senate Bill S5478

Signed By Governor
2011-2012 Legislative Session

Extends date of certain provisions relating to participation in the banking development districts program to January l, 2017

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Archive: Last Bill Status - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Aug 17, 2011 signed chap.484
Aug 05, 2011 delivered to governor
Jun 15, 2011 returned to senate
passed assembly
ordered to third reading rules cal.239
substituted for a8103a
Jun 13, 2011 referred to banks
delivered to assembly
passed senate
Jun 06, 2011 advanced to third reading
Jun 02, 2011 2nd report cal.
Jun 01, 2011 1st report cal.907
May 25, 2011 referred to banks

Votes

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Co-Sponsors

S5478 - Bill Details

See Assembly Version of this Bill:
A8103A
Law Section:
Banks
Laws Affected:
Amd ยง4, Chap 526 of 1998

S5478 - Bill Texts

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Extends date of certain provisions relating to participation in the banking development districts program to January 1, 2017.

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BILL NUMBER:S5478

TITLE OF BILL:
An act
to amend chapter 526 of the laws of 1998, amending the banking law
relating to participation in the banking development districts program,
in relation to extending the effectiveness of certain provisions thereof

PURPOSE:
To extend, for an additional five years, the provisions of Chapter 526
of 1998 which authorize savings institutions to participate in the
Banking Development District program.

SUMMARY OF PROVISIONS:
The bill amends the effective date of Chapter 526 of 1998 to extend
the provisions of this law for another 5 years (to January 1, 2017).

JUSTIFICATION:
The Banking Development District Program was created in 1997. This
program enables municipalities to offer certain incentives in order
to encourage the establishment of bank branches in underserved areas.
Under the program, a municipality and a banking institution may
jointly apply to designate a "Banking Development District." By
establishing a branch in such a district, the bank would be eligible
-- at local and state option -- to receive municipal and state
deposits at reduced rates, and to receive a partial exemption on
municipal property taxes.

In 1998, the program was amended to authorize participation by thrift
institutions, and to waive the branch application fee for branches
established in a banking development district.
However, these 1998 amendments were made subject to a January 1, 2005
sunset date. These provisions were subsequently extended to January
1, 2012 by Chapter 300 of 2004.

About 40 Bank Development Districts have been established, with
several of these being created by savings banks. This bill is
necessary to allow thrift institutions to continue to participate in
the program. The creation of local bank offices should help provide
needed banking services and easier access to capital, thereby
fostering economic activity and development in these areas.

FISCAL IMPLICATIONS:
The Banking Development District program is a local option program. If
a local government chooses to enter into an agreement with a
participating banking institution in which it would earn interest at
a rate lower than the institution's posted two-year CD rate, then the
local government would forgo some interest income on those municipal
funds. However, because the banking development district program is
intended to spur the establishment of a bank facility which would not
otherwise exist, any branches established by thrift institutions
should result in a net increase in property tax revenue. Such
increase would grow each year as the partial property tax exemption
declines.
If the State chooses to enter into an agreement with a participating
bank in which it would earn interest at a rate lower than the


institution's posted two year CD rate, then the State would forgo
some interest income on those deposits. The State would also forgo a
minimal amount of revenue by waiving the application fee for
establishing a branch.

EFFECTIVE DATE:
Immediately.

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

                                  5478

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              May 25, 2011
                               ___________

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

AN ACT to amend chapter 526 of the laws of 1998,  amending  the  banking
  law  relating  to  participation  in the banking development districts
  program,  in  relation  to  extending  the  effectiveness  of  certain
  provisions thereof

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

  Section 1. Section 4 of chapter 526 of the laws of 1998, amending  the
banking  law  relating  to  participation  in  the  banking  development
districts program, as amended by chapter 300 of the  laws  of  2004,  is
amended to read as follows:
  S  4.  This  act  shall  take  effect on the first day of January next
succeeding the date on which it shall have become a law and shall remain
in effect until January 1, [2012] 2017 when  upon  such  date  it  shall
expire  and  be deemed repealed; provided however that any branch estab-
lished prior to the expiration and repeal of this act by a savings bank,
savings and loan association, federal savings bank  or  federal  savings
and  loan association in a banking development district pursuant to this
act shall continue to operate in accordance with  this  act  and  remain
eligible for all the rights and privileges authorized by this act.
  S 2. This act shall take effect immediately.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11838-01-1

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