senate Bill S2495A

2013-2014 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 Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 09, 2014 print number 2495a
amend and recommit to banks
Jan 08, 2014 referred to banks
Jan 17, 2013 referred to banks

Bill Amendments

Original
A (Active)
Original
A (Active)

S2495 - Bill Details

See Assembly Version of this Bill:
A6877A
Current Committee:
Law Section:
Banking Law
Laws Affected:
Amd §96-d, Bank L
Versions Introduced in 2011-2012 Legislative Session:
S6692, A9296

S2495 - Bill Texts

view summary

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

view sponsor memo
BILL NUMBER:S2495

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 of the Banking Law by adding a new
subdivision 7 (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 BDD branch in under served 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.

LEGISLATIVE HISTORY:
2012 - S. 6692 Banks Committee/A. 9296 Reported to Calendar.

FISCAL IMPLICATIONS: None.

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


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

                                  2495

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 17, 2013
                               ___________

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.
                                                           LBD00177-01-3

S2495A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A6877A
Current Committee:
Law Section:
Banking Law
Laws Affected:
Amd §96-d, Bank L
Versions Introduced in 2011-2012 Legislative Session:
S6692, A9296

S2495A (ACTIVE) - Bill Texts

view summary

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

view sponsor memo
BILL NUMBER:S2495A

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 subdivision (2) and adds a new subdivision 3 (a) to
Banking Law section 96-d.

Subdivision (2) provides that a designation of a BDD will be effective
valid for ten years upon which time, the designation can be renewed
for another ten years with the approval of the Superintendent of the
Department of Financial Services and new subdivision 3(a), requiring
every BDD branch to provide affordable products and services, which
includes financial educational services within their community.

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.

PRIOR LEGISLATIVE HISTORY:

A.9296 of 2012: advanced to 3rd reading

FISCAL IMPLICATIONS:

None


EFFECTIVE DATE:

This act shall take effect on the one hundredth and eightieth day
after it shall have become law.

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

                                 2495--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 17, 2013
                               ___________

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 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

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.
  S 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00177-05-4

S. 2495--A                          2

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.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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