New York State has introduced legislation to establish consumer and small business rights over financial data and ban fees for its transfer.
Senate Bill S9483, introduced on 17 March 2026 by Senator Rachel May and referred to the Senate Committee on Banks, proposes to amend the state's Banking Law by adding a new article, Article 14-C, to be known as the New York Financial Data Rights Act. The legislation covers data held by banking organisations, out-of-state banks serving New York residents, custodians of financial assets, and any other data providers regulated by the state's banking regulator.
Scope and key provisions
Under the proposed legislation, financial institutions would be required to make covered data available to consumers and small businesses upon request, and to transmit that data to authorised representatives, defined as any person or entity, other than the holding institution, that seeks to access the data with the account holder's consent. The bill explicitly prohibits financial institutions from charging fees for such data transfers.
The bill sets out provisions across six sections: definitions, consumer and small business rights to data portability, the fee prohibition, obligations on authorised representatives, security standards, and enforcement and penalties. An assembly version of the legislation, A10640, has been introduced in parallel.
Context and implications
The bill comes as open banking frameworks continue to develop at both the federal and state level in the US. The Consumer Financial Protection Bureau's rule under Section 1033 of the Dodd-Frank Act, which similarly addresses consumer financial data rights, has faced implementation challenges, bringing renewed attention to state-level legislative activity in this area.
If enacted, the New York Financial Data Rights Act would create a state-level framework governing data portability and access, placing obligations on a broad range of financial institutions operating in New York. The inclusion of small businesses alongside consumers in the scope of the bill marks a notable feature, as federal proposals have largely centred on individual consumers.
The legislation is currently in committee. No timeline for a vote has been indicated.
