NY State Senate Bill 2019-S8442B

Senate Bill S8442B

2019-2020 Legislative Session

Relates to assessment of the record of performance of banking institutions in supporting persons and certain entities affected by the outbreak of COVID-19

download bill text pdf

Archive: Last Bill Status - In Senate Committee Banks Committee

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
Jul 09, 2020	print number 8442b
Jul 09, 2020	amend and recommit to banks
Jun 04, 2020	print number 8442a
Jun 04, 2020	amend and recommit to banks
Jun 03, 2020	referred to banks

Bill Amendments

Original

B (Active)

2019-S8442 - Details

See Assembly Version of this Bill:: A10329
Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Amd §28-b, Bank L
Versions Introduced in 2021-2022 Legislative Session:: S957, A6835

2019-S8442 - Summary

Provides for assessment of activities conducted by the banking institution to support persons, small businesses, minority- and women-owned businesses, and certain not-for-profit corporations affected by the outbreak of coronavirus disease 2019 (COVID-19).

2019-S8442 - Sponsor Memo

                                
 
BILL NUMBER: S8442

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the banking law, in relation to assessment of the record
of performance of banking institutions in supporting persons, small
businesses, minority- and women-owned businesses, and certain not-for-
profit corporations affected by the outbreak of COVID-19

 
PURPOSE:

To provide relief to families impacted by the COVID-19 outbreak, through
incentivizing banks to provide aid and support, through the Community
Reinvestment Act.

 
SUMMARY OF PROVISIONS:

Section 1 amends the Banking Law, through adding a criteria for assess-
ment of how banks provide low-to-no interest loans, the waiving of fees,
and the modification or extension of existing loans, and other financial

instruments conducted by the banking industry to support persons, small
businesses, M/WBEs, and certain nonprofits affected by the COVID-19
outbreak for 6 months after the state of emergency ends

Section 2 establishes the effective date.

 
JUSTIFICATION:

During COVID-19 outbreak, employees and small business owners have been
left without pay, due to state and local restrictions on non-essential
businesses. Workers, their families, and the economy have lost critical
funding. As recently established federal programs have not offered
substantial relief from this crisis and have greatly impacted minority
communities, it is important for the State of New York to identify ways
that they can provide more support to these small business owners and
their employees, especially if that means influencing the banking indus-
try to use their resources for the betterment of society.

This bill amends the NYS Community Reinvestment Act to provide financial
institutions with credit for providing assistance during the COVID-19
crisis. It will incentivize banks to provide employees, small busi-
nesses, minority and-women owned business enterprises (MWBEs), and
certain nonprofits impacted by COVID-19 with extensions for for existing
loans, provide low- to no-interest loans, to waive certain fees, and
other positive financial instruments to benefit the public. This legis-
lation would expand the Department of Financial Services' power to
assess and rate banking institutions' ability to support underserved
communities, like those impacted by the COVID-19 outbreak and have a
high concentration of poverty.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
Immediately

2019-S8442 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8442
 
                             I N  S E N A T E
 
                               June 3, 2020
                                ___________
 
 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  supporting  persons,  small
   businesses, minority- and women-owned businesses, and certain not-for-
   profit corporations affected by the outbreak of COVID-19

