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ABA: The American Bankers Association

Comparative State Law Charts

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ABA is your one-stop resource for banking legislation information from each of the 50 states and the District of Columbia. Stay up to date with customized issue reports, annual wrap-ups of major state banking legislation, and regularly scheduled legislative telephone briefings.

ATMs

State law governs many aspects related to ATMs including placement, security requirements, accessibility and fees.

Cannabis

The rift between federal and state law has left banks trapped between their mission to serve the financial needs of their local communities and the threat of federal enforcement action. ABA tracks state laws pertaining to medical and recreational cannabis, hemp and CBD.

Credit Unions

Current credit union tax exemptions and regulations have led to unfair competition for banks. State law can control important aspects of credit union operations, including field of membership, tax status, and ability to accept public deposits.

Elder Financial Abuse

Seniors lose billions of dollars to exploitation each year. State legislatures have taken differing approaches to help banks combat elder financial abuse through employee training, reporting requirements, authority to implement account freezes or transaction holds, and processes for identifying and contacting a trusted third-party.

Financial Literacy

At the state-level, ABA tracks legislation that imposes financial literacy requirements in schools.

Fintech

Keeping up with emerging technologies is essential for enhancement of banks’ product offerings and customer experience.

Glass-Steagall

ABA monitors state deliberations regarding Glass-Steagall and provides context to state legislatures regarding the current framework of the financial system.

Notarization

Both state and federal law require banks to follow various procedural and legal requirements in order to properly document many transactions. ABA tracks state legislation governing the procedures for notarization, including the ability of a notary to authenticate electronic documents and notarize documents remotely through online notarization.

PACE

Property Assessed Clean Energy loans are a type of financing that allows homeowners to pay for energy-efficient retrofitting through their property tax assessments. ABA tracks state law requirements in connection with commercial and residential PACE programs.

Payments

One of the key roles of banks in the US economy is to facilitate the transfer of funds through the payment system.

Privacy

Robust federal privacy and data security protection requirements for financial institutions have been in place for more than 20 years. States have increasingly stepped into the data protection and privacy space in recent years, creating a patchwork of laws relating to data breach, biometrics, consumer privacy rights and more.

ATMs

Automated Teller Machines (ATMs) provide consumers with easy access to their accounts and remain one of the top methods for customers to interface with their bank. As customer trends shift away from bank branches, ATMs will offer customers additional opportunities to access banking services. However, ATMs also remain a prime target for criminals. Whether the criminals attempt to breach the machine through physical means or through malware infections, banks must remain knowledgeable about the evolving threats to ATM security in their region. ABA tracks state laws related to ATMs including the placement of ATMs, security requirements, accessibility and fees.

Learn more about ATM Security

Cannabis

Thirty-three states and the District of Columbia have authorized usage of marijuana for medical or adult-use purposes. However, federal law still makes possession and use of marijuana illegal.  All banks are subject to federal law, whether the bank is a national bank or state-chartered bank.  At a minimum, all banks maintain federal deposit insurance which requires adherence to federal law. And, all banks must have access to the payment system which also is subject to federal jurisdiction. Violation of federal law could subject a bank to loss of its charter.

Nevertheless, banks must determine how to navigate the divide between state and federal cannabis laws.  Many state legislatures have legalized cannabis in some form, and some have attempted to solve the cannabis banking problem through proposals that attempt to insulate the state’s involvement from the reach of federal law.  

Learn more about Cannabis Banking

Credit Unions

Like banks, credit unions can be state or federally chartered and state law can control important aspects of credit union operations. Once, members of a credit union knew each other and pooled their resources to provide credit for their co-workers and/or neighbors. Today, many credit unions have grown into highly profitable, billion-dollar institutions offering a full range of financial services–including insurance and securities brokerage–to just about anyone. These institutions look and act like banks, yet they do not pay taxes or abide by the same rules as banks. The NCUA has steadily adopted policies that have expanded credit union membership beyond the limits prescribed by Congress. As credit union membership expands, so does the cost to American taxpayers, who underwrite the credit union industry’s tax subsidy to the tune of more than 3.5 billion a year. ABA has challenged NCUA’s policies through comment letters and in court and will continue to make the case that similar institutions ought to be treated similarly. ABA tracks state-level legislation impacting credit unions, keeping tabs on topics addressing capital requirements, taxation, changes to field of membership, and any related resolutions to Congress.

Learn more about Credit Union Competition

See ABA's Reform Credit Unions Website

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Elder Financial Abuse

Banks take an active role in the fight against elder financial abuse and have several practices in place to help them detect, deter and prevent this type of fraud.  Fraudsters target older Americans because they may be experiencing cognitive decline, limited mobility or other disabilities that require them to rely on others for help.  

In 2018, the Trump administration signed the Senior Safe Act into law, which provides immunities to financial institutions from bank privacy laws when disclosing information regarding elder financial exploitation to regulators and law enforcement. The immunity is contingent on training and bank role. 

State legislatures have taken differing approaches to help banks combat elder financial abuse through employee training, reporting requirements, authority to implement account freezes or transaction holds, and processes for identifying and contacting a trusted third-party.  States considering legislative action should provide banks with a shield from liability for taking actions to protect customers.  

