Senate Bill S3569A

2013-2014 Legislative Session

Includes credit unions and federal credit unions within the definition of bank, trust company or national bank for purpose of banking development district program

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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
Jan 28, 2014	print number 3569a
Jan 28, 2014	amend and recommit to banks
Jan 08, 2014	referred to banks
Feb 06, 2013	referred to banks

Bill Amendments

Original

A (Active)

2013-S3569 - Details

Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Amd §§96-d & 451, Bank L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S4873
2011-2012: S3654

2013-S3569 - Summary

Includes credit unions and federal credit unions within the definition of bank, trust company or national bank for the purpose of the banking development district program (which was created to encourage the establishment of bank branches in geographic locations where there is a demonstrated need for banking services); directs the banking board to promulgate rules and regulations to authorize the participation of credit unions and federal credit unions in such program; and provides that for purposes of such program, a credit union may include in its membership any person or organization located within a local community, neighborhood or rural district where there is a demonstrated need for banking services.

2013-S3569 - Sponsor Memo

                                BILL NUMBER:S3569

TITLE  OF BILL:  An act to amend the banking law, in relation to includ-
ing credit unions and federal credit unions within provisions  regarding
banking  development  district  program  and providing for the repeal of
certain provisions upon expiration thereof

PURPOSE:  To enable state-chartered credit  unions  and  federal  credit
unions to participate in the Banking Development District Program.

SUMMARY OF PROVISIONS:

Section  1  amends  subdivision  5 of section 96-d of the banking law to
include credit unions and federal credit unions in the Banking  Develop-
ment District Program.

Section  2  amends  Section 451(2) of the banking law to state that, for
the purposes of section 96-d of  this  chapter,  the  credit  union  may
include  in  its  membership any person or organization located within a
local community, neighborhood or rural district where there is a  demon-
strated need for banking services as determined by the superintendent.

EXISTING  LAW:    Currently,  only  commercial  banks,  trust companies,
savings banks and savings and loan associations may participate  in  the
Program.

JUSTIFICATION:   Chapter 204 of the Laws of 1997 authorized the creation
of a Banking Development District Program, which enables  municipalities
and New York state to offer certain economic incentives to encourage the
establishment  of  commercial  bank  branches  in areas where there is a
demonstrated need for banking services. Chapter 526 of the Laws of  1998
amended the law to allow savings banks and savings and loan associations
to participate in this program.

This  legislation includes credit unions within the economic development
Program. Credit unions will be able to offer  small  business  services,
such  as  member business lending, similar to those currently offered by
commercial banks and thrift institutions. By enabling credit  unions  to
participate  in this program, there will be more opportunities for muni-
cipalities to work with  different  types  of  banking  institutions  to
encourage better banking services in developing areas.

LEGISLATIVE  HISTORY:    S.3143  of 2005-06 S.2867A of 2007-08 S.4873 of
2009-10 S.3654 of 2011-12: Amended and Recommitted to Banks

FISCAL IMPLICATIONS:  If the State chooses to enter  into  an  agreement
with  a  particular  credit  union  in which it would earn interest at a
lower rate then the institution's posted 2-year CD rate, then the  State
would  forgo  interest  income  on  those deposits. The State would also
forgo a minimal amount of revenue by waiving the  $750  application  fee
for establishing a branch.

LOCAL  FISCAL IMPLICATIONS:  If a local government chooses to enter into
an agreement with a participating credit union in which  it  would  earn
interest  at  a lower rate than the institution's posted 2-year CD rate,
then the local government would forgo interest income on those municipal
funds.  Because the banking development district program is intended to.
spur the development of a bank facility which would not otherwise exist,
any  branches  established  by credit unions should actually result in a
net increase in property tax revenue. Such increase would grow each year
as the partial property tax exemption declines.

EFFECTIVE DATE:  This act shall take effect  immediately  and  shall  be
deemed  to  have  been  in  full force and effect on or after January 1,
2013, provided however, that the amendments to subdivision 2 of  section
451  of the banking law made by section two of this act shall expire and
be deemed repealed on the same date as section 4 of chapter 526  of  the
laws of 1998.

