Senate Bill S6692

2011-2012 Legislative Session

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

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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

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 09, 2012	referred to banks

2011-S6692 (ACTIVE) - Details

See Assembly Version of this Bill:: A9296
Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Amd §96-d, Bank L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S2495, A6877
2015-2016: S6239, A5302
2017-2018: S2715

2011-S6692 (ACTIVE) - Summary

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

2011-S6692 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S6692

TITLE OF BILL:

An act to amend the banking law, in relation to banking development
districts

PURPOSE OR GENERAL IDEA OF BILL:

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 SPECIFIC PROVISIONS:

This bill amends Section 96-d (6) of the Banking Law by adding new
subdivisions (a) and (b).

Subdivision (a) would require BDD branch's to provide affordable
products and services, which include financial educational services
within their community, and Subdivision (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 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
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.

PRIOR LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None to the State

EFFECTIVE DATE:

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

2011-S6692 (ACTIVE) - Bill Text download pdf

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

                                  6692

                            I N  S E N A T E

                              March 9, 2012
                               ___________

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.
                                                           LBD14288-02-2

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Senate Bill S6692

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee

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2011-S6692 (ACTIVE) - Details

2011-S6692 (ACTIVE) - Summary

2011-S6692 (ACTIVE) - Sponsor Memo

2011-S6692 (ACTIVE) - Bill Text download pdf

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Sponsored By

Joseph A. Griffo

Archive: Last Bill Status - In Senate Committee Banks Committee

Actions

2011-S6692 (ACTIVE) - Details

2011-S6692 (ACTIVE) - Summary

2011-S6692 (ACTIVE) - Sponsor Memo

2011-S6692 (ACTIVE) - Bill Text download pdf

Comments