S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9057
 
                           I N  A S S E M B L Y
 
                             February 5, 2024
                                ___________
 
 Introduced by M. of A. LEE -- read once and referred to the Committee on
   Banks
 
 AN  ACT to amend the banking law, in relation to mandating acceptance of
   the New York city identity card as a primary form of identification at
   state-chartered banks, savings banks, savings and  loan  associations,
   and credit unions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings.  The  legislature  hereby  finds  and
 declares that:
   (a) Local law no. 35 for the year 2014 amended subchapter 1 of chapter
 1  of  title  3  of  the  administrative code of the city of New York by
 adding a section  3-115,  creating  the  New  York  city  identity  card
 program.  One of the main objectives of the program was to expand access
 to bank-approved identification cards, thereby reducing  the  number  of
 unbanked residents across the city. In 2015, federal regulatory authori-
 ties  notified  the city agencies in charge of administering the program
 that banks could use the New York city  identity  card  to  satisfy  the
 minimum requirements of federal anti-money laundering laws. In 2016, the
 New  York  State  Department of Financial Services further "encourage[d]
 New York state-chartered and licensed financial institutions  to  accept
 the Municipal ID as a form of acceptable identification card."
   (b) Despite authorization by federal and state regulatory authorities,
 only  approximately  one-third  of  city  banks accept the New York city
 identity card, leaving many city residents on the margins of the  finan-
 cial system. As of 2017, 11.2 percent of households in New York city had
 no bank account and ten neighborhoods accounted for nearly 35 percent of
 those  households. Residents of color, undocumented residents, and resi-
 dents living below the poverty line are disproportionately impacted  and
 are  at  greater risk of falling victim to predatory financial services,
 imperiling their financial futures and aggravating  economic  inequality
 across the state.
   (c) The purpose of this legislation is to ensure that our most vulner-
 able  residents  are  not  cut  off  from  traditional banking services.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13677-01-3
 A. 9057                             2
 
 Mandating acceptance of the New York city identity card  at  state-char-
 tered  financial  institutions  will  allow all residents to build their
 financial futures and advance the state's goal of  facilitating  broader
 financial inclusion.
   §  2. The banking law is amended by adding a new section 13 to read as
 follows:
   § 13. ACCEPTANCE OF NEW YORK CITY IDENTITY CARD.  1.  DEFINITIONS.  AS
 USED IN THIS SECTION:
   (A)  "CHARTER"  SHALL  MEAN THE ORGANIZATION CERTIFICATE OR COMPARABLE
 DOCUMENT OF A STATE BANKING INSTITUTION, OR  THE  LICENSE  FOR  A  STATE
 BRANCH  OR  AGENCY OF A FOREIGN BANKING CORPORATION, OR A SIMILAR ORGAN-
 IZATIONAL DOCUMENT FOR A FEDERAL BANKING INSTITUTION OR A FEDERAL BRANCH
 OR AGENCY, AND "CHARTERED" SHALL MEAN THE FORMAL ACT  OF  THE  STATE  OR
 APPROPRIATE  FEDERAL  REGULATORY  AGENCY IN APPROVING AND CONVEYING SUCH
 CHARTER OF A BANKING INSTITUTION.
   (B) "NEW YORK CITY IDENTITY CARD" REFERS TO THE IDENTITY  CARD  ISSUED
 BY  THE  CITY  OF NEW YORK PURSUANT TO SUBDIVISION C OF SECTION 3-115 OF
 THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK.
   2. STATE-CHARTERED BANKS, SAVINGS  BANKS,  SAVINGS  AND  LOAN  ASSOCI-
 ATIONS,  AND  CREDIT UNIONS SHALL ACCEPT THE NEW YORK CITY IDENTITY CARD
 AS A PRIMARY SOURCE OF IDENTIFICATION FOR ACCOUNT-OPENING  PURPOSES.  IN
 THE  EVENT  A  CUSTOMER'S NEW YORK CITY IDENTITY CARD DOES NOT CONTAIN A
 RESIDENTIAL OR BUSINESS STREET ADDRESS, A STATE-CHARTERED BANK,  SAVINGS
 BANK,  SAVINGS  AND  LOAN  ASSOCIATION, OR CREDIT UNION SHALL NOT DENY A
 CUSTOMER ACCOUNT-OPENING SERVICES, PROVIDED THE CUSTOMER CAN  FURNISH  A
 RESIDENTIAL  OR  BUSINESS STREET ADDRESS OF THEIR NEXT OF KIN OR ANOTHER
 CONTACT  INDIVIDUAL  PURSUANT  TO  31  CFR  §  1020.220(A)(2)(I)(3)(II).
 RECEIPT  OF A NEW YORK CITY IDENTITY CARD SHALL BE DEEMED TO SATISFY THE
 CUSTOMER IDENTIFICATION PROGRAM REQUIREMENTS OF  STATE-CHARTERED  BANKS,
 SAVINGS BANKS, SAVINGS AND LOAN ASSOCIATIONS, AND CREDIT UNIONS PURSUANT
 TO  SECTION  116.2  OF  TITLE  THREE OF THE RULES AND REGULATIONS OF THE
 STATE OF NEW YORK. NOTHING IN SUBDIVISION TWO  OF  SECTION  TWELVE-A  OF
 THIS ARTICLE SHALL BE DEEMED TO ANNUL THIS SECTION.
   § 3. This act shall take effect immediately.