Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Jun 05, 2025 |
print number 8115b |
Jun 05, 2025 |
amend and recommit to internet and technology |
Jun 02, 2025 |
print number 8115a |
Jun 02, 2025 |
amend (t) and recommit to internet and technology |
May 27, 2025 |
reported and committed to internet and technology |
May 15, 2025 |
referred to banks |
Senate Bill S8115B
2025-2026 Legislative Session
Sponsored By
(D) 10th Senate District
Current Bill Status - In Senate Committee Internet And Technology 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
Actions
Votes
Bill Amendments
2025-S8115 - Details
- See Assembly Version of this Bill:
- A773
- Current Committee:
- Senate Internet And Technology
- Law Section:
- Banking Law
- Laws Affected:
- Add §103-a, Bank L
2025-S8115 - Sponsor Memo
BILL NUMBER: S8115 SPONSOR: SANDERS TITLE OF BILL: An act to amend the banking law, in relation to the use of automated decision tools to make lending decisions PURPOSE: This legislation will notify applicants of the use of artificial intel- ligence by banks when making lending decisions and provide an opportu- nity to opt-out of screening by artificial intelligence tools. SUMMARY OF SPECIFIC PROVISIONS: Section one amends the banking law by adding a new section 103-a. Section two establishes the effective date. JUSTIFICATION:
2025-S8115 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 8115 2025-2026 Regular Sessions I N S E N A T E May 15, 2025 ___________ Introduced by Sen. SANDERS -- 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 the use of automated decision tools to make lending decisions 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 section 103-a to read as follows: § 103-A. USE OF AUTOMATED DECISION TOOLS TO MAKE LENDING DECISIONS. 1. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "AUTOMATED DECISION TOOL" MEANS ANY COMPUTATIONAL PROCESS, DERIVED FROM MACHINE LEARNING, STATISTICAL MODELING, DATA ANALYTICS, OR ARTIFI- CIAL INTELLIGENCE, THAT ISSUES SIMPLIFIED OUTPUT, INCLUDING A SCORE, CLASSIFICATION, OR RECOMMENDATION, THAT IS USED TO SUBSTANTIALLY ASSIST OR REPLACE DISCRETIONARY DECISION MAKING FOR MAKING LENDING DECISIONS THAT IMPACT NATURAL PERSONS. "AUTOMATED DECISION TOOL" DOES NOT INCLUDE A TOOL THAT DOES NOT AUTOMATE, SUPPORT, SUBSTANTIALLY ASSIST, OR REPLACE DISCRETIONARY DECISION-MAKING PROCESSES AND THAT DOES NOT MATERIALLY IMPACT NATURAL PERSONS, INCLUDING, BUT NOT LIMITED TO, A JUNK EMAIL FILTER, FIREWALL, ANTIVIRUS SOFTWARE, CALCULATOR, SPREADSHEET, DATABASE, DATA SET, OR OTHER COMPILATION OF DATA. (B) "DISPARATE IMPACT ANALYSIS" MEANS AN IMPARTIAL EVALUATION CONDUCTED BY AN INDEPENDENT AUDITOR. SUCH DISPARATE IMPACT ANALYSIS SHALL INCLUDE, BUT NOT BE LIMITED TO, TESTING OF THE EXTENT TO WHICH USE OF AN AUTOMATED DECISION TOOL IS LIKELY TO RESULT IN AN ADVERSE IMPACT TO THE DETRIMENT OF ANY GROUP ON THE BASIS OF SEX, RACE, ETHNICITY, OR OTHER PROTECTED CLASS UNDER THIS ARTICLE. A DISPARATE IMPACT ANALYSIS SHALL DIFFERENTIATE BETWEEN APPLICANTS WHO WERE APPROVED AND APPLICANTS WHO WERE NOT APPROVED BY THE TOOL. (C) "LENDING DECISION" MEANS TO SCREEN APPLICANTS FOR A LOAN. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02503-01-5
2025-S8115A - Details
- See Assembly Version of this Bill:
- A773
- Current Committee:
- Senate Internet And Technology
- Law Section:
- Banking Law
- Laws Affected:
- Add §103-a, Bank L
2025-S8115A - Sponsor Memo
BILL NUMBER: S8115A SPONSOR: SANDERS TITLE OF BILL: An act to amend the banking law, in relation to the use of automated lending decision-making tools to make lending decisions PURPOSE: This legislation establishes consumer protections and other requirements relating to a bank's use of artificial intelligence in lending deci- sions. SUMMARY OF SPECIFIC PROVISIONS: Section one: Amends the banking law by adding a new section 103-a. Subdivision one: Definitions Subdivision two: Requires covered entities using automated lending decision-making tools to conduct and publish an annual impact assessment, including prior to any material changes to such tool. The assessment must evaluate the tool's objectives, design, algorithms, training data, and test for accuracy, bias, discrimination,
