What's happening
This bill requires all state-chartered financial institutions to accept the New York City identity card as primary identification for opening bank accounts.
Why it matters
Expands banking access for marginalized groups. By mandating acceptance of the NYC identity card, the bill directly addresses barriers faced by unbanked populations, including residents of color, undocumented immigrants, and those living in poverty, who are disproportionately excluded from traditional banking services.
Aims to reduce reliance on predatory financial services. Improved access to legitimate banking reduces the likelihood that vulnerable residents will turn to high-cost, often exploitative alternatives like check cashers or payday lenders, supporting greater economic stability and mobility.
Standardizes identification requirements for state banks. The bill removes ambiguity for banks about whether they may accept the NYC ID card, creating a uniform rule across all state-chartered institutions, which can lead to more consistent practices and less discrimination or arbitrary denial.
Provides regulatory flexibility while prioritizing inclusion. While mandating acceptance, the bill allows exemptions if a bank can demonstrate legitimate federal compliance issues or other valid reasons, ensuring the policy does not force institutions to violate federal law but still maximizes inclusion where possible.
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Who cares
Headline styles
Require Banks Accept NYC ID
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to banks
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Require Banks Accept NYC ID
In Assembly Committee · Banks · Sponsor Grace Lee
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
163
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sens. RAMOS, COMRIE, JACKSON -- 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 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 Assembly, do enact as follows:
Section 1. This act shall be known and may be cited as the "pro-banking act".
§ 2. Legislative findings. The legislature hereby finds and declares that:
(a) Local law no. 35 for the year 2014 amended subchapter 1 of chapter 1 of title 3 of the administrative code of the city of New York by adding a section 3-115, creating the New York city identity card program. One of the main objectives of the program was to expand access to bank-approved identification cards, thereby reducing the number of unbanked residents across the city. In 2015, federal regulatory authorities notified the city agencies in charge of administering the program that banks could use the New York city identity card to satisfy the minimum requirements of federal anti-money laundering laws. In 2016, the New York State Department of Financial Services further "encourage[d] New York state-chartered and licensed financial institutions to accept the Municipal ID as a form of acceptable identification card."
(b) Despite authorization by federal and state regulatory authorities, only approximately one-third of city banks accept the New York city identity card, leaving many city residents on the margins of the financial system. As of 2017, 11.2 percent of households in New York city had no bank account and ten neighborhoods accounted for nearly 35 percent of those households. Residents of color, undocumented residents, and residents living below the poverty line are disproportionately impacted and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00747-01-5
are at greater risk of falling victim to predatory financial services, imperiling their financial futures and aggravating economic inequality across the state.
(c) The purpose of this legislation is to ensure that our most vulnerable residents are not cut off from traditional banking services. Mandating acceptance of the New York city identity card at state-chartered financial institutions will allow all residents to build their financial futures and advance the state's goal of facilitating broader financial inclusion.
§ 3. The banking law is amended by adding a new section 13 to read as follows:
§ 13. Acceptance of New York city identity card. 1. Definitions. As used in this section:
(a) "New York city identity card" refers to the identity card issued by the city of New York pursuant to subdivision c of section 3-115 of the administrative code of the city of New York.
(b) "Covered entity" means all banking organizations, foreign banking corporations licensed by the superintendent, and interstate branches established pursuant to article five-C of this chapter.
2. Covered entities shall accept the New York city identity card as a primary source of identification for account-opening purposes. In the event a customer's New York city identity card does not contain a residential or business street address, a covered entity shall not deny a customer account-opening services, provided the customer can furnish a residential or business street address of their next of kin or another contact individual consistent with federal laws and regulations. Receipt of a New York city identity card shall be deemed to satisfy the customer identification program requirements of all covered entities consistent with laws, rules and regulations of the state of New York. Nothing in subdivision two of section twelve-a of this article shall be deemed to annul this section.
3. The superintendent is empowered to exempt any covered entity subject to subdivision two of this section upon a demonstration that it would be unable to comply with relevant federal laws or regulations, including without limitation, customer identification programs regarding anti-money laundering laws, or upon a demonstration of other reasons for inability to comply that the superintendent finds sufficient.
§ 4. Severability. If any clause, sentence, paragraph, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid and after exhaustion of all further judicial review, the judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, section or part of this act directly involved in the controversy in which the judgment shall have been rendered.
§ 5. This act shall take effect on the one hundred eightieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
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
Purpose
This bill adds a new section 13 to the banking law to mandate acceptance of the New York city identity card as a primary form of identification at state-chartered banks, savings banks, savings and loan associations, and credit unions.
Summary of provisions
Section 1. This act shall be known and may be cited as the "pro-banking act".
Section 2. Sets forth legislative findings.
Section 3. Sets forth definitions. Amends the banking law by adding a new section 13 that mandates acceptance of the New York city identity card as a primary source of identification at covered entities and clar- ifies that receipt of a New York City identity card shall be deemed to satisfy their minimum customer identification program requirements.
Section 4. Severability
Section 5. Sets forth the effective date.
Justification
Local Law No. 35 for the year 2014 amended subchapter 1 of chapter 1 of title 3 of the Administrative Code of the City of New York by adding a section 3-115, creating the New York city identity card program. One of the main objectives of the program was to expand access to bank-approved identification cards, thereby reducing the number of unbanked residents across the city. In 2015, federal regulatory authorities notified the city agencies in charge of administering the program that banks could use the New York city identity card to satisfy the minimum requirements of federal anti-money laundering laws. In 2016, the New York State Department of Financial Services further "encouraged New York state- chartered and licensed financial institutions to accept the Municipal ID as a form of acceptable identification card."
Despite authorization by federal and state regulatory authorities, only approximately one-third of city banks accept the New York city identity card, leaving many city residents on the margins of the financial system. As of 2017, 11.2 percent of households in New York City had no bank account and ten neighborhoods accounted for nearly 35 percent of those households. Residents of color, undocumented residents, and resi- dents living below the poverty line are disproportionately impacted and are at greater risk of falling victim to predatory financial services, imperiling their financial futures and aggravating economic inequality across the state.
The purpose of this legislation is to ensure that our most vulnerable residents are not cut off from traditional banking services. Mandating acceptance of the New York city identity card at state-chartered finan- cial institutions will allow all residents to build their financial futures and advance the state's goal of facilitating broader financial inclusion.
Legislative history
2023-24: S7826B (Ramos) Referred to Rules / A9057C (Lee) Passed Assembly
Fiscal impact
TBD
Effective date
This act shall take effect on the one hundred eightieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.