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A1972Assembly2019-2020 Session

Banks Must Cash Valid Checks

Official title

“Provides that a banking institution must cash checks drawn on said institution, if payee presents a form of valid identification”

Sponsor Kenneth ZebrowskiAD-96Affects Finance
Status
Stricken
Impact
6/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Banks

What's happening

This bill requires banks in New York to cash checks of $500 or less for account holders with valid ID, unless criminal activity is suspected.

Why it matters

  1. Improves access to funds for account holders. By requiring banks to cash checks of $500 or less for their own customers with valid ID, the bill helps ensure that people can access their money easily, especially those who may not have direct deposit or need immediate cash.

  2. Reduces risk of arbitrary bank denial. The bill makes it a violation if banks refuse to cash eligible checks without reason, unless criminal activity is suspected. This could protect customers from unfair treatment or overly restrictive bank policies.

  3. Supports financial inclusion and reduces reliance on check-cashing services. By guaranteeing access to check cashing at banks, the bill may help reduce the need for costly third-party check-cashing services, which often charge high fees and disproportionately affect low-income individuals.

  4. Sets clear rules for identification requirements. The bill standardizes the requirement for a government-issued photo ID, providing clarity for both customers and banks about what is needed to cash a check, potentially reducing confusion and disputes at the teller window.

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Who cares

Headline styles

Banks Must Cash Valid Checks

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Kenneth Zebrowski

Assembly Member · Assembly District 96

No co-sponsors yet.

History

  1. Enacting clause stricken
  2. Referred to banks
  3. Referred to banks

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

1972

2019-2020 Regular Sessions

IN ASSEMBLY

January 18, 2019

Introduced by M. of A. ZEBROWSKI -- read once and referred to the Committee on Banks

AN ACT to amend the banking law, in relation to check cashing policies

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-x to read as follows:

§ 9-x. Cashing of certain checks. 1. No banking institution as such term is defined in section nine-f of this article shall, refuse to cash checks, in the amount of five hundred dollars or less, drawn on accounts in such institution or a branch as long as there are sufficient funds within the account on which the check is drawn. Such institution may require, as a condition for cashing such check, that the payee present a valid government-issued photo identification card.

2. If a person presents a form of identification, as provided in subdivision one of this section, and a signature or mark, and the institution refuses to cash the check in the absence of criminal activity, such institution shall be guilty of a violation of this section.

§ 2. This act shall take effect on the ninetieth day after it shall have become a law.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD06176-01-9

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.