Senate Bill S6239

2015-2016 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
Jan 06, 2016	referred to banks

co-Sponsors

2015-S6239 (ACTIVE) - Details

See Assembly Version of this Bill:: A5302
Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Amd §96-d, Bank L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6692, A9296
2013-2014: S2495, A6877
2017-2018: S2715

2015-S6239 (ACTIVE) - Summary

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

2015-S6239 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6239

 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 (6) 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
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.

 LEGISLATIVE HISTORY :

2013-14: A6877-A

 FISCAL IMPLICATIONS :

None.

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

2015-S6239 (ACTIVE) - Bill Text download pdf

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

                                  6239

                            I N  S E N A T E

                               (PREFILED)

                             January 6, 2016
                               ___________

Introduced  by Sen. HAMILTON -- 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. 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
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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD00952-01-5

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Senate Bill S6239

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Archive: Last Bill Status - In Senate Committee Banks Committee

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co-Sponsors

2015-S6239 (ACTIVE) - Details

2015-S6239 (ACTIVE) - Summary

2015-S6239 (ACTIVE) - Sponsor Memo

2015-S6239 (ACTIVE) - Bill Text download pdf

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Sponsored By

Jesse Hamilton

Archive: Last Bill Status - In Senate Committee Banks Committee

Actions

co-Sponsors

Leroy Comrie

2015-S6239 (ACTIVE) - Details

2015-S6239 (ACTIVE) - Summary

2015-S6239 (ACTIVE) - Sponsor Memo

2015-S6239 (ACTIVE) - Bill Text download pdf

Comments