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A09057 Summary:

COSPNSRArdila, Tapia, O'Donnell, Davila, Gonzalez-Rojas, Levenberg, Burdick, Taylor, Cunningham, Reyes, Bores, Rosenthal L, Fall, Weprin, Cruz, Mitaynes, Forrest, Ramos, Raga, Mamdani
Add §13, Bank L
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.
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A09057 Text:

                STATE OF NEW YORK
                                                                    R. R. 75
                   IN ASSEMBLY
                                    February 5, 2024
        Introduced  by M. of A. LEE, ARDILA, TAPIA, O'DONNELL, DAVILA, GONZALEZ-
          THAL, FALL, WEPRIN, CRUZ, MITAYNES -- read once and  referred  to  the
          Committee  on  Banks  --  committee  discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee -- reported and
          referred to the Committee on Codes -- reported  and  referred  to  the
          Committee  on  Rules  --  Rules  Committee  discharged,  bill amended,
          ordered reprinted as amended and recommitted to the Committee on Rules
          -- ordered to a third reading, amended and ordered reprinted,  retain-
          ing its place on the order of third reading
        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 covered entities
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1. This act shall be known and may be cited as the "pro-bank-
     2  ing act".
     3    § 2. Legislative findings. The legislature hereby finds  and  declares
     4  that:
     5    (a) Local law no. 35 for the year 2014 amended subchapter 1 of chapter
     6  1  of  title  3  of  the  administrative code of the city of New York by
     7  adding a section  3-115,  creating  the  New  York  city  identity  card
     8  program.  One of the main objectives of the program was to expand access
     9  to bank-approved identification cards, thereby reducing  the  number  of
    10  unbanked residents across the city. In 2015, federal regulatory authori-
    11  ties  notified  the city agencies in charge of administering the program
    12  that banks could use the New York city  identity  card  to  satisfy  the
    13  minimum requirements of federal anti-money laundering laws. In 2016, the
    14  New  York  State  Department of Financial Services further "encourage[d]
    15  New York state-chartered and licensed financial institutions  to  accept
    16  the Municipal ID as a form of acceptable identification card."
    17    (b) Despite authorization by federal and state regulatory authorities,
    18  only  approximately  one-third  of  city  banks accept the New York city
    19  identity card, leaving many city residents on the margins of the  finan-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 9057--C                          2
     1  cial system. As of 2017, 11.2 percent of households in New York city had
     2  no bank account and ten neighborhoods accounted for nearly 35 percent of
     3  those  households. Residents of color, undocumented residents, and resi-
     4  dents  living below the poverty line are disproportionately impacted and
     5  are at greater risk of falling victim to predatory  financial  services,
     6  imperiling  their  financial futures and aggravating economic inequality
     7  across the state.
     8    (c) The purpose of this legislation is to ensure that our most vulner-
     9  able residents are  not  cut  off  from  traditional  banking  services.
    10  Mandating  acceptance  of the New York city identity card at state-char-
    11  tered financial institutions will allow all  residents  to  build  their
    12  financial  futures  and advance the state's goal of facilitating broader
    13  financial inclusion.
    14    § 3. The banking law is amended by adding a new section 13 to read  as
    15  follows:
    16    §  13.  Acceptance  of New York city identity card. 1. Definitions. As
    17  used in this section:
    18    (a) "New York city identity card" refers to the identity  card  issued
    19  by  the  city  of New York pursuant to subdivision c of section 3-115 of
    20  the administrative code of the city of New York.
    21    (b) "Covered entity" means all banking organizations, foreign  banking
    22  corporations  licensed  by  the  superintendent, and interstate branches
    23  established pursuant to article five-C of this chapter.
    24    2. Covered entities shall accept the New York city identity card as  a
    25  primary  source  of  identification for account-opening purposes. In the
    26  event a customer's New York city identity card does not contain a  resi-
    27  dential  or  business  street address, a covered entity shall not deny a
    28  customer account-opening services, provided the customer can  furnish  a
    29  residential  or  business street address of their next of kin or another
    30  contact  individual  consistent  with  federal  laws  and   regulations.
    31  Receipt  of a New York city identity card shall be deemed to satisfy the
    32  customer identification program requirements  of  all  covered  entities
    33  consistent  with  laws,  rules and regulations of the state of New York.
    34  Nothing in subdivision two of section twelve-a of this article shall  be
    35  deemed to annul this section.
    36    3.  The  superintendent  is  empowered  to  exempt  any covered entity
    37  subject to subdivision two of this section upon a demonstration that  it
    38  would  be  unable  to  comply with relevant federal laws or regulations,
    39  including without limitation, customer identification programs regarding
    40  anti-money laundering laws, or upon a demonstration of other reasons for
    41  inability to comply that the superintendent finds sufficient.
    42    § 4. Severability. If any clause, sentence, paragraph, section or part
    43  of this act shall be adjudged by any court of competent jurisdiction  to
    44  be  invalid  and  after  exhaustion  of all further judicial review, the
    45  judgment shall not affect, impair or invalidate the  remainder  thereof,
    46  but  shall  be  confined in its operation to the clause, sentence, para-
    47  graph, section or part of this act directly involved in the  controversy
    48  in which the judgment shall have been rendered.
    49    § 5. This act shall take effect on the one hundred eightieth day after
    50  it shall have become a law.  Effective immediately, the addition, amend-
    51  ment and/or repeal of any rule or regulation necessary for the implemen-
    52  tation  of  this act on its effective date are authorized to be made and
    53  completed on or before such effective date.
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