NY State Senate Bill 2019-S727

Archive: Last Bill Status - 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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 12, 2019	signed chap.629
Dec 06, 2019	delivered to governor
Jun 18, 2019	returned to senate passed assembly ordered to third reading rules cal.112 substituted for a3320
Jun 13, 2019	referred to ways and means delivered to assembly passed senate
Jun 06, 2019	amended on third reading (t) 727a
Mar 04, 2019	advanced to third reading
Feb 28, 2019	2nd report cal.
Feb 27, 2019	1st report cal.181
Jan 09, 2019	referred to banks

Votes

- Jun 13, 2019 - Floor Vote
  S727
  
  51
  
  Aye
  
  11
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 13, 2019
      
      aye (51)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Funke
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Harckham
      
      Helming
      
      Hoylman-Sigal
      
      Jackson
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      Ortt
      
      Parker
      
      Persaud
      
      Ramos
      
      Ritchie
      
      Rivera
      
      Robach
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Thomas
      
      nay (11)
      
      Antonacci
      
      Flanagan
      
      Griffo
      
      Jacobs
      
      Jordan
      
      LaValle
      
      Little
      
      O'Mara
      
      Ranzenhofer
      
      Seward
      
      Tedisco
  Feb 27, 2019 - Banks Committee Vote
  S727
  
  7
  
  Aye
  
  4
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Banks Committee Vote: Feb 27, 2019
      
      aye (7)
      
      Breslin
      
      Kennedy
      
      Parker
      
      Persaud
      
      Sanders Jr.
      
      Sepúlveda
      
      Thomas
      
      nay (4)
      
      Antonacci
      
      Jordan
      
      O'Mara
      
      Tedisco

Bill Amendments

Original

A (Active)

co-Sponsors

View additional co-sponsors

2019-S727 - Details

Law Section:: Banking Law
Laws Affected:: Amd §§96-d & 451-a, Bank L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S5521
2017-2018: S5187

2019-S727 - Summary

Relates to the banking development districts program.

2019-S727 - Sponsor Memo

                                
 
BILL NUMBER: S727

SPONSOR: MONTGOMERY
 
TITLE OF BILL:  An act to amend the banking law, in relation to
including credit unions and federal credit unions within provisions
regarding banking development district program

 
PURPOSE OR GENERAL IDEA OF BILL:

To include credit unions and federal credit unions within the definition
of bank or trust company for the purpose of provisions regarding banking
development districts.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Amends subdivision 5 of section 96-d of the banking law, as
added by chapter 526 of the laws of 1998, to include credit unions and
federal credit unions in the definition of a bank, trust company, or
national bank.

Section 2. Subdivision 1 of section 451-a of the banking law, as added

by chapter 153 of the laws of 2015 , is amended to state that for the
purposes of section 96-d of this chapter, the credit union may include
in its membership any person or organization located within a local
community, neighborhood or rural district where there is a demonstrated
need for banking services as determined by the superintendent.

Section 3. Effective Date

 
JUSTIFICATION:

Chapter 204 of the laws of 1997 authorized the creation of a banking
development district program, which enables municipalities and New York
State to offer certain economic incentives to encourage the establish-
ment of commercial bank branches in areas where there is a demonstrated
need for banking services. Chapter 526 of the laws of 1998 incorporated
savings and loans into this program. This legislation includes credit
unions within the economic development program.

Credit unions will be able to offer small business services, such as
member business lending, similar to those currently offered by commer-
cial banks and savings and loans. By enabling credit unions to partic-
ipate in this program there will be more opportunities for munici-
palities to work with different types of banking institutions to
encourage better banking services in developing areas.

 
PRIOR LEGISLATIVE HISTORY:

A3134 of 2008-2009.
A9352 of 2009-2010.
A2549 of 2013-2014 (enacting clause stricken)
A8693 of 2014

 
FISCAL IMPLICATIONS:

None to the State

 
EFFECTIVE DATE:
This act shall take effect January 1, 2021.

