Assembly Bill A3304

                             
                     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.