Relates to the use of automated lending decision-making tools by banks for the purposes of making lending decisions

Latest action May 12, 2026

Relates to the use of automated lending decision-making tools by banks for the purposes of making lending decisions; allows loan applicants to consent to or opt out of such use.

Not chosen yet

Where it stands

Out of committee and scheduled for a vote by the full chamber.

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

New York State Senate

Same as A773, the matching bill in the Assembly.

Amends the Banking Law.

Committee

Banks · New York State Assembly

Also referred to Banks · New York State Senate, Codes · New York State Assembly, Codes · New York State Senate.

Purpose, from the sponsor's memo

This legislation establishes consumer protections and other requirements relating to a bank's use of artificial intelligence in lending deci- sions,

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

Recorded votes

Vote: Committee vote · Banks
Senate BanksMay 12, 2026Result: passed
(5) (2) (0) (0)
Vote: Committee vote · Banks
Senate BanksMay 27, 2025Result: passed
(4) (2) (0) (1)

Cosponsors

Andrew Hevesi, Jo Anne Simon and 3 more on Agora

Democratic5

See the full list on nysenate.gov

The sponsor's argument

Why James Sanders Jr. says this is needed

The use of artificial intelligence (AI) has become increasingly common across many sectors. In recent years, AI has become common in the lend- ing field, aiding banks in providing mortgages and other loans. Unlike the traditional application process, AI tools go beyond reviewing just a person's credit score and their ability to pay, and the extent of the information collected is not always clear to the applicant. While such tools may provide a benefit to lenders in the processing of loan applications, it is important that consumers are notified of the use of such tools and have the opportunity to have their application reviewed manually instead of an algorithmic program. Further, it is important that borrowers understand the types of data being collected and the retention of such information. This legislation Would require a notice to consumers when automated decision tools are used in the lend- ing process and gives them the ability to file an appeal if incorrect information was collected. The bill would also require lending insti- tutions to conduct an annual disparate impact analysis of any AI tools being used and provides the New York State Attorney General's office the authority to investigate any violations.

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

May 12, 2026
Reported out of committee
REPORTED AND COMMITTED TO INTERNET AND TECHNOLOGY
NY Senate
Apr 30, 2026
Advanced to Third Reading CAL.393
ADVANCED TO THIRD READING CAL.393
NY Assembly
Apr 30, 2026
Amend and Recommit to Banks
AMEND AND RECOMMIT TO BANKS
NY Senate
Apr 28, 2026
Reported out of committee
REPORTED
NY Assembly
Jan 15, 2026
Amend and Recommit to Codes
AMEND AND RECOMMIT TO CODES
NY Assembly

Show full history (11 earlier events)

Jan 7, 2026
Referred to committee
REFERRED TO BANKS
NY Senate
Jan 7, 2026
Referred to committee
REFERRED TO CODES
NY Assembly
Jun 5, 2025
Amend and Recommit to Internet and Technology
AMEND AND RECOMMIT TO INTERNET AND TECHNOLOGY
NY Senate
Jun 5, 2025
Reported out of committee
REPORTED REFERRED TO RULES
NY Assembly
Jun 2, 2025
Amend (t) and Recommit to Internet and Technology
AMEND (T) AND RECOMMIT TO INTERNET AND TECHNOLOGY
NY Senate
Jun 2, 2025
Amend and Recommit to Codes
AMEND AND RECOMMIT TO CODES
NY Assembly
May 28, 2025
Reported out of committee
REPORTED REFERRED TO CODES
NY Assembly
May 27, 2025
Reported out of committee
REPORTED AND COMMITTED TO INTERNET AND TECHNOLOGY
NY Senate
May 22, 2025
Amend (t) and Recommit to Banks
AMEND (T) AND RECOMMIT TO BANKS
NY Assembly
May 15, 2025
Referred to committee
REFERRED TO BANKS
NY Senate
Jan 8, 2025
Referred to committee
REFERRED TO BANKS
NY Assembly

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 21, 2026. About our data

Read the record

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

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