2019-S727 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    727
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced   by  Sens.  MONTGOMERY,  BROOKS,  COMRIE,  HOYLMAN,  PARKER,
   SANDERS, STAVISKY -- 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 credit unions
   and federal credit unions within provisions regarding banking develop-
   ment 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, 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, CREDIT
 UNION OR FEDERAL CREDIT UNION; provided, however, that  such  provisions
 of law do not grant a savings bank, savings and loan association, feder-
 al  savings  and  loan  association [or], federal savings bank, A CREDIT
 UNION OR A FEDERAL CREDIT  UNION  eligibility  to  accept  municipal  or
 public  funds  or  municipal or public moneys other than for the limited
 purposes of the 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD03497-01-9

 S. 727                              2
 
 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
 municipal  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,
 CREDIT UNIONS AND FEDERAL  CREDIT  UNIONS  in  the  program  established
 pursuant to this section.
   §  2.  Paragraph  (f) of subdivision 1 of section 451-a of the banking
 law, as amended by chapter 153 of the laws of 2015, is amended and a new
 paragraph (g) is added to read as follows:
   (f) Any incorporated or unincorporated organization  composed  princi-
 pally  of  persons  eligible  to membership in the credit union and that
 organization's employees[.]; OR
   (G) ANY PERSON OR  ORGANIZATION  LOCATED  WITHIN  A  LOCAL  COMMUNITY,
 NEIGHBORHOOD,  OR  RURAL DISTRICT WHERE THERE IS A DEMONSTRATED NEED FOR
 BANKING SERVICES AS DETERMINED BY THE SUPERINTENDENT.
   § 3. This act shall take effect January 1, 2021;  provided,  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  subdivision
 and shall be deemed to be repealed therewith as provided in section 4 of
 chapter 526 of the laws of 1998, as amended.

co-Sponsors

View additional co-sponsors

2019-S727A (ACTIVE) - Details

Law Section:: Banking Law
Laws Affected:: Amd §§96-d & 451-a, Bank L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S5521
2017-2018: S5187

2019-S727A (ACTIVE) - Summary

Relates to the banking development districts program.

2019-S727A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S727A

SPONSOR: MONTGOMERY
 
TITLE OF BILL:

An act to amend the banking law, in relation to the banking development
district program; to amend chapter 526 of the laws of 1998, amending the
banking law relating to participation in the banking development
districts program, in relation to the effectiveness thereof

 
PURPOSE OF THE BILL:

This bill would amend the Banking Law to expand access to banking
services in communities where there is a demonstrated need for addi-
tional products and services.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill would limit the designation of a banking develop-
ment district to fourteen years, yet allow for additional extensions in
five or 10 year increments.

Section 3 of the bill would amend Banking Law S 96-d (5) to allow feder-
al and state credit unions to participate in the banking development
district program.

Sections 2 and 4 of the bill would set forth the effective dates.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IN. APPLICABLE):

The amendments removed the requirement to offer certain products and
services.

 
LEGISLATIVE HISTORY:

New bill.

 
JUSTIFICATION:

Many communities in New York State lack consumer-banking services. In
1997, the Banking Development District (BDD) program was enacted to
incentivize banks to locate branches in communities designated as under-
served by the Department of Financial. Such communities either have no
available financial service options, or only offer alternative(and often
problematic) financial service options like check cashers and Pawn
shops.

Under the BDD program, banks that open branches in underserved communi-
ties are eligible to receive below market-rate deposits. Such deposits
lower the financial risk the branches may incur when opening in an
underserved community.

Currently, however, credit unions are currently ineligible to partic-
ipate in the BDD program. Because banks and other eligible financial
institutions have submitted a modest number of applications over the
past twenty years, the program should be expanded to include credit
unions to encourage additional banking services in underserved communi-
ties.

At the same time, it is also appropriate to restrict the unlimited dura-
tion of a BDD designation. Once a banking deficit in an under served
community is corrected, the incentives provided under the BDD program
are no longer needed. A fourteen-year designation limit (with unlimited
extensions as necessary) would make the BDD program more efficient and
allow for the allocation of resources to other communities.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2019-S727A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  727--A
     Cal. No. 181
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by  Sens. MONTGOMERY, BROOKS, COMRIE, HOYLMAN, PARKER, SALA-
   ZAR, SANDERS, STAVISKY -- read twice and  ordered  printed,  and  when
   printed  to be committed to the Committee on Banks -- reported favora-
   bly from said committee, ordered to first and second  report,  ordered
   to a third reading, amended and ordered reprinted, retaining its place
   in the order of third reading
 
