NY State Senate Bill 2017-S6593A

Archive: Last Bill Status - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 29, 2017	approval memo.66 signed chap.505
Dec 19, 2017	delivered to governor
Jun 20, 2017	returned to senate passed assembly ordered to third reading rules cal.570 substituted for a8260a
Jun 15, 2017	referred to banks delivered to assembly passed senate
Jun 14, 2017	ordered to third reading cal.1677
Jun 07, 2017	print number 6593a
Jun 07, 2017	amend and recommit to rules
Jun 06, 2017	referred to rules

Votes

- Jun 15, 2017 - Floor Vote
  S6593A
  
  59
  
  Aye
  
  1
  
  Nay
  
  0
  
  Absent
  
  3
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 15, 2017
      
      aye (59)
      
      Addabbo Jr.
      
      Alcantara
      
      Amedore
      
      Avella
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      nay (1)
      
      Akshar
      
      excused (3)
      
      Bailey
      
      Diaz
      
      Marcellino
  Jun 14, 2017 - Rules Committee Vote
  S6593A
  
  23
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 14, 2017
      
      aye (23)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hannon
      
      Kennedy
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Parker
      
      Ranzenhofer
      
      Robach
      
      Savino
      
      Seward
      
      Squadron
      
      Valesky
      
      aye wr (2)
      
      Krueger
      
      Stewart-Cousins

Bill Amendments

Original

A (Active)

2017-S6593 - Details

See Assembly Version of this Bill:: A8260
Law Section:: Banks

2017-S6593 - Summary

Establishes the task force on online lending institutions to identify the main participants in the online lending industry, how they serve consumers and small businesses, the impact thereof, and to report its findings and recommendations.

2017-S6593 - Sponsor Memo

                                 BILL NUMBER:  S6593

 PURPOSE OR GENERAL IDEA OF BILL :.

The purpose of this bill is to establish a task force on online
lending for further understanding of the industry.

 SUMMARY OF PROVISIONS :

*This bill would establish a task force on online lending that would
consist of seven members including;


*three members appointed by the governor;
*two members appointed by the temporary President of the Senate;
*two members appointed by the Speaker of the Assembly.


This bill outlines that the purpose of this task force is to identify
the main participants in the online lending industry, how they serve
consumers and small businesses in this state, and their current and
anticipated impact on consumers and small business.

On or before April 15, 2018, the task force shall submit to the
Governor, the temporary President of the Senate, and the Speaker of
the House, a report containing analysis and assessments pertaining to

the online lending industry outlined in section two of this bill.

 JUSTIFICATION :

Online lending is a practice which is rapidly expanding in usage.
Online lenders issued over $2o billion in loans in 2015, and that
number is expected to grow over the next decade. Although online loans
can provide another avenue for entrepreneurs to acquire capital and
grow their small businesses, there is also significant potential for
unscrupulous online lenders to exploit consumers through predatory
practices such as unusually high interest rates, lack of disclosure of
hidden fees, and unclear loan terms.

This task force will seek to explore the current state of online
lending, the impact of online lending on consumers and small
businesses in New York State, predatory online lending practices which
need to be mitigated, and potential regulatory or legislative action
which may be needed to address predatory online lending practices.

 PRIOR LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None noted.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S6593 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6593
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 6, 2017
                                ___________
 
 Introduced  by Sen. HAMILTON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to establish the task force on online lending  institutions,  and
   providing  for  its powers and duties; and providing for the repeal of
   such provisions upon expiration thereof

