NY A02213

Establishes a regulatory sandbox program allowing financial technology companies to test new products and services for up to 24 months without obtaining full state licenses or paying licensing fees.

Requires the Attorney General and State Comptroller to jointly administer the program, review applications on a rolling basis with 90-day decision periods, and consult with applicable state agencies before admitting participants.

Limits sandbox participants to testing with no more than 10,000 consumers and imposes transaction caps ($10,000 per transaction, $2 million aggregate for money transmitters over 24 months) unless higher thresholds are approved based on demonstrated financial capitalization and risk management.

Requires sandbox participants to disclose to consumers that they are testing an unlicensed service, that the state does not endorse it, and that testing may be discontinued, along with providing contact information for complaints.

Mandates third-party depository or custodian audits, consumer fraud compliance, data breach notifications, and recordkeeping; allows Attorney General and State Comptroller to remove participants for violations; program expires July 1, 2029.