Senate Bill S8225

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8225
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 23, 2025
                                ___________
 
 Introduced  by  Sens.  HOYLMAN-SIGAL,  JACKSON -- read twice and ordered
   printed, and when printed to be committed to the Committee on Banks
 
 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
 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.
                                                            LBD07254-02-5
 S. 8225                             2
              

 
 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.