S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3223
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 4, 2019
                                ___________
 
 Introduced  by  Sen. SANDERS -- 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 assessment of the record
   of performance of banking institutions in helping to meet  the  credit
   needs of local communities

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 3 of  section  28-b  of  the  banking  law,  as
 amended  by  chapter  315 of the laws of 2008, the opening paragraph and
 paragraph 12 of paragraph (a) as amended by chapter 227 of the  laws  of
 2013, is amended to read as follows:
   3.  (a)  When  taking any action on an application or notice made by a
 banking institution under (i) section  one  hundred  five,  two  hundred
 twenty-four,  two  hundred  forty,  or  three hundred ninety-six of this
 chapter for a branch office, (ii) section one hundred ninety-one of this
 chapter for a public accommodation office,  (iii)  section  six  hundred
 one-b of this chapter for approval of a merger or purchase of assets, or
 (iv)  under  section  one  hundred  five-a, two hundred forty-a or three
 hundred ninety-six-a of this chapter for the use or installation  of  an
 automated  teller  machine, point-of-sale terminal or similar electronic
 facility or on any other application or notice to which the  superinten-
 dent  of  financial services shall by rule or regulation make applicable
 the provisions of this  section,  the  superintendent  shall  take  into
 account,  among  other factors, an assessment, in writing, of the record
 of performance of the banking institution in helping to meet the  credit
 needs  of its entire community, including low and moderate-income neigh-
 borhoods AND MINORITY- AND WOMEN-OWNED BUSINESSES, consistent with  safe
 and  sound operation of the banking institution. Such assessment and any
 written communications from the department of financial  services  to  a
 banking  institution relating to such assessment shall be made available
 to the public upon request, provided  that  nothing  contained  in  this
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05856-01-9

 S. 3223                             2
 
 subdivision  shall be deemed to alter, amend or affect the provisions of
 subdivision ten of section thirty-six of this chapter.  In  making  such
 assessment  the  superintendent  shall  review all reports and documents
 filed  pursuant to subdivision one of this section and any signed, writ-
 ten comments received by the superintendent which specifically relate to
 the banking institution's performance in  helping  to  meet  the  credit
 needs  of  its community. In addition, the superintendent shall consider
 the following factors in assessing a  banking  institution's  record  of
 performance:
   (1) Activities conducted by the banking institution to ascertain cred-
 it  needs  of  its community, including the extent of the banking insti-
 tution's efforts to communicate with members of its community  regarding
 the credit services being provided by the banking institution;
   (2)  The  extent  of  the  banking institution's marketing and special
 credit-related programs to make members of the community  aware  of  the
 credit services offered by the banking institution;
   (3)  The extent of participation by the banking institution's board of
 directors or board of trustees in formulating the banking  institution's
 policies  and  reviewing its performance with respect to the purposes of
 the Community Reinvestment Act of 1977;
   (4) Any practices intended to  discourage  application  for  types  of
 credit set forth in the banking institution's Community Reinvestment Act
 Statement(s);
   (5)  The  geographic  distribution of the banking institution's credit
 extensions, credit applications and credit denials;
   (6) Evidence of prohibited  discriminatory  or  other  illegal  credit
 practices;
   (7)  The  banking  institution's record of opening and closing offices
 and providing services at offices;
   (8) The banking institution's participation, including investments, in
 local community development and redevelopment projects or  programs  AND
 IN  TECHNICAL ASSISTANCE PROGRAMS FOR SMALL BUSINESSES AND MINORITY- AND
 WOMEN-OWNED BUSINESSES;
   (9) The banking  institution's  origination  of  residential  mortgage
 loans,  housing  rehabilitation  loans, home improvement loans and small
 business or small farm OR MINORITY- AND WOMEN-OWNED BUSINESS loans with-
 in its community or the purchase of such loans originated in its  commu-
 nity;
   (10)  The  banking  institution's  participation in governmentally-in-
 sured, guaranteed or subsidized loan programs for housing,  small  busi-
 nesses or small farms;
   (11) The banking institution's ability to meet various community cred-
 it  needs  based  on  its  financial condition, size, legal impediments,
 local economic condition and other factors;
   (11-a) The geographic distribution, availability and use of  automated
 teller  machines,  point-of-sale  terminals,  personal computer banking,
 debit cards or similar electronic facilities or services; and any train-
 ing of customers thereon among every branch of the banking  institution,
 if the institution offers such services to any of its customers; and
   (12)  Other  factors  that,  in  the  judgment  of the superintendent,
 reasonably bear upon the extent to which a banking institution is  help-
 ing to meet the credit needs of its entire community, including, without
 limitation, the banking institution's participation in credit counseling
 services.
   (b)  In  assessing  the record of performance of a banking institution
 pursuant to the provisions of paragraph (a)  of  this  subdivision,  the

 S. 3223                             3
 
 superintendent  may,  where  he or she deems it appropriate, provide for
 public hearings when an objection to the banking institution's  applica-
 tion or notification has been submitted.
   (c)  An  assessment  of  a banking institution's record of performance
 under paragraph (a) of this subdivision may be the basis for denying  an
 application or notice under the provisions of this section.
   (d)  When taking any action pursuant to paragraph (a) of this subdivi-
 sion, the superintendent shall request from the applicant or  notificant
 banking  institution  and  from  the appropriate federal bank regulatory
 authorities any documents, other than those required to  be  filed  with
 the  superintendent  by  this section or by other applicable statutes or
 regulations, which are  (1)  filed  with  the  federal  bank  regulatory
 authorities in connection with the application or notice or (2) produced
 by  the  applicant  or  notificant  banking  institution  or  others  in
 connection with the application or notice.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment  and/or repeal of any rules or regulations necessary for the imple-
 mentation of the foregoing section of this act on its effective date are
 authorized to be made on or before such effective date.