Today the Minnesota Senate unanimously passed bipartisan legislation authored by Senator Karin Housley (R-Stillwater) that seeks to increase access to checking accounts at banks and credit unions.

Current law requires that banks confirm that an applicant for any bank account has not had an account closed without consent due to bad checks, nor has been convicted of a criminal offense due to use of a check. This has historically protected banks from customers that hop from bank-to-bank to open checking accounts, write bad checks, and repeat the process at other institutions.

Language in this bill allows financial access programs to help low to moderate-income individuals build financial well-being through free tax preparation and financial services and will also change the amount charged for a bounced check from $4 to $10. This legislation ensures that banks and credit unions are protected, while also allowing them to provide services to those in need of financial help. This change would only apply to state-chartered institutions.

“Too often, there are cases of people who have had a bad run with their finances, and suddenly their checking accounts are closed, and they can’t open another account for a year, so they’re left to rely on alternatives like check-cashing stores that charge higher fees,” said Sen. Housley. “This bill strikes a good balance so that banks and credit unions are still protected but are also able to serve those that have had a bad run of financial luck. This is a simple but important bill, and I’m glad we were able to get it passed with unanimous support.”