Senate Bill S8115B

2025-2026 Legislative Session

Relates to the use of automated lending decision-making tools by banks for the purposes of making lending decisions

download bill text pdf

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

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Actions

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Date of Action	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

Votes

- May 27, 2025 - Banks Committee Vote
  S8115B
  
  Aye
  
  4
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  1
  
  Abstained
  
  0
  - - Banks Committee Vote: May 27, 2025
      
      aye (4)
      
      Brisport
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      nay (2)
      
      Borrello
      
      Walczyk
      
      excused (1)
      
      Parker

Bill Amendments

Original

B (Active)

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 - Summary

Relates to the use of automated lending decision-making tools by banks for the purposes of making lending decisions; allows loan applicants to consent to or opt out of such use.

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:

The use of artificial intelligence (AI) has become increasingly common
across many sectors. In recent years, AI has become common in the lend-
ing field, aiding banks in providing mortgages and other loans.  Unlike
the traditional application process, AI tools go beyond reviewing just a
person's credit score and their ability to pay, and the extent of the
information collected is not always clear to the applicant.

While such tools may provide a benefit to lenders in the processing of
loan applications, it is important that consumers are notified of the
use of such tools and have the opportunity to have their application
reviewed manually instead of an algorithmic program. Further, it is
important that borrowers understand the types of data being collected
and the retention of such information. This legislation would require a
notice to consumers when automated decision tools are used in the lend-
ing process and gives them the ability to file an appeal if incorrect
information was collected. The bill would also require lending insti-
tutions to conduct an annual disparate impact analysis of any AI tools
being used and provides the New York State Attorney General's office the
authority to investigate any violations.

 
LEGISLATIVE HISTORY:

New bill.

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

 S. 8115                             2
 
   2. NO LESS THAN ANNUALLY, EACH BANK THAT USES AUTOMATED DECISION TOOLS
 TO MAKE LENDING DECISIONS SHALL:
   (A) CONDUCT A DISPARATE IMPACT ANALYSIS TO ASSESS THE ACTUAL IMPACT OF
 ANY  AUTOMATED  DECISION TOOL USED BY ANY BANK TO MAKE LENDING DECISIONS
 WITHIN THE STATE; AND
   (B) SUBMIT A SUMMARY OF THE MOST RECENT DISPARATE IMPACT  ANALYSIS  OF
 SUCH  TOOL  AS  WELL  AS  THE DISTRIBUTION DATE OF THE TOOL TO WHICH THE
 ANALYSIS APPLIES TO THE ATTORNEY GENERAL'S OFFICE.
   3. (A) ANY BANK THAT USES AN AUTOMATED DECISION TOOL TO SCREEN  APPLI-
 CANTS FOR A LOAN SHALL NOTIFY EACH SUCH APPLICANT OF THE FOLLOWING:
   (I)  THAT  AN  AUTOMATED DECISION TOOL WILL BE USED IN CONNECTION WITH
 THE ASSESSMENT OR EVALUATION OF SUCH APPLICANT;
   (II) THE CHARACTERISTICS THAT SUCH AUTOMATED DECISION TOOL WILL USE IN
 THE ASSESSMENT OF SUCH APPLICANT;
   (III) INFORMATION ABOUT THE TYPE OF DATA COLLECTED FOR SUCH  AUTOMATED
 DECISION  TOOL,  THE  SOURCE OF SUCH DATA, AND THE BANK'S DATA RETENTION
 POLICY; AND
   (IV) IF AN APPLICATION FOR A LOAN IS DENIED THROUGH USE OF  THE  AUTO-
 MATED DECISION TOOL, THE REASON FOR SUCH DENIAL.
   (B)  THE NOTICE REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE
 MADE NO LESS THAN TWENTY-FOUR HOURS BEFORE THE  USE  OF  SUCH  AUTOMATED
 DECISION TOOL AND SHALL ALLOW SUCH APPLICANT TO OPT OUT OF OR CONSENT TO
 SUCH  USE  AND/OR  RETENTION OF SUCH APPLICANT'S PERSONAL INFORMATION BY
 THE BANK.
   (C) IF AN APPLICATION FOR A LOAN IS DENIED BASED ON PERSONAL  INFORMA-
 TION  THAT  IS  INCORRECT,  THE  APPLICANT,  UPON  RECEIPT OF THE NOTICE
 REQUIRED BY SUBPARAGRAPH (IV) OF  PARAGRAPH  (A)  OF  THIS  SUBDIVISION,
 SHALL  HAVE  THIRTY  DAYS  TO  CORRECT  SUCH INFORMATION AND APPEAL SUCH
 DENIAL.
   4. THE ATTORNEY GENERAL MAY INITIATE AN INVESTIGATION IF A  PREPONDER-
 ANCE OF THE EVIDENCE, INCLUDING THE SUMMARY OF THE MOST RECENT DISPARATE
 IMPACT ANALYSIS REQUIRED PURSUANT TO PARAGRAPH (B) OF SUBDIVISION TWO OF
 THIS  SECTION,  ESTABLISHES  A  SUSPICION  OF  A VIOLATION. THE ATTORNEY
 GENERAL MAY ALSO INITIATE IN ANY COURT  OF  COMPETENT  JURISDICTION  ANY
 ACTION OR PROCEEDING THAT MAY BE APPROPRIATE OR NECESSARY FOR CORRECTION
 OF  ANY  VIOLATION  ISSUED PURSUANT TO THIS SECTION, INCLUDING MANDATING
 COMPLIANCE WITH THE PROVISIONS OF THIS SECTION OR SUCH OTHER  RELIEF  AS
 MAY BE APPROPRIATE.
   § 2. This act shall take effect immediately.

