New York 2023-2024 Regular Session

New York Senate Bill S02601 Latest Draft

Bill / Amended Version Filed 01/23/2023

   
  STATE OF NEW YORK ________________________________________________________________________ 2601--A 2023-2024 Regular Sessions  IN SENATE January 23, 2023 ___________ Introduced by Sen. HOYLMAN-SIGAL -- 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 prohibiting fees for benefit banking services The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The banking law is amended by adding a new section 9-aa to 2 read as follows: 3 § 9-aa. Benefit banking services. 1. As used in this section: 4 (a) "bank" means any corporation or limited liability investment 5 company subject to the provisions of this chapter, banking corporations 6 organized under the laws of the United States or any other state, 7 private bankers, bank-based financial services companies and federal 8 reserve banks; 9 (b) "benefit banking services" means any service rendered through a 10 bank relating to the use of an electronic benefit transfer card includ- 11 ing deposit; disbursement via electronic fund transfer, checks, or other 12 mechanisms; reconciliation; reporting; or electronic cash management for 13 benefit programs; and 14 (c) "electronic benefit transfer card" means: 15 (i) any medical assistance card, food stamp assistance card, public 16 assistance card, or any other identification, authorization card or 17 electronic access device issued by the state or a social services 18 district as defined in subdivision seven of section two of the social 19 services law which entitles a person to obtain public assistance bene- 20 fits under a local, state or federal program administered by the state, 21 its political subdivisions or social services districts; or EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05406-02-4 

 S. 2601--A 2 1 (ii) any unemployment insurance program card, occupational training 2 act program card, adoption subsidy electronic payments program card, or 3 card issued by the New York child support program which entitles a 4 person to receive funds under a local, state or federal program adminis- 5 tered by the state, its political subdivisions or social services 6 districts. 7 2. No bank shall impose any fee for benefit banking services attribut- 8 able to the use of an electronic benefit transfer card. 9 3. No operator or owner of an automated teller machine shall impose 10 any fee for benefit banking services attributable to the use of an elec- 11 tronic benefit transfer card. 12 § 2. This act shall take effect immediately and shall apply to any 13 contract for benefit banking services as defined in section 9-aa of the 14 banking law, as added by section one of this act, entered into on or 15 after such effective date between the state, or any agency, subdivision 16 or department thereof, and any institution subject to the New York state 17 banking law, notwithstanding the terms of such current contracts.