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Legislative findings and intent. The legislature finds and
 declares that nationwide financial and  technological  firms  have  used
 electronic  platforms  to  develop  a completely new sector of business,
 known as online lending. The New York state economy, which is driven  by
 a  virtual  presence  on  the  internet, just like other businesses, has
 needs for capital to grow and prosper.  The  legislature  further  finds
 that  in  recent  years, financial services have begun to use electronic
 platforms to reduce costs and expand availability and  have  specialized
 in  providing small personal and commercial loans to residents and busi-
 nesses in this state.
   The legislature further finds that although online loans  can  provide
 another  avenue for individuals and entrepreneurs to acquire capital and
 grow their small business, there is potential  for  unscrupulous  online
 lenders  to  exploit  consumers  through  predatory practices. While the
 state has an interest in fostering its economy and  its  businesses,  it
 likewise  has an interest in protecting its consumers and the well-being
 of its residents.
   § 2. Task force on online lending institutions.  1.  There  is  hereby
 established  a  task  force  on online lending institutions (hereinafter
 referred to in this section as the "task force") which shall consist  of
 seven members as follows:
   (a) three members appointed by the governor;
   (b)  two  members  appointed by the temporary president of the senate;
 and
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13051-01-7

 S. 6593                             2
 
   (c) two members appointed by the speaker of the assembly.
   2.  The appointed members should include individuals representative of
 the online lending community, the small business community,  the  finan-
 cial  services industry, and the consumer protection community. Appoint-
 ments shall take into consideration the expertise of the other  appoint-
 ees, so that the task force reflects a diversity of experience.
   3.  The  members  of  the task force shall receive no compensation for
 their services, but shall be allowed their actual and necessary expenses
 incurred in the performance of their duties pursuant to this section.
   4. Any vacancies in the membership of the task force shall  be  filled
 in the manner provided for in the initial appointment.
   5.  The task force may consult with any organization, other government
 entity or agency, or person, in the development of its  report  required
 by subdivision six of this section.
   6.  On  or  before  April 15, 2018, the task force shall submit to the
 governor, the temporary president of the senate and the speaker  of  the
 assembly a report containing the following:
   (a)  an  analysis  of  data  received  by  the department of financial
 services on the prevalence of these institutions in the  state,  specif-
 ically, how many online lenders are lending to consumers and small busi-
 nesses in this state;
   (b)  an analysis of data received by the attorney general and division
 of consumer affairs regarding the  number  of  complaints,  actions  and
 investigations related to online lending institutions;
   (c)  an examination of the online lending industry and the key partic-
 ipants therein, and an investigation and understanding  of  the  differ-
 ences  in  small  business  and consumer borrowers, lenders and markets,
 such as the history, business models and  practices  of  online  lending
 institutions  including  identification  of  interest  rates  charged by
 online lenders;
   (d) an examination of how  consumers  are  utilizing  online  consumer
 credit  to  manage  existing debt, potentially reduce borrowing costs or
 access needed funds;
   (e) an examination of the existing small business credit gap and small
 business' use of credit and credit needs;
   (f) identification of alternatives for consumers and small  businesses
 who are unable to access traditional financing and whether new technolo-
 gies can enhance access to credit;
   (g)  an examination of whether existing federal and state laws already
 provide appropriate police powers and regulation of small  business  and
 consumer lending by online lending institutions;
   (h) an evaluation of the impact of any contemplated or proposed law or
 regulation  on  the  small business credit gap, including a quantitative
 analysis of the amount of increased or  decreased  credit  available  to
 small  businesses  as  a result of such law or regulation, including the
 extent to which access to credit would be  affected  under  the  state's
 current usury laws;
   (i)  an  analysis of the potential interaction of federal law with any
 contemplated or proposed state regulation;
   (j) an exploration of options for multistate collaboration to  harmon-
 ize the laws and regulations of various states related to small business
 and consumer lending across state borders;
   (k)  an  assessment  of best practices for small business and consumer
 loan disclosures, including current online lending industry  efforts  to
 advanced standardized and clear information for borrowers;

 S. 6593                             3
 
   (l)  an  assessment of whether consumer loans and small business loans
 are treated differently by online lending institutions and if any  level
 of oversight should take such differences into consideration;
   (m)  an  identification  of what consumer protections exist to protect
 consumers in this state  from  predatory  practices  of  online  lending
 institutions; and
   (n) a determination of what new measures, if any, are needed to ensure
 consumers  are  protected  from  deceptive  or predatory lending without
 unduly restricting access to credit.
   § 3. This act shall take effect immediately, and shall expire  and  be
 deemed repealed April 15, 2018.

