Senate Bill S9656

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9656
 
                             I N  S E N A T E
 
                              March 31, 2026
                                ___________
 
 Introduced  by  Sen. SANDERS -- 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; AND
   (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-
 TERED  BY  THE  STATE,  ITS  POLITICAL  SUBDIVISIONS  OR SOCIAL SERVICES
 DISTRICTS.
   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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07254-05-6
 S. 9656                             2
 
 THIS CHAPTER, OR FOREIGN BANKING CORPORATION LICENSED BY THE SUPERINTEN-
 DENT TO TRANSACT  BUSINESS  IN  THIS  STATE  SHALL  IMPOSE  ANY  FEE  OR
 SURCHARGE  ON A CONSUMER, CARDHOLDER OR BENEFIT RECIPIENT FOR ELECTRONIC
 BENEFIT TRANSFER SERVICES ATTRIBUTABLE TO THE USE OF AN ELECTRONIC BENE-
 FIT 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
 ON A CONSUMER, CARDHOLDER OR BENEFIT RECIPIENT  FOR  ELECTRONIC  BENEFIT
 TRANSFER  SERVICES  ATTRIBUTABLE  TO  THE  USE  OF AN ELECTRONIC BENEFIT
 TRANSFER CARD.
   4.  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT OR RESTRICT
 THE ASSESSMENT, PAYMENT, OR  RECEIPT  OF  INTERCHANGE  FEES,  PROCESSING
 FEES,  SWITCH  FEES,  SETTLEMENT  FEES, AND NETWORK CONNECTIVITY FEES OR
 OTHER FEES ASSESSED OR PAID BETWEEN FINANCIAL INSTITUTIONS, PAYMENT CARD
 NETWORKS, PROCESSORS, OR PROGRAM ADMINISTRATORS IN CONNECTION WITH TRAN-
 SACTIONS MADE USING AN ELECTRONIC BENEFIT TRANSFER CARD.
   5. (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,
 INCLUDING  ANY  AUTOMATED  TELLER  MACHINE OWNED OR OPERATED BY ANY SUCH
 ENTITY.
   (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.
   6. THE SUPERINTENDENT, IN CONSULTATION WITH THE  OFFICE  OF  TEMPORARY
 AND  DISABILITY ASSISTANCE, MAY PROMULGATE SUCH RULES AND REGULATIONS AS
 ARE NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law and shall apply to any contract for electron-
 ic 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  depart-
 ment  thereof, and any entity subject to the New York state banking law,
 general business law, or financial services law.