FOR THE ENFORCEMENT OF THIS ARTICLE, IN ADDITION HERETO
 AND NOT INCONSISTENT HEREWITH.
   2. THE SUPERINTENDENT SHALL HAVE THE POWER TO MAKE SUCH INVESTIGATIONS
 AND CONDUCT SUCH HEARINGS AS HE OR SHE SHALL DEEM NECESSARY TO DETERMINE
 WHETHER ANY REGISTRANT OR ANY OTHER  PERSON  HAS  VIOLATED  ANY  OF  THE
 PROVISIONS  OF  THIS  ARTICLE,  OR  WHETHER ANY REGISTRANT HAS CONDUCTED
 ITSELF IN SUCH MANNER AS WOULD JUSTIFY THE SUSPENSION OR  REVOCATION  OF
 ITS REGISTRATION.
   3.  IN  MAKING ANY INVESTIGATION OR CONDUCTING ANY HEARING PURSUANT TO
 THE PROVISIONS OF THIS ARTICLE, THE SUPERINTENDENT, OR ANY  PERSON  DULY
 DESIGNATED  BY HIM OR HER, SHALL HAVE THE POWER AT ALL TIMES TO SUBPOENA
 WITNESSES; TO TAKE DEPOSITIONS OF WITNESSES RESIDING WITHOUT THE  STATE,
 IN  THE MANNER PROVIDED FOR IN CIVIL ACTIONS IN COURTS OF RECORD; TO PAY
 SUCH WITNESSES THE FEES AND MILEAGE FOR THEIR  ATTENDANCE  PROVIDED  FOR
 WITNESSES IN CIVIL ACTIONS IN COURTS OF RECORD; AND TO ADMINISTER OATHS.
 HE  OR  SHE SHALL ALSO HAVE THE POWER TO COMPEL BY ORDER OR SUBPOENA THE
 PRODUCTION OF AND TO EXAMINE ALL RELEVANT BOOKS, RECORDS,  ACCOUNTS  AND
 OTHER DOCUMENTS. ANY PERSON WHO FAILS TO OBEY THE COMMAND OF THE SUBPOE-
 NA  WITHOUT REASONABLE EXCUSE, OR REFUSES WITHOUT REASONABLE CAUSE TO BE
 SERVED OR TO BE EXAMINED OR TO ANSWER A QUESTION OR TO PRODUCE A BOOK OR
 PAPER WHEN ORDERED SO TO DO, OR FAILS TO PERFORM ANY ACT REQUIRED  HERE-
 UNDER TO BE PERFORMED, SHALL BE SUBJECT TO THE COMPULSIONS IN SUCH CASES
 MADE AND PROVIDED BY LAW, AND IF THE PERSON BE REGISTERED HEREUNDER, THE
 SUPERINTENDENT  SHALL  HAVE THE RIGHT TO SUSPEND OR REVOKE THE REGISTRA-
 TION.
   4. THE SUPERINTENDENT MAY REQUIRE  OF  ANY  REGISTRANT  SUCH  REPORTS,
 UNDER  OATH  OR  OTHERWISE, CONCERNING THE REGISTRANT'S BUSINESS IN THIS
 STATE, AS HE OR SHE MAY DEEM NECESSARY FOR THE ENFORCEMENT OF THIS ARTI-
 CLE.