2017-S6593A (ACTIVE) - Details

See Assembly Version of this Bill:: A8260
Law Section:: Banks

2017-S6593A (ACTIVE) - Summary

2017-S6593A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6593A

 TITLE OF BILL :

An act to establish the task force on online lending institutions, and
providing for its powers and duties; and providing for the repeal of
such provisions upon expiration thereof

 PURPOSE OR GENERAL IDEA OF BILL :

The purpose of this bill is to establish a task force on online
lending for further understanding of the industry.

 SUMMARY OF PROVISIONS :

o This bill would establish a task force on online lending that would
consist of seven members including;

*three members appointed by the governor;

*two members appointed by the temporary President of the Senate;

*two members appointed by the Speaker of the Assembly.

This bill outlines that the purpose of this task force is to identify
the main participants in the online lending industry, how they serve

consumers and small businesses in this state, and their current and
anticipated impact on consumers and small business.

On or before April 15, 2018, the task force shall submit to the
Governor, the temporary President of the Senate, and the Speaker of
the House, a report containing analysis and assessments pertaining to
the online lending industry outlined in section two of this bill.

 JUSTIFICATION :

Online lending is a practice which is rapidly expanding in usage.
Online lenders issued over $20 billion in loans in 2015, and that
number is expected to grow over the next decade. Although online loans
can provide another avenue for entrepreneurs to acquire capital and
grow their small businesses, there is also significant potential for
unscrupulous online lenders to exploit consumers through predatory
practices such as unusually high interest rates, lack of disclosure of
hidden fees, and unclear loan terms.

This task force will seek to explore the current state of online
lending, the impact of online lending on consumers and small
businesses in New York State, predatory online lending practices which
need to be mitigated, and potential regulatory or legislative action
which may be needed to address predatory online lending practices.

 PRIOR LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None noted.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S6593A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6593--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 6, 2017
                                ___________
 
 Introduced  by Sen. HAMILTON -- read twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Rules  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to establish the task force on online lending institutions, and
   providing for its powers and duties; and providing for the  repeal  of
   such provisions upon expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings and intent. The legislature finds  and
 declares  that  nationwide  financial  and technological firms have used
 electronic platforms to develop a completely  new  sector  of  business,
 known  as online lending. The New York state economy, which is driven by
 a virtual presence on the internet,  just  like  other  businesses,  has
 needs  for  capital  to  grow and prosper. The legislature further finds
 that in recent years, financial services have begun  to  use  electronic
 platforms  to  reduce costs and expand availability and have specialized
 in providing small personal and commercial loans to residents and  busi-
 nesses in this state.
   The  legislature  further finds that although online loans can provide
 another avenue for individuals and entrepreneurs to acquire capital  and
 grow  their  small  business, there is potential for unscrupulous online
 lenders to exploit consumers  through  predatory  practices.  While  the
 state  has  an  interest in fostering its economy and its businesses, it
 likewise has an interest in protecting its consumers and the  well-being
 of its residents.
   §  2.  Task  force  on online lending institutions. 1. There is hereby
 established a task force on  online  lending  institutions  (hereinafter
 referred  to in this section as the "task force") which shall consist of
 seven members as follows:
   (a) three members appointed by the governor;

