This bill has been amended

Bill S2933A-2013

Relates to the preservation of books and records of banking institutions

Provides that requirements relating to the preservation of certain banking records may be satisfied by maintenance of original papers or other records, photographic reproductions, or records stored in electronic storage media.

Details

Actions

  • May 29, 2014: ADVANCED TO THIRD READING
  • May 28, 2014: 2ND REPORT CAL.
  • May 21, 2014: 1ST REPORT CAL.909
  • May 7, 2014: PRINT NUMBER 2933A
  • May 7, 2014: AMEND AND RECOMMIT TO BANKS
  • Jan 8, 2014: REFERRED TO BANKS
  • Jan 8, 2014: returned to senate
  • Jan 8, 2014: died in assembly
  • Jun 12, 2013: referred to banks
  • Jun 12, 2013: DELIVERED TO ASSEMBLY
  • Jun 12, 2013: PASSED SENATE
  • Jun 11, 2013: ADVANCED TO THIRD READING
  • Jun 10, 2013: 2ND REPORT CAL.
  • Jun 5, 2013: 1ST REPORT CAL.1129
  • Jan 25, 2013: REFERRED TO BANKS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Banks - May 21, 2014
Ayes (17): Griffo, Farley, Bonacic, DeFrancisco, Golden, Marchione, Martins, Marcellino, O'Mara, Ranzenhofer, Valesky, Avella, O'Brien, Breslin, Diaz, Gipson, Kennedy
Ayes W/R (1): Parker
Nays (1): Sanders

Memo

BILL NUMBER:S2933A

TITLE OF BILL: An act to amend the banking law, in relation to electronic preservation of banking records

PURPOSE:

This bill would establish a consistent recordkeeping standard and clarify that regulated entities may preserve records through the use of electronic storage media.

SUMMARY OF PROVISIONS:

A new section 36-b would be added to the Banking Law to clarify the ability of regulated entities to preserve their books and records through the use of electronic storage media.

JUSTIFICATION:

This bill would help update the Banking Law in order to reflect changes in technology. These amendments will clarify the ability of regulated financial institutions to use more modem and efficient methods of recordkeeping and communication.

The activities and operations of various types of banking institutions and nonbank financial service companies are governed by different articles of the Banking Law. Each of these articles generally requires the regulated entities to preserve books and records for a specified number of years. However, these sections of law have been enacted or amended at different times. They may be inconsistent with each other, and some have not been updated to reflect new recordkeeping technologies. For example, some sections refer to the maintenance of records through photographic reproduction, while others include references to optical disk technology.

This bill would enact a new section 36-b in the Banking Law to clarify that all regulated entities may utilize electronic storage media in preserving their records. The bill specifies certain standards that must be met. This legislation will ensure the ability of financial institutions to use current technology and best practices to preserve records in a cost-effective and practical way.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

The ninetieth day after it shall have become law.


Text

STATE OF NEW YORK ________________________________________________________________________ 2933--A 2013-2014 Regular Sessions IN SENATE January 25, 2013 ___________
Introduced by Sen. FARLEY -- read twice and ordered printed, and when printed to be committed to the Committee on Banks -- recommitted to the Committee on Banks in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the banking law, in relation to electronic preservation of banking records THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The banking law is amended by adding a new section 36-b to read as follows: S 36-B. PRESERVATION OF BOOKS AND RECORDS. WHEN ANY PROVISION OF THIS CHAPTER OR ANY RULE OR REGULATION ADOPTED PURSUANT THERETO REQUIRES THAT BOOKS AND RECORDS BE PRESERVED, SUCH REQUIREMENT MAY BE SATISFIED BY MAINTENANCE OF ORIGINAL PAPERS OR OTHER RECORDS, PHOTOGRAPHIC REPROD- UCTIONS, OR RECORDS STORED IN ELECTRONIC STORAGE MEDIA. AS USED IN THIS CHAPTER, "ELECTRONIC STORAGE MEDIA" MEANS ANY DIGITAL STORAGE MEDIUM OR SYSTEM THAT MEETS THE FOLLOWING CONDITIONS: 1. IT MUST PRESERVE THE RECORDS EXCLUSIVELY IN NON-REWRITABLE, NON-ER- ASABLE FORMAT; 2. IT MUST VERIFY AUTOMATICALLY THE QUALITY AND ACCURACY OF THE STOR- AGE MEDIA RECORDING PROCESS; 3. IT MUST HAVE THE CAPACITY TO READILY DOWNLOAD INDEXES AND RECORDS PRESERVED ON THE ELECTRONIC STORAGE MEDIA TO ANY MEDIUM ACCEPTABLE TO THE SUPERINTENDENT; AND 4. IT MUST BE IMMEDIATELY READABLE ON EQUIPMENT AT ALL TIMES AVAILABLE TO THE SUPERINTENDENT FOR EXAMINATION OF SUCH RECORDS. S 2. This act shall take effect on the ninetieth day after it shall have become a law.

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