Friday's News
February 28, 2020
The State Legislature was back at work this week, with many banking-related bills seeing action. Washington appeared focused on the intensifying Presidential primary contests, until the possible spread of the Coronavirus in the U.S. and its market impact took the media spotlight.
State Legislative Developments
- State Budget developments continue in Albany, as the final State Budget is due April 1. The Senate and Assembly each released their Economic and Revenue Reports this week. One house bills are expected to be introduced in mid-March.
- Among the bills introduced this week:
- S.5565A (Sanders) would establish the New York Public Banking Act, which would authorize the creation of public banks at the local level and would permit public ownership of stock in such public banks. It appears the objective of this proposal was to follow the model recently created in California. It has so far not been introduced in the Assembly. NYBA strongly opposes this bill.
- Among the bills on committee agendas next week:
- Assembly Banks Committee:
- A.7580A (Mosley)/S.5433A (Benjamin), which would prohibit state-chartered banks, including a state branch or agency of a foreign banking corporation, from investing in and providing financing for private prisons. The bill has passed the Senate. NYBA opposes this bill.
- A.9677 (Abinanti)/S.982 (Breslin), would require that every banking institution maintaining checking accounts for customers shall either pay checks in the order received or from smallest amount to largest. NYBA opposes this bill.
- On the Senate Consumer Protection Committee, A.2611E (Dinowitz)/S.2884E (Sanders) would prohibit the disclosure or use of consumer credit history in hiring, employment and licensing determinations, with an exception for employers who must utilize credit history pursuant to NYS or federal law. This bill is currently on the floor in the Assembly. NYBA is monitoring this bill.
- On the Senate Budget & Revenue Committee, A.8038A (Zebrowski)/S.5881A (Sanders) would permit consent for service in the form of magnetic tape or through electronic means for certain collection procedures, including tax levies. This bill is currently in Assembly Ways & Means Committee. NYBA supports the bill.
State Regulatory Developments
- The Department of Financial Services (DFS) released a notice of proposed rulemaking to add Part 3 to 23 NYCRR, updating regulations regarding public access to DFS records in accordance with Freedom of Information Law (FOIL) requests. Public comments on the proposal, available here, will be accepted through April 27, 2020.
Local Developments
- The New York City Council introduced Int. 1894, a bill to regulate an employers’ use of algorithms and artificial intelligence (AI). The bill would prohibit the sale of automated software used for hiring or other employment decisions, such as compensation, unless the tool has been audited for bias. The bill also requires employers to inform job applicants within 30 days if they are using algorithms or AI in assessing the applicant. NYBA is reviewing the bill before taking a position.
Federal Legislative Developments
- The House Financial Services Committee approved several bills today that would significantly increase resources for housing, promote fair housing goals, and track HUD’s Community Development Block Grants. In addition, the Committee advanced two bills that would require publicly traded companies to disclose details of their spending on political activities.
Federal Regulatory Developments
- The CFPB published additional provisions to its third-party debt collection proposal, specifically related to time-barred debt. The proposal would require debt collectors to make certain disclosures if they know, or should know, that the debt has run past its statute of limitations. For example, the collector would have to inform the borrower that making a payment on a debt can restart the statute of limitations and enable a collector to sue.
- The Defense Department withdrew a provision of an interpretive rule related to vehicle loans under the Military Lending Act that finance GAP, or Guaranteed Auto Protection. The withdrawal of the provision resolves an inconsistency which created significant liability for lenders.
- The FHFA has issued a request for comments on eligibility membership requirements in the Federal Home Loan Bank System.
Resources
- The CFPB has issued an updated Frequently Asked Question (FAQ) resource on the TILA-RESPA Integrated Disclosure Rule (TRID) to address the issue of lender credits.
American Elder Abuse Conference – May 4-6, Slidell, LA
The American Elder Abuse Conference (AEAC) is holding a comprehensive conference on this critical issue. The Conference, which offers continuing education credits for licensed professionals, is seeking not only attendees, but conference support that may be eligible for CRA credits. For more information, click here.
Questions?
Contact Mike Smith at (212) 297-1699 or msmith@nyba.com, or Clare Cusack at (212) 297-1664 or ccusack@nyba.com.
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