2013-S3569 - Bill Text download pdf

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

                                  3569

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 6, 2013
                               ___________

Introduced  by  Sen.  SMITH  -- 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 including credit  unions
  and federal credit unions within provisions regarding banking develop-
  ment  district  program  and  providing  for  the  repeal  of  certain
  provisions upon expiration thereof

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

  Section  1. Subdivision 5 of section 96-d of the banking law, as added
by chapter 526 of the laws of 1998, paragraph (a) as amended by  chapter
328  of the laws of 1999 and paragraph (b) as further amended by section
104 of part A of chapter 62 of the laws of 2011, is amended to  read  as
follows:
  5.  (a)  Notwithstanding  the provisions of subdivision two of section
two hundred thirty-seven of this  chapter;  for  the  purposes  of  this
section,  paragraph  c  of subdivision two of section ten of the general
municipal law, subdivision six of section one hundred five of the  state
finance  law and section four hundred eighty-five-f of the real property
tax law, any reference to a bank, trust company or national  bank  shall
be  deemed  to  include  a  savings  bank, savings and loan association,
federal savings and loan association [or], federal savings bank,  CREDIT
UNION  OR  FEDERAL CREDIT UNION; provided, however, that such provisions
of law do not grant a savings bank, savings and loan association, feder-
al savings and loan association [or], federal  savings  bank,  A  CREDIT
UNION  OR  A  FEDERAL  CREDIT  UNION  eligibility to accept municipal or
public funds or municipal or public moneys other than  for  the  limited
purposes  of  the  establishment  of  a  branch in a banking development
district pursuant to this section. Any such municipal or public funds or
moneys shall be deposited only at the  branch  established  pursuant  to
this section, and any municipal funds or moneys may be deposited only by
the  sponsoring municipality in which the branch and banking development

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00151-02-3

S. 3569                             2

district are located; provided further that any such municipal or public
funds or moneys shall be subject to the same requirements which apply to
municipal or public funds or moneys deposited in a bank,  trust  company
or  national bank and shall also be subject to the provisions of section
one hundred five of the state finance law or section ten of the  general
municipal law relating to such deposits.
  (b)  Notwithstanding any other provision of law, the superintendent of
financial services shall promulgate rules and regulations  to  authorize
the  participation  of  savings  banks,  savings  and loan associations,
federal savings banks [and],  federal  savings  and  loan  associations,
CREDIT  UNIONS  AND  FEDERAL  CREDIT  UNIONS  in the program established
pursuant to this section.
  S 2. Subdivision 2 of section 451 of the banking  law  is  amended  by
adding a new paragraph (c-1) to read as follows:
  (C-1)  FOR  THE  PURPOSES OF SECTION NINETY-SIX-D OF THIS CHAPTER, THE
CREDIT UNION MAY INCLUDE IN ITS MEMBERSHIP ANY  PERSON  OR  ORGANIZATION
LOCATED  WITHIN A LOCAL COMMUNITY, NEIGHBORHOOD, OR RURAL DISTRICT WHERE
THERE IS A DEMONSTRATED NEED FOR BANKING SERVICES AS DETERMINED  BY  THE
SUPERINTENDENT.
  S  3.  This  act  shall take effect immediately and shall be deemed to
have been in full force  and  effect  on  and  after  January  1,  2013,
provided,  however,  that the amendments to subdivision 2 of section 451
of the banking law made by section two of this act shall expire  and  be
deemed repealed on the same date as section 4 of chapter 526 of the laws
of 1998, as amended, expires and repeals, and provided, further that the
amendments  to  subdivision 5 of section 96-d of the banking law made by
section one of this act shall not affect the repeal of such  subdivision
and  shall  be  deemed to be repealed therewith; provided, however, that
any branch established  prior  to  the  expiration  and  repeal  of  the
provisions  of  this  act by a credit union or federal credit union in a
banking development district pursuant to  the  provisions  of  this  act
shall continue to operate in accordance with the provisions of the bank-
ing  law, as amended by this act, and remain eligible for all the rights
and privileges authorized by this act.

