NY State Senate Bill 2019-S4954

Senate Bill S4954

2019-2020 Legislative Session

Relates to extending certain provisions authorizing banks and trust companies to exercise the rights of national banks

download bill text pdf

Archive: Last Bill Status - Stricken

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 01, 2019	recommit, enacting clause stricken
Apr 02, 2019	referred to banks

2019-S4954 (ACTIVE) - Details

Law Section:: Banks
Laws Affected:: Amd §6, Chap 322 of 2007; amd §7, Chap 3 of 1997

2019-S4954 (ACTIVE) - Summary

Relates to extending certain provisions authorizing banks and trust companies to exercise the rights of national banks.

2019-S4954 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4954                  REVISED 4/3/2019

SPONSOR: ANTONACCI
 
TITLE OF BILL:  An act to amend chapter 322 of the laws of 2007,
amending the banking law relating to the power of banks, private bank-
ers, trust companies, savings banks, savings and loan associations,
credit unions and foreign banking corporations to exercise the rights of
national banks, federal savings associations, federal credit unions and
federal branches and agencies of foreign banks, in relation to the
effectiveness of certain provisions of such chapter; and to amend chap-
ter 3 of the laws of 1997, amending the banking law and the insurance
law relating to authorizing the banking board to permit banks and trust
companies to exercise the rights of national banks, in relation to the
effectiveness of certain provisions of such chapter  


 
PURPOSE:

TO EXTEND, FOR AN ADDITIONAL FIVE YEARS, THE BANKING "WILD CARD" LAW,
WHICH PROVIDES AN ADMINISTRATIVE MECHANISM TO KEEP THE STATE BANKING
CHARTER VIABLE AND COMPETITIVE WITH THE FEDERAL BANKING CHARTER.

 
SUMMARY OF PROVISIONS:

THE EFFECTIVE DATE PROVISIONS OF CHAPTER 322 OF 2007 AND CHAPTER 3 OF
THE LAWS OF 1997 ARE AMENDED TO EXTEND THE SUNSET DATE FROM SEPTEMBER
10, 2019 TO SEPTEMBER 10, 2024.

 
EXISTING LAW:

UNDER THE "WILD CARD" LAW (SECTION 12-A OF THE BANKING LAW), THE SUPER-
INTENDENT OF FINANCIAL SERVICES IS AUTHORIZED TO PERMIT STATE-CHARTERED
BANKING ORGANIZATIONS TO EXERCISE BANKING POWERS THAT ARE AVAILABLE TO
CORRESPONDING FEDERALLY-CHARTERED INSTITUTIONS, BUT WHICH ARE NOT
EXPRESSLY AUTHORIZED UNDER THE BANKING LAW.

 
STATEMENT IN SUPPORT:

UNDER THE NATION'S DUAL BANKING SYSTEM, BANKING INSTITUTIONS MAY CHOOSE
TO OPERATE UNDER EITHER A STATE OR FEDERAL CHARTER. ALMOST EVERY STATE
HAS A BANKING "WILD CARD" LAW WHICH PROVIDES AN ADMINISTRATIVE MECHANISM
TO HELP MAINTAIN PARITY IN REGARD TO THE POWERS OF STATE BANKS AND
NATIONAL BANKS.

IN GENERAL, A BANKING WILD CARD LAW ENABLES A STATE REGULATOR TO ADMIN-
ISTRATIVELY AUTHORIZE STATE BANKS TO EXERCISE THE SAME POWERS AS
NATIONAL BANKS. A WILD CARD LAW CAN PROVIDE A TIMELY, FLEXIBLE AND EFFI-
CIENT MECHANISM FOR KEEPING A STATE'S BANKING CHARTER COMPETITIVE,
ATTRACTIVE AND VIABLE IN COMPARISON WITH THE FEDERAL CHARTER.

IN 1997, A BANKING WILD CARD LAW WAS ENACTED IN NEW YORK STATE TO HELP
RETAIN AND PROMOTE THE STATE BANKING CHARTER AND STATE BANKING SYSTEM.
WITH THIS LAW, THE STATE SOUGHT TO REASSURE ITS STATE-CHARTERED BANKING
INSTITUTIONS THAT IT WAS COMMITTED AND DETERMINED TO KEEP THE STATE
CHARTER COMPETITIVE WITH THE FEDERAL CHARTER.

