Assembly Bill A3304B

                             
                     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:

   Section 1. The banking law is amended by adding a new section 9-aa  to
 read as follows:
   § 9-AA. BENEFIT BANKING SERVICES. 1. AS USED IN THIS SECTION:
   (A)  "BANK"  MEANS  ANY  CORPORATION  OR  LIMITED LIABILITY INVESTMENT
 COMPANY SUBJECT TO THE PROVISIONS OF THIS CHAPTER, BANKING  CORPORATIONS
 OR  CREDIT  UNIONS  ORGANIZED UNDER THE LAWS OF THE UNITED STATES OR ANY
 OTHER STATE, PRIVATE BANKERS, BANK-BASED  FINANCIAL  SERVICES  COMPANIES
 AND FEDERAL RESERVE BANKS;
   (B)  "BENEFIT  BANKING  SERVICES" MEANS ANY SERVICE RENDERED THROUGH A
 BANK RELATING TO THE USE OF AN ELECTRONIC BENEFIT TRANSFER CARD  INCLUD-
 ING DEPOSIT; DISBURSEMENT VIA ELECTRONIC FUND TRANSFER, CHECKS, OR OTHER
 MECHANISMS; RECONCILIATION; REPORTING; OR ELECTRONIC CASH MANAGEMENT FOR
 BENEFIT PROGRAMS; AND
   (C) "ELECTRONIC BENEFIT TRANSFER CARD" MEANS:
   (I)  ANY  MEDICAL  ASSISTANCE CARD, FOOD STAMP ASSISTANCE CARD, PUBLIC
 ASSISTANCE CARD, OR ANY  OTHER  IDENTIFICATION,  AUTHORIZATION  CARD  OR
 ELECTRONIC  ACCESS  DEVICE  ISSUED  BY  THE  STATE  OR A SOCIAL SERVICES
 DISTRICT AS DEFINED IN SUBDIVISION SEVEN OF SECTION TWO  OF  THE  SOCIAL
 SERVICES  LAW  WHICH ENTITLES A PERSON TO OBTAIN PUBLIC ASSISTANCE BENE-
 FITS UNDER A LOCAL, STATE OR FEDERAL PROGRAM ADMINISTERED BY THE  STATE,
 ITS POLITICAL SUBDIVISIONS OR SOCIAL SERVICES DISTRICTS; OR
   (II)  ANY  UNEMPLOYMENT  INSURANCE PROGRAM CARD, OCCUPATIONAL TRAINING
 ACT PROGRAM CARD, ADOPTION SUBSIDY ELECTRONIC PAYMENTS PROGRAM CARD,  OR
 CARD  ISSUED  BY  THE  NEW  YORK  CHILD SUPPORT PROGRAM WHICH ENTITLES A
 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
 
 TERED BY THE  STATE,  ITS  POLITICAL  SUBDIVISIONS  OR  SOCIAL  SERVICES
 DISTRICTS.
   2. NO BANK SHALL IMPOSE ANY FEE FOR BENEFIT BANKING SERVICES ATTRIBUT-
 ABLE TO THE USE OF AN ELECTRONIC BENEFIT TRANSFER CARD.
   3.  NO  OPERATOR  OR OWNER OF AN AUTOMATED TELLER MACHINE SHALL IMPOSE
 ANY FEE FOR BENEFIT BANKING SERVICES ATTRIBUTABLE TO THE USE OF AN ELEC-
 TRONIC BENEFIT TRANSFER CARD.
   § 2. This act shall take effect immediately and  shall  apply  to  any
 contract  for benefit banking services as defined in section 9-aa of the
 banking law, as added by section one of this act,  entered  into  on  or
 after  such effective date between the state, or any agency, subdivision
 or department thereof, and any institution subject to the New York state
 banking law, notwithstanding the terms of such current contracts.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3304--A
 
