senate Bill S217

Relates to the procurement of banking services

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Sponsor

Co-Sponsors

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Jan / 2013
    • REFERRED TO FINANCE
  • 08 / Jan / 2014
    • REFERRED TO FINANCE

Summary

Relates to the procurement of banking services.

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Bill Details

See Assembly Version of this Bill:
A199
Versions:
S217
Legislative Cycle:
2013-2014
Current Committee:
Senate Finance
Law Section:
State Finance Law
Laws Affected:
Add ยง163-c, St Fin L
Versions Introduced in 2011-2012 Legislative Cycle:
S6348, A9175

Sponsor Memo

BILL NUMBER:S217

TITLE OF BILL:
An act
to amend
the state finance law, in relation to the procurement of banking
services

PURPOSE:
To provide an incentive to financial institutions to comply with the
cap on the rates of interest authorized in section 5-501 of the
General Obligations Law and established by subdivision one of section
fourteen-a of the Banking Law.

SUMMARY OF PROVISIONS:

Section 1 of the bill would add a new section 163-c to the State
Finance Law which relates to the procurement of banking services. The
new Section 163-c would provide that state agencies, as part of the
process of evaluating proposals for procuring banking services, take
into account whether a financial institution complies with the cap on
the rate of interest for credit cards and loans authorized in section
5-501 of the General Obligations Law and established by subdivision
one of section fourteen-a of the Banking Law. The scoring would be
accomplished in accord with regulations adopted by the superintendent
of Financial Services in consultation with the State comptroller..

Section 2 of the bill sets forth the effective date.

JUSTIFICATION:
People throughout the State have fallen victim to financial
institutions applying usurious credit card and loan interest rates.
The current cap on interest rates authorized in section 5-501 of the
General Obligations Law and established by subdivision one of section
fourteen-a of the Banking Law is applicable only to State-chartered
banks. By including compliance with this provision in procurement for
State agency banking services, the proposed legislation would create
an incentive for banks chartered outside the State to comply with
these provisions when offering credit or making loans to residents of
the State.

LEGISLATIVE HISTORY:
This is a new bill.
2012: Committee Discharged and Committed to Rules

FISCAL IMPACT ON THE STATE:
This bill would have no significant fiscal impact.

EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law provided, however, that effective immediately
the addition, amendment and/or repeal of any rule or regulation
necessary for implementation of this act on its effective date are
authorized and directed to be made and completed by the department of
financial services on or before such effective date.


view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   217

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. SQUADRON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the state finance law, in relation to the procurement of
  banking services

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.   The state finance law is amended by adding a new section
163-c to read as follows:
  S 163-C. PROCUREMENT OF  BANKING  SERVICES.  IN  MAKING  AN  AWARD  OF
CONTRACTS  FOR  BANKING  SERVICES,  AS PART OF THE SCORING OF OFFERS, IN
ADDITION TO CONSIDERATION OF QUALITY, COST AND EFFICIENCY, A STATE AGEN-
CY SHALL CONSIDER WHETHER THE FINANCIAL INSTITUTION HAS CHOSEN TO COMPLY
WITH THE CAP ON THE RATE OF INTEREST AUTHORIZED IN SECTION 5-501 OF  THE
GENERAL  OBLIGATIONS  LAW  AND ESTABLISHED BY SUBDIVISION ONE OF SECTION
FOURTEEN-A OF THE BANKING LAW IN MAKING LOANS TO THE  RESIDENTS  OF  THE
STATE.  THE  SCORING  SHALL  BE  ACCOMPLISHED IN ACCORD WITH REGULATIONS
ADOPTED BY THE SUPERINTENDENT OF FINANCIAL SERVICES IN CONSULTATION WITH
THE STATE COMPTROLLER.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law provided, however, that effective immediately
the addition, amendment and/or repeal of any rule or  regulation  neces-
sary  for  the  implementation  of  this  act  on its effective date are
authorized and directed to be made and completed by  the  department  of
financial services on or before such effective date.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00292-01-3

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