BILL NUMBER:  S483

 TITLE OF BILL :  An act to amend the state finance law, in relation
to the procurement of banking services

 PURPOSE :

To provide an incentive to financial institutions to comply with the
cap on the rates of interest authorized in section 5-501 of the
General Obligations Law and established by subdivision one of section
fourteen-a of the Banking Law.

 SUMMARY OF PROVISIONS :

Section 1 of the bill would add a new section 163-c to the State
Finance Law which relates to the procurement of banking services. The
new Section 163-c would provide that state agencies, as part of the
process of evaluating proposals for procuring banking services, take
into account whether a financial institution complies with the cap on
the rate of interest for credit cards and loans authorized in section
5-501 of the General Obligations Law and established by subdivision
one of section fourteen-a of the Banking Law. The scoring would be
accomplished in accord with regulations adopted by the superintendent
of Financial Services in consultation with the State comptroller.

Section 2 of the bill sets forth the effective date.
              

 JUSTIFICATION :

People throughout the State have fallen victim to financial
institutions applying usurious credit card and loan interest rates.
The current cap on interest rates authorized in section 5-501 of the
General Obligations Law and established by subdivision one of section
fourteen-a of the Banking Law is applicable only to State-chartered
banks. By including compliance with this provision in procurement for
State agency banking services, the proposed legislation would create
an incentive for banks chartered outside the State to comply with
these provisions when offering credit or making loans to residents of
the State.

 LEGISLATIVE HISTORY :

2016: S195/A5746 - REFERRED TO FINANCE/referred to banks
2015: S195/A5746 - REFERRED TO FINANCE/referred to banks
2013-2014: S217/A199 - REFERRED TO FINANCE/referred to banks
2011-2012: S6348/A9175 - COMMITTEE DISCHARGED AND COMMITTED TO RULES/
referred to banks

 FISCAL IMPACT ON THE STATE :

This bill would have no significant fiscal impact.

 EFFECTIVE DATE :
This act shall take effect on the one hundred twentieth day after it
shall have become a law provided, however, that effective immediately
the addition, amendment and/or repeal of any rule or regulation
necessary for implementation of this act on its effective date are
authorized and directed to be made and completed by the department of
financial services on or before such effective date.