NY State Senate Bill 2023-S7826A

Senate Bill S7826A

2023-2024 Legislative Session

Enacts the pro-banking act to mandate acceptance of the New York city identity card as a primary form of identification at all banking organizations

download bill text pdf

Current Bill Status - In Senate Committee Banks Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 14, 2024	print number 7826a
May 14, 2024	amend (t) and recommit to banks
Jan 03, 2024	referred to banks
Dec 20, 2023	referred to rules

Bill Amendments

Original

A (Active)

2023-S7826 - Details

See Assembly Version of this Bill:: A9057
Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Add §13, Bank L

2023-S7826 - Summary

Enacts the pro-banking act to mandate acceptance of the New York city identity card as a primary form of identification at all banking organizations.

2023-S7826 - Sponsor Memo

                                 
BILL NUMBER: S7826

SPONSOR: RAMOS
 
TITLE OF BILL:

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

 
PURPOSE:

This bill adds a new section 13 to the banking law to mandate 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.

 
SUMMARY OF PROVISIONS:

Section 1. Sets forth legislative findings.

Section 2. Sets forth definitions.

Section 3. Amends the banking law by adding a new section 13 that
mandates acceptance of the New York city identity card as a primary
source of identification at state-chartered banks, savings banks,
savings and loan associations, and credit unions, and clarifies that
receipt of a New York City identity card shall be deemed to satisfy
their minimum customer identification program requirements.

Section 4. Sets forth the effective date.

 
JUSTIFICATION:

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 authorities 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."

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 financial
system. As of 2017, 11.2 percent of households iiiNeW 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.


The purpose of this legislation is to ensure that our most vulnerable
residents are not cut off from traditional banking services.  Mandating
acceptance of the New York city identity card at state-chartered finan-
cial institutions will allow all residents to build their financial
futures and advance the state's goal of facilitating broader financial
inclusion.

 
FISCAL IMPACT:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S7826 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7826
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             December 20, 2023
                                ___________
 
 Introduced  by  Sen.  RAMOS  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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,

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13677-01-3
 S. 7826                             2

 
 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.
 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.

2023-S7826A (ACTIVE) - Details

See Assembly Version of this Bill:: A9057
Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Add §13, Bank L

2023-S7826A (ACTIVE) - Summary

Enacts the pro-banking act to mandate acceptance of the New York city identity card as a primary form of identification at all banking organizations.

2023-S7826A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7826A

SPONSOR: RAMOS
 
TITLE OF BILL:

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
all banking organizations

 
PURPOSE:

This bill adds a new section 13 to the banking law to mandate 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.

 
SUMMARY OF PROVISIONS:

Section 1. This act shall be known and may be cited as the "pro-banking
act".

Section 2. Sets forth legislative findings.

Section 3. Sets forth definitions. Amends the banking law by adding a
new section 13 that mandates acceptance of the New York city identity
card as a primary source of identification at state-chartered banks,
savings banks, savings and loan associations, and credit unions, and
clarifies that receipt of a New York City identity card shall be deemed
to satisfy their minimum customer identification program requirements.

Section 4. Severability

Section 5. Sets forth the effective date.

 
JUSTIFICATION:

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 authorities 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."

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 financial
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.
The purpose of this legislation is to ensure that our most vulnerable
residents are not cut off from traditional banking services.  Mandating
acceptance of the New York city identity card at state-chartered finan-
cial institutions will allow all residents to build their financial
futures and advance the state's goal of facilitating broader financial
inclusion.

 
FISCAL IMPACT:

None.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law. Effective immediately, the addition, amendment
and/or repeal of any rule or regulation necessary for the implementation
of this act on its effective date are authorized to be made and
completed on or before such effective date.

2023-S7826A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7826--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             December 20, 2023
                                ___________
 
 Introduced  by  Sen.  RAMOS  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules  --  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 mandating acceptance of
   the New York city identity card as a primary form of identification at
   all banking organizations
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. This act shall be known and may be cited as the "pro-bank-
 ing act".
   § 2. 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,

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13677-07-4
 S. 7826--A                          2
 
 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.
 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.
   §  3. 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)  "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.
   (B)  "CHARTER"  MEANS THE ORGANIZATION CERTIFICATE OR COMPARABLE DOCU-
 MENT OF A STATE BANKING INSTITUTION, OR THE LICENSE FOR A  STATE  BRANCH
 OR  AGENCY OF A FOREIGN BANKING CORPORATION, OR A SIMILAR ORGANIZATIONAL
 DOCUMENT FOR A FEDERAL BANKING INSTITUTION OR A FEDERAL BRANCH OR  AGEN-
 CY,  AND  "CHARTERED"  MEANS  THE FORMAL ACT OF THE STATE OR APPROPRIATE
 FEDERAL REGULATORY AGENCY IN APPROVING AND CONVEYING SUCH CHARTER  OF  A
 BANKING INSTITUTION.
   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 BANKING ORGANIZATION 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  REQUIRE-
 MENTS  OF  ALL  BANKING ORGANIZATIONS 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. THE SUPERINTENDENT IS EMPOWERED TO EXEMPT  ANY  BANK,  SAVINGS  AND
 LOAN  ASSOCIATION,  OR  CREDIT  UNION SUBJECT TO SUBDIVISION TWO OF THIS
 SECTION UPON DEMONSTRATING THAT IT WOULD BE UNABLE TO COMPLY WITH  RELE-
 VANT  FEDERAL LAWS OR REGULATIONS, INCLUDING WITHOUT LIMITATION CUSTOMER
 IDENTIFICATION PROGRAMS PURSUANT TO 31 U.S.C. 5318(L) REGARDING ANTI-MO-
 NEY LAUNDERING LAWS,  OR  UPON  DEMONSTRATING  SUCH  OTHER  REASONS  FOR
 INABILITY TO COMPLY THAT THE SUPERINTENDENT FINDS SUFFICIENT.
   § 4. Severability. If any clause, sentence, paragraph, section or part
 of  this act shall be adjudged by any court of competent jurisdiction to
 be invalid and after exhaustion of  all  further  judicial  review,  the
 judgment  shall  not affect, impair or invalidate the remainder thereof,
 but shall be confined in its operation to the  clause,  sentence,  para-
 graph,  section or part of this act directly involved in the controversy
 in which the judgment shall have been rendered.
   § 5. This act shall take effect on the one hundred eightieth 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.

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