Provides that a banking institution must cash checks drawn on said institution, if payee presents forms of valid identification; makes such institution guilty of a violation for refusal to cash such check after proper identification.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1082A
SPONSOR: Abinanti TITLE OF BILL:
An act to amend the banking law, in relation to check cashing policies
PURPOSE OR GENERAL IDEA OF BILL:
This bill would provide that a banking institution must cash certain
types of checks, for five hundred dollars or less, drawn on said insti-
tution, if the payee presents a valid government-issued photo identifi-
cation and matching proof of address..
SUMMARY OF PROVISIONS:
Section 1 of the bill amends the banking law by adding a new section 9-z
to provide that no banking institution may refuse to cash certain types
of checks, in the amount of five hundred dollars or less, drawn on
accounts at such institution as long as there are sufficient funds with-
in the account on whichthe check is drawn. Such banking institution may,
as a condition for cashing such checks, require the payee to present a
valid government-issued photo identification and matching proof of
address. If a person provides a form of identification required under
this section, and a signature mark, and the banking institution refuses
to cash the check in the absence of criminal activity, such institution
shall be guilty of a violation.
Section 2 is the effective date.
JUSTIFICATION:
Unfortunately, many New Yorkers are in a position where they either live
paycheck to paycheck or need cash to pay their bills and can't wait for
checks to clear. This bill protects these hardworking New Yorkers by
mandating that a banking institution cash a check drawn upon a solvent
account in that bank. In order to protect against fraud, the banks are
permitted to require one valid government-issued photo identification
and matching proof of adress and a signature or mark.
PRIOR LEGISLATIVE HISTORY:
2019-20: A1972 (Zebrowski) enacting clause stricken; A9139 (Abinanti)
referred to banks; 2017-18: A1686 (Zebrowski) referred to banks, same as
S2462 (Hamilton); 2015-16: A1640 (Zebrowski) referred to banks; 201314:
A1206 (Zebrowski) referred to banks; 2011-12: A2208-B (Zebrowski)
reported referred to codes; 2009-10: A9200 (Zebrowski) referred to
banks; 2007-08: A8943 (Zebrowski) referred to banks; 2005-06: A10616
(Zebrowski) referred to banks
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become law.
STATE OF NEW YORK
________________________________________________________________________
1082--A
2021-2022 Regular Sessions
IN ASSEMBLY
January 7, 2021
___________
Introduced by M. of A. ABINANTI -- read once and referred to the Commit-
tee on Banks -- recommitted to the Committee on Banks in accordance
with Assembly Rule 3, sec. 2 -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
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 Assem-bly, do enact as follows:
1 Section 1. The banking law is amended by adding a new section 9-z to
2 read as follows:
3 § 9-z. Cashing of certain checks. 1. No bank, trust company, savings
4 bank, savings and loan association or credit union shall, refuse to cash
5 a cashier's check, a payroll check, or a certified check in the amount
6 of five hundred dollars or less, drawn on accounts in such institution
7 or a branch as long as there are sufficient funds within the account on
8 which the check is drawn. Such institution may require, as a condition
9 for cashing such check, that the payee present a valid government-issued
10 photo identification and matching proof of address such as a bank state-
11 ment, utility bill or printed pay stub.
12 2. If a person presents such forms of identification, as provided in
13 subdivision one of this section, and a signature or mark, and the insti-
14 tution refuses to cash the check in the absence of suspected fraudulent
15 activity, such institution shall be guilty of a violation of this
16 section and shall be subject to penalties pursuant to section forty-four
17 of this chapter.
18 § 2. This act shall take effect on the ninetieth day after it shall
19 have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01705-02-2