2025-S8115A - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 8115--A 2025-2026 Regular Sessions I N S E N A T E May 15, 2025 ___________ Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Banks -- reported favora- bly from said committee and committed to the Committee on Internet and Technology -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the banking law, in relation to the use of automated lending decision-making tools to make lending decisions 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 section 103-a to read as follows: § 103-A. USE OF AUTOMATED LENDING DECISION-MAKING TOOLS TO MAKE LEND- ING DECISIONS. 1. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "AUTOMATED LENDING DECISION-MAKING TOOL" MEANS ANY SOFTWARE THAT USES ALGORITHMS, COMPUTATIONAL MODELS, OR ARTIFICIAL INTELLIGENCE TECH- NIQUES, OR A COMBINATION THEREOF, TO MATERIALLY AUTOMATE OR REPLACE HUMAN DECISION-MAKING REGARDING LENDING DECISIONS THAT IMPACT NATURAL PERSONS. "AUTOMATED LENDING DECISION-MAKING TOOL" SHALL NOT INCLUDE ANY SOFTWARE USED PRIMARILY FOR BASIC COMPUTERIZED PROCESSES, SUCH AS CALCU- LATORS, SPELLCHECK TOOLS, AUTOCORRECT FUNCTIONS, SPREADSHEETS, ELECTRON- IC COMMUNICATIONS, OR ANY TOOL THAT RELATES ONLY TO INTERNAL MANAGEMENT AFFAIRS SUCH AS ORDERING OFFICE SUPPLIES OR PROCESSING PAYMENTS, AND THAT DO NOT MATERIALLY IMPACT ANY LENDING DECISIONS RELATING TO NATURAL PERSONS. (B) "LENDING DECISION" MEANS ANY DETERMINATION MADE BY A COVERED ENTI- TY OR ITS AGENT, WHETHER AUTOMATED, MANUAL OR A COMBINATION THEREOF, THAT AFFECTS THE APPROVAL, DENIAL, OFFER, COUNTEROFFER, OR MODIFICATION OF THE TERMS OR CONDITIONS OF A LOAN OR CREDIT APPLICATION, INCLUDING DECISIONS REGARDING CREDITWORTHINESS, LOAN AMOUNTS, INTEREST RATES, COLLATERAL REQUIREMENTS, REPAYMENT, OR ANY OTHER MATERIAL TERM, AND ANY EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02503-03-5
2025-S8115B (ACTIVE) - Details
- See Assembly Version of this Bill:
- A773
- Current Committee:
- Senate Internet And Technology
- Law Section:
- Banking Law
- Laws Affected:
- Add §103-a, Bank L
2025-S8115B (ACTIVE) - Sponsor Memo
BILL NUMBER: S8115B SPONSOR: SANDERS TITLE OF BILL: An act to amend the banking law, in relation to the use of automated lending decision-making tools to make lending decisions PURPOSE: This legislation establishes consumer protections and other requirements relating to a bank's use of artificial intelligence in lending deci- sions. SUMMARY OF SPECIFIC PROVISIONS: Section one: Amends the banking law by adding a new section 103-a. Subdivision one: Definitions Subdivision two: Requires covered entities using automated lending decision-making tools to conduct and publish an annual impact assessment, including prior to any material changes to such tool. The assessment must evaluate the tool's objectives, design, algorithms, training data, and test for accuracy, bias, discrimination,
2025-S8115B (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 8115--B 2025-2026 Regular Sessions I N S E N A T E May 15, 2025 ___________ Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Banks -- reported favora- bly from said committee and committed to the Committee on Internet and Technology -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the banking law, in relation to the use of automated lending decision-making tools to make lending decisions 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 section 103-a to read as follows: § 103-A. USE OF AUTOMATED LENDING DECISION-MAKING TOOLS TO MAKE LEND- ING DECISIONS. 1. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "AUTOMATED LENDING DECISION-MAKING TOOL" MEANS ANY SOFTWARE THAT USES ALGORITHMS, COMPUTATIONAL MODELS, OR ARTIFICIAL INTELLIGENCE TECH- NIQUES, OR A COMBINATION THEREOF, TO MATERIALLY AUTOMATE OR REPLACE HUMAN DECISION-MAKING REGARDING LENDING DECISIONS THAT IMPACT NATURAL PERSONS. "AUTOMATED LENDING DECISION-MAKING TOOL" SHALL NOT INCLUDE ANY SOFTWARE USED PRIMARILY FOR BASIC COMPUTERIZED PROCESSES, SUCH AS CALCU- LATORS, SPELLCHECK TOOLS, AUTOCORRECT FUNCTIONS, SPREADSHEETS, ELECTRON- IC COMMUNICATIONS, OR ANY TOOL THAT RELATES ONLY TO INTERNAL MANAGEMENT AFFAIRS SUCH AS ORDERING OFFICE SUPPLIES OR PROCESSING PAYMENTS, AND THAT DO NOT MATERIALLY IMPACT ANY LENDING DECISIONS RELATING TO NATURAL PERSONS. (B) "LENDING DECISION" MEANS ANY DETERMINATION MADE BY A COVERED ENTI- TY OR ITS AGENT, WHETHER AUTOMATED, MANUAL OR A COMBINATION THEREOF, THAT AFFECTS THE APPROVAL, DENIAL, OFFER, COUNTEROFFER, OR MODIFICATION OF THE TERMS OR CONDITIONS OF A LOAN OR CREDIT APPLICATION, INCLUDING EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02503-05-5
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