WITH THE RAPID AND CONTINUING CHANGES IN THE FINANCIAL SYSTEM, STATE-
CHARTERED INSTITUTIONS WERE BECOMING INCREASINGLY CONCERNED THAT THEY
WOULD FIND THEMSELVES AT A SIGNIFICANT DISADVANTAGE. WHILE FEDERALLY-
CHARTERED INSTITUTIONS WERE POSITIONED TO IMMEDIATELY TAKE ADVANTAGE OF
ANY EXPANDED POWERS AND NEW OPPORTUNITIES GRANTED AT THE FEDERAL LEVEL,
STATE INSTITUTIONS FEARED THAT LENGTHY DELAYS AND UNCERTAINTY AT THE
STATE LEVEL WOULD PLACE THEM AT A SIGNIFICANT DISADVANTAGE.

THE WILD CARD LAW IS INTENDED TO HELP ADDRESS THESE CONCERNS BY ESTAB-
LISHING AN ADMINISTRATIVE PROCESS TO ENABLE NEW YORK STATE TO QUICKLY
RESPOND TO SIGNIFICANT PARITY ISSUES. NEW YORK'S WILD CARD LAW INCLUDED
A SUNSET DATE, AND THE LAW HAS BEEN EXTENDED SEVERAL TIMES SINCE ITS
ORIGINAL ENACTMENT IN 1997. THIS BILL WOULD EXTEND THE LAW FOR AN ADDI-
TIONAL FIVE YEARS.

 
BUDGET IMPLICATIONS:

NONE.

 
EFFECTIVE DATE:
IMMEDIATELY.

2019-S4954 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4954
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               April 2, 2019
                                ___________
 
 Introduced by Sen. ANTONACCI -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks
 
 AN  ACT  to  amend chapter 322 of the laws of 2007, amending the banking
   law relating to the power of banks, private bankers, trust  companies,
   savings  banks,  savings  and  loan  associations,  credit  unions and
   foreign banking corporations to exercise the rights of national banks,
   federal  savings  associations,  federal  credit  unions  and  federal
   branches  and agencies of foreign banks, in relation to the effective-
   ness of certain provisions of such chapter; and to amend chapter 3  of
   the  laws  of  1997,  amending  the  banking law and the insurance law
   relating to authorizing the banking board to permit  banks  and  trust
   companies to exercise the rights of national banks, in relation to the
   effectiveness of certain provisions of such chapter
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 6 of chapter 322 of the laws of 2007, amending  the
 banking  law  relating  to  the  power  of banks, private bankers, trust
 companies, savings banks, savings and loan associations,  credit  unions
 and  foreign  banking  corporations  to  exercise the rights of national
 banks, federal savings associations, federal credit unions  and  federal
 branches and agencies of foreign banks, as amended by chapter 113 of the
 laws of 2014, is amended to read as follows:
   §  6.  This  act shall take effect immediately; provided, however that
 sections one, two, three and four of this act shall take effect  Septem-
 ber 1, 2007; and provided further that sections one, two, three and four
 of  this  act  shall  expire and be deemed repealed September 10, [2019]
 2024; and provided further that any federally permitted powers  approved
 under section three of this act shall remain in full force and effect on
 and after such repeal date and shall not be affected by such repeal.
   §  2. Section 7 of chapter 3 of the laws of 1997, amending the banking
 law and the insurance law relating to authorizing the banking  board  to
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11032-01-9

 S. 4954                             2
 
 permit  banks  and  trust  companies  to exercise the rights of national
 banks, as amended by chapter 113 of the laws of 2014, is amended to read
 as follows:
   §  7. This act shall take effect immediately provided that section two
 of this act shall take effect on the thirtieth day after it  shall  have
 become  a  law and shall apply to violations prescribed in section 44 of
 the banking law that occur on or after such date; and  provided  further
 that  sections  one,  three,  four  and  five shall expire and be deemed
 repealed September 10, [2019] 2024; and provided further that any  rules
 and  regulations  promulgated  pursuant to sections one, three, four and
 five shall remain in full force and effect on and after such  expiration
 date and shall not be affected by such expiration date.
   § 3. This act shall take effect immediately.

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