senate Bill S2495

Amended

Relates to banking development districts; requires renewal of certain branches within banking development districts

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Sponsor

Bill Status


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

  • 17 / Jan / 2013
    • REFERRED TO BANKS
  • 08 / Jan / 2014
    • REFERRED TO BANKS
  • 09 / May / 2014
    • AMEND AND RECOMMIT TO BANKS
  • 09 / May / 2014
    • PRINT NUMBER 2495A

Summary

Relates to banking development districts; requires renewal of certain branches within banking development districts.

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Bill Details

Versions:
S2495
S2495A
Legislative Cycle:
2013-2014
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Amd ยง96-d, Bank L
Versions Introduced in 2011-2012 Legislative Cycle:
S6692

Sponsor Memo

BILL NUMBER:S2495

TITLE OF BILL:
An act
to amend the banking law, in relation to banking development districts

PURPOSE:
This bill would strengthen the Banking Development District (BDD)
program by clarifying the goals of the program and the criteria by
which a branch's effectiveness should be measured.

SUMMARY OF PROVISIONS:
This bill amends Section 96-d of the Banking Law by adding a new
subdivision 7 (a) and (b);

(a) would require BDD branch's to provide affordable products and
services, which include financial educational services within their
community, and (b), would require participating BDD branch's to meet
certain criteria in order to qualify for renewal of their deposit.

JUSTIFICATION:
The Banking Development District (BDD) Program was created in 1997 to
provide an incentive to banks to promote the establishment of new
bank branches in communities with. no or few branches and thereby
stimulate the opening of bank accounts by community residents. The
incentive of public deposits and other benefits provided to those
banks that open a BDD branch in under served communities is to better
ensure that the new branch will have sufficient deposits to provide
loans and other services.

The Banking Department conducted a study of the BDD Program that was
published in 2010 which identified "next steps" to be taken to
improve the program based on feedback collected from the banks,
community groups and other stakeholders involved in the BDD Program.
This bill is based on the results of that study as well as on a
Roundtable held by the Assembly Banks Committee in October 2011 on
the BDD Program. While the BDD Program has been very effective, both
the Banking Department study and the Assembly Roundtable identified
several features of the Program where legislative clarification would
be appropriate. Specifically, the findings included a need to clarify
the goals of the program; provide standards by which renewals of
deposits could better be measured: and, require branches
participating in the program to
provide financial education to members of the district in which it is
located. This bill seeks to address those findings.

LEGISLATIVE HISTORY:
2012 - S. 6692 Banks Committee/A. 9296 Reported to Calendar.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:
This act shall take effect on the ninetieth day after is shall have
become law.


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

                                  2495

                       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  banking  development
  districts

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

  Section 1. Section 96-d of the banking law is amended by adding a  new
subdivision 7 to read as follows:
  7.  (A) IN ORDER TO MEET THE DEMONSTRATED NEED FOR BANKING SERVICES IN
A BANKING DEVELOPMENT DISTRICT, ANY BANK, TRUST COMPANY OR NATIONAL BANK
THAT HAS ESTABLISHED A BRANCH  WITHIN  A  BANKING  DEVELOPMENT  DISTRICT
SHALL OFFER AFFORDABLE PRODUCTS AND SERVICES, INCLUDING FINANCIAL EDUCA-
TION  SERVICES,  TAILORED TO THE BANKING NEEDS OF THE COMMUNITY IN WHICH
THE BRANCH IS LOCATED.
  (B) ANY BANK, TRUST COMPANY OR NATIONAL BANK THAT  HAS  ESTABLISHED  A
BRANCH  IN  A  BANKING  DEVELOPMENT DISTRICT THAT SEEKS TO REMAIN IN THE
BANKING DEVELOPMENT DISTRICT PROGRAM SHALL APPLY FOR RENEWAL OF AUTHORI-
ZATION TO PARTICIPATE IN THE BANKING DEVELOPMENT DISTRICT PROGRAM  IN  A
FORM  AND  MANNER  DETERMINED  BY THE SUPERINTENDENT. THE SUPERINTENDENT
SHALL DETERMINE THE CRITERIA TO BE USED IN EVALUATING WHETHER  TO  GRANT
SUCH  RENEWAL  REQUEST.  SUCH  CRITERIA SHALL INCLUDE, AT A MINIMUM, THE
EXTENT TO WHICH THE BRANCH HAS MET ITS GOALS AS STATED IN  ITS  ORIGINAL
BANKING  DEVELOPMENT DISTRICT APPLICATION; THE EXTENT TO WHICH THE GOALS
STATED IN ITS ORIGINAL APPLICATION CONTINUE  TO  BE  RESPONSIVE  TO  THE
BANKING NEEDS OF THE BANKING DEVELOPMENT DISTRICT IN WHICH THE BRANCH IS
LOCATED; THE EXTENT TO WHICH THE BRANCH HAS BEEN RESPONSIVE TO THE BANK-
ING  NEEDS  OF,  AND ENJOYS THE SUPPORT OF, THE COMMUNITY IN WHICH IT IS
LOCATED; THE QUALITY OF AFFORDABLE PRODUCTS AND SERVICES OFFERED BY  THE
BRANCH; THE EXTENT OF FINANCIAL EDUCATION ACTIVITIES IN WHICH THE BRANCH
HAS  PARTICIPATED; OTHER INFORMATION REGARDING THE BRANCH, INCLUDING ITS
PROFITABILITY, LENDING ACTIVITIES AND EMPLOYMENT LEVELS.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00177-01-3

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