New York S 9656: 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

Bill Text

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S09656 Summary:

BILL NOS09656 

&nbsp

SAME ASSAME AS A03304-B

&nbsp

SPONSORSANDERS

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Add §9-aa, Bank L

&nbsp

Prohibits the imposition of fees or surcharges 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.

Go to top S09656 Actions:

BILL NOS09656 

&nbsp

03/31/2026REFERRED TO BANKS

04/28/20261ST REPORT CAL.857

04/29/20262ND REPORT CAL.

05/04/2026ADVANCED TO THIRD READING 

05/14/2026SUBSTITUTED BY A3304B

&nbspA03304 AMEND=B Tapia

&nbsp01/27/2025referred to banks

&nbsp01/07/2026referred to banks

&nbsp01/14/2026amend (t) and recommit to banks

&nbsp01/14/2026print number 3304a

&nbsp01/20/2026reported 

&nbsp01/22/2026advanced to third reading cal.231

&nbsp02/24/2026amended on third reading 3304b

&nbsp03/31/2026passed assembly

&nbsp03/31/2026delivered to senate

&nbsp03/31/2026REFERRED TO BANKS

&nbsp05/14/2026SUBSTITUTED FOR S9656

&nbsp05/14/20263RD READING CAL.857

&nbsp05/14/2026PASSED SENATE

&nbsp05/14/2026RETURNED TO ASSEMBLY

Go to topS09656 Committee&nbspVotes:

Go to topS09656 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS09656 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 9656

 IN SENATE

 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:

 1 Section 1. The banking law is amended by adding a new section 9-aa to
 2 read as follows:
 3 § 9-aa. Electronic benefit transfer services. 1. As used in this
 4 section:
 5 (a) "electronic benefit transfer services" means any service relating
 6 to the use of an electronic benefit transfer card including deposit,
 7 withdrawal, disbursement via electronic fund transfer, checks, or other
 8 mechanisms; reconciliation; reporting; or electronic cash management for
 9 benefit programs; and
 10 (b) "electronic benefit transfer card" means any card or device issued
 11 in connection with the electronic benefit transfer system established in
 12 section twenty-one-a of the social services law that allows individuals
 13 to access public assistance or benefit funds including:
 14 (i) any medical assistance card, food stamp assistance card, public
 15 assistance card, or any other identification, authorization card or
 16 electronic access device issued by the state or a social services
 17 district as defined in subdivision seven of section two of the social
 18 services law which entitles a person to obtain public assistance bene-
 19 fits under a local, state or federal program administered by the state,
 20 its political subdivisions or social services districts; or
 21 (ii) any unemployment insurance program card, occupational training
 22 act program card, adoption subsidy electronic payments program card, or
 23 card issued by the New York child support program which entitles a
 24 person to receive funds under a local, state or federal program adminis-
 25 tered by the state, its political subdivisions or social services
 26 districts.
 27 2. No banking organization, out-of-state state bank that opens, occu-
 28 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

 1 this chapter, or foreign banking corporation licensed by the superinten-
 2 dent to transact business in this state shall impose any fee or
 3 surcharge on a consumer, cardholder or benefit recipient for electronic
 4 benefit transfer services attributable to the use of an electronic bene-
 5 fit transfer card.
 6 3. No operator or owner of an automated teller machine as defined in
 7 section seventy-five-b of this chapter shall impose any fee or surcharge
 8 on a consumer, cardholder or benefit recipient for electronic benefit
 9 transfer services attributable to the use of an electronic benefit
 10 transfer car