2013-S3569A (ACTIVE) - Details

Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Amd §§96-d & 451, Bank L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S4873
2011-2012: S3654

2013-S3569A (ACTIVE) - Summary

2013-S3569A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3569A

TITLE OF BILL:  An act to amend the banking law, in relation to
including credit unions and federal credit unions within provisions
regarding banking development district program and providing for the
repeal of certain provisions upon expiration thereof

PURPOSE:  To enable state-chartered credit unions and federal credit
unions to participate in the Banking Development District Program.

SUMMARY OF PROVISIONS:

Section 1 amends subdivision 5 of section 96-d of the banking law to
include credit unions and federal credit unions in the Banking
Development District Program.

Section 2 amends Section 451(2) of the banking law to state that, for
the purposes of section 96-d of this chapter, the credit union may
include in its membership any person or organization located within a
local community, neighborhood or rural district where there is a
demonstrated need for banking services as determined by the
superintendent.

EXISTING LAW:  Currently, only commercial banks, trust companies,
savings banks and savings and loan associations may participate in the
Program.

JUSTIFICATION:  Chapter 204 of the Laws of 1997 authorized the
creation of a Banking Development District Program, which enables
municipalities and New York state to offer certain economic incentives
to encourage the establishment of commercial bank branches in areas
where there is a demonstrated need for banking services. Chapter 526
of the Laws of 1998 amended the law to allow savings banks and savings
and loan associations to participate in this program.

This legislation includes credit unions within the economic
development Program. Credit unions will be able to offer small
business services, such as member business lending, similar to those
currently offered by commercial banks and thrift institutions. By
enabling credit unions to participate in this program, there will be
more opportunities for municipalities to work with different types of
banking institutions to encourage better banking services in
developing areas.

LEGISLATIVE HISTORY:  S.3143 of 2005-06 S.2867A of 2007-08 S.4873 of
2009-10 S.3654 of 2011-12: Amended and Recommitted to Banks

FISCAL IMPLICATIONS:  If the State chooses to enter into an agreement
with a particular credit union in which it would earn interest at a
lower rate then the institution's posted 2-year CD rate, then the
State would forgo interest income on those deposits. The State would
also forgo a minimal amount of revenue by waiving the $750 application
fee for establishing a branch.

LOCAL FISCAL IMPLICATIONS:  If a local government chooses to enter
into an agreement with a participating credit union in which it would


earn interest at a lower rate than the institution's posted 2-year CD
rate, then the local government would forgo interest income on those
municipal funds.  Because the banking development district program is
intended to. spur the development of a bank facility which would not
otherwise exist, any branches established by credit unions should
actually result in a net increase in property tax revenue. Such
increase would grow each year as the partial property tax exemption
declines.

EFFECTIVE DATE:  This act shall take effect immediately and shall be
deemed to have been in full force and effect on or after January 1,
2014, provided however, that the amendments to subdivision 2 of
section 451 of the banking law made by section two of this act shall
expire and be deemed repealed on the same date as section 4 of chapter
526 of the laws of 1998.

2013-S3569A (ACTIVE) - Bill Text download pdf

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

                                 3569--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 6, 2013
                               ___________

Introduced  by  Sen.  SMITH  -- 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 including credit unions
  and federal credit unions within provisions regarding banking develop-
  ment  district  program  and  providing  for  the  repeal  of  certain
  provisions upon expiration thereof

