Senate Bill S2342

2019-2020 Legislative Session

Provides for the inclusion of low income credit unions in the banking development district program in cities having a population of one million or more persons

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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 08, 2020	referred to banks
Jan 24, 2019	referred to banks

co-Sponsors

2019-S2342 (ACTIVE) - Details

See Assembly Version of this Bill:: A5085
Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Amd §96-d, Bank L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S5279, A238
2011-2012: S34, A5932
2013-2014: S194, A1118
2015-2016: S157, A5745
2017-2018: S2021, S7100, A3942, A10232
2021-2022: S2902

2019-S2342 (ACTIVE) - Summary

Provides for the inclusion of low income credit unions in the banking development district program in cities having a population of one million or more persons.

2019-S2342 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2342

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the banking law, in relation to including low income
credit unions in the banking development district program

 
PURPOSE OF BILL:

To include low-income credit unions in the state's banking development
districts program in cities with a population of one million or more.

 
SUMMARY OF PROVISIONS:

Section 1 amends Section 96-d of the banking law to include low-income
credit unions as defined in state law or by the National. Credit Union
Association in the banking development districts program in the City of
New York.

Section 2 provides the effective date.

 
JUSTIFICATION:

Section 96-d of the Banking Law, entitled "Banking Development
Districts" (BDD's) is designed to increase access to banking services by
supporting branches in areas where there is a demonstrated need for such
services. In this way, the program aims to enable local residents and
small business owners to easily become a part of the financial main-
stream, promote economic development by enhancing access to capital for
local businesses.

Section 96-d currently allows state and national banks, trust companies,
savings banks, savings and loan associations, and federal savings banks
to participate in the program but omits credit unions.  By adding state
low-income credit unions (already defined in section 450-a of the bank-
ing law), and any federal credit union designated as low income by the
National Credit Union Administration, to the BDD program, this bill will
help them to continue their historic work of providing affordable finan-
cial services to consumers who might otherwise have difficulty accessing
these services. This bill will not require support of any particular
low-income credit union by any state or municipal agency, but will
mere', allow state and federal low-income credit unions to be considered
for such support, on par with other types of financial institutions
already included in the BDD program.

 
LEGISLATIVE HISTORY:

2018: S7100/A10232 - REFERRED TO BANKS/ referred to rules
2017: S2021/A3942 - REFERRED TO BANKS/ referred to rules
2016: S157/A5145 - COMMITTED TO RULES/ referred to banks
2015: S157/A5745 - REFERRED TO BANKS/ referred to banks

 
EFFECTIVE DATE:
This act shall take effect immediately, provided, however, that the
amendments subdivision 5 of sections 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.

2019-S2342 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2342
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2019
                                ___________
 
 Introduced  by Sen. KAVANAGH -- 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  low  income
   credit unions in the banking development district program
 
   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  OR,  IN
 CITIES  HAVING  A  POPULATION  OF  ONE  MILLION OR MORE PERSONS, ANY LOW
 INCOME CREDIT UNION AS DESIGNATED BY SECTION  FOUR  HUNDRED  FIFTY-A  OF
 THIS  CHAPTER OR ANY FEDERAL CREDIT UNION THAT HAS BEEN DESIGNATED A LOW
 INCOME  CREDIT  UNION  BY  THE  NATIONAL  CREDIT  UNION  ADMINISTRATION;
 provided,  however,  that  such provisions of law do not grant a savings
 bank, savings and loan association, federal savings and loan association
 or federal savings bank OR, IN CITIES HAVING A POPULATION OF ONE MILLION
 OR MORE PERSONS, ANY LOW INCOME CREDIT UNION AS  DESIGNATED  BY  SECTION
 FOUR  HUNDRED  FIFTY-A  OF THIS CHAPTER OR ANY FEDERAL CREDIT UNION THAT
 HAS BEEN DESIGNATED A LOW INCOME CREDIT UNION  BY  THE  NATIONAL  CREDIT
 UNION  ADMINISTRATION eligibility to accept municipal or public funds or
 municipal or public moneys other than for the limited  purposes  of  the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02182-01-9

 S. 2342                             2
 
 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  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  OR,  IN
 CITIES  HAVING  A  POPULATION  OF  ONE  MILLION OR MORE PERSONS, ANY LOW
 INCOME CREDIT UNION AS DESIGNATED BY SECTION  FOUR  HUNDRED  FIFTY-A  OF
 THIS  CHAPTER OR ANY FEDERAL CREDIT UNION THAT HAS BEEN DESIGNATED A LOW
 INCOME CREDIT UNION BY THE NATIONAL CREDIT UNION ADMINISTRATION  in  the
 program established pursuant to this section.
   §  2.  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 one of this act shall not affect the repeal of such subdivi-
 sion and shall be deemed repealed therewith.

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Senate Bill S2342

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee

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co-Sponsors

2019-S2342 (ACTIVE) - Details

2019-S2342 (ACTIVE) - Summary

2019-S2342 (ACTIVE) - Sponsor Memo

2019-S2342 (ACTIVE) - Bill Text download pdf

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Sponsored By

Brian Kavanagh

Archive: Last Bill Status - In Senate Committee Banks Committee

Actions

co-Sponsors

Julia Salazar

2019-S2342 (ACTIVE) - Details

2019-S2342 (ACTIVE) - Summary

2019-S2342 (ACTIVE) - Sponsor Memo

2019-S2342 (ACTIVE) - Bill Text download pdf

Comments