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".
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: 2010: S.7946/A.2600-A, Passed Assembly, Third Reading Cal. in Senate 2007-2008: A.5618/S.311 Referred to Banks 2005-2006: A.4151 S.573, Passed Assembly 2003-2004: A.126/S.381, Passed Assembly 2001-2002: A.202/S.91, Passed Assembly 1998-1999: A.2636/S.2087, Passed Assembly 1996-1997: A.1833-A/S.4876-A, Passed Assembly 1994-1995: 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.
STATE OF NEW YORK ________________________________________________________________________ 77 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________Introduced by Sens. PERALTA, MONTGOMERY -- read twice and ordered print- ed, 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. LBD03358-01-1