NY State Senate Bill 2017-S2715

Senate Bill S2715

2017-2018 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Banks Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to banks
Jan 17, 2017	referred to banks

2017-S2715 (ACTIVE) - Details

Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Amd §96-d, Bank L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6692
2013-2014: S2495
2015-2016: S6239

2017-S2715 (ACTIVE) - Summary

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

2017-S2715 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2715

 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 (6) of the Banking Law by adding a new
subdivision 3(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
BUD branch in underserved 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 BUD 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 :

A6877-A of 2013-14:
S6239 of the 2015-16 Legislative Session

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect 180 days after it shall have become law.

2017-S2715 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2715
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2017
                                ___________
 
 Introduced  by Sen. HAMILTON -- 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. Subdivision 2 of section 96-d of the banking law, as  added
 by chapter 204 of the laws of 1997, is amended to read as follows:
   2.  A  local  government, in conjunction with a bank, trust company or
 national bank, may submit an application to the superintendent  for  the
 designation  of a banking development district. The superintendent shall
 issue a determination on  such  an  application  within  sixty  days  of
 receiving  such  application.  If an application is approved, the super-
 intendent shall transmit notification of  such  approval  to  the  local
 government,  the  bank,  trust company or national bank, the state comp-
 troller, the commissioner of taxation and finance, the  commissioner  of
 the  department  of economic development, the temporary president of the
 senate and the speaker of the assembly.   A  DESIGNATION  OF  A  BANKING
 DEVELOPMENT  DISTRICT  SHALL  BE  VALID  FOR  TEN YEARS FROM THE DATE OF
 DESIGNATION. THE SUPERINTENDENT MAY EXTEND THE TERM OF A BANKING  DEVEL-
 OPMENT  DISTRICT AN ADDITIONAL TEN YEAR PERIOD UPON A DETERMINATION THAT
 THERE IS A DEMONSTRATED NEED FOR BANKING SERVICES IN SUCH BANKING DEVEL-
 OPMENT DISTRICT.
   § 2. Section 96-d of the banking law is amended by adding a new subdi-
 vision 3-a to read as follows:
   3-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.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00717-01-7

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.