NY State Senate Bill 2017-S6700

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 03, 2018	referred to banks
Jun 13, 2017	referred to rules

co-Sponsors

2017-S6700 (ACTIVE) - Details

Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Amd §96-d, Bank L; amd §4, Chap 526 of 1998
Versions Introduced in 2019-2020 Legislative Session:: S3312

2017-S6700 (ACTIVE) - Summary

Relates to the banking development district program.

2017-S6700 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6700

 TITLE OF BILL :  An act to amend the banking law, in relation to the
banking development district program; to amend chapter 526 of the laws
of 1998, amending the banking law relating to participation in the
banking development districts program, in relation to the
effectiveness thereof

 PURPOSE OF THE BILL :

This bill would amend the Banking Law to expand access to banking
services in communities where there is a demonstrated need for
additional products and services.

 SUMMARY OF PROVISIONS :

Section 1 of the bill would limit the designation of a banking
development district to fourteen years, yet allow for additional
extensions ins or 10 year increments.

Section 3 of the bill would amend Banking Law § 96-d (5) to allow
federal and state credit unions to participate in the banking
development district program.

Sections 2 and 4 of the bill would set forth the effective dates.

 DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE) :

The amendments removed the requirement to offer certain products and
services.

 LEGISLATIVE HISTORY :

New bill.

 JUSTIFICATION :

Many communities in New York State lack consumer-banking services. In
1997, the Banking Development District (BDD) program was enacted to
incentive banks to locate branches in communities designated as
underserved by the Department of Financial. Services. Such communities
either have no available financial service options, or only offer
alternative (and often problematic) financial service options like
check cashers and Pawn shops.

Under the BDD program, banks that open branches in underserved
communities are eligible to receive below market-rate deposits. Such
deposits lower the financial risk the branches may incur when opening
in an underserved community.

Currently, however, credit unions are currently ineligible to
participate in the BDD program. Because banks and other eligible
financial institutions have submitted a modest number of applications
over the past twenty years, the program should be expanded to include
credit unions to encourage additional banking services in underserved
communities.

At the same time, it is also appropriate to restrict the unlimited
duration of a BDD designation. Once a banking deficit in an
underserved community is corrected, the incentives provided under the
BDD program are no longer needed. A fourteen year designation limit
(with unlimited extensions as necessary) would make the BDD program
more efficient and allow for the allocation of resources to other
communities.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
Immediately.

2017-S6700 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6700
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 13, 2017
                                ___________
 
 Introduced  by Sen. HAMILTON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the banking law, in relation to the banking  development
   district  program;  to amend chapter 526 of the laws of 1998, amending
   the banking law relating to participation in the  banking  development
   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.
   §  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10007-07-7

 S. 6700                             2
 
 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. 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,  CREDIT
 UNION, OR 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
 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.
   §  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.

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Senate Bill S6700

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee

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co-Sponsors

2017-S6700 (ACTIVE) - Details

2017-S6700 (ACTIVE) - Summary

2017-S6700 (ACTIVE) - Sponsor Memo

2017-S6700 (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

Joseph P. Addabbo Jr.

Tony Avella

Luis R. Sepúlveda

2017-S6700 (ACTIVE) - Details

2017-S6700 (ACTIVE) - Summary

2017-S6700 (ACTIVE) - Sponsor Memo

2017-S6700 (ACTIVE) - Bill Text download pdf

Comments