senate Bill S7898

2021-2022 Legislative Session

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

download bill text pdf

Sponsored By

Current 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
Jan 18, 2022 referred to banks

S7898 (ACTIVE) - Details

See Assembly Version of this Bill:
A3570
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Add Art 9-B §§374-aa - 374-ee, Bank L
Versions Introduced in 2019-2020 Legislative Session:
A10309

S7898 (ACTIVE) - Summary

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

S7898 (ACTIVE) - Sponsor Memo

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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