senate Bill S4927A

2011-2012 Legislative Session

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

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Archive: Last Bill Status - In Committee


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

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Actions

view actions (22)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 21, 2012 committed to rules
Jun 13, 2012 amended on third reading 4927a
vote reconsidered - restored to third reading
Jun 13, 2012 returned to senate
recalled from assembly
May 22, 2012 referred to banks
delivered to assembly
passed senate
May 21, 2012 advanced to third reading
May 16, 2012 2nd report cal.
May 15, 2012 1st report cal.798
Mar 28, 2012 reported and committed to finance
Jan 04, 2012 referred to banks
returned to senate
died in assembly
Jun 15, 2011 referred to banks
delivered to assembly
passed senate
ordered to third reading cal.1284
committee discharged and committed to rules
May 18, 2011 reported and committed to finance
Apr 29, 2011 referred to banks

Bill Amendments

Original
A (Active)
Original
A (Active)

S4927 - Bill Details

See Assembly Version of this Bill:
A8147A
Current Committee:
Law Section:
Banking Law
Laws Affected:
Amd §87, Bank L

S4927 - Bill Texts

view 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.

view sponsor memo
BILL NUMBER:S4927

TITLE OF BILL:

An act
to amend the banking law, in relation to the community bank deposit
program

PURPOSE OR GENERAL IDEA OF BILL:

To expand the funds available for the community bank deposit program
which seeks to encourage the State to place funds in local banks in
order to support and promote local economic activity.

SUMMARY OF SPECIFIC PROVISIONS:

This bill amends subdivision 2 of section 87 of the Banking Law to
increase the maximum amount of funds available, from $250 million to
$350 million, for the community bank deposit program. It also caps
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 headquartered 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.


PRIOR LEGISLATIVE HISTORY:

This is new legislation.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

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:
Immediately.

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

                                  4927

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 29, 2011
                               ___________

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] THREE 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.
                                                           LBD11214-01-1

S4927A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A8147A
Current Committee:
Law Section:
Banking Law
Laws Affected:
Amd §87, Bank L

S4927A (ACTIVE) - Bill Texts

view 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.

view sponsor memo
BILL NUMBER:S4927A

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 headquartered
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:
New.

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 full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4927--A
    Cal. No. 798

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 29, 2011
                               ___________

Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks  --  recommitted  to
  the  Committee  on  Banks  in accordance with Senate Rule 6, sec. 8 --
  reported favorably from said committee and committed to the  Committee
  on Finance -- reported favorably from said committee, ordered to first
  and  second  report,  ordered to a third reading, passed by Senate and
  delivered to the Assembly, recalled, vote  reconsidered,  restored  to
  third  reading,  amended and ordered reprinted, retaining its place in
  the order of third reading

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.
                                                           LBD11214-02-2

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