NY A06924

The superintendent of the Department of Financial Services, in coordination with the director of state budget, director of state operations, and commissioner of taxation and finance, must study and report on methods to transition unbanked and underbanked New York residents into the banking system through state government payments.

The study must examine types of state payments (tax returns, benefits, credits, unemployment insurance, lottery), current payment methods, and whether direct deposit and debit cards are offered as options.

The study must identify barriers to direct deposit adoption, opportunities for financial education related to banking participation, and whether debit cards or new financial technologies could bridge unbanked individuals into the banking system.

The study must evaluate whether contractual relationships with minority banks, minority-owned bank charter opportunities in underbanked communities, and exemptions from judgment execution for state payments could encourage banking system participation.

A comprehensive report summarizing findings must be submitted to the governor, speaker of the assembly, and temporary president of the senate no later than eighteen months after the act's effective date.