Directs every banking organization or foreign banking corporation transacting business in this state to cash properly endorsed social security checks presented by the payee, upon sufficient identification, notwithstanding the fact that such payee does not maintain an account with such organization or corporation, upon proof that such payee is sixty-two years of age or older; defines "sufficient identification".

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S71-2013 Actions

• Jan 9, 2013: REFERRED TO BANKS

S71-2013 Memo

BILL NUMBER:S71

TITLE OF BILL:
An act
to amend the banking law, in relation to the negotiation of social
security checks

PURPOSE:
Enables senior citizens to cash social security checks without
maintaining an account at the bank honoring such check.

SUMMARY OF PROVISIONS:
The banking law is amended by adding a new section 6-n requiring banks
and foreign banking corporations in this state to cash properly
endorsed social security checks upon presentation of sufficient
identification, even though the payee is a non-depositor.

JUSTIFICATION:
Senior citizens have difficulty cashing their social security checks
in banks where they do not have an account and in banks where they
have insufficient funds to cover the check. Many senior citizens who
are unable to maintain sufficient funds in their account to cover
their social security check resort to check cashing businesses where
they charge a fee or have friends or family cash it for them. New
York State social security checks should be negotiable regardless of
non-depositor status.

LEGISLATIVE HISTORY:
2011-12:  S.77
2010:     S.7946/A.2600-A, Passed Assembly, Third Reading
          Cal. in Senate
2007-08:  A.5618/S.311, Referred to Banks
2005-06:  A.4151/S.573, Passed Assembly
2003-04:  A.126/S.381, Passed Assembly
2001-02:  A.202/S.91, Passed Assembly
1998-99:  A.2636/S.2087, Passed Assembly
1996-97:  A.1833-A/S.4876-A, Passed Assembly
1994-95:  A.416/S.1279, Passed Assembly

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law.

S71-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                     71

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  Introduced  by  Sen. PERALTA -- 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  negotiation  of
    social security checks

    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 6-n  to
  read as follows:

    S  6-N. NEGOTIATING SOCIAL SECURITY CHECKS. EVERY BANKING ORGANIZATION
  OR FOREIGN BANKING CORPORATION TRANSACTING BUSINESS IN THIS STATE  SHALL
  CASH  PROPERLY  ENDORSED  SOCIAL SECURITY CHECKS PRESENTED BY THE PAYEE,
  UPON SUFFICIENT IDENTIFICATION, NOTWITHSTANDING THE FACT THAT SUCH PAYEE
  DOES NOT MAINTAIN AN ACCOUNT WITH SUCH ORGANIZATION OR CORPORATION, UPON
  PROOF THAT SUCH PAYEE IS SIXTY-TWO YEARS OF AGE OR OLDER.  FOR  PURPOSES
  OF  THIS SECTION, "SUFFICIENT IDENTIFICATION" SHALL MEAN A PICTURE IDEN-
  TIFICATION CARD ISSUED TO SUCH PAYEE BY THE DEPARTMENT  OF  MOTOR  VEHI-
  CLES,  A SHERIFF'S DEPARTMENT OR A BANKING ORGANIZATION WHERE SUCH CHECK
  IS PRESENTED FOR PAYMENT.
    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.
                                                             LBD01112-01-3