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 - Summary

Relates to the use of automated lending decision-making tools by banks for the purposes of making lending decisions; allows loan applicants to consent to or opt out of such use.

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,

cybersecurity and privacy risks, misuse, and public safety issues. It
must also detail how personal data is used and stored, any user
controls, and how affected individuals are notified and informed of
their rights.

Subdivision Three: Requires covered entities to maintain impact assess-
ments and summaries for seven years and provide them to the superinten-
dent within seven days upon request.

Subdivision Four: Specifies that if an impact assessment reveals discri-
minatory or biased outcomes from an automated lending tool, the covered
entity must report it to the department within 30 days. Once reported,
the department shall order the entity to stop utilization of such tool.

Subdivision Five: Covered entities using automated lending tools must
notify applicants at least 24 hours in advance, explaining that such a
tool will be used, what criteria it assesses, the data it collects and
its sources, and the covered entity's data retention policy.  Applicants
must be given the option to opt out or consent. If a loan is denied, the
reason must be provided within 24 hours, and applicants have 30 days to
correct any incorrect personal data and appeal the decision.

Subdivision Six: The superintendent shall have the authority to investi-
gate covered entities for potential violations, including examining
individuals under oath.

Subdivision Seven: If a covered entity's automated lending tool is found
to produce biased or discriminatory outcomes, the superintendent may
require additional or more detailed annual reports, or direct submission
of these reports to the department, as outlined by regulations.

Subdivision Eight: Severability clause. Section two: Effective date.

 
JUSTIFICATION:

The use of artificial intelligence (AI) has become increasingly common
across many sectors. In recent years, AI has become common in the lend-
ing field, aiding banks in providing mortgages and other loans.  Unlike
the traditional application process, AI tools go beyond reviewing just a
person's credit score and their ability to pay, and the extent of the
information collected is not always clear to the applicant.

While such tools may provide a benefit to lenders in the processing of
loan applications, it is important that consumers are notified of the
use of such tools and have the opportunity to have their application
reviewed manually instead of an algorithmic program. Further, it is
important that borrowers understand the types of data being collected
and the retention of such information. This legislation Would require a
notice to consumers when automated decision tools are used in the lend-
ing process and gives them the ability to file an appeal if incorrect
information was collected. The bill would also require lending insti-
tutions to conduct an annual disparate impact analysis of any AI tools
being used and provides the New York State Attorney General's office the
authority to investigate any violations.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect in ninety days.

