NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7502 REVISED 1/20/2026
SPONSOR: Pretlow 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 which 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:
2023-2024 A4555 referred to banks
2021-2022 A1699 referred to banks
2019-2020 A3554 referred to banks
01/03/18 A3569 referred to banks
01/30/13 referred to banks
01/08/14 referred to banks
04/07/14 enacting clause stricken
01/22/15 A3328 referred to banks
01/06/16 A3228 referred to banks
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become law.
STATE OF NEW YORK
________________________________________________________________________
7502
2025-2026 Regular Sessions
IN ASSEMBLY
March 28, 2025
___________
Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee 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 Assem-bly, do enact as follows:
1 Section 1. The banking law is amended by adding a new section 9-e to
2 read as follows:
3 § 9-e. Deposit of state issued checks. No banking institution, as
4 defined in section nine-f of this article, shall hold for deposit the
5 funds from a check issued by the state.
6 § 2. This act shall take effect on the thirtieth day after it shall
7 have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10711-01-5