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

  Section 1. Subdivision 5 of section 96-d of the banking law, as  added
by  chapter 526 of the laws of 1998, paragraph (a) as amended by chapter
328 of the laws of 1999 and paragraph (b) as further amended by  section
104  of  part A of chapter 62 of the laws of 2011, is amended to read as
follows:
  5. (a) Notwithstanding the provisions of subdivision  two  of  section
two  hundred  thirty-seven  of  this  chapter;  for the purposes of this
section, paragraph c of subdivision two of section ten  of  the  general
municipal  law, subdivision six of section one hundred five of the state
finance law and section four hundred eighty-five-f of the real  property
tax  law,  any reference to a bank, trust company or national bank shall
be deemed to include a  savings  bank,  savings  and  loan  association,
federal  savings and loan association [or], federal savings bank, CREDIT
UNION OR FEDERAL CREDIT UNION; provided, however, that  such  provisions
of law do not grant a savings bank, savings and loan association, feder-
al  savings  and  loan  association [or], federal savings bank, A CREDIT
UNION OR A FEDERAL CREDIT  UNION  eligibility  to  accept  municipal  or
public  funds  or  municipal or public moneys other than for the limited
purposes of the establishment of  a  branch  in  a  banking  development
district pursuant to this section. Any such municipal or public funds or

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00151-03-4

S. 3569--A                          2

moneys  shall  be  deposited  only at the branch established pursuant to
this section, and any municipal funds or moneys may be deposited only by
the sponsoring municipality in which the branch and banking  development
district are located; provided further that any such municipal or public
funds or moneys shall be subject to the same requirements which apply to
municipal  or  public funds or moneys deposited in a bank, trust company
or national bank and shall also be subject to the provisions of  section
one  hundred five of the state finance law or section ten of the general
municipal law relating to such deposits.
  (b) Notwithstanding any other provision of law, the superintendent  of
financial  services  shall promulgate rules and regulations to authorize
the participation of  savings  banks,  savings  and  loan  associations,
federal  savings  banks  [and],  federal  savings and loan associations,
CREDIT UNIONS AND FEDERAL  CREDIT  UNIONS  in  the  program  established
pursuant to this section.
  S  2.  Subdivision  2  of section 451 of the banking law is amended by
adding a new paragraph (c-1) to read as follows:
  (C-1) FOR THE PURPOSES OF SECTION NINETY-SIX-D OF  THIS  CHAPTER,  THE
CREDIT  UNION  MAY  INCLUDE IN ITS MEMBERSHIP ANY PERSON OR ORGANIZATION
LOCATED WITHIN A LOCAL COMMUNITY, NEIGHBORHOOD, OR RURAL DISTRICT  WHERE
THERE  IS  A DEMONSTRATED NEED FOR BANKING SERVICES AS DETERMINED BY THE
SUPERINTENDENT.
  S 3. This act shall take effect immediately and  shall  be  deemed  to
have  been  in  full  force  and  effect  on  and after January 1, 2014,
provided, however, that the amendments to subdivision 2 of  section  451
of  the  banking law made by section two of this act shall expire and be
deemed repealed on the same date as section 4 of chapter 526 of the laws
of 1998, as amended, expires and repeals, and provided, further that the
amendments to subdivision 5 of section 96-d of the banking law  made  by
section  one of this act shall not affect the repeal of such subdivision
and shall be deemed to be repealed therewith;  provided,  however,  that
any  branch  established  prior  to  the  expiration  and  repeal of the
provisions of this act by a credit union or federal credit  union  in  a
banking  development  district  pursuant  to  the provisions of this act
shall continue to operate in accordance with the provisions of the bank-
ing law, as amended by this act, and remain eligible for all the  rights
and privileges authorized by this act.

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Senate Bill S3569A

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee

Actions

Bill Amendments

2013-S3569 - Details

2013-S3569 - Summary

2013-S3569 - Sponsor Memo

2013-S3569 - Bill Text download pdf

2013-S3569A (ACTIVE) - Details

2013-S3569A (ACTIVE) - Summary

2013-S3569A (ACTIVE) - Sponsor Memo

2013-S3569A (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Malcolm Smith

Archive: Last Bill Status - In Senate Committee Banks Committee

Actions

Bill Amendments

2013-S3569 - Details

2013-S3569 - Summary

2013-S3569 - Sponsor Memo

2013-S3569 - Bill Text download pdf

2013-S3569A (ACTIVE) - Details

2013-S3569A (ACTIVE) - Summary

2013-S3569A (ACTIVE) - Sponsor Memo

2013-S3569A (ACTIVE) - Bill Text download pdf

Comments