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

 S. 8115--A                          2
 
 DETERMINATION  THAT  CONSIDERS  ANY FACTOR THAT RESULTS OR MAY RESULT IN
 "ADVERSE ACTION" AS SUCH TERM IS DEFINED  IN  THE  FEDERAL  FAIR  CREDIT
 REPORTING ACT 15 U.S.C.  1681A(K).
   (C)  "COVERED  ENTITY" MEANS ANY BANKING ORGANIZATION, FOREIGN BANKING
 CORPORATION LICENSED BY THE SUPERINTENDENT TO TRANSACT BUSINESS IN  THIS
 STATE  PURSUANT  TO  ARTICLE  FIVE  OF  THIS  CHAPTER, INTERSTATE BRANCH
 AUTHORIZED BY THE SUPERINTENDENT TO  TRANSACT  BUSINESS  IN  THIS  STATE
 PURSUANT TO ARTICLE FIVE-C OF THIS CHAPTER, AND LICENSED LENDER. COVERED
 ENTITY SHALL NOT INCLUDE ANY NATIONAL BANK, FEDERAL SAVINGS BANK, FEDER-
 AL  SAVINGS  AND  LOAN  ASSOCIATION, FEDERAL CREDIT UNION, FEDERAL TRUST
 COMPANY OR FOREIGN BANKING CORPORATION ORGANIZED UNDER THE LAWS  OF  THE
 UNITED STATES.
   (D)  "MATERIAL  CHANGE" MEANS ANY MODIFICATION TO AN AUTOMATED LENDING
 DECISION-MAKING TOOL WHICH DIRECTLY IMPACTS THE TOOL'S OUTPUTS.
   2. NO LESS THAN ANNUALLY, EACH  COVERED  ENTITY  THAT  USES  AUTOMATED
 LENDING   DECISION-MAKING  TOOLS  SHALL  CONDUCT  AN  IMPACT  ASSESSMENT
 SUBSTANTIALLY COMPLETED AND BEARING THE SIGNATURE OF ONE OR  MORE  INDI-
 VIDUALS  RESPONSIBLE FOR MEANINGFUL HUMAN REVIEW FOR THE LAWFUL APPLICA-
 TION AND USE OF SUCH AUTOMATED LENDING DECISION-MAKING TOOLS. AN  IMPACT
 ASSESSMENT  SHALL BE CONDUCTED PRIOR TO ANY MATERIAL CHANGE TO ANY AUTO-
 MATED LENDING DECISION-MAKING TOOL THAT MAY CHANGE THE OUTCOME OR EFFECT
 OF SUCH TOOL.  AN IMPACT ASSESSMENT FINAL REPORT SUMMARIZING THE CONCLU-
 SIONS OF THE INITIAL IMPACT ASSESSMENT SHALL BE POSTED ON  SUCH  COVERED
 ENTITY'S  WEBSITE  PRIOR TO THE IMPLEMENTATION AND USE OF SUCH AUTOMATED
 LENDING DECISION-MAKING TOOL AND UPDATED ON THE ENTITY'S WEBSITE FOLLOW-
 ING EACH SUBSEQUENT ASSESSMENT.  SUCH  IMPACT  ASSESSMENT  FINAL  REPORT
 SHALL INCLUDE:
   (A)  A  DESCRIPTION  OF  THE OBJECTIVES OF THE AUTOMATED LENDING DECI-
 SION-MAKING TOOL;
   (B) AN EVALUATION OF THE ABILITY OF THE  AUTOMATED  LENDING  DECISION-
 MAKING TOOL TO ACHIEVE ITS STATED OBJECTIVES;
   (C) A DESCRIPTION AND EVALUATION OF THE OBJECTIVES AND DEVELOPMENT  OF
 THE AUTOMATED LENDING DECISION-MAKING TOOL INCLUDING:
   (I)  A  SUMMARY OF THE UNDERLYING ALGORITHMS, COMPUTATIONAL MODES, AND
 ARTIFICIAL INTELLIGENCE TOOLS THAT ARE USED WITHIN  THE AUTOMATED  LEND-
 ING DECISION-MAKING TOOL; AND
   (II)  THE DESIGN AND TRAINING DATA USED TO DEVELOP THE AUTOMATED LEND-
 ING DECISION-MAKING TOOL PROCESS;
   (D) TESTING FOR:
   (I) ACCURACY, FAIRNESS, BIAS AND DISCRIMINATION, AND AN ASSESSMENT  OF
 WHETHER  THE  USE OF THE AUTOMATED LENDING DECISION-MAKING TOOL PRODUCES
 DISCRIMINATORY RESULTS ON THE BASIS  OF  A  CONSUMER'S  OR  A  CLASS  OF
 CONSUMERS'   ACTUAL  OR  PERCEIVED  RACE,  COLOR,  ETHNICITY,  RELIGION,
 NATIONAL ORIGIN, SEX, GENDER, GENDER IDENTITY, SEXUAL ORIENTATION, FAMI-
 LIAL STATUS, BIOMETRIC INFORMATION, LAWFUL SOURCE  OF  INCOME,  AGE,  OR
 DISABILITY  AND,  OUTLINES  MITIGATIONS  FOR  ANY IDENTIFIED PERFORMANCE
 DIFFERENCES IN OUTCOMES ACROSS RELEVANT GROUPS IMPACTED BY SUCH USE;
   (II) ANY CYBERSECURITY VULNERABILITIES  AND  PRIVACY  RISKS  RESULTING
 FROM  THE  DEPLOYMENT  AND  USE OF THE AUTOMATED LENDING DECISION-MAKING
 TOOL, AND THE DEVELOPMENT OR EXISTENCE OF  SAFEGUARDS  TO  MITIGATE  THE
 RISKS;
   (III) ANY PUBLIC HEALTH OR SAFETY RISKS RESULTING FROM THE  DEPLOYMENT
 AND USE OF THE AUTOMATED LENDING DECISION-MAKING TOOL; AND
   (IV)  ANY REASONABLY FORESEEABLE MISUSE OF THE AUTOMATED LENDING DECI-
 SION-MAKING TOOL AND THE DEVELOPMENT OR    EXISTENCE    OF    SAFEGUARDS
 AGAINST SUCH MISUSE;
 S. 8115--A                          3
 
