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

                                  3745

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 28, 2009
                               ___________

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

AN  ACT to amend the banking law, in relation to fees charged by banking
  institutions and services provided by such banking institutions

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative intent. The legislature finds and declares that
legislation is necessary to prevent banking institutions from generating
excessive profits from services which are basic to the banking industry.
In  addition,  the  legislature  finds  that  excessive fees imposed are
confiscatory and exclusionary in nature, as well  as  contrary  to  good
public policy.
  S 2. The banking law is amended by adding a new section 6-n to read as
follows:
  S 6-N. USE OF DEPOSITORIES. 1. NOTWITHSTANDING ANY PROVISION OF LAW TO
THE  CONTRARY,  NEITHER THE STATE OF NEW YORK NOR ANY POLITICAL SUBDIVI-
SION THEREOF, SHALL ENTER INTO OR  RENEW  OR  EXTEND  ANY  AGREEMENT  OR
CONTRACT  TO  USE  AS A DEPOSITORY ANY BANKING INSTITUTION WHICH CHARGES
FEES OF TWO PERCENT OR MORE ABOVE THE  FAIR  AND  REASONABLE  PROCESSING
FEES  ESTABLISHED BY THE BANKING BOARD PURSUANT TO SECTION FOURTEEN-G OF
THIS CHAPTER.
  2. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,  NEITHER  THE
STATE  OF NEW YORK NOR ANY POLITICAL SUBDIVISION THEREOF, SHALL USE AS A
DEPOSITORY ANY BANKING INSTITUTION WHICH CHARGES FEES FOR  BASIC  TELLER
SERVICES  IN VIOLATION OF THE RULES AND REGULATIONS OF THE BANKING BOARD
PROMULGATED PURSUANT TO THE PROVISIONS OF  SECTION  FOURTEEN-G  OF  THIS
CHAPTER.
  3.  FOR  PURPOSES  OF THIS SECTION, THE TERM BANKING INSTITUTION SHALL
HAVE THE SAME MEANING AS USED IN SECTION NINE-F OF THIS ARTICLE.
  S 3. The banking law is amended by adding a new section 9-v to read as
follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05869-01-9
              

A. 3745                             2

  S 9-V. AUTOMATED TELLER SERVICES. NOTWITHSTANDING ANY PROVISION OF LAW
TO THE CONTRARY, THE DEPARTMENT AND THE BANKING BOARD SHALL DEVELOP  AND
PROMULGATE  RULES  AND REGULATIONS REQUIRING ANY BANKING INSTITUTION, AS
DEFINED IN SECTION NINE-F OF  THIS  ARTICLE,  WHICH  PROVIDES  AUTOMATED
TELLER  MACHINE  SERVICE  TO PROVIDE SUCH SERVICE TO BOTH DEPOSITORS AND
NONDEPOSITORS.
  S 4. The banking law is amended by adding a new section 14-g  to  read
as follows:
  S  14-G.  POWER  OF THE BANKING BOARD TO RESTRICT THE CHARGING OF FEES
FOR BASIC TELLER SERVICES AND TO DEVELOP A SCHEDULE OF FEES AND PROCESS-
ING RATES.  1. FOR THE PURPOSES OF THIS SECTION:
  (A) THE TERM "BASIC TELLER SERVICES" SHALL MEAN A WITHDRAWAL  FROM  OR
DEPOSIT TO A CONSUMER TRANSACTION ACCOUNT AS DEFINED IN PARAGRAPH (B) OF
SUBDIVISION  NINE  OF  SECTION  FOURTEEN-F  OF THIS ARTICLE; EXCEPT THAT
"BASIC TELLER SERVICES" SHALL NOT INCLUDE A  TRANSACTION  MADE  WITH  AN
AUTOMATED TELLER MACHINE;
  (B)  THE  TERM  "DISCOUNT  PLAN"  SHALL  MEAN  A  CONSUMER TRANSACTION
ACCOUNT, AS THAT TERM IS DEFINED IN PARAGRAPH (B) OF SUBDIVISION NINE OF
SECTION FOURTEEN-F OF THIS ARTICLE, RESTRICTING THE NUMBER OF FREE BASIC
TELLER SERVICES TRANSACTIONS PER PERIODIC CYCLE AS PROVIDED IN  SUBDIVI-
SION  THREE  OF THIS SECTION AND ESTABLISHING A FEE FOR SUCH SERVICES IN
EXCESS OF SUCH NUMBER OF FREE BASIC TELLER SERVICES TRANSACTIONS.
  2. IN ADDITION TO ANY OTHER REQUIREMENTS PROVIDED BY LAW, THE  BANKING
BOARD  SHALL PROMULGATE RULES AND REGULATIONS TO REQUIRE AND INSURE THAT
NO BANKING INSTITUTION, AS THAT TERM IS  DEFINED  IN  PARAGRAPH  (A)  OF
SUBDIVISION  NINE  OF  SECTION  FOURTEEN-F OF THIS ARTICLE, SHALL CHARGE
CONSUMERS A FEE FOR BASIC TELLER SERVICES EXCEPT AS PROVIDED IN SUBDIVI-
SION THREE OF THIS SECTION.
  3. ANY BANKING INSTITUTION, AS THAT TERM IS DEFINED IN  PARAGRAPH  (A)
OF  SUBDIVISION NINE OF SECTION FOURTEEN-F OF THIS ARTICLE, ESTABLISHING
A DISCOUNT PLAN MAY CHARGE CONSUMERS A FEE FOR  BASIC  TELLER  SERVICES,
PROVIDED  THAT,  SUCH  DISCOUNT PLAN PROVIDES AT LEAST FOUR BASIC TELLER
SERVICES FREE OF CHARGE PER PERIODIC CYCLE.
  4. IN ADDITION TO ANY OTHER REQUIREMENTS PROVIDED BY LAW, THE  BANKING
BOARD  SHALL  DEVELOP  A  SCHEDULE  OF FAIR AND REASONABLE RATES FOR ALL
BANKING TRANSACTIONS WHICH RESULT IN FEES TO THE CONSUMER INCLUDING, BUT
NOT LIMITED TO, ATM WITHDRAWALS, OVERDRAFT PROCESSING, CHECKING  ACCOUNT
MAINTENANCE, PRINTING OF CHECKS AND ACCOUNT TRANSFERS.
  S  5.  Paragraph  (b)  of subdivision 2 of section 14-f of the banking
law, as added by chapter 1 of the laws of 1994, is amended  to  read  as
follows:
  (b)  the maximum amount a banking institution may require as a minimum
balance, if any, to maintain such account, PROVIDED  THAT  SUCH  BANKING
INSTITUTION  SHALL  PROVIDE  MINIMAL  CHECKING  ACCOUNT SERVICES WITHOUT
REQUIRING A MINIMUM BALANCE;
  S 6. This act shall take effect on the ninetieth day  after  it  shall
have  become  a  law;  provided that the banking board, the state of New
York and any political subdivision thereof may take any action necessary
for the timely implementation of this act on its effective  date  on  or
before such date.