senate Bill S2494

Signed by Governor

Relates to the maximum amount of funds which the state comptroller and the commissioner of taxation and finance may deposit

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Sponsor

Bill Status


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

  • 17 / Jan / 2013
    • REFERRED TO BANKS
  • 12 / Feb / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 20 / Mar / 2013
    • 1ST REPORT CAL.269
  • 21 / Mar / 2013
    • 2ND REPORT CAL.
  • 24 / Mar / 2013
    • ADVANCED TO THIRD READING
  • 16 / Apr / 2013
    • PASSED SENATE
  • 16 / Apr / 2013
    • DELIVERED TO ASSEMBLY
  • 16 / Apr / 2013
    • REFERRED TO BANKS
  • 17 / Jun / 2013
    • SUBSTITUTED FOR A3236
  • 17 / Jun / 2013
    • ORDERED TO THIRD READING RULES CAL.210
  • 17 / Jun / 2013
    • PASSED ASSEMBLY
  • 17 / Jun / 2013
    • RETURNED TO SENATE
  • 01 / Nov / 2013
    • DELIVERED TO GOVERNOR
  • 13 / Nov / 2013
    • SIGNED CHAP.495

Summary

Relates to the maximum amount of funds which the state comptroller and the commissioner of taxation and finance may deposit and the maximum amount of funds on deposit at a community banking institution.

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Bill Details

See Assembly Version of this Bill:
A3236
Versions:
S2494
Legislative Cycle:
2013-2014
Law Section:
Banking Law
Laws Affected:
Amd ยง87, Bank L
Versions Introduced in 2011-2012 Legislative Cycle:
S4927A, A8147A

Sponsor Memo

BILL NUMBER:S2494

TITLE OF BILL: An act to amend the banking law, in relation to the
community bank deposit program

PURPOSE: To permit participating banks to expand their usage of the
community bank deposit program.

SUMMARY OF PROVISIONS: This bill amends subdivision 2 of section 87
of the Banking Law to cap the amount of funds which an individual bank
may have on deposit to $20 million.

JUSTIFICATION: The community bank deposit program seeks to encourage
the State Comptroller and the Commissioner of Taxation and Finance to
consider placing State funds into local banks. This program recognizes
that local banks are well-positioned to use their deposits to support
economic activities in their communities. This bill seeks to expand
the program to ensure additional availability of funds.

By encouraging the placement of State deposits in local banks, this
program creates an opportunity for New York State to help stimulate
local economic development. Currently, much of the State's funds may
be placed in brokerage firms or in large banking institutions, many of
which may be head quartered in another state. In either of those
cases, the economic benefits of the State deposits may flow out of the
state, and the resulting local economic benefit can be minimal.

In contrast, deposits in local community banks can have a significant
impact within that particular community. The placement of state
deposits would help enable these community banking institutions to
meet the economic needs of their local communities. Because many small
communities are home to small state and national banks, expanding the
program would be of benefit to the economies of these small
communities.

California has had a successful program for a number of years in which
the State broadly deposits its funds into a large number of financial
institutions and local communities. The intent of New York's law is to
encourage the State to consider a similar approach by placing more of
its funds in local community banks. While the Comptroller and the
Commissioner are not required to make such deposits, they are
encouraged to consider the benefits of such an approach. This would
enhance the ability of small local banks to support the economies of
their communities by making commercial loans to local businesses.

LEGISLATIVE HISTORY: 2011-12 S. 4927a Passed Senate/A. 8147a - Banks
Committee.

FISCAL IMPLICATIONS: This bill would have only a minimal fiscal
impact, depending on the rate of return received on any deposits
placed under this program.

EFFECTIVE DATE: Immediate.


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

                                  2494

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 17, 2013
                               ___________

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

AN ACT to amend the banking law,  in  relation  to  the  community  bank
  deposit program

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

  Section 1. Subdivision 2 of section 87 of the banking law, as  amended
by chapter 274 of the laws of 2007, is amended to read as follows:
  2.  The  maximum  amount  of funds which the state comptroller and the
commissioner of taxation and finance  may  deposit  under  this  program
shall  not  exceed  two hundred fifty million dollars each.  THE MAXIMUM
AMOUNT OF FUNDS ON DEPOSIT AT A COMMUNITY BANKING INSTITUTION SHALL  NOT
EXCEED TWENTY MILLION DOLLARS.
  S 2. This act shall take effect immediately.






 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07267-01-3

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