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

S T A T E   O F   N E W   Y O R K
        ________________________________________________________________________

                                          3304

                               2025-2026 Regular Sessions

                                  I N  A S S E M B L Y

                                    January 27, 2025
                                       ___________

        Introduced  by M. of A. TAPIA -- 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  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
    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.
                                                                   LBD07254-01-5
        A. 3304                             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  contract  for benefit banking services as defined in section 9-aa of the
    10  banking law, as added by section one of this act,  entered  into  on  or
    11  after  such effective date between the state, or any agency, subdivision
    12  or department thereof, and any institution subject to the New York state
    13  banking law, notwithstanding the terms of such current contracts.