NY State Senate Bill 2019-S5411

Senate Bill S5411

Signed By Governor

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 Via A7604 - Signed by Governor

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
Aug 30, 2019	signed chap.217
Aug 23, 2019	delivered to governor
Jun 11, 2019	returned to assembly passed senate 3rd reading cal.900 substituted for s5411
Jun 11, 2019	substituted by a7604
Jun 03, 2019	advanced to third reading
May 30, 2019	2nd report cal.
May 29, 2019	1st report cal.900
Apr 30, 2019	referred to banks

Votes

- Jun 11, 2019 - Floor Vote
  A7604
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 11, 2019
      
      aye (61)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Antonacci
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hoylman-Sigal
      
      Jackson
      
      Jacobs
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      O'Mara
      
      Ortt
      
      Parker
      
      Persaud
      
      Ramos
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serrano
      
      Seward
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      excused (1)
      
      Serino
  May 29, 2019 - Banks Committee Vote
  S5411
  
  11
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Banks Committee Vote: May 29, 2019
      
      aye (11)
      
      Antonacci
      
      Breslin
      
      Jordan
      
      Kennedy
      
      O'Mara
      
      Parker
      
      Persaud
      
      Sanders Jr.
      
      Sepúlveda
      
      Tedisco
      
      Thomas

co-Sponsors

2019-S5411 (ACTIVE) - Details

See Assembly Version of this Bill:: A7604
Law Section:: Banks
Laws Affected:: Amd §7, Chap 3 of 1997; amd §6, Chap 322 of 2007

2019-S5411 (ACTIVE) - Summary

Relates to extending certain provisions authorizing banks and trust companies to exercise the rights of national banks to September 10, 2024.

2019-S5411 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5411

SPONSOR: SANDERS
 
TITLE OF BILL:  An act to amend chapter 3 of the laws of 1997, amend-
ing 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; and 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
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-S5411 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5411
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 30, 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 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; and 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
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.   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  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.
   §  2. Section 6 of chapter 322 of the laws of 2007, amending the bank-
 ing law relating to the power of banks, private  bankers,  trust  compa-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11355-01-9

 S. 5411                             2
 
 nies,  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.
   § 3. This act shall take effect immediately.

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Senate Bill S5411

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Sponsored By

James Sanders Jr.