NY State Senate Bill 2025-S8225

Senate Bill S8225

2025-2026 Legislative Session

Prohibits fees for any service rendered through a bank relating to the use of an electronic benefit transfer card issued by the state or certain departments or agencies thereof

download bill text pdf

Current Bill Status - In Senate Committee Banks Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 23, 2025	referred to banks

co-Sponsors

2025-S8225 (ACTIVE) - Details

Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Add §9-aa, Bank L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S8616
2021-2022: S446
2023-2024: S2601

2025-S8225 (ACTIVE) - Summary

Prohibits fees for any service rendered through a banking organization relating to the use of an electronic benefit transfer card issued by the state or certain departments or agencies thereof.

2025-S8225 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8225

SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:

An act to amend the banking law, in relation to prohibiting fees for
electronic benefit transfer services

 
SUMMARY OF PROVISIONS:

Section 1 of the bill adds a new section 9-x to the Banking Law ("Elec-
tronic benefit transfer services"). The new section 9-x prohibits banks
from imposing any fee for electronic benefit transfer services attribut-
able to use of an electronic benefit transfer card, and prohibits opera-
tors or owners of ATMs from imposing any fee for benefit banking
services attributable to the use of an electronic benefit transfer card,
except for interchange fees.

The new section 9-x defines "electronic benefit transfer card" to
include cards issued to deliver unemployment insurance benefits, occupa-
tional training act program benefits, adoption subsidy electronic
payments, medical assistance benefits, food stamp assistance benefits,
and other public benefits under a local, state or federal program admin-

istered by New York State, local governments, or social services
districts.

Section 2 of the bill is the effective date. The law would take effect
immediately upon enactment and would apply to any future contract for
benefit banking services entered into between the state, or any agency,
subdivision or department thereof, and any institution subject to the
New York State Banking Law.

 
JUSTIFICATION:

As of May 2020, New York State had paid out $6.8 billion in unemployment
insurance benefits to the more than 1.8 million New Yorkers who had
filed for unemployment benefits since the beginning of the COVID-19
pandemic in March 2020. Even as New York State begins a phased re-open-
ing of its regional economies, the total benefits paid and unemployment
insurance (UI) claimants will continue to grow for the foreseeable
future.

New York UI claimants have the option of receiving their UI benefits on
a debit card issued by KeyBank, which currently holds a contract with
New York State to administer benefit banking services for UI, as well as
the Department of Labor's Occupational Training Act program and the
Office of Children & Family Services' Adoption Subsidy Electronic
Payments program. According to a June 2020 New York Times article 1,
about half a million New Yorkers receive their UI benefits via the
KeyBank debit cards.

KeyBank charges benefit recipients using their debit cards a $1.50 per
withdrawal fee at domestic ATMs outside of the KeyBank ATM network.  For
New Yorkers who have lost their jobs due to COVID-19 related -
restrictions on their place of employment, UI benefits are "a lifeline.
Banks holding lucrative contracts with New York State to provide banking
services for the administration of public benefits should not be eating
into recipients' benefits with fees for basic transactions like ATM
withdrawals. This bill would prohibit any bank providing benefit banking
services to New York State or its local governments from charging fees
to benefit recipients attributable to the use of an electronic benefit
transfer card. The bill applies prospectively and does not affect previ-
ous or ongoing contracts.

 
LEGISLATIVE HISTORY:

S.2601 of 2023-2024 (Hoylman-Sigal)/ A.8999 of 2023-2024 (Tapia):
Passed Both Houses and Vetoed

S.0446 of 2021-2022 (Hoylman): Died in Banks A.5733 of 2021-2022

(Joyner): Died in Banks S.8616 of 2020 (Hoylman): Died in Rules

A.10670 of 2020 (Joyner): Died in Banks

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to any future
contract for benefit banking services as defined in section 9-x of the
banking law, as added by section one of this act, entered into between
the state, or any agency, subdivision or department thereof, and any
institution subject to the New York state banking law.

2025-S8225 (ACTIVE) - Bill Text download pdf

                             
                     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.

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Senate Bill S8225

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Sponsored By

Brad Hoylman-Sigal