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 3 of section 28-b of the bank-
 ing law is amended by adding a new subparagraph 1-a to read as follows:
   (1-A) ACTIVITIES, INCLUDING, BUT NOT LIMITED TO, THE OFFERING OF  LOW-
 TO-NO  INTEREST  LOANS,  THE  WAIVING  OF  FEES, AND THE MODIFICATION OR
 EXTENSION OF EXISTING LOANS AND OTHER FINANCIAL  INSTRUMENTS,  CONDUCTED
 BY THE BANKING INSTITUTION TO SUPPORT PERSONS, SMALL BUSINESSES, MINORI-
 TY-  AND WOMEN-OWNED BUSINESSES, AND CERTAIN NOT-FOR-PROFIT CORPORATIONS
 AFFECTED BY THE OUTBREAK OF CORONAVIRUS DISEASE 2019  (COVID-19)  DURING
 THE  STATE  DISASTER  EMERGENCY DECLARED PURSUANT TO EXECUTIVE ORDER TWO
 HUNDRED TWO AND FOR THE SIX MONTHS  FOLLOWING  THE  END  OF  SUCH  STATE
 DISASTER  EMERGENCY.  SUPPORT  PROVIDED  TO A NOT-FOR-PROFIT CORPORATION
 SHALL ONLY BE CONSIDERED FOR THE PURPOSES  OF  THIS  SUBPARAGRAPH  WHERE
 SUCH  NOT-FOR-PROFIT CORPORATION UTILIZED ITS RESOURCES TO ASSIST UNDER-
 SERVED COMMUNITIES DURING THE STATE DISASTER EMERGENCY DECLARED PURSUANT
 TO EXECUTIVE ORDER TWO HUNDRED TWO AND FOR THE SIX MONTHS FOLLOWING  THE
 END OF SUCH STATE DISASTER EMERGENCY;
   § 2. This act shall take effect immediately.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD16116-02-0

2019-S8442A - Details

See Assembly Version of this Bill:: A10329
Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Amd §28-b, Bank L
Versions Introduced in 2021-2022 Legislative Session:: S957, A6835

2019-S8442A - Summary

2019-S8442A - Sponsor Memo

                                
 
BILL NUMBER: S8442A

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the banking law, in relation to assessment of the record
of performance of banking institutions in supporting persons, small
businesses, minority- and women-owned businesses, and certain not-for-
profit corporations affected by the outbreak of COVID-19

 
PURPOSE:

To provide relief to families impacted by the COVID-19 outbreak, through
incentivizing banks to provide aid and support, through the Community
Reinvestment Act:

 
SUMMARY OF PROVISIONS:

Section 1 amends the Banking Law, through adding a criteria for assess-
ment of-how banks provide low-to-no interest loans, the waiving of fees,
and the modification or extension of existing loans, and other financial

instruments conducted by the banking industry to support persons, small
businesses, M/WBEs, and certain nonprofits affected by the COVID-19
outbreak for 6 months after the state of emergency ends.

Section 2 establishes the effective date.

 
AMENDED FROM THE PREVIOUS VERSION:

This bill includes a provision that requires the NYS Superintendent of
Financial Services to certify that the banking institution has gone
beyond the guidelines set by *the federal Paycheck Protection Program.

 
JUSTIFICATION:  During COVID-19 outbreak, employees and small business
owners have been left without pay, due to state and local restrictions
on non-essential businesses. Workers, their families, and the economy
have lost critical funding. As recently established federal programs
have not offered substantial relief from this crisis and have greatly
impacted minority communities, it is important for the State of New York
to identify ways that they can provide more.support to these small busi-
ness-owners and their employees, especially if that means influencing
the banking industry to use their *resources for the betterment of soci-
ety.

This bill amends the NYS Community Reinvestment Act to provide financial
institutions with credit for providing assistance during the COVID-19
crisis. It will incentivize banks to provide employees, small busi-
nesses, minority-and-women owned business enterprises (MBEs), and
certain nonprofits impacted by COVID-19 with extensions for existing
loans, provide low- to no-interest loans, to waive certain fees, and
other positive financial instruments to benefit the public. This legis-
lation would expand the Department of Financial Services' power to
assess and rate banking institutions' ability to support underserved
communities; like those impacted by the COVID-19 outbreak and have a
high concentration of poverty.