 AN  ACT to amend the banking law, in relation to the banking development
   district program; to amend chapter 526 of the laws of  1998,  amending
   the  banking  law relating to participation in the banking development
   districts program, in relation to the effectiveness thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 2 of section 96-d of the banking law, as added
 by chapter 204 of the laws of 1997, is amended to read as follows:
   2. A local government, in conjunction with a bank,  trust  company  or
 national  bank,  may submit an application to the superintendent for the
 designation of a banking development district. The superintendent  shall
 issue  a  determination  on  such  an  application  within sixty days of
 receiving such application. If an application is  approved,  the  super-
 intendent shall transmit notification of [such approval] THE DESIGNATION
 OF  A  BANKING  DEVELOPMENT  DISTRICT to the local government, the bank,
 trust company or national bank, the state comptroller, the  commissioner
 of  taxation and finance, the commissioner of the department of economic
 development, the temporary president of the senate and  the  speaker  of
 the assembly. THE DESIGNATION OF A BANKING DEVELOPMENT DISTRICT SHALL BE
 VALID  FOR FOURTEEN YEARS. PRIOR TO THE EXPIRATION OF A BANKING DEVELOP-
 MENT DISTRICT DESIGNATION, THE SUPERINTENDENT MAY EXTEND THE DESIGNATION
 FOR ONE OR MORE ADDITIONAL FIVE OR TEN YEAR PERIODS.
   § 2. Section 4 of chapter 526 of the laws of 1998, amending the  bank-
 ing  law  relating to participation in the banking development districts

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03497-02-9

 S. 727--A                           2
 
 program, as amended by chapter 46 of the laws of  2016,  is  amended  to
 read as follows:
   §  4.  This  act  shall  take  effect on the first day of January next
 succeeding the date on which it shall have  become  a  law  and  SECTION
 THREE OF THIS ACT shall remain in effect until January 1, 2023 when upon
 such  date it shall expire and be deemed repealed; provided however that
 any branch established prior to the expiration  and  repeal  of  SECTION
 THREE  OF  this  act  by  a  savings bank, savings and loan association,
 federal savings bank or federal savings and loan association in a  bank-
 ing  development district pursuant to this act shall continue to operate
 in accordance with this act and remain eligible for all the  rights  and
 privileges authorized by this act.
   §  3.  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, CREDIT
 UNION, OR FEDERAL CREDIT UNION; provided, however, that such  provisions
 of law do not grant a savings bank, savings and loan association, feder-
 al  savings  and  loan  association  [or],  federal savings bank, CREDIT
 UNION, OR FEDERAL CREDIT UNION eligibility to accept municipal or public
 funds or municipal or public moneys other than for the limited  purposes
 of  the  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
 municipal 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,
 CREDIT  UNIONS,  AND  FEDERAL  CREDIT  UNIONS in the program established
 pursuant to this section.
   § 4. 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 three of this act shall not affect the repeal of such  subdi-
 vision and shall be deemed repealed therewith.

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Senate Bill S727

Sponsored By

Archive: Last Bill Status - Signed by Governor

Jun 13, 2019 - Floor Vote

Floor Vote: Jun 13, 2019

Feb 27, 2019 - Banks Committee Vote

Banks Committee Vote: Feb 27, 2019

Bill Amendments

co-Sponsors

2019-S727 - Details

2019-S727 - Summary

2019-S727 - Sponsor Memo

2019-S727 - Bill Text download pdf

co-Sponsors

2019-S727A (ACTIVE) - Details

2019-S727A (ACTIVE) - Summary

2019-S727A (ACTIVE) - Sponsor Memo

2019-S727A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S727

Share this bill

Sponsored By

Archive: Last Bill Status - Signed by Governor

Bill Amendments

co-Sponsors

2019-S727 - Details

2019-S727 - Summary

2019-S727 - Sponsor Memo

2019-S727 - Bill Text download pdf

co-Sponsors

2019-S727A (ACTIVE) - Details

2019-S727A (ACTIVE) - Summary

2019-S727A (ACTIVE) - Sponsor Memo

2019-S727A (ACTIVE) - Bill Text download pdf

Comments