|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Jan 18, 2022||referred to banks|
senate Bill S7898
Current Bill Status - In Senate Committee Banks Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S7898 (ACTIVE) - Details
S7898 (ACTIVE) - Sponsor Memo
BILL NUMBER: S7898 SPONSOR: BAILEY TITLE OF BILL: An act to amend the banking law, in relation to on-demand pay providers PURPOSE: To provide regulatory clarity for on-demand pay providers so New York workers can have flexible access to their pay. SUMMARY OF PROVISIONS: Section 1: Creates a new Article 9-B of the banking law "On-Demand Pay Providers" with the following sections: 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. Provides that interest and fees shall not exceed 105. 374-ee. Penalties.
S7898 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 7898 I N S E N A T E January 18, 2022 ___________ Introduced by Sen. BAILEY -- 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. LBD11123-01-1
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