   (E)  THE EXTENT TO WHICH THE DEPLOYMENT AND USE OF THE AUTOMATED LEND-
 ING DECISION-MAKING TOOL REQUIRES INPUT OF  SENSITIVE    AND    PERSONAL
 DATA,  HOW   THAT   DATA   IS USED AND STORED, AND ANY CONTROL USERS MAY
 HAVE OVER THEIR DATA; AND
   (F) THE NOTIFICATION MECHANISM OR PROCEDURE, IF ANY, BY WHICH INDIVID-
 UALS  IMPACTED BY THE UTILIZATION OF THE AUTOMATED LENDING DECISION-MAK-
 ING TOOL MAY BE NOTIFIED OF THE USE OF SUCH AUTOMATED LENDING  DECISION-
 MAKING  TOOL  AND  OF THE INDIVIDUAL'S PERSONAL  DATA,  AND INFORMED  OF
 THEIR RIGHTS AND OPTIONS RELATING TO SUCH USE.
   3. IN ADDITION TO THE POWERS CONFERRED TO THE SUPERINTENDENT IN SUBDI-
 VISION SIX OF THIS SECTION, A  COVERED  ENTITY  SHALL  RETAIN  THE  FULL
 IMPACT  ASSESSMENT  AND  SUMMARY  FOR A PERIOD OF SEVEN YEARS AND SHALL,
 UPON NOTICE BY THE SUPERINTENDENT,  PROVIDE  SUCH  FULL  ASSESSMENT  AND
 SUMMARY TO THE DEPARTMENT WITHIN SEVEN DAYS.
   4. NOTWITHSTANDING THE PROVISIONS OF THIS ARTICLE OR ANY OTHER LAW, IF
 AN  IMPACT  ASSESSMENT  FINDS THAT THE AUTOMATED LENDING DECISION-MAKING
 TOOL PRODUCES DISCRIMINATORY OR BIASED  OUTCOMES,  SUCH  COVERED  ENTITY
 SHALL,  WITHIN THIRTY DAYS OF SUCH FINDINGS, REPORT SUCH FINDINGS TO THE
 DEPARTMENT. UPON SUCH REPORT  BEING  RECEIVED  BY  THE  DEPARTMENT,  THE
 DEPARTMENT  SHALL  DIRECT  SUCH COVERED ENTITY TO CEASE ANY UTILIZATION,
 APPLICATION, OR FUNCTION OF SUCH AUTOMATED LENDING DECISION-MAKING TOOL,
 AND  OF ANY INFORMATION PRODUCED USING SUCH TOOL.
   5. (A) ANY COVERED ENTITY THAT USES AN AUTOMATED LENDING DECISION-MAK-
 ING TOOL TO SCREEN APPLICANTS FOR A LOAN SHALL NOTIFY EACH  SUCH  APPLI-
 CANT OF THE FOLLOWING:
   (I)  THAT  AN  AUTOMATED  LENDING DECISION-MAKING TOOL WILL BE USED IN
 CONNECTION WITH THE ASSESSMENT OR EVALUATION OF SUCH APPLICANT;
   (II) THE CRITERIA THAT SUCH  AUTOMATED  LENDING  DECISION-MAKING  TOOL
 WILL USE IN THE ASSESSMENT OF SUCH APPLICANT;
   (III)  INFORMATION ABOUT THE TYPE OF DATA COLLECTED FOR SUCH AUTOMATED
 LENDING DECISION-MAKING TOOL, THE SOURCE OF SUCH DATA, AND  THE  COVERED
 ENTITY'S DATA RETENTION POLICY; AND
   (IV)  IF  AN APPLICATION FOR A LOAN IS DENIED THROUGH USE OF THE AUTO-
 MATED LENDING DECISION-MAKING  TOOL,  TO  THE  EXTENT  PRACTICABLE,  THE
 REASON FOR SUCH DENIAL.
   (B)  THE  NOTICE  REQUIRED BY PARAGRAPH (A), WITH THE EXCEPTION OF THE
 INFORMATION REQUIRED IN SUBPARAGRAPH (IV) OF  SUCH  PARAGRAPH,  OF  THIS
 SUBDIVISION  SHALL BE MADE NO LESS THAN TWENTY-FOUR HOURS BEFORE THE USE
 OF SUCH AUTOMATED LENDING DECISION-MAKING TOOL. THE NOTICE  REQUIRED  BY
 SUBPARAGRAPH (IV) OF SUCH PARAGRAPH (A) SHALL BE MADE WITHIN TWENTY-FOUR
 HOURS AFTER SUCH DENIAL.
   (C)  IF AN APPLICATION FOR A LOAN IS DENIED BASED ON PERSONAL INFORMA-
 TION THAT IS INCORRECT,  THE  APPLICANT,  UPON  RECEIPT  OF  THE  NOTICE
 REQUIRED  BY  SUBPARAGRAPH  (IV)  OF  PARAGRAPH (A) OF THIS SUBDIVISION,
 SHALL HAVE THIRTY DAYS TO  CORRECT  SUCH  INFORMATION  AND  APPEAL  SUCH
 DENIAL.
   6. THE SUPERINTENDENT SHALL HAVE THE POWER TO MAKE SUCH INVESTIGATIONS
 AS  THE  SUPERINTENDENT DEEMS NECESSARY TO DETERMINE WHETHER ANY COVERED
 ENTITY HAS VIOLATED ANY OF THE PROVISIONS OF THIS SECTION. TO THE EXTENT
 NECESSARY THEREFOR, THE SUPERINTENDENT MAY REQUIRE THE ATTENDANCE OF AND
 EXAMINE ANY PERSON UNDER OATH, AND SHALL HAVE THE POWER  TO  COMPEL  THE
 PRODUCTION  OF ALL RELEVANT BOOKS, RECORDS, ACCOUNTS, AND DOCUMENTS. THE
 SUPERINTENDENT SHALL HAVE THE POWER TO MAKE  SUCH  EXAMINATIONS  OF  THE
 BOOKS,  RECORDS,  ACCOUNTS  AND  DOCUMENTS  USED  IN THE BUSINESS OF ANY
 COVERED ENTITY AS THE SUPERINTENDENT DEEMS NECESSARY TO DETERMINE WHETH-
 ER ANY SUCH COVERED ENTITY HAS VIOLATED ANY OF THE  PROVISIONS  OF  THIS
 S. 8115--A                          4
 
