Increases the minimum number of authorized withdrawal transactions at no charge from basic banking accounts for account holders sixty-five years of age or older from eight to twelve.
TITLE OF BILL: An act to amend the banking law, in relation to the number of withdrawal transactions from a basic banking account
PURPOSE OR GENERAL IDEA OF BILL: This bill increases the amount of withdrawal transactions allowed at no additional charge for basic banking account holders aged sixty and older from eight to twelve.
SUMMARY OF SPECIFIC PROVISIONS: This bill amends paragraph c of subdivision 2 of section 14-f of the banking law.
JUSTIFICATION: As part of the Banking Deregulation Act of 1994, state chartered banks were required to offer "lifeline" basic checking accounts which allowed consumers eight free withdrawal transactions (including checks, bank withdrawals, and withdrawals from a bank's own ATM) during anyone month billing cycle. The lifeline account was designed to assist the poorest residents of our state who are required to use banks to receive their Social Security and SSI payments electronically. However, senior citizens, who make up the largest group who use banks for receipt of federal benefits, are also the group least likely to be able to afford the additional expenses required to maintain a bank account. In many instances, seniors must make more than eight withdrawal transactions per month to cover out-of-pocket medical expenses and unexpected events. Providing an increase for seniors is reasonable and would allow seniors living on fixed incomes to avoid certain banking fees.
PRIOR LEGISLATIVE HISTORY: 5/26/98 - A.9516, referred to Rules,advanced to third reading 3/27/98 S.6692, referred to Senate Banks 2/28/00 - A.4993-A, amended on third reading 3/3/00 - S.2839-A, recommitted to Senate Banks 1/9/02 A.3169, referred to Assembly Banks 1/21/05 - A.1893, referred to Assembly Banks 5/31/05 - A.1893, passed Assembly, delivered to Senate 1/4/06 - died in Senate, returned to Assembly and committed to Rules 2/14/06 - A.1893, passed Assembly, delivered to Senate and referred to Banks 1/3/07 A.303, referred to Assembly Banks 1/9/08 - A.303, referred to Assembly Banks,1/22/09 - A.3072, referred to Assembly Banks, A.3071 reported 4/28/09, A.3071, advanced to third reading cal.448, 5/4/09- A.3071 passed Assembly, delivered to Senate 5/4/09, referred to Senate Banks- died in Senate, 1/6/10, returned to Assembly, A.3071, ordered to third reading cal. 250, 2/23/10, A.3071 passed Assembly, delivered to Senate 2/23/10, referred to Senate Banks, 2/23/10
FISCAL IMPLICATIONS: None to the state.
EFFECTIVE DATE: Sixty days after becoming law.
STATE OF NEW YORK ________________________________________________________________________ 3652 2011-2012 Regular Sessions IN SENATE February 28, 2011 ___________Introduced by Sen. SMITH -- 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 the number of withdrawal transactions from a basic banking account THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph (c) of subdivision 2 of section 14-f of the bank- ing law, as added by chapter 1 of the laws of 1994, is amended to read as follows: (c) eight withdrawal transactions FOR ACCOUNT HOLDERS UNDER SIXTY-FIVE YEARS OF AGE, AND TWELVE WITHDRAWAL TRANSACTIONS FOR ACCOUNT HOLDERS SIXTY-FIVE YEARS OF AGE OR OLDER, including those conducted at electron- ic facilities, during any periodic cycle at no additional charge to the account holder; and S 2. This act shall take effect on the sixtieth day after it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06558-01-1