Bill Text: NY A09057 | 2023-2024 | General Assembly | Introduced

New York Assembly Bill 9057

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Enacts the pro-banking act to mandate acceptance of the New York city identity card as a primary form of identification at all covered entities, including all banking organizations, foreign banking corporations, and interstate branches.

Spectrum: Partisan Bill (Democrat 21-0)

Status: (Engrossed) 2024-06-04 - REFERRED TO RULES [A09057 Detail]

Download: New_York-2023-A09057-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________

                                          9057

                   IN ASSEMBLY

                                    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:

     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,
    23  imperiling their financial futures and aggravating  economic  inequality
    24  across the state.
    25    (c) The purpose of this legislation is to ensure that our most vulner-
    26  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

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