 SECTION,  OR  TO SECURE INFORMATION LAWFULLY REQUIRED BY THE SUPERINTEN-
 DENT.
   7.  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION TWO OF THIS SECTION,
 THE SUPERINTENDENT MAY,  UPON  A  FINDING  THAT  A  COVERED  ENTITY  HAS
 DEPLOYED  AN  AUTOMATED  LENDING  DECISION-MAKING  TOOL  WHICH  PRODUCED
 DISCRIMINATORY OR BIASED OUTCOMES, REQUIRE, IN ACCORDANCE WITH THE RULES
 AND REGULATIONS PROMULGATED BY THE SUPERINTENDENT, (A) ADDITIONAL ANNUAL
 REPORTS, (B) ANNUAL REPORTS WITH ADDITIONAL INFORMATION, (C) A  COMBINA-
 TION OF PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION, AND/OR (D) THAT SUCH
 COVERED  ENTITY PROVIDE ANY AND ALL ADDITIONAL REPORTS TO THE DEPARTMENT
 DIRECTLY.
   8. THE PROVISIONS OF THIS SECTION  SHALL  BE  SEVERABLE,  AND  IF  ANY
 PHRASE,  CLAUSE, SENTENCE, OR PROVISION IS DECLARED TO BE INVALID, OR IS
 PREEMPTED BY FEDERAL LAW OR REGULATION, THE VALIDITY OF THE REMAINDER OF
 THIS SECTION SHALL NOT BE AFFECTED THEREBY. IF  ANY  PROVISION  OF  THIS
 SECTION, OR ITS APPLICATION TO ANY PERSON OR CIRCUMSTANCE, IS HELD TO BE
 INVALID  OR  PREEMPTED BY FEDERAL LAW, THE REMAINDER OF THIS SECTION AND
 ITS APPLICATION TO OTHER PERSONS OR CIRCUMSTANCES SHALL NOT BE  AFFECTED
 AND  SHALL  CONTINUE  IN  FULL  FORCE  AND  EFFECT TO THE MAXIMUM EXTENT
 PERMITTED BY LAW.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.

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) - Summary

Relates to the use of automated lending decision-making tools by banks for the purposes of making lending decisions; allows loan applicants to consent to or opt out of such use.

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,

cybersecurity and privacy risks, misuse, and public safety issues. It
must also detail how personal data is used and stored, any user
controls, and how affected individuals are notified and informed of
their rights.

Subdivision Three: Requires covered entities to maintain impact assess-
ments and summaries for seven years and provide them to the superinten-
dent within seven days upon request.

Subdivision Four: Specifies that if an impact assessment reveals discri-
minatory or biased outcomes from an automated lending tool, the covered
entity must report it to the department within 30 days. Once reported,
the department shall order the entity to stop utilization of such tool.

Subdivision Five: Covered entities using automated lending tools must
notify applicants at least 24 hours in advance, explaining that such a
tool will be used, what criteria it assesses, the data it collects and
its sources, and the covered entity's data retention policy.  Applicants
must be given the option to opt out or consent. If a loan is denied, the
reason must be provided within 24 hours, and applicants have 30 days to
correct any incorrect personal data and appeal the decision.

Subdivision Six: The superintendent shall have the authority to investi-
gate covered entities for potential violations, including examining
individuals under oath.

Subdivision Seven: If a covered entity's automated lending tool is found
to produce biased or discriminatory outcomes, the superintendent may
require additional or more detailed annual reports, or direct submission
of these reports to the department, as outlined by regulations.

Subdivision Eight: Severability clause. Section two: Effective date.

 
JUSTIFICATION:

The use of artificial intelligence (AI) has become increasingly common
across many sectors. In recent years, AI has become common in the lend-
ing field, aiding banks in providing mortgages and other loans.  Unlike
the traditional application process, AI tools go beyond reviewing just a
person's credit score and their ability to pay, and the extent of the
information collected is not always clear to the applicant.

While such tools may provide a benefit to lenders in the processing of
loan applications, it is important that consumers are notified of the
use of such tools and have the opportunity to have their application
reviewed manually instead of an algorithmic program. Further, it is
important that borrowers understand the types of data being collected
and the retention of such information. This legislation Would require a
notice to consumers when automated decision tools are used in the lend-
ing process and gives them the ability to file an appeal if incorrect
information was collected. The bill would also require lending insti-
tutions to conduct an annual disparate impact analysis of any AI tools
being used and provides the New York State Attorney General's office the
authority to investigate any violations.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect in ninety days.

