Bill Text: NY S07826 | 2023-2024 | General Assembly | Introduced

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Bill Title: Mandates 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - REFERRED TO BANKS [S07826 Detail]

Download: New_York-2023-S07826-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7826

                               2023-2024 Regular Sessions

                    IN SENATE

                                    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:

     1    Section  1.  Legislative  findings.  The  legislature hereby finds and
     2  declares that:
     3    (a) Local law no. 35 for the year 2014 amended subchapter 1 of chapter
     4  1 of title 3 of the administrative code of  the  city  of  New  York  by
     5  adding  a  section  3-115,  creating  the  New  York  city identity card
     6  program. One of the main objectives of the program was to expand  access
     7  to  bank-approved  identification  cards, thereby reducing the number of
     8  unbanked residents across the city. In 2015, federal regulatory authori-
     9  ties notified the city agencies in charge of administering  the  program
    10  that  banks  could  use  the  New York city identity card to satisfy the
    11  minimum requirements of federal anti-money laundering laws. In 2016, the
    12  New York State Department of Financial  Services  further  "encourage[d]
    13  New  York  state-chartered and licensed financial institutions to accept
    14  the Municipal ID as a form of acceptable identification card."
    15    (b) Despite authorization by federal and state regulatory authorities,
    16  only approximately one-third of city banks  accept  the  New  York  city
    17  identity  card, leaving many city residents on the margins of the finan-
    18  cial system. As of 2017, 11.2 percent of households in New York city had
    19  no bank account and ten neighborhoods accounted for nearly 35 percent of
    20  those households. Residents of color, undocumented residents, and  resi-
    21  dents  living below the poverty line are disproportionately impacted and
    22  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

     1  imperiling  their  financial futures and aggravating economic inequality
     2  across the state.
     3    (c) The purpose of this legislation is to ensure that our most vulner-
     4  able  residents  are  not  cut  off  from  traditional banking services.
     5  Mandating acceptance of the New York city identity card  at  state-char-
     6  tered  financial  institutions  will  allow all residents to build their
     7  financial futures and advance the state's goal of  facilitating  broader
     8  financial inclusion.
     9    §  2. The banking law is amended by adding a new section 13 to read as
    10  follows:
    11    § 13. Acceptance of New York city identity card.  1.  Definitions.  As
    12  used in this section:
    13    (a)  "Charter"  shall  mean the organization certificate or comparable
    14  document of a state banking institution, or  the  license  for  a  state
    15  branch  or  agency of a foreign banking corporation, or a similar organ-
    16  izational document for a federal banking institution or a federal branch
    17  or agency, and "chartered" shall mean the formal act  of  the  state  or
    18  appropriate  federal  regulatory  agency in approving and conveying such
    19  charter of a banking institution.
    20    (b) "New York city identity card" refers to the identity  card  issued
    21  by  the  city  of New York pursuant to subdivision c of section 3-115 of
    22  the administrative code of the city of New York.
    23    2. State-chartered banks, savings  banks,  savings  and  loan  associ-
    24  ations,  and  credit unions shall accept the New York city identity card
    25  as a primary source of identification for account-opening  purposes.  In
    26  the  event  a  customer's New York city identity card does not contain a
    27  residential or business street address, a state-chartered bank,  savings
    28  bank,  savings  and  loan  association, or credit union shall not deny a
    29  customer account-opening services, provided the customer can  furnish  a
    30  residential  or  business street address of their next of kin or another
    31  contact  individual  pursuant  to  31  CFR  §  1020.220(a)(2)(i)(3)(ii).
    32  Receipt  of a New York city identity card shall be deemed to satisfy the
    33  customer identification program requirements of  state-chartered  banks,
    34  savings banks, savings and loan associations, and credit unions pursuant
    35  to  section  116.2  of  title  three of the rules and regulations of the
    36  state of New York. Nothing in subdivision two  of  section  twelve-a  of
    37  this article shall be deemed to annul this section.
    38    § 3. This act shall take effect immediately.