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.
Ayes (56): Addabbo, Avella, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Duane, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Johnson, Kennedy, Klein, Krueger, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Montgomery, Nozzolio, Oppenheimer, Parker, Peralta, Ranzenhofer, Ritchie, Rivera, Robach, Saland, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Storobin, Valesky, Young, Zeldin
Excused (6): Adams, Alesi, Espaillat, Huntley, O'Mara, Perkins
TITLE OF BILL: An act to amend the banking law, in relation to electronic preservation of banking records
PURPOSE: To update the laws regarding the methods that may be used by banking and financial service companies to preserve books and records.
SUMMARY OF PROVISIONS: This bill adds a new section 36-b 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: Different articles of the Banking Law govern the activities and operations of various types of banking institutions and non-bank financial service companies. 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 often been enacted or amended at different times, and may not have been updated to reflect new 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 of the Banking Law to allow all regulated entities to utilize electronic storage media in preserving their records. The bill specifies certain standards that must be met. This legislation will clarify 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.
LOCAL FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: The ninetieth day after it shall have become law.
STATE OF NEW YORK ________________________________________________________________________ 6952 IN SENATE April 16, 2012 ___________Introduced by Sen. FARLEY -- 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 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.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15325-01-2