Assembly passes bill to bar paper-statement fees for some public-assistance applicants

The New York State Assembly on May 28 passed A.1799, a bill to prohibit financial institutions from charging a fee for paper account statements when those statements are required to apply for public assistance. Assemblymember Heinemann, the bill’s sponsor, told colleagues the measure would ensure “no New Yorker is denied access to public benefits simply because they can't afford a bank fee.”

Supporters said the change would help seniors, veterans and people on public assistance who sometimes must present paper statements to apply for benefits. Assemblymember Walsh and others pressed the sponsor on implementation details: how customers would prove they were applying for benefits, whether banks could require a showing, and the role of public libraries or online printing as alternatives. Heinemann said customers would request the waiver and could show an application or note; enforcement would fall to the New York State Department of Financial Services.

Opponents and some questioners warned the bill could place banks in an awkward position by requiring them to vet customers' benefit applications and suggested alternatives, such as a capped fee. The Assembly recorded the final action as Ayes 131, Noes 9; the bill will take effect on the 180th day after enactment.

Implementation and next steps: the sponsor said the Department of Financial Services would enforce the statute and address administrative questions. The bill text directs that eligible individuals must request the waiver and present evidence (application, statement, or other proof) to the financial institution. No additional regulatory text was offered on the floor; lawmakers said DFS would issue guidance as needed.

Votes at a glance: A.1799 — Ayes 131, Noes 9 — Passed.