Key Legislation Hot List

Bill Number: A.5519 Hunter / S.5972 Sanders

Status: This legislation passed both houses and awaits delivery to the Governor

Applies to State and/or Federal Charter: State Only

Issues/Summary: 

• Requires the Department of Financial Services to establish regulations relating to the order in which checks, debit and credit card transactions are processed and the imposition of overdraft and insufficient funds charges.

• Effective immediately upon signature by Governor

Bill Number: A.2171 Jean-Pierre / S.5016 Sanders

Status: This legislation did not pass the Assembly or Senate in 2023

Applies to State and/or Federal Charter: State Only

Issues/Summary: 

• Restricts ODP fees to 3 per calendar year AND ODP fees cannot exceed $100 per calendar year; 
• Must establish an automatic bounce system for any amount exceeding the $100 ODP fee limit/calendar year; 
• Authorizes a financial institution to charge $1/month for any checking account for the maintenance of an automatic bounce system;
• Violation of this section occurs if a financial institution (who has an ODP program) refuses to extend funds under specific circumstances to cover an overdraft in any transaction account of a consumer at the institution & if it reserves the right to extend funds to pay any such overdraft on a discretionary basis,
• Any representation by such institution will extend credit to cover all overdrafts on such account. 

Bill Number: S.2769 Comrie / A.1478 Weprin

Status: This legislation did not pass the Senate or Assembly in 2023.

Applies to State and/or Federal Charter: Dinowitz, Gottfried, Epstein, Burdick, L Rosenthal, Seawright, Et al.

Issues/Summary: 

• Requires CUs which offer ODP to notify a customer when service is employed to prevent account penalties; needs to notify members of insufficient funds via email or other preferred notification and state ODP service has gone into effect (list fees + penalties associated).

Bill Number: A.3248 Hunter / No Same-As

Status: This legislation did not pass the Assembly in 2023 and a same-as bill was not introduced in the Senate. 

Applies to State and/or Federal Charter: State Only

Issues/Summary:

• Requires a written notification of overdraft fees charged to certain account holders.

Bill Number: S.1065 Mayer / A.6320 Zebrowski

Status: This legislation passed the Senate in 2023 but did not move in the Assembly.

Applies to State and/or Federal Charter: State Only

Issues/Summary:

• Establishes limitations on bank accounts after such accounts have been closed and prohibits fees from being assessed after the account is closed.

Bill Number: A.4590 Bichotte Hermelyn / S.5222 Parker

Status: This legislation did not pass the Assembly or Senate in 2023.

Applies to State and/or Federal Charter: State Only

Issues/Summary:

• Late payment fees shall not exceed five percent of the unpaid balance of any bill, including any interest thereon, or twenty dollars, whichever is less.

Bill Number: A.7388 Peoples-Stokes / S.1047 Cooney

Status: This legislation passed both houses and awaits delivery to the Governor.

Applies to State and/or Federal Charter: State Only

Issues/Summary:

• Allows the sharing of information between the Office of Cannabis Management and financial institutions.

Bill Number: A.7353 Hunter / S.6982 Sanders

Status: The bill passed the Assembly but did not pass the Senate in 2023. 

Applies to State and/or Federal Charter: State Only

Issues/Summary:

• Authorizes state-chartered banking institutions to exercise the rights of counterpart federally or out-of-state chartered banking institutions with DFS approval.

Bill Number: S.1453 Sanders / A.3246-A Hunter

Status: This legislation did not pass the Senate or Assembly in 2023.

Applies to State and/or Federal Charter: Both

Issues/Summary:

• Caps the amount of money that a municipality can deposit in any one credit union.
• Limits credit unions to only taking in deposits from localities where they have a branch or are headquartered.
• Requires credit unions accepting municipal deposits to document the community investments they are making in return for accepting municipal deposits.
• Instructs the Department of Financial services to study the impact that this measure would have on community banks.
• Sunsets in December 2029.

Bill Number: S.6355-A Addabbo / A.7421 Hunter

Status: This legislation did not pass the Senate or Assembly in 2023.

Applies to State and/or Federal Charter: Both

Issues/Summary:

• Establishes a credit union deposit program allowing the New York State Comptroller and the Commissioner of Taxation and Finance to deposit a portion of the funds under the state’s control, up to $250,000,000.00, into credit unions.

Bill Number: A.7423-A Rozic / S.365-B Thomas

Status: The Senate passed S.365-B without a same-as version and then delivered their bill to the Assembly. The Senate version of the bill can be taken up if the Assembly chooses to upon their return in 2023.

Applies to State and/or Federal Charter: Both

Issues/Summary:

• Creates an extensive state-level framework for the processing of consumer information.

• We lobbied for an exemption for both credit unions and the information we process because they are already subject to the federal Gramm-Leach-Bliley Act.

Bill Number: A.4124 Pheffer Amato / S.5014 Sanders

Status: This bill did not pass either house in 2023.

Applies to State and/or Federal Charter: Both

Issues/Summary:

• Requires credit unions to have a notary public on staff and available during business hours on the premises of each facility.
• Allows credit unions to charge a fee for service, not to exceed current law (2$).

Bill Number: A.7966 Weprin / S.5879 Skoufis

Status: This legislation did not pass either house in 2023.

Applies to State and/or Federal Charter: Both

Issues/Summary:

• Requires individuals who perform compliance functions, duties or tasks to obtain a compliance officer or compliance practitioner license

Bill Number: S.7623 Hoylman-Sigal / No Same As

Status: This legislation was introduced on 8/4/2023

Applies to State and/or Federal Charter: Both

Issues/Summary:

• To regulate the use of electronic monitoring and automated decision tools in employment
• Makes it unlawful for an employer to deploy an electronic monitoring or automated decision tool for employment decisions except when the employer meets certain criteria.
• We are seeking clarification on requirements for credit unions regarding security and employee monitoring.