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

 S. 8115--B                          2
 
 DECISIONS  REGARDING  CREDITWORTHINESS,  LOAN  AMOUNTS,  INTEREST RATES,
 COLLATERAL REQUIREMENTS, REPAYMENT, OR ANY OTHER MATERIAL TERM, AND  ANY
 DETERMINATION  THAT  CONSIDERS  ANY FACTOR THAT RESULTS OR MAY RESULT IN
 "ADVERSE  ACTION"  AS  SUCH  TERM  IS DEFINED IN THE FEDERAL FAIR CREDIT
 REPORTING ACT 15 U.S.C.  1681A(K).
   (C) "COVERED ENTITY" MEANS ANY BANKING ORGANIZATION,  FOREIGN  BANKING
 CORPORATION  LICENSED BY THE SUPERINTENDENT TO TRANSACT BUSINESS IN THIS
 STATE PURSUANT TO  ARTICLE  FIVE  OF  THIS  CHAPTER,  INTERSTATE  BRANCH
 AUTHORIZED  BY  THE  SUPERINTENDENT  TO  TRANSACT BUSINESS IN THIS STATE
 PURSUANT TO ARTICLE FIVE-C OF THIS CHAPTER, AND LICENSED LENDERS  PURSU-
 ANT  TO  ARTICLE  NINE OF THIS CHAPTER. COVERED ENTITY SHALL NOT INCLUDE
 ANY NATIONAL BANK, FEDERAL SAVINGS BANK, FEDERAL SAVINGS AND LOAN  ASSO-
 CIATION,  FEDERAL CREDIT UNION, FEDERAL TRUST COMPANY OR FOREIGN BANKING
 CORPORATION ORGANIZED UNDER THE LAWS OF THE UNITED STATES.
   (D) "MATERIAL CHANGE" MEANS ANY MODIFICATION TO AN  AUTOMATED  LENDING
 DECISION-MAKING TOOL WHICH DIRECTLY IMPACTS THE TOOL'S OUTPUTS.
   2.  NO  LESS  THAN  ANNUALLY,  EACH COVERED ENTITY THAT USES AUTOMATED
 LENDING  DECISION-MAKING  TOOLS  SHALL  CONDUCT  AN  IMPACT   ASSESSMENT
 SUBSTANTIALLY  COMPLETED  AND BEARING THE SIGNATURE OF ONE OR MORE INDI-
 VIDUALS RESPONSIBLE FOR MEANINGFUL HUMAN REVIEW FOR THE LAWFUL  APPLICA-
 TION  AND USE OF SUCH AUTOMATED LENDING DECISION-MAKING TOOLS. AN IMPACT
 ASSESSMENT SHALL BE CONDUCTED PRIOR TO ANY MATERIAL CHANGE TO ANY  AUTO-
 MATED LENDING DECISION-MAKING TOOL THAT MAY CHANGE THE OUTCOME OR EFFECT
 OF SUCH TOOL.  AN IMPACT ASSESSMENT FINAL REPORT SUMMARIZING THE CONCLU-
 SIONS  OF  THE INITIAL IMPACT ASSESSMENT SHALL BE POSTED ON SUCH COVERED
 ENTITY'S WEBSITE PRIOR TO THE IMPLEMENTATION AND USE OF  SUCH  AUTOMATED
 LENDING DECISION-MAKING TOOL AND UPDATED ON THE ENTITY'S WEBSITE FOLLOW-
 ING  EACH  SUBSEQUENT  ASSESSMENT.  SUCH  IMPACT ASSESSMENT FINAL REPORT
 SHALL INCLUDE:
   (A) A DESCRIPTION OF THE OBJECTIVES OF  THE  AUTOMATED  LENDING  DECI-
 SION-MAKING TOOL;
   (B)  AN  EVALUATION  OF THE ABILITY OF THE AUTOMATED LENDING DECISION-
 MAKING TOOL TO ACHIEVE ITS STATED OBJECTIVES;
   (C) A DESCRIPTION AND EVALUATION OF THE OBJECTIVES AND DEVELOPMENT  OF
 THE AUTOMATED LENDING DECISION-MAKING TOOL INCLUDING:
   (I) A SUMMARY OF THE UNDERLYING ALGORITHMS, COMPUTATIONAL  MODES,  AND
 ARTIFICIAL  INTELLIGENCE TOOLS THAT ARE USED WITHIN  THE AUTOMATED LEND-
 ING DECISION-MAKING TOOL; AND
   (II) THE DESIGN AND TRAINING DATA USED TO DEVELOP THE AUTOMATED  LEND-
 ING DECISION-MAKING TOOL PROCESS;
   (D) TESTING FOR:
   (I)  ACCURACY, FAIRNESS, BIAS AND DISCRIMINATION, AND AN ASSESSMENT OF
 WHETHER THE USE OF THE AUTOMATED LENDING DECISION-MAKING  TOOL  PRODUCES
 DISCRIMINATORY  RESULTS  ON  THE  BASIS  OF  A  CONSUMER'S OR A CLASS OF
 CONSUMERS'  ACTUAL  OR  PERCEIVED  RACE,  COLOR,  ETHNICITY,   RELIGION,
 NATIONAL ORIGIN, SEX, GENDER, GENDER IDENTITY, SEXUAL ORIENTATION, FAMI-
 LIAL  STATUS,  BIOMETRIC  INFORMATION,  LAWFUL SOURCE OF INCOME, AGE, OR
 DISABILITY AND, OUTLINES  MITIGATIONS  FOR  ANY  IDENTIFIED  PERFORMANCE
 DIFFERENCES IN OUTCOMES ACROSS RELEVANT GROUPS IMPACTED BY SUCH USE;
   (II)  ANY  CYBERSECURITY  VULNERABILITIES  AND PRIVACY RISKS RESULTING
 FROM THE DEPLOYMENT AND USE OF  THE  AUTOMATED  LENDING  DECISION-MAKING
 TOOL,  AND  THE  DEVELOPMENT  OR EXISTENCE OF SAFEGUARDS TO MITIGATE THE
 RISKS;
   (III) ANY PUBLIC HEALTH OR SAFETY RISKS RESULTING FROM THE  DEPLOYMENT
 AND USE OF THE AUTOMATED LENDING DECISION-MAKING TOOL; AND
 S. 8115--B                          3
 