   5. ALL REPORTS OF INVESTIGATIONS AND OTHER REPORTS  RENDERED  PURSUANT
 TO  THIS  SECTION,  AND  ALL  CORRESPONDENCE AND MEMORANDA CONCERNING OR
 ARISING OUT OF  SUCH  INVESTIGATIONS  OR  REPORTS,  INCLUDING  ANY  DULY
 AUTHENTICATED COPY OR COPIES THEREOF IN THE POSSESSION OF ANY REGISTRANT
 OR  THE  DEPARTMENT,  SHALL BE CONFIDENTIAL COMMUNICATIONS, SHALL NOT BE
 SUBJECT TO SUBPOENA AND SHALL NOT BE MADE PUBLIC UNLESS, IN THE JUDGMENT
 OF THE SUPERINTENDENT, THE ENDS OF JUSTICE AND THE PUBLIC ADVANTAGE WILL
 BE SUBSERVED BY THE PUBLICATION THEREOF, IN WHICH EVENT THE  SUPERINTEN-
 DENT  MAY  PUBLISH  OR  AUTHORIZE  THE PUBLICATION OF A COPY OF ANY SUCH
 REPORT OR OTHER MATERIAL REFERRED TO IN THIS SUBDIVISION,  OR  ANY  PART
 THEREOF,  IN  SUCH  MANNER AS MAY BE DEEMED PROPER. FOR PURPOSES OF THIS
 SUBDIVISION, "REPORTS OF  INVESTIGATIONS,  AND  OTHER  REPORTS  RENDERED
 PURSUANT TO THIS SECTION AND ALL CORRESPONDENCE AND MEMORANDA CONCERNING
 OR  ARISING  OUT  OF SUCH INVESTIGATIONS OR REPORTS" SHALL HAVE THE SAME
 S. 6778--A                          7
 
 MEANING AS SUCH TERMS ARE DEFINED PURSUANT TO SUBDIVISION TEN OF SECTION
 THIRTY-SIX OF THIS CHAPTER.
   6.  WITHOUT LIMITING ANY POWER GRANTED TO THE SUPERINTENDENT UNDER ANY
 OTHER PROVISION OF THIS CHAPTER, THE SUPERINTENDENT MAY, IN A PROCEEDING
 AFTER NOTICE AND A HEARING,  IMPOSE  PENALTIES  ON  EARNED  WAGE  ACCESS
 PROVIDERS  WHO  VIOLATE THIS ARTICLE OR ANY RULES PROMULGATED HEREUNDER.
 SECTION FORTY-FOUR OF THIS CHAPTER SHALL GOVERN THE AMOUNT AND NATURE OF
 THOSE PENALTIES.
   § 2. Subdivision 10 of section 36 of the banking law,  as  amended  by
 section  2  of  part  L of chapter 58 of the laws of 2019, is amended to
 read as follows:
   10. All reports of examinations and investigations, correspondence and
 memoranda concerning or arising out of  such  examination  and  investi-
 gations,  including any duly authenticated copy or copies thereof in the
 possession of any banking organization,  bank  holding  company  or  any
 subsidiary  thereof  (as  such terms "bank holding company" and "subsid-
 iary" are defined in article three-A of this chapter),  any  corporation
 or  any  other  entity affiliated with a banking organization within the
 meaning of subdivision six of this section and any  non-banking  subsid-
 iary  of  a  corporation  or any other entity which is an affiliate of a
 banking organization within the meaning of  subdivision  six-a  of  this
 section,  foreign  banking corporation, licensed lender, licensed casher
 of  checks,  licensed  mortgage  banker,  registered  mortgage   broker,
 licensed  mortgage  loan  originator,  licensed  sales  finance company,
 registered mortgage  loan  servicer,  licensed  student  loan  servicer,
 licensed  insurance  premium  finance  agency,  licensed  transmitter of
 money, licensed budget planner, REGISTERED EARNED  WAGE  ACCESS  SERVICE
 PROVIDER,  any  other person or entity subject to supervision under this
 chapter, or the department, shall be confidential communications,  shall
 not  be  subject to subpoena and shall not be made public unless, in the
 judgment of the superintendent, the  ends  of  justice  and  the  public
 advantage  will  be subserved by the publication thereof, in which event
 the superintendent may publish or authorize the publication of a copy of
 any such report or any part thereof in such  manner  as  may  be  deemed
 proper  or  unless such laws specifically authorize such disclosure. For
 the purposes of this subdivision, "reports of examinations and  investi-
 gations,  and any correspondence and memoranda concerning or arising out
 of such examinations and investigations", includes any such materials of
 a bank, insurance or securities regulatory agency or  any  unit  of  the
 federal  government or that of this state any other state or that of any
 foreign government which are considered confidential by such  agency  or
 unit  and  which  are  in  the possession of the department or which are
 otherwise confidential materials that have been shared by the department
 with any such agency or unit and are in the possession of such agency or
 unit.
   § 3. This act shall take effect on the one hundred twentieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.