Bill Text: NY A08999 | 2023-2024 | General Assembly | Amended

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

Spectrum: Partisan Bill (Democrat 16-0)

Status: (Introduced) 2024-06-04 - substituted by s2601b [A08999 Detail]

Download: New_York-2023-A08999-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         8999--C
                                                                Cal. No. 336

                   IN ASSEMBLY

                                    February 1, 2024
                                       ___________

        Introduced  by M. of A. TAPIA, STIRPE, DICKENS, WEPRIN, TAYLOR, BURDICK,
          ALVAREZ, ARDILA, EPSTEIN,  CRUZ,  WILLIAMS,  DAVILA,  HYNDMAN,  LUCAS,
          REYES,  CUNNINGHAM -- read once and referred to the Committee on Banks
          -- committee discharged, bill amended, ordered  reprinted  as  amended
          and recommitted to said committee -- reported from committee, advanced
          to a third reading, amended and ordered reprinted, retaining its place
          on  the  order  of  third  reading  -- again amended on third reading,
          ordered reprinted, retaining its place on the order of third reading

        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  or  credit  unions  organized under the laws of the United States or any
     7  other state, private bankers, bank-based  financial  services  companies
     8  and federal 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.
                                                                   LBD05406-09-4
        A. 8999--C                          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.