 
LEGISLATIVE HISTORY:

New bill.
 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
Immediately

2019-S8442A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8442--A
 
                             I N  S E N A T E
 
                               June 3, 2020
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Banks  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN ACT to amend the banking law, in relation to assessment of the record
   of  performance  of  banking institutions in supporting persons, small
   businesses, minority- and women-owned businesses, and certain not-for-
   profit corporations affected by the outbreak of COVID-19
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 3 of section 28-b of the bank-
 ing law is amended by adding a new subparagraph 1-a to read as follows:
   (1-A)  ACTIVITIES, INCLUDING, BUT NOT LIMITED TO, THE OFFERING OF LOW-
 TO-NO INTEREST LOANS, THE WAIVING  OF  FEES,  AND  THE  MODIFICATION  OR
 EXTENSION  OF  EXISTING LOANS AND OTHER FINANCIAL INSTRUMENTS, CONDUCTED
 BY THE BANKING INSTITUTION TO SUPPORT PERSONS, SMALL BUSINESSES, MINORI-
 TY- AND WOMEN-OWNED BUSINESSES, AND CERTAIN NOT-FOR-PROFIT  CORPORATIONS
 AFFECTED  BY  THE OUTBREAK OF CORONAVIRUS DISEASE 2019 (COVID-19) DURING
 THE STATE DISASTER EMERGENCY DECLARED PURSUANT TO  EXECUTIVE  ORDER  TWO
 HUNDRED  TWO  AND  FOR  THE  SIX  MONTHS FOLLOWING THE END OF SUCH STATE
 DISASTER EMERGENCY. SUPPORT PROVIDED  TO  A  NOT-FOR-PROFIT  CORPORATION
 SHALL  ONLY  BE  CONSIDERED  FOR THE PURPOSES OF THIS SUBPARAGRAPH WHERE
 SUCH NOT-FOR-PROFIT CORPORATION UTILIZED ITS RESOURCES TO ASSIST  UNDER-
 SERVED COMMUNITIES DURING THE STATE DISASTER EMERGENCY DECLARED PURSUANT
 TO  EXECUTIVE ORDER TWO HUNDRED TWO AND FOR THE SIX MONTHS FOLLOWING THE
 END OF SUCH STATE DISASTER EMERGENCY. ACTIVITIES  AND  SUPPORT  PROVIDED
 SHALL  ONLY  BE CONSIDERED FOR THE PURPOSES OF THIS SUBPARAGRAPH IF SUCH
 SUPPORT IS CERTIFIED BY THE SUPERINTENDENT AS BEING BEYOND  THE  SUPPORT
 PROVIDED PURSUANT TO THE FEDERAL PAYCHECK PROTECTION PROGRAM;
   § 2. This act shall take effect immediately.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD16116-04-0

2019-S8442B (ACTIVE) - Details

See Assembly Version of this Bill:: A10329
Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Amd §28-b, Bank L
Versions Introduced in 2021-2022 Legislative Session:: S957, A6835

2019-S8442B (ACTIVE) - Summary

2019-S8442B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8442b

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the banking law, in relation to assessment of the record
of performance of banking institutions in supporting persons, small
businesses, minority- and women-owned businesses, and certain not-for-
profit corporations affected by the outbreak of COVID-19

 
PURPOSE:

To provide relief to families impacted by the COVID-19 outbreak, through
incentivizing banks to provide aid and support, through the Community
Reinvestment Act.

 
SUMMARY OF PROVISIONS:

Section 1 amends the Banking Law, through adding a criteria for assess-
ment of how banks provide low-to-no interest loans, the waiving of fees,
and the modification or extension of existing loans, and other financial

instruments conducted by the banking industry to support persons, small
businesses, M/WBEs, and certain nonprofits affected by the COVID-19
outbreak for 6 months after the state of emergency ends.

Section 2 establishes the effective date.

 
AMENDED FROM THE PREVIOUS VERSION:

-This version includes a provision that requires the NYS Superintendent
of Financial Services to certify that the banking institution has gone
beyond the guidelines set by the federal Paycheck Protection Program, to
ensure that banks and financial institutions are encouraged to provide
generous resources to persons, small businesses, M/WBEs, and certain
nonprofits.

