Bill Text: NY A10670 | 2019-2020 | 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 1-0)

Status: (Introduced - Dead) 2020-06-24 - referred to banks [A10670 Detail]

Download: New_York-2019-A10670-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10670

                   IN ASSEMBLY

                                      June 24, 2020
                                       ___________

        Introduced  by  COMMITTEE ON RULES -- (at request of 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-y  to
     2  read as follows:
     3    § 9-y. 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-
    26  tered by the  state,  its  political  subdivisions  or  social  services
    27  districts.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16716-03-0
        A. 10670                            2

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