Relates to certain information provided to incarcerated individuals upon their release, relating to the payment of funds required by section one hundred twenty-five of this article in the form of an electronic benefit transfer card.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5819
SPONSOR: Dilan TITLE OF BILL:
An act to amend the correction law, in relation to certain information
provided to incarcerated individuals upon their release
PURPOSE OR GENERAL IDEA OF BILL:
Mandates that any financial institution that enters into a contract with
the State of New York to issue release debit cards to incarcerated indi-
viduals upon their release, must provide a clear, understandable, and
detailed schedule of fees with each card.
SUMMARY OF PROVISIONS:
Section 1 adds a new section, 125-a, to the Correction Law, requiring
clear disclosure of all fees and charges for release debit cards issued
to individuals leaving correctional facilities. It mandates that finan-
cial institutions provide a detailed and understandable fee schedule in
both physical and electronic formats, covering fees for ATM use, balance
inquiries, fund transfers, and more, aiming to enhance transparency and
accessibility.
Section 2 sets an effective date.
JUSTIFICATION:
Upon release from correctional facilities, individuals are given their
personal funds on debit cards, known.as release debit cards. While these
cards are intended to aid in the transition back into society, they
often come laden with hidden fees for basic transactions such as balance
inquiries, ATM withdrawals, and monthly service fees. These fees can
quickly erode the limited funds available to the cardholder, impacting
their ability to afford basic necessities during a critical period of
reentry. The lack of transparency and the complexity of the fee struc-
tures make it difficult for individuals to make informed financial deci-
sions.
This legislation requires financial institutions to ensure full disclo-
sure of all fees pertaining to release debit cards. Such disclosures
would be provided in a physical form and, if feasible, electronic form;
and it would be available in the six most common non-English languages
spoken by individuals with limited English proficiency in New York
State, thus ensuring equitable access to essential financial informa-
tion.
This legislation also mandates that any amendments to the fee structure
be communicated to the cardholder with sufficient advance notice, there-
by facilitating informed financial decision-making and enhancing the
financial stability of individuals reintegrating into society.
FISCAL IMPLICATIONS:
None.
PRIOR LEGISLATIVE HISTORY:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
