What's happening
This bill prohibits banks from placing holds on funds from checks issued by the State of New York.
Why it matters
Immediate access to state-issued funds. By requiring banks to make funds from state-issued checks available without delay, the bill ensures that recipients—such as state employees, benefit recipients, and contractors—can access their money right away, which can be crucial for individuals living paycheck to paycheck.
Reduces financial uncertainty and hardship. Eliminating holds on state-issued checks helps avoid situations where people are unable to pay bills, rent, or meet other financial obligations due to delayed access to funds, reducing the risk of overdraft fees and other penalties.
Holds banks accountable for state disbursements. The bill places a specific regulatory obligation on banks regarding how they handle government-issued payments, potentially addressing past complaints or inconsistencies in how quickly such checks are cleared compared to private or out-of-state checks.
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Who cares
Headline styles
Stop Holds on State Checks
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
2 Multi-sponsors
History
- Referred to banks
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Stop Holding State Checks
In Senate Committee · Banks · Sponsor Jesse Hamilton
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3569
2017-2018 Regular Sessions
IN ASSEMBLY
January 27, 2017
Introduced by M. of A. PRETLOW, COOK, HOOPER -- Multi-Sponsored by -- M. of A. GLICK, GOTTFRIED -- read once and referred to the Committee on Banks
AN ACT to amend the banking law, in relation to the deposit of state issued checks
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The banking law is amended by adding a new section 9-e to read as follows:
§ 9-e. Deposit of state issued checks. No banking institution, as defined in section nine-f of this article, shall hold for deposit the funds from a check issued by the state.
§ 2. This act shall take effect on the thirtieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00715-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.