   (IV) ANY REASONABLY FORESEEABLE MISUSE OF THE AUTOMATED LENDING  DECI-
 SION-MAKING  TOOL  AND  THE DEVELOPMENT OR   EXISTENCE   OF   SAFEGUARDS
 AGAINST SUCH MISUSE;
   (E)  THE EXTENT TO WHICH THE DEPLOYMENT AND USE OF THE AUTOMATED LEND-
 ING DECISION-MAKING TOOL REQUIRES INPUT OF  SENSITIVE    AND    PERSONAL
 DATA,  HOW   THAT   DATA   IS USED AND STORED, AND ANY CONTROL USERS MAY
 HAVE OVER THEIR DATA; AND
   (F) THE NOTIFICATION MECHANISM OR PROCEDURE, IF ANY, BY WHICH INDIVID-
 UALS IMPACTED BY THE UTILIZATION OF THE AUTOMATED LENDING  DECISION-MAK-
 ING  TOOL MAY BE NOTIFIED OF THE USE OF SUCH AUTOMATED LENDING DECISION-
 MAKING TOOL AND OF THE INDIVIDUAL'S PERSONAL  DATA,   AND INFORMED    OF
 THEIR RIGHTS AND OPTIONS RELATING TO SUCH USE.
   3. IN ADDITION TO THE POWERS CONFERRED TO THE SUPERINTENDENT IN SUBDI-
 VISION  SIX  OF  THIS  SECTION,  A  COVERED ENTITY SHALL RETAIN THE FULL
 IMPACT ASSESSMENT AND SUMMARY FOR A PERIOD OF  SEVEN  YEARS  AND  SHALL,
 UPON  NOTICE  BY  THE  SUPERINTENDENT,  PROVIDE SUCH FULL ASSESSMENT AND
 SUMMARY TO THE DEPARTMENT WITHIN SEVEN DAYS.
   4. NOTWITHSTANDING THE PROVISIONS OF THIS ARTICLE OR ANY OTHER LAW, IF
 AN IMPACT ASSESSMENT FINDS THAT THE  AUTOMATED  LENDING  DECISION-MAKING
 TOOL  PRODUCES  DISCRIMINATORY  OR  BIASED OUTCOMES, SUCH COVERED ENTITY
 SHALL, WITHIN THIRTY DAYS OF SUCH FINDINGS, REPORT SUCH FINDINGS TO  THE
 DEPARTMENT.  UPON  SUCH  REPORT  BEING  RECEIVED  BY THE DEPARTMENT, THE
 DEPARTMENT SHALL DIRECT SUCH COVERED ENTITY TO  CEASE  ANY  UTILIZATION,
 APPLICATION, OR FUNCTION OF SUCH AUTOMATED LENDING DECISION-MAKING TOOL,
 AND  OF ANY INFORMATION PRODUCED USING SUCH TOOL.
   5. (A) ANY COVERED ENTITY THAT USES AN AUTOMATED LENDING DECISION-MAK-
 ING  TOOL  TO SCREEN APPLICANTS FOR A LOAN SHALL NOTIFY EACH SUCH APPLI-
 CANT OF THE FOLLOWING:
   (I) THAT AN AUTOMATED LENDING DECISION-MAKING TOOL  WILL  BE  USED  IN
 CONNECTION WITH THE ASSESSMENT OR EVALUATION OF SUCH APPLICANT;
   (II)  THE  CRITERIA  THAT  SUCH AUTOMATED LENDING DECISION-MAKING TOOL
 WILL USE IN THE ASSESSMENT OF SUCH APPLICANT;
   (III) INFORMATION ABOUT THE TYPE OF DATA COLLECTED FOR SUCH  AUTOMATED
 LENDING  DECISION-MAKING  TOOL, THE SOURCE OF SUCH DATA, AND THE COVERED
 ENTITY'S DATA RETENTION POLICY; AND
   (IV) IF AN APPLICATION FOR A LOAN IS DENIED THROUGH USE OF  THE  AUTO-
 MATED  LENDING  DECISION-MAKING  TOOL,  TO  THE  EXTENT PRACTICABLE, THE
 REASON FOR SUCH DENIAL.
   (B) THE NOTICE REQUIRED BY PARAGRAPH (A), WITH THE  EXCEPTION  OF  THE
 INFORMATION  REQUIRED  IN  SUBPARAGRAPH  (IV) OF SUCH PARAGRAPH, OF THIS
 SUBDIVISION SHALL BE MADE NO LESS THAN TWENTY-FOUR HOURS BEFORE THE  USE
 OF  SUCH  AUTOMATED LENDING DECISION-MAKING TOOL. THE NOTICE REQUIRED BY
 SUBPARAGRAPH (IV) OF SUCH PARAGRAPH (A) SHALL BE MADE WITHIN TWENTY-FOUR
 HOURS AFTER SUCH DENIAL.
   (C) IF AN APPLICATION FOR A LOAN IS DENIED BASED ON PERSONAL  INFORMA-
 TION  THAT  IS  INCORRECT,  THE  APPLICANT,  UPON  RECEIPT OF THE NOTICE
 REQUIRED BY SUBPARAGRAPH (IV) OF  PARAGRAPH  (A)  OF  THIS  SUBDIVISION,
 SHALL  HAVE  THIRTY  DAYS  TO  CORRECT  SUCH INFORMATION AND APPEAL SUCH
 DENIAL.
   6. THE SUPERINTENDENT SHALL HAVE THE POWER TO MAKE SUCH INVESTIGATIONS
 AS THE SUPERINTENDENT DEEMS NECESSARY TO DETERMINE WHETHER  ANY  COVERED
 ENTITY HAS VIOLATED ANY OF THE PROVISIONS OF THIS SECTION. TO THE EXTENT
 NECESSARY THEREFOR, THE SUPERINTENDENT MAY REQUIRE THE ATTENDANCE OF AND
 EXAMINE  ANY  PERSON  UNDER OATH, AND SHALL HAVE THE POWER TO COMPEL THE
 PRODUCTION OF ALL RELEVANT BOOKS, RECORDS, ACCOUNTS, AND DOCUMENTS.  THE
 SUPERINTENDENT  SHALL  HAVE  THE  POWER TO MAKE SUCH EXAMINATIONS OF THE
 S. 8115--B                          4
 
