Bill Text: NY A01570 | 2023-2024 | General Assembly | Introduced

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Bill Title: Prohibits fees for any service rendered through a bank relating to the use of an electronic benefit transfer card issued by the state or certain departments or agencies thereof.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced) 2024-01-10 - enacting clause stricken [A01570 Detail]

Download: New_York-2023-A01570-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1570

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 17, 2023
                                       ___________

        Introduced by M. of A. JOYNER -- read once and referred to the Committee
          on Banks

        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
    22    (ii) any unemployment insurance program  card,  occupational  training
    23  act  program card, adoption subsidy electronic payments program card, or
    24  card issued by the New York  child  support  program  which  entitles  a
    25  person to receive funds under a local, state or federal program adminis-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05406-01-3
        A. 1570                             2

     1  tered  by  the  state,  its  political  subdivisions  or social services
     2  districts.
     3    2. No bank shall impose any fee for benefit banking services attribut-
     4  able to the use of an electronic benefit transfer card.
     5    3.  No  operator  or owner of an automated teller machine shall impose
     6  any fee for benefit banking services attributable to the use of an elec-
     7  tronic benefit transfer card.
     8    § 2. This act shall take effect immediately and  shall  apply  to  any
     9  current  and  future contract for benefit banking services as defined in
    10  section 9-aa of the banking law, as added by section one  of  this  act,
    11  entered into between the state, or any agency, subdivision or department
    12  thereof,  and any institution subject to the New York state banking law,
    13  notwithstanding the terms of such current contracts.