Senate Bill S3652

                                BILL NUMBER:S3652

TITLE OF BILL:
An act
to amend the banking law, in relation to the number of withdrawal
transactions from a basic banking account

PURPOSE OR GENERAL IDEA OF BILL:
This bill increases the amount of withdrawal transactions allowed at
no additional charge for basic banking account holders aged sixty and
older from eight to twelve.

SUMMARY OF SPECIFIC PROVISIONS:
This bill amends paragraph c of subdivision 2 of section 14-f of the
banking law.

JUSTIFICATION:
As part of the Banking Deregulation Act of 1994, state chartered banks
were required to offer "lifeline" basic checking accounts which
allowed consumers eight free withdrawal transactions (including
checks, bank withdrawals, and withdrawals from a bank's own ATM)
during anyone month billing cycle. The lifeline account was designed
to assist the poorest residents of our state who are required to use
banks to receive their Social Security and SSI payments
electronically. However, senior citizens, who make up the largest
group who use banks for receipt of federal benefits, are also the
              

group least likely to be able to afford the additional expenses
required to maintain a bank account. In many instances, seniors must
make more than eight withdrawal transactions per month to cover
out-of-pocket medical expenses and unexpected events. Providing an
increase for seniors is reasonable and would allow seniors living on
fixed incomes to avoid certain banking fees.

PRIOR LEGISLATIVE HISTORY:
5/26/98 - A.9516, referred to Rules,advanced to third reading 3/27/98
S.6692, referred to Senate Banks 2/28/00 - A.4993-A, amended on third
reading 3/3/00 - S.2839-A, recommitted to Senate Banks 1/9/02 -
A.3169, referred to Assembly Banks 1/21/05 - A.1893, referred to
Assembly Banks 5/31/05 - A.1893, passed Assembly, delivered to Senate
1/4/06 - died in Senate, returned to Assembly and committed to Rules
2/14/06 - A.1893, passed Assembly, delivered to Senate and referred
to Banks 1/3/07 A.303, referred to Assembly Banks 1/9/08 - A.303,
referred to Assembly Banks,1/22/09 - A.3072, referred to Assembly
Banks, A.3071 reported 4/28/09, A.3071, advanced to third reading
cal.448, 5/4/09- A.3071 passed Assembly, delivered to Senate 5/4/09,
referred to Senate Banks- died in Senate, 1/6/10, returned to
Assembly, A.3071, ordered to third reading cal. 250, 2/23/10,
A.3071 passed Assembly, delivered to Senate 2/23/10, referred to
Senate Banks, 2/23/10

FISCAL IMPLICATIONS:
None to the state.

EFFECTIVE DATE:
Sixty days after becoming law.