 BOOKS, RECORDS, ACCOUNTS AND DOCUMENTS  USED  IN  THE  BUSINESS  OF  ANY
 COVERED ENTITY AS THE SUPERINTENDENT DEEMS NECESSARY TO DETERMINE WHETH-
 ER  ANY  SUCH  COVERED ENTITY HAS VIOLATED ANY OF THE PROVISIONS OF THIS
 SECTION,  OR  TO SECURE INFORMATION LAWFULLY REQUIRED BY THE SUPERINTEN-
 DENT.
   7. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION TWO OF THIS  SECTION,
 THE  SUPERINTENDENT  MAY,  UPON  A  FINDING  THAT  A  COVERED ENTITY HAS
 DEPLOYED  AN  AUTOMATED  LENDING  DECISION-MAKING  TOOL  WHICH  PRODUCED
 DISCRIMINATORY OR BIASED OUTCOMES, REQUIRE, IN ACCORDANCE WITH THE RULES
 AND REGULATIONS PROMULGATED BY THE SUPERINTENDENT, (A) ADDITIONAL ANNUAL
 REPORTS,  (B) ANNUAL REPORTS WITH ADDITIONAL INFORMATION, (C) A COMBINA-
 TION OF PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION, AND/OR (D) THAT SUCH
 COVERED ENTITY PROVIDE ANY AND ALL ADDITIONAL REPORTS TO THE  DEPARTMENT
 DIRECTLY.
   8.  THE  PROVISIONS  OF  THIS  SECTION  SHALL BE SEVERABLE, AND IF ANY
 PHRASE, CLAUSE, SENTENCE, OR PROVISION IS DECLARED TO BE INVALID, OR  IS
 PREEMPTED BY FEDERAL LAW OR REGULATION, THE VALIDITY OF THE REMAINDER OF
 THIS  SECTION  SHALL  NOT  BE AFFECTED THEREBY. IF ANY PROVISION OF THIS
 SECTION, OR ITS APPLICATION TO ANY PERSON OR CIRCUMSTANCE, IS HELD TO BE
 INVALID OR PREEMPTED BY FEDERAL LAW, THE REMAINDER OF THIS  SECTION  AND
 ITS  APPLICATION TO OTHER PERSONS OR CIRCUMSTANCES SHALL NOT BE AFFECTED
 AND SHALL CONTINUE IN FULL  FORCE  AND  EFFECT  TO  THE  MAXIMUM  EXTENT
 PERMITTED BY LAW.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.

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Senate Bill S8115B

Sponsored By

Current Bill Status - In Senate Committee Internet And Technology Committee

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May 27, 2025 - Banks Committee Vote

Banks Committee Vote: May 27, 2025

Bill Amendments

2025-S8115 - Details

2025-S8115 - Summary

2025-S8115 - Sponsor Memo

2025-S8115 - Bill Text download pdf

2025-S8115A - Details

2025-S8115A - Summary

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2025-S8115A - Bill Text download pdf

2025-S8115B (ACTIVE) - Details

2025-S8115B (ACTIVE) - Summary

2025-S8115B (ACTIVE) - Sponsor Memo

2025-S8115B (ACTIVE) - Bill Text download pdf

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Sponsored By

James Sanders Jr.

Current Bill Status - In Senate Committee Internet And Technology Committee

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Votes

Bill Amendments

2025-S8115 - Details

2025-S8115 - Summary

2025-S8115 - Sponsor Memo

2025-S8115 - Bill Text download pdf

2025-S8115A - Details

2025-S8115A - Summary

2025-S8115A - Sponsor Memo

2025-S8115A - Bill Text download pdf

2025-S8115B (ACTIVE) - Details

2025-S8115B (ACTIVE) - Summary

2025-S8115B (ACTIVE) - Sponsor Memo

2025-S8115B (ACTIVE) - Bill Text download pdf

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