-This version of the bill excludes low interest loans to employees,
small businesses, M/WBEs and certain non-profits, and would only provide
credit to banking and financial institutions that provide them with no
interest loans. This is based on testimony that was provided during the
Assembly's Public Hearing on the Federal Response to COVID-19 on Small
Businesses in New York City, which occurred on Monday, June 22nd, 2020.

 
JUSTIFICATION:

During COVID-19 outbreak, employees and small business owners have been
left without pay, due to state and local restrictions on non-essential
businesses. Workers, their families, and the economy have lost critical
funding. As recently established federal programs have not offered
substantial relief from this crisis and have greatly impacted minority
communities, it is important for the State of New York to identify ways
that they can provide more support to these small business owners and
their employees, especially if that means influencing the banking indus-
try to use their resources for the betterment of society.

This bill amends the NYS Community Reinvestment Act to provide financial
institutions with credit for providing assistance during the COVID-19
crisis. It will incentivize banks to provide employees, small busi-
nesses, minority-and-women owned business enterprises (MBEs), and
certain nonprofits impacted by COVID-19 with extensions for existing
loans, provide low- to no-interest loans, to waive certain fees, and
other positive financial instruments to benefit the public. This legis-
lation would expand the Department of Financial Services' power to
assess and rate banking institutions' ability to support underserved
communities, like those impacted by the COVID-19 outbreak and have a
high concentration of poverty.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
Immediately

2019-S8442B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8442--B
 
                             I N  S E N A T E
 
                               June 3, 2020
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Banks  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee  --  committee  discharged,  bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the banking law, in relation to assessment of the record
   of performance of banking institutions in  supporting  persons,  small
   businesses, minority- and women-owned businesses, and certain not-for-
   profit corporations affected by the outbreak of COVID-19
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 3 of section 28-b of the bank-
 ing law is amended by adding a new subparagraph 1-a to read as follows:
   (1-A) ACTIVITIES, INCLUDING, BUT NOT LIMITED TO, THE  OFFERING  OF  NO
 INTEREST  LOANS,  THE WAIVING OF FEES, AND THE MODIFICATION OR EXTENSION
 OF EXISTING LOANS AND OTHER  FINANCIAL  INSTRUMENTS,  CONDUCTED  BY  THE
 BANKING  INSTITUTION TO SUPPORT PERSONS, SMALL BUSINESSES, MINORITY- AND
 WOMEN-OWNED BUSINESSES, AND CERTAIN NOT-FOR-PROFIT CORPORATIONS AFFECTED
 BY THE OUTBREAK OF CORONAVIRUS DISEASE 2019 (COVID-19) DURING THE  STATE
 DISASTER  EMERGENCY DECLARED PURSUANT TO EXECUTIVE ORDER TWO HUNDRED TWO
 AND FOR THE SIX MONTHS FOLLOWING THE END OF SUCH STATE DISASTER EMERGEN-
 CY. SUPPORT PROVIDED TO  A  NOT-FOR-PROFIT  CORPORATION  SHALL  ONLY  BE
 CONSIDERED FOR THE PURPOSES OF THIS SUBPARAGRAPH WHERE SUCH NOT-FOR-PRO-
 FIT CORPORATION UTILIZED ITS RESOURCES TO ASSIST UNDERSERVED COMMUNITIES
 DURING THE STATE DISASTER EMERGENCY DECLARED PURSUANT TO EXECUTIVE ORDER
 TWO  HUNDRED  TWO AND FOR THE SIX MONTHS FOLLOWING THE END OF SUCH STATE
 DISASTER EMERGENCY.  ACTIVITIES  AND  SUPPORT  PROVIDED  SHALL  ONLY  BE
 CONSIDERED  FOR  THE  PURPOSES  OF  THIS SUBPARAGRAPH IF SUCH SUPPORT IS
 CERTIFIED BY THE SUPERINTENDENT AS BEING  BEYOND  THE  SUPPORT  PROVIDED
 PURSUANT TO THE FEDERAL PAYCHECK PROTECTION PROGRAM;
   § 2. This act shall take effect immediately.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD16116-06-0

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