S T A T E O F N E W Y O R K
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6949--C
Cal. No. 484
2017-2018 Regular Sessions
I N A S S E M B L Y
March 27, 2017
___________
Introduced by M. of A. ZEBROWSKI, BRINDISI, JENNE, McDONALD, BLAKE,
LUPARDO, COLTON, PELLEGRINO, WALLACE, JONES, WALSH, BRABENEC, RICHARD-
SON -- read once and referred to the Committee on Banks -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- reported and referred to the Committee on Ways
and Means -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- ordered to a third read-
ing, amended and ordered reprinted, retaining its place on the order
of third reading
AN ACT to amend the banking law, in relation to the banking development
district program; and to amend chapter 526 of the laws of 1998, amend-
ing the banking law relating to participation in the banking develop-
ment districts program, in relation to the effectiveness thereof
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] THE DESIGNATION
OF A BANKING DEVELOPMENT DISTRICT to the local government, the bank,
trust company or national bank, the state comptroller, 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. THE DESIGNATION OF A BANKING DEVELOPMENT DISTRICT SHALL BE
VALID FOR FOURTEEN YEARS. PRIOR TO THE EXPIRATION OF A BANKING DEVELOP-
MENT DISTRICT DESIGNATION, THE SUPERINTENDENT MAY EXTEND THE DESIGNATION
FOR ONE OR MORE ADDITIONAL FIVE OR TEN YEAR PERIODS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10007-08-8
A. 6949--C 2
§ 2. Section 4 of chapter 526 of the laws of 1998, amending the bank-
ing law relating to participation in the banking development districts
program, as amended by chapter 46 of the laws of 2016, is amended to
read as follows:
§ 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 SECTION
THREE OF THIS ACT shall remain in effect until January 1, 2023 when upon
such date it shall expire and be deemed repealed; provided however that
any branch established prior to the expiration and repeal of SECTION
THREE OF this act by a savings bank, savings and loan association,
federal savings bank or federal savings and loan association in a bank-
ing 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.
§ 3. Subdivisions 5 and 6 of section 96-d of the banking law, subdivi-
sion 5 as added by chapter 526 of the laws of 1998, paragraph (a) of
subdivision 5 as amended by chapter 328 of the laws of 1999, paragraph
(b) of subdivision 5 as further amended by section 104 of part A of
chapter 62 of the laws of 2011 and subdivision 6 as amended by chapter
330 of the laws of 2009, are 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, CREDIT
UNION, OR FEDERAL CREDIT UNION eligibility to accept municipal or public
funds or municipal or public moneys other than for the [limited
purposes] SOLE PURPOSE of the establishment of a branch in a banking
development district pursuant to this section; PROVIDED, HOWEVER, NO
CREDIT UNION OR FEDERAL CREDIT UNION MAY ACCEPT MUNICIPAL FUNDS OR
MONEYS FROM A MUNICIPAL CORPORATION IN EXCESS OF THE STANDARD SHARE
INSURANCE AMOUNT PER SHARE OWNER AS SET BY THE NATIONAL CREDIT UNION
ADMINISTRATION. 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 district are
located; provided further that any such municipal or public funds or
moneys shall be subject to the same requirements which apply to munici-
pal 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.
6. For the purposes of this section, nothing shall preclude a bank,
trust company or national bank from seeking approval to establish one or
A. 6949--C 3
more branches in an existing banking development district where it or
another bank has or is authorized to have a branch. The department shall
have the authority to approve any bank, trust company or national bank
for participation in the banking development district program, and any
branch approved pursuant to this section shall operate in accordance
with this section and is eligible for all the rights and privileges
authorized by this section; PROVIDED HOWEVER, AN APPLICATION FOR PARTIC-
IPATION IN THE BANKING DEVELOPMENT DISTRICT PROGRAM SUBMITTED BY A CRED-
IT UNION OR FEDERAL CREDIT UNION MAY BE APPROVED BY THE SUPERINTENDENT
ONLY UPON A FINDING THAT: (A) THE APPLICATION MEETS THE CRITERIA ESTAB-
LISHED HEREIN AND BY RULE, (B) THE BANKING DEVELOPMENT DISTRICT FOR
WHICH THE APPLICATION IS SUBMITTED HAS AN UNMET NEED FOR FINANCIAL
SERVICES AS DETERMINED BY THE SUPERINTENDENT, AND (C) THAT NO APPLICA-
TION BY A BANK, TRUST COMPANY OR NATIONAL BANK, OTHER THAN A CREDIT
UNION OR FEDERAL CREDIT UNION HAS A PENDING APPLICATION BEFORE THE
SUPERINTENDENT THAT, IN THE OPINION OF THE SUPERINTENDENT, WILL FULFILL
THE UNMET NEED FOR SUCH SERVICES.
§ 4. This act shall take effect immediately; provided, however, that
the amendments to subdivision 5 of section 96-d of the banking law made
by section three of this act shall not affect the repeal of such subdi-
vision and shall be deemed repealed therewith.