Senate Bill S3212

                                
 
BILL NUMBER: S3212

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the banking law and the insurance law, in relation to
dedicating ten percent of the fines and penalties imposed by the super-
intendent of financial services for deposit into the community develop-
ment financial institution fund

 
PURPOSE:

To dedicate ten percent of the fines assessed by the New York State
Department of Financial Services to the NYS community development finan-
cial institution fund.

 
SUMMARY OF PROVISIONS:

Section 1 adds a new Subdivision (10)to Section 44 of the banking law,
which provides for ten percent of all penalties imposed and collected
pursuant to this section be deposited into the community development
              

financial institution fund that was established pursuant to subdivision
three of section 16-0 of the New York state urban development act.

Section 2 amends Section 109 of the Insurance law to provide that ten
percent of all penalties imposed and collected pursuant to this section
be deposited into the community development financial institution fund
that was established pursuant to subdivision three of section 16 of the
New York state urban development act.

 
JUSTIFICATION:

Penalties imposed by the New York State Department of Financial Services
should be returned used to benefit new Yorkers who have been victimized
either by illegal practices or to those who do not have adequate access
to financial services or capital. We would like ten percent of the
monies recovered dedicated to the community development financial insti-
tution fund. Monies generated because of fines and penalties should go
benefit those you New Yorkers who lack access to financial capital &
services. The Community Development Financial Institution Assistance
Program bolsters institutions providing microloans to small businesses
that often do not qualify for bank loans, as well as provide one-on-one
counseling and business development assistance to facilitate credit
readiness. Consumers are forced to pay higher rates because of access to
credit is limited, by funding this groups we attempt to make it easier
for small business to access capital.

 
LEGISLATIVE HISTORY:

S.6560 of 2017-18.

 
FISCAL IMPLICATIONS:

No cost to the State.

 
EFFECTIVE DATE:
This act shall take effect September 1, 2019.