What's happening
This bill prohibits banks from placing holds on funds from state-issued checks deposited by customers.
Why it matters
Improves immediate access to funds for recipients of state-issued checks. (such as tax refunds, unemployment benefits, or other government payments), which can be critical for individuals who rely on these payments for basic needs.
Prevents banks from using check holds as a barrier to timely financial support. , especially for low-income or vulnerable populations who may not have other resources while waiting for funds to clear.
Reduces financial uncertainty and potential late fees. for individuals who might otherwise face delays in paying bills or meeting obligations due to held state-issued funds.
Creates a uniform standard across banks. , ensuring all customers depositing state-issued checks are treated equally regarding fund availability, regardless of their banking institution.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Stop Holding State Checks
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
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 Holds on State Checks
In Assembly Committee · Banks · Sponsor J. Gary Pretlow
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2655
2017-2018 Regular Sessions
IN SENATE
January 17, 2017
Introduced by Sens. HAMILTON, COMRIE -- 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 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.
Sponsor's memo
Title of bill
An act to amend the banking law, in relation to the deposit of state issued checks
Purpose of bill
Prohibits banks from holding for deposit state issued checks.
Summary of specific provisions
Section 1. The Banking Law is amended by adding a new section 9-e to read as follows:
Section 9-e. Deposit of state issued checks. No banking institution, as defined in section nine-f of this chapter, shall hold for deposit the funds from a check issued by the state.
Justification
Individuals who are on worker's compensation, unemployment, etc. cannot cash their check at a bank that they do not have an account with. They must resolve to go to a check-cashing outlet where a fee is charged to process the check. These individuals who rely on this income should not have to go to these places and pay these fees, when it is obvious that they cannot afford it.
Legislative history
S6240 of 2015/16 Legislative Session
Fiscal implications
None.
Effective date
This act shall take effect on the thirtieth day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.