New York S 4355: Relates to the regulation and licensing of on-demand pay providers

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S04355 Summary:

BILL NOS04355 

&nbsp

SAME ASNo Same As

&nbsp

SPONSORBAILEY

&nbsp

COSPNSRCOMRIE

&nbsp

MLTSPNSR

&nbsp

Add Art 9-B §§374-aa - 374-ee, Bank L

&nbsp

Relates to the regulation and licensing of employer-integrated and non-verified on-demand pay providers.

Go to top S04355 Actions:

BILL NOS04355 

&nbsp

02/04/2025REFERRED TO BANKS

01/07/2026REFERRED TO BANKS

Go to topS04355 Committee&nbspVotes:

Go to topS04355 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS04355 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 4355

 2025-2026 Regular Sessions

 IN SENATE

 February 4, 2025
 ___________

 Introduced by Sens. BAILEY, COMRIE -- 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 on-demand pay providers

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The banking law is amended by adding a new article 9-B to
 2 read as follows:
 3 ARTICLE 9-B
 4 ON-DEMAND PAY PROVIDERS
 5 Section 374-aa. Definitions.
 6 374-bb. Employer-integrated on-demand pay providers.
 7 374-cc. Non-verified on-demand pay providers.
 8 374-dd. Certain on-demand pay services to be considered loans.
 9 374-ee. Penalties.
 10 § 374-aa. Definitions. For the purposes of this article, the following
 11 terms shall have the following meanings:
 12 1. "Earned but unpaid income" means earned income that has not yet
 13 been paid to a user by an employer.
 14 2. "Earned income" means moneys that have accrued to the benefit of a
 15 user for services rendered to an employer.
 16 3. "Employer" means any person, corporation, limited liability compa-
 17 ny, or association employing a user in any occupation, industry, trade,
 18 business or service, or any other person who is contractually obligated
 19 to pay a user any sum of money on an hourly, project-based, piecework,
 20 or other basis for labor or services provided by such user. "Employer"
 21 shall not include a customer of an employer or other third party whose
 22 obligation to make any payment to a user is based solely on such user's
 23 agency relationship with the employer.
 24 4. "Employer-integrated on-demand pay provider" means an on-demand pay
 25 provider that offers on-demand pay services through a contractual
 26 arrangement with (i) an employer, or (ii) a service provider to an

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01510-01-5

 S. 4355 2

 1 employer, in which provider verifies a user's earned income through data
 2 or information provided by or through such employer or service provider.
 3 5. "Non-verified on-demand pay provider" means an on-demand pay
 4 provider that is not an employer-integrated on-demand pay provider.
 5 6. "On-demand pay provider" or "provider" means any person that is
 6 engaged in the business of delivering on-demand pay services to a user
 7 in New York state.
 8 7. "On-demand pay services" means the delivery of funds to a user that
 9 represent earned but unpaid income.
 10 8. "User" means any natural person.
 11 § 374-bb. Employer-integrated on-demand pay providers. 1. No employ-
 12 er-integrated on-demand pay provider shall operate without first regis-
 13 tering with the superintendent. An employer-integrated on-demand pay
 14 provider shall be deemed registered if it provides, on a confidential
 15 basis, the following information to the superintendent:
 16 (a) the provider's name and address;
 17 (b) audited financial statements for the prior year;
 18 (c) a statement or summary of fees charged to users or obligors for
 19 on-demand pay services by the provider in normal course; and
 20 (d) copies of the provider's end user terms and conditions and/or
 21 terms of use, and privacy policies.
 22 2. Each employer-integrated on-demand pay provider shall:
 23 (a) deliver to the superintendent on a confidential basis no later
 24 than June thirtieth of each calendar year the following items for the
 25 prior calendar year:
 26 (i) the provider's audited financial statements, provided, that if
 27 audited financial statements are unavailable by the date suc