                        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 -- recommitted to the Committee on Banks in  accordance  with
   Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 AN  ACT  to  amend  the banking law, in relation to prohibiting fees for
   electronic benefit transfer services
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The banking law is amended by adding a new section 9-aa to
 read as follows:
   § 9-AA. ELECTRONIC BENEFIT TRANSFER  SERVICES.  1.  AS  USED  IN  THIS
 SECTION:
   (A)  "ELECTRONIC BENEFIT TRANSFER SERVICES" MEANS ANY SERVICE RELATING
 TO THE USE OF AN ELECTRONIC BENEFIT  TRANSFER  CARD  INCLUDING  DEPOSIT,
 WITHDRAWAL,  DISBURSEMENT VIA ELECTRONIC FUND TRANSFER, CHECKS, OR OTHER
 MECHANISMS; RECONCILIATION; REPORTING; OR ELECTRONIC CASH MANAGEMENT FOR
 BENEFIT PROGRAMS;
   (B) "ELECTRONIC BENEFIT TRANSFER CARD" MEANS ANY CARD OR DEVICE ISSUED
 IN CONNECTION WITH THE ELECTRONIC BENEFIT TRANSFER SYSTEM ESTABLISHED IN
 SECTION TWENTY-ONE-A OF THE SOCIAL SERVICES LAW THAT ALLOWS  INDIVIDUALS
 TO ACCESS PUBLIC  ASSISTANCE OR BENEFIT FUNDS INCLUDING:
   (I)  ANY  MEDICAL  ASSISTANCE CARD, FOOD STAMP ASSISTANCE CARD, PUBLIC
 ASSISTANCE CARD, OR ANY  OTHER  IDENTIFICATION,  AUTHORIZATION  CARD  OR
 ELECTRONIC  ACCESS  DEVICE  ISSUED  BY  THE  STATE  OR A SOCIAL SERVICES
 DISTRICT AS DEFINED IN SUBDIVISION SEVEN OF SECTION TWO  OF  THE  SOCIAL
 SERVICES  LAW  WHICH ENTITLES A PERSON TO OBTAIN PUBLIC ASSISTANCE BENE-
 FITS UNDER A LOCAL, STATE OR FEDERAL PROGRAM ADMINISTERED BY THE  STATE,
 ITS POLITICAL SUBDIVISIONS OR SOCIAL SERVICES DISTRICTS; OR
   (II)  ANY  UNEMPLOYMENT  INSURANCE PROGRAM CARD, OCCUPATIONAL TRAINING
 ACT PROGRAM CARD, ADOPTION SUBSIDY ELECTRONIC PAYMENTS PROGRAM CARD,  OR
 CARD  ISSUED  BY  THE  NEW  YORK  CHILD SUPPORT PROGRAM WHICH ENTITLES A
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07254-03-5
              

 A. 3304--A                          2
 
 PERSON TO RECEIVE FUNDS UNDER A LOCAL, STATE OR FEDERAL PROGRAM ADMINIS-
 TERED BY THE  STATE,  ITS  POLITICAL  SUBDIVISIONS  OR  SOCIAL  SERVICES
 DISTRICTS;
   (C)  "INTERCHANGE FEE" MEANS ANY FEE ESTABLISHED, CHARGED, OR RECEIVED
 BY A PAYMENT CARD NETWORK AND PAID BY AN ACQUIRER  FOR  THE  PURPOSE  OF
 COMPENSATING  AN ISSUER FOR ITS INVOLVEMENT IN AN ELECTRONIC FUND TRANS-
 ACTION; AND
   (D)  "PAYMENT CARD NETWORK" MEANS A PAYMENT CARD NETWORK AS DEFINED IN
 SECTION  FIVE HUNDRED TWENTY-NINE OF THE GENERAL BUSINESS LAW.
   2. NO BANKING ORGANIZATION, OUT-OF-STATE STATE BANK THAT OPENS,  OCCU-
 PIES   OR MAINTAINS A BRANCH IN THIS STATE PURSUANT TO ARTICLE FIVE-C OF
 THIS CHAPTER, OR FOREIGN BANKING CORPORATION LICENSED BY THE SUPERINTEN-
 DENT TO TRANSACT BUSINESS IN THIS STATE SHALL IMPOSE ANY FEE  FOR  ELEC-
 TRONIC BENEFIT TRANSFER SERVICES ATTRIBUTABLE TO THE USE OF AN ELECTRON-
 IC BENEFIT TRANSFER CARD.
   3.  NO  OPERATOR OR OWNER OF AN AUTOMATED TELLER MACHINE AS DEFINED IN
 SECTION SEVENTY-FIVE-B OF THIS CHAPTER SHALL IMPOSE ANY FEE OR SURCHARGE
 FOR ELECTRONIC BENEFIT TRANSFER SERVICES ATTRIBUTABLE TO THE USE  OF  AN
 ELECTRONIC BENEFIT TRANSFER CARD, EXCEPT FOR INTERCHANGE FEES.
   4.  (A)  NOTHING  IN  THIS  SECTION  SHALL APPLY TO ANY NATIONAL BANK,
 FEDERAL SAVINGS BANK, FEDERAL  SAVINGS  AND  LOAN  ASSOCIATION,  FEDERAL
 CREDIT UNION, OR ANY ENTITY CHARTERED OR LICENSED BY THE UNITED STATES.
   (B) IF ANY PROVISION OF THIS SECTION OR THE APPLICATION THEREOF TO ANY
 PERSON OR CIRCUMSTANCES IS HELD TO BE INVALID, SUCH INVALIDITY SHALL NOT
 AFFECT  OTHER  PROVISIONS  OR  APPLICATIONS OF THIS SECTION WHICH CAN BE
 GIVEN EFFECT WITHOUT THE INVALID PROVISION OR APPLICATION, AND  TO  THIS
 END THE PROVISIONS OF THIS SECTION ARE SEVERABLE.
   §  2.  This  act  shall take effect immediately and shall apply to any
 contract for electronic benefit transfer services as defined in  section
 9-aa  of  the  banking law, as added by section one of this act, entered
 into on or after such effective date between the state, or  any  agency,
 subdivision  or  department  thereof,  and any entity subject to the New
 York state banking law, general business law, or financial services law,
 notwithstanding the terms of such current contracts.