Allows the department of financial services to impose penalties on unlawfully unlicensed entities

Latest action Jan 7, 2026

Allows the department of financial services to have additional oversight of banks and insurance companies that are not currently licensed in this state; provides penalties for violations.

Not chosen yet

Where it stands

Passed one of the two chambers; it still needs the other.

Introduced
In committee
Up for a vote
Passed one chamber
Passed
Enacted

New York State Senate

Same as A1222, the matching bill in the Assembly.

Amends the Financial Services Law.

Committee

Banks · New York State Assembly

Also referred to Banks · New York State Senate.

Purpose, from the sponsor's memo

This bill will resolve faults in penalty provisions of the Banking Law, Insurance Law, and Financial Services Law that advantage persons who disregard licensing, registration, and similar authorization require- ments. The bill does this imposing a penalty for "prohibited unlicensed acts," which are defined as (1) "engaging in an activity in this state for which (authorization) by the superintendent is required by" the Banking, Insurance, or Financial Services laws or the regulations promulgated thereunder, without being so authorized, and (2) "any act or omission by a person who is required by (the Banking, Insurance, or Financial Services laws or the regulations promulgated thereunder, to be" authorized by the Superintendent to do such business and is not so authorized, "if such act or omission would constitute a violation of THE BANKING, INSURANCE, OR FINANCIAL SERVICES LAWS) OR THE REGULATIONS PROMULGATED THEREUNDER, IF SUCH PERSON WERE SO (AUTHORIZED)."

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Recorded votes

Vote: Floor vote
NY SenateMay 22, 2025Result: passed
(44) (13) (0) (5)
Vote: Committee vote · Banks
Senate BanksFeb 25, 2025Result: passed
(6) (1) (0) (0)

Cosponsors

Chris Burdick, Clyde Vanel and 1 more on Agora

Democratic3

See the full list on nysenate.gov

The sponsor's argument

Why Liz Krueger says this is needed

TO PROTECT OF USERS OF FINANCIAL PRODUCTS AND SERVICES FROM IMPRUDENT CONDUCT AND HARMFUL BUSINESS PRACTICES IN NEW YORK'S FINANCIAL SERVICES MARKETPLACE, ALL PERSONS OFFERING FINANCIAL PRODUCTS AND SERVICES IN NEW YORK STATE SHOULD BE SUFFICIENTLY DETERRED FROM DISREGARDING THE LAWS AND REGULATIONS GOVERNING THE OFFERING OF FINANCIAL PRODUCTS OR SERVICES, REGARDLESS OF WHETHER THEY ARE PROPERLY LICENSED, REGISTERED, OR OTHERWISE AUTHORIZED TO CONDUCT SUCH BUSINESS. FURTHERMORE, PERSONS PROVIDING FINANCIAL PRODUCTS AND SERVICES SHOULD NOT BENEFIT FROM THEIR FAILURE TO BE SO AUTHORIZED. CURRENTLY, AS TO ENGAGEMENT IN MANY ACTIV- ITIES FOR WHICH AUTHORIZATION FROM THE SUPERINTENDENT OF FINANCIAL SERVICES IS REQUIRED, A PERSON LACKING SUCH AUTHORIZATION IS NOT SUBJECT TO CIVIL PENALTY FOR ACTS THAT WOULD CONSTITUTE VIOLATIONS SUBJECT TO PENALTY IF THE PERSON DID HAVE PROPER AUTHORIZATION, AND THE PERSON MAY NOT EVEN BE SUBJECT TO A PENALTY FOR CARRYING ON SUCH A BUSINESS WITHOUT THE REQUIRED AUTHORIZATION. THIS MEANS, FOR EXAMPLE, THAT A PERSON CONDUCTING A LOAN BUSINESS FOR WHICH A LICENSE IS REQUIRED CANNOT BE FINED BY THE SUPERINTENDENT FOR DOING THAT BUSINESS WITHOUT A LICENSE. MOREOVER, IF THAT UNLICENSED PERSON CHARGES AN ILLEGAL RATE OF INTEREST, THE SUPERINTENDENT STILL CANNOT IMPOSE A FINE. THIS IS INCONGRUOUS WITH THE PROVISIONS OF THE BANKING LAW THAT SUBJECT PROPERLY LICENSED LENDERS TO FINES FOR VIOLATING INTEREST RATE LIMITS. THIS ACT REMEDIATES THIS FAULT IN THE LAW BY PROVIDING THAT ANY PERSON ENGAGED IN ACTIVITY FOR WHICH SUCH PERSON MUST BE LICENSED BY THE SUPER- INTENDENT OF FINANCIAL SERVICES WILL BE SUBJECT TO A CIVIL PENALTY FOR CONDUCTING SUCH ACTIVITY IN A MANNER INCONSISTENT WITH THE LAW, REGARD- LESS OF SUCH PERSON'S LICENSURE STATUS.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.

Full history

Jan 7, 2026
Died in Assembly
DIED IN ASSEMBLY
NY Assembly
Jan 7, 2026
Referred to committee
REFERRED TO BANKS
NY Senate
Jan 7, 2026
Referred to committee
REFERRED TO BANKS
NY Assembly
May 22, 2025
Sent to the executive
DELIVERED TO ASSEMBLY
NY Senate
May 22, 2025
Passed a chamber
PASSED SENATE
NY Senate

Show full history (7 earlier events)

May 22, 2025
Referred to committee
REFERRED TO BANKS
NY Assembly
May 20, 2025
Amend and Recommit to Banks
AMEND AND RECOMMIT TO BANKS
NY Assembly
Mar 3, 2025
Advanced to Third Reading
ADVANCED TO THIRD READING
NY Senate
Feb 26, 2025
2ND Report CAL.
2ND REPORT CAL.
NY Senate
Feb 25, 2025
1ST Report CAL.388
1ST REPORT CAL.388
NY Senate
Jan 9, 2025
Referred to committee
REFERRED TO BANKS
NY Assembly
Jan 9, 2025
Referred to committee
REFERRED TO BANKS
NY Senate

About this record

Summary: The summary comes from NY Open Legislation, the New York State Senate's public record. For more, see How we handle summaries.
Cosponsors: The list shows the cosponsors who are on Agora, A to Z. The official record may list more.
Party colors: Parties are shown in the same neutral colors.
Source: From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Oct 30, 2026. About our data

Read the record

Read on NY Senate (opens in a new tab) The official record on nysenate.gov.

Your position