ABA Foundation Resources

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Financial Literacy

Banks provide financial education programs and resources that make their communities better.  Bankers understand that an educated consumer is the best customer.  Education and hands-on money experience are critical in building a generation of smart money managers.

Explore the ABA Foundation Financial Education Programs

Fintech

Emerging technologies have changed the way financial institutions connect with their customers. Banks have embraced innovation, building internally and partnering with innovative startups in order to better serve their customers. Mobile and online banking have greatly improved the customer experience, enabling consumers to manage their money, receive financial advice, and connect with their bank on-the-go from the palm of their hands. Balancing new technological advancements and digital convenience with the security and protections consumers expect is paramount to banks, and ABA recognizes this by staying on top of emerging legislation impacting the FinTech sphere. Legislative topics that are tracked at the state-level include legislation related to digital currency, regulatory sandboxes, use of blockchain technology, money services/transmitters, and anti-money laundering.

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Glass-Steagall

The Banking Act of 1933, commonly referred to as “Glass-Steagall” was enacted in response to the great depression and among other things, it separated commercial and investment banking.  The act created the FDIC, established our deposit insurance system, prohibited banks from paying interest on demand deposits, and regulated bank affiliate transactions.  Contrary to popular belief, the 1999 enactment of the “Gramm-Leach-Bliley Act” (GLBA) did not repeal Glass-Steagall although it did remove the prohibition on commercial and investment banking in response to global competitive pressures.    Glass-Steagall still imposes restrictions on investment banking and commercial banking, including limits on bank interactions with their affiliates.

The supposed repeal of Glass-Steagall did not cause the financial crisis.  Leading up to the financial crisis, banks and securities firms were still subject to the prohibitions of Glass-Steagall including a general prohibition against banks underwriting or dealing in any securities that were not “bank eligible”.  Allowing banks to offer a diverse set of financial products makes them stronger and the financial system safer.

Some state legislatures have introduced resolutions calling on Congress and the President to restore Glass-Steagall.  Restoring Glass-Steagall is not a sensible policy.  The financial system has evolved and looks much different now than it did when Glass-Steagall became law in 1933.  The financial system is safer when banks can diversify their investments and product offerings.

Learn more about Glass-Steagall

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Notarization

In many cases, how documents are required to be notarized is governed by state law.  Given the importance of following state law, ABA tracks state legislation governing the procedures for notarization, including the ability of a notary to authenticate electronic documents and notarize documents remotely through online notarization. 

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PACE

Property Assessed Clean Energy (PACE) loans are a financing structure where homeowners finance the purchase energy retrofit products.  The purchase is repaid through local tax assessments.  Since the loan is linked to the municipality’s tax authority, delinquent assessments hold a “super-priority lien” over existing and subsequent first mortgages.  State legislation is necessary to authorize counties, municipalities and other government entities to partner with private entities to administer the retrofit programs.  PACE loans can be used for retrofit products for both residential and commercial properties.  While most commercial programs require prior lienholder consent, residential programs have no notification requirements, leaving banks holding inadequately secured first mortgages.

In addition to concerns about the super-priority lien, residential PACE loans do not require consumer disclosures.  This lack of transparency has led to numerous complaints by consumers about undue pressure from sellers and deceptive information about the cost of the retrofit programs.

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Payments

The payment system includes transfer of money using cash, check, money order and travelers check; debit, credit and prepaid cards; and electronic methods including online banking bill payments and bank account number payments.

While federal law provides the framework for the payment system, much of the law related to the transfer of funds is governed by state law. As such, ABA tracks legislation governing:

  • Requirements on the use of credit or debit cards, including disclosure requirements
  • Bills impacting the transfer of funds
  • Fraud protection
  • Interchange
  • Proposals to require businesses to accept cash
  • EMV Transition
  • Overdraft protection
  • Payroll cards
  • Prepaid cards
  • Virtual credit cards
  • Surcharging

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Privacy

Banks believe very strongly in protecting consumers’ sensitive personal and financial information and their privacy.  For hundreds of years, customers have relied on banks to protect the privacy of their financial information.  Because banks are at the center of people’s financial lives, our industry has long been subject to federal and state data protection and privacy laws.  Federal law – along with many states’ laws – govern the way that financial institutions collect and share information about their customers.  The Gramm-Leach-Bliley Act (GLBA) requires banks to protect the security and confidentiality of customer records and information, provide consumers with notice of their privacy practices and limit the disclosure of financial information with nonaffiliated third parties.  Banks are also subject to other federal privacy and data protection laws, including the Right to Financial Privacy Act, the Fair Credit Reporting Act, the Health Insurance Portability and Accountability Act and the Children’s Online Privacy Protection Act.

Learn more about Privacy

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Useful Links

State Legislative Tracker

Find the status of banking legislation in all 50 states and the District of Columbia.

Working Group on State Issues

Serve as a central conduit for information on emerging state legislative proposals that could impact the banking industry.

Banking Docket Email Bulletin

Get monthly updates on important developments in banking litigation, provided by the Office of ABA General Counsel.

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