senate Bill S4659A

Amended

Requires a study and report on banking products and services offered in low income communities

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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 / Apr / 2013
    • REFERRED TO BANKS
  • 30 / May / 2013
    • AMEND AND RECOMMIT TO BANKS
  • 30 / May / 2013
    • PRINT NUMBER 4659A
  • 08 / Jan / 2014
    • REFERRED TO BANKS
  • 21 / Feb / 2014
    • AMEND AND RECOMMIT TO BANKS
  • 21 / Feb / 2014
    • PRINT NUMBER 4659B

Summary

Requires a study and report on banking products and services offered in low income communities.

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Bill Details

See Senate Version of this Bill:
S5505
Versions:
S4659
S4659A
S4659B
Legislative Cycle:
2013-2014
Current Committee:
Senate Banks
Law Section:
Banks

Sponsor Memo

BILL NUMBER:S4659A

TITLE OF BILL: An act in relation to requiring a study and report on
banking products and services offered in low income communities and
the impact of traditional banks, credit unions and check casher
services serving low income communities; and providing for the repeal
of such provisions upon expiration thereof

PURPOSE OR GENERAL IDEA OF THE BILL:

A long history of discriminatory banking policies and practices has
left low income communities with limited financial service options,
costly banking fees, and a proliferation of financial services with
exorbitant fees and interest rates. A review of the current state of
banking and financial services in low income communities is needed in
order to access overall impact on the residents of these communities.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: 1. The superintendent of financial services shall study and
issue a comprehensive report on banking products and services offered
in low income communities and the impact of traditional banks, credit
unions and check casher services serving low income communities.

2. Such study and report carried out pursuant to this section shall
address the following issues:

(a) which products and services are offered in low income communities
versus which products and services are offered in higher income
communities;

(b} review of whether different fees are charged by financial service
providers for products and services in low income communities and in
higher income communities, including but not limited to, use of
automated teller machine (ATM) fees, checking account fees, and
overdraw fees;

(c) review of whether different interest rates are instituted by
financial service providers for products and services in low income
communities and higher income communities;

(d) The impact of payday loans within low income communities, the
prevalence of such loans and the interest rates charged for such
loans; and

(e) The current impact and outcome of the State's 1977 Community
Reinvestment Act and federal CRA.

3. Such report shall be made to the governor, the speaker of the
assembly and the temporary president of the senate no later than
January 1, 2015

4. The superintendent of financial services may request, and is
authorized to receive, any information from any state agencies that is
relevant and material to the completion of this study and report.
Such information shall be subject to the same requirements for


confidentiality and limitations of use, if any, as are applicable to
such state agencies use of such information.

Section 2: This act shall take effect immediately and shall expire and
be deemed repealed January 1, 2015

JUSTIFICATION:

A long history of discriminatory banking policies and practices has
left low income communities with limited financial service options,
costly banking fees, and a proliferation of financial services with
exorbitant fees and interest rates. A review of the current state of
banking and financial services in low income communities is needed in
order to access overall impact on the residents of these communities,
The study will also help shape future public policy that will improve
banking and financial services available in low income communities.

PRIOR LEGISLATIVE HISTORY:

New Bill

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:

None, the New York State Department of Financial Services has all the
data from banking and financial institutions to make the comparisons
required in this legislation. DFS staff that has oversight
responsibilities over banking rules and regulations is able to compile
this data.

EFFECTIVE DATE:

This act shall take effect immediately and shall expire and be deemed
repealed January 1, 2015

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

                                 4659--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 17, 2013
                               ___________

Introduced  by Sen. SQUADRON -- read twice and ordered printed, and when
  printed to be  committed  to  the  Committee  on  Banks  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  in relation to requiring a study and report on banking products
  and services offered in low  income  communities  and  the  impact  of
  traditional banks, credit unions and check casher services serving low
  income  communities;  and  providing for the repeal of such provisions
  upon expiration thereof

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

  Section 1. 1. The superintendent of financial services shall study and
issue a comprehensive report on banking products and services offered in
low  income  communities  and  the  impact  of traditional banks, credit
unions and check casher services serving low income communities.
  2. Such study and report carried out pursuant to  this  section  shall
address the following issues:
  (a)  which products and services are offered in low income communities
versus which products and services are offered in higher income communi-
ties;
  (b) review of whether different fees are charged by financial  service
providers  for  products  and  services in low income communities and in
higher income communities, including but not limited to,  use  of  auto-
mated  teller  machine  (ATM) fees, checking account fees, and overdraft
fees;
  (c) review of whether  different  interest  rates  are  instituted  by
financial  service  providers  for  products  and services in low income
communities and in higher income communities, including but not  limited
to, savings account interest rates and interest rates on loans;
  (d)  the  impact  of  payday  loans within low income communities, the
prevalence of such loans and the interest rates charged for such  loans,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08898-05-3

S. 4659--A                          2

to  the extent such information is available to the department of finan-
cial services; and
  (e)  an  analysis of the impact and current relevance of the state and
federal community reinvestment act as it affects low income  communities
and banking and financial services.
  3.  Such  report  shall  be  made  to the governor, the speaker of the
assembly and the temporary president of the senate no later than January
1, 2015.
  4. The superintendent  of  financial  services  may  request,  and  is
authorized  to  receive, any information from any state agencies that is
relevant and material to the completion of this study and  report.  Such
information shall be subject to the same requirements for confidentiali-
ty and limitations of use, if any, as are applicable to such state agen-
cy's use of such information.
  S  2.  This  act shall take effect immediately and shall expire and be
deemed repealed January 1, 2015.

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