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

                                                            LBD13051-02-7

 S. 6593--A                          2
 
   (b) two members appointed by the temporary president  of  the  senate;
 and
   (c) two members appointed by the speaker of the assembly.
   2.  The appointed members should include individuals representative of
 the online lending community, the small business community,  the  finan-
 cial  services industry, and the consumer protection community. Appoint-
 ments shall take into consideration the expertise of the other  appoint-
 ees, so that the task force reflects a diversity of experience.
   3.  The  members  of  the task force shall receive no compensation for
 their services, but shall be allowed their actual and necessary expenses
 incurred in the performance of their duties pursuant to this section.
   4. Any vacancies in the membership of the task force shall  be  filled
 in the manner provided for in the initial appointment.
   5.  The task force may consult with any organization, other government
 entity or agency, or person, in the development of its  report  required
 by subdivision six of this section.
   6.  On  or  before  April 15, 2018, the task force shall submit to the
 governor, the temporary president of the senate and the speaker  of  the
 assembly a report containing the following:
   (a)  an  analysis  of  data  received  by  the department of financial
 services on the prevalence of these institutions in the  state,  specif-
 ically, how many online lenders are lending to consumers and small busi-
 nesses in this state;
   (b)  an analysis of data received by the attorney general and division
 of consumer affairs regarding the  number  of  complaints,  actions  and
 investigations related to online lending institutions;
   (c)  an examination of the online lending industry and the key partic-
 ipants therein, and an investigation and understanding  of  the  differ-
 ences  in  small  business  and consumer borrowers, lenders and markets,
 such as the history, business models and  practices  of  online  lending
 institutions  including  identification  of  interest  rates  charged by
 online lenders;
   (d) an examination of how  consumers  are  utilizing  online  consumer
 credit  to  manage  existing debt, potentially reduce borrowing costs or
 access needed funds;
   (e) an examination of the existing small business credit gap and small
 business' use of credit and credit needs;
   (f) identification of alternatives for consumers and small  businesses
 who are unable to access traditional financing and whether new technolo-
 gies can enhance access to credit;
   (g)  an examination of whether existing federal and state laws already
 provide appropriate police powers and regulation of small  business  and
 consumer lending by online lending institutions;
   (h) an evaluation of the impact of any contemplated or proposed law or
 regulation  on  the  small business credit gap, including a quantitative
 analysis of the amount of increased or  decreased  credit  available  to
 small  businesses  as  a result of such law or regulation, including the
 extent to which access to credit would be  affected  under  the  state's
 current usury laws;
   (i)  an  analysis of the potential interaction of federal law with any
 contemplated or proposed state regulation;
   (j) an exploration of options for multistate collaboration to  harmon-
 ize the laws and regulations of various states related to small business
 and consumer lending across state borders;

 S. 6593--A                          3
 
   (k)  an  assessment  of best practices for small business and consumer
 loan disclosures, including current online lending industry  efforts  to
 advanced standardized and clear information for borrowers;
   (l)  an  assessment of whether consumer loans and small business loans
 are treated differently by online lending institutions and if any  level
 of oversight should take such differences into consideration;
   (m)  an  identification  of what consumer protections exist to protect
 consumers in this state  from  predatory  practices  of  online  lending
 institutions; and
   (n) a determination of what new measures, if any, are needed to ensure
 consumers  are  protected  from  deceptive  or predatory lending without
 unduly restricting access to credit.
   All information and data required to  be  reported  pursuant  to  this
 subdivision  shall be provided in the aggregate statewide, and shall not
 provide any information or data  relating  to  a  specific  borrower  or
 borrowers, or lender or lenders.
   §  3.  This act shall take effect immediately, and shall expire and be
 deemed repealed April 15, 2018.

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Senate Bill S6593A

Sponsored By

Archive: Last Bill Status - Signed by Governor

Jun 15, 2017 - Floor Vote

Floor Vote: Jun 15, 2017

Jun 14, 2017 - Rules Committee Vote

Rules Committee Vote: Jun 14, 2017

Bill Amendments

2017-S6593 - Details

2017-S6593 - Summary

2017-S6593 - Sponsor Memo

2017-S6593 - Bill Text download pdf

2017-S6593A (ACTIVE) - Details

2017-S6593A (ACTIVE) - Summary

2017-S6593A (ACTIVE) - Sponsor Memo

2017-S6593A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6593A

Share this bill

Sponsored By

Jesse Hamilton

Archive: Last Bill Status - Signed by Governor

Bill Amendments

2017-S6593 - Details

2017-S6593 - Summary

2017-S6593 - Sponsor Memo

2017-S6593 - Bill Text download pdf

2017-S6593A (ACTIVE) - Details

2017-S6593A (ACTIVE) - Summary

2017-S6593A (ACTIVE) - Sponsor Memo

2017-S6593A (ACTIVE) - Bill Text download pdf

Comments