Senate Bill S2902

2021-2022 Legislative Session

Provides for the inclusion of low income credit unions in the banking development district program in cities having a population of one million or more persons

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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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to banks
Jan 26, 2021	referred to banks

co-Sponsors

2021-S2902 (ACTIVE) - Details

Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Amd §96-d, Bank L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S5279
2011-2012: S34
2013-2014: S194
2015-2016: S157
2017-2018: S2021, S7100
2019-2020: S2342

2021-S2902 (ACTIVE) - Summary

Provides for the inclusion of low income credit unions in the banking development district program in cities having a population of one million or more persons.

2021-S2902 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2902

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the banking law, in relation to including low income
credit unions in the banking development district program

 
PURPOSE OF BILL:

To include low-income credit unions in the state's banking development
districts program in cities with a population of one million or more.

 
SUMMARY OF PROVISIONS:

Section 1 amends Section 96-d of the banking law to include low-income
credit unions as defined in state law or by the National. Credit Union
Association in the banking development districts program in the City of
New York.

Section 2 provides the effective date.

 
JUSTIFICATION:

Section 96-d of the Banking Law, entitled "Banking Development
Districts" (BDD's) is designed to increase access to banking services by
supporting branches in areas where there is a demonstrated need for such
services. In this way, the program aims to enable local residents and
small business owners to easily become a part of the financial main-
stream, promote economic development by enhancing access to capital for
local businesses.

Section 96-d currently allows state and national banks, trust companies,
savings banks, savings and loan associations, and federal savings banks
to participate in the program but omits credit unions.  By adding state
low-income credit unions (already defined in section 450-a of the bank-
ing law), and any federal credit union designated as low income by the
National Credit Union Administration, to the BDD program, this bill will
help them to continue their historic work of providing affordable finan-
cial services to consumers who might otherwise have difficulty accessing
these services. This bill will not require support of any particular
low-income credit union by any state or municipal agency, but will
mere', allow state and federal low-income credit unions to be considered
for such support, on par with other types of financial institutions
already included in the BDD program.

 
LEGISLATIVE HISTORY:

2020: S2342/A5085 - BANKS/banks
2019: S2342/A5085 - BANKS/banks
2018: S7100/A10232 - REFERRED TO BANKS/ referred to rules
2017: S2021/A3942 - REFERRED TO BANKS/ referred to rules
2016: S157/A5145 - COMMITTED TO RULES/ referred to banks
2015: S157/A5745 - REFERRED TO BANKS/ referred to banks

 
EFFECTIVE DATE:
This act shall take effect immediately, provided, however, that the
amendments subdivision 5 of sections 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.

2021-S2902 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2902
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2021
                                ___________
 
 Introduced by Sens. KAVANAGH, SALAZAR -- 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 low income
   credit unions in the banking development 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
 amended by chapter 629 of the laws  of  2019,  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,  federal  savings  bank,  credit
 union,  or federal credit union OR, IN CITIES HAVING A POPULATION OF ONE
 MILLION OR MORE PERSONS, ANY LOW INCOME CREDIT UNION  AS  DESIGNATED  BY
 SECTION FOUR HUNDRED FIFTY-A OF THIS CHAPTER OR ANY FEDERAL CREDIT UNION
 THAT HAS BEEN DESIGNATED A LOW INCOME CREDIT UNION BY THE NATIONAL CRED-
 IT  UNION ADMINISTRATION; provided, however, that such provisions of law
 do not grant a savings  bank,  savings  and  loan  association,  federal
 savings  and  loan  association,  federal savings bank, credit union, or
 federal credit union OR, IN CITIES HAVING A POPULATION OF ONE MILLION OR
 MORE PERSONS, ANY LOW INCOME CREDIT UNION AS DESIGNATED BY SECTION  FOUR
 HUNDRED  FIFTY-A  OF  THIS  CHAPTER OR ANY FEDERAL CREDIT UNION THAT HAS
 BEEN DESIGNATED A LOW INCOME CREDIT UNION BY THE NATIONAL  CREDIT  UNION
 ADMINISTRATION eligibility to accept municipal or public funds or munic-
 ipal  or public moneys other than for the limited purposes of the estab-
 lishment of a branch in a banking development district pursuant to  this
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06371-01-1

 S. 2902                             2
 
 section. Any such municipal or public funds or moneys shall be deposited
 only at the branch established pursuant to this section, and any munici-
 pal 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 relat-
 ing 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, federal savings  and  loan  associations,  credit
 unions,  and  federal credit unions OR, IN CITIES HAVING A POPULATION OF
 ONE MILLION OR MORE PERSONS, ANY LOW INCOME CREDIT UNION  AS  DESIGNATED
 BY  SECTION  FOUR  HUNDRED FIFTY-A OF THIS CHAPTER OR ANY FEDERAL CREDIT
 UNION THAT HAS BEEN DESIGNATED A LOW INCOME CREDIT UNION BY THE NATIONAL
 CREDIT UNION ADMINISTRATION in the program established pursuant to  this
 section.
   §  2.  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 one of this act shall not affect the repeal of such subdivi-
 sion and shall be deemed repealed therewith.

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Senate Bill S2902

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee

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co-Sponsors

2021-S2902 (ACTIVE) - Details

2021-S2902 (ACTIVE) - Summary

2021-S2902 (ACTIVE) - Sponsor Memo

2021-S2902 (ACTIVE) - Bill Text download pdf

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Sponsored By

Brian Kavanagh

Archive: Last Bill Status - In Senate Committee Banks Committee

Actions

co-Sponsors

Julia Salazar

2021-S2902 (ACTIVE) - Details

2021-S2902 (ACTIVE) - Summary

2021-S2902 (ACTIVE) - Sponsor Memo

2021-S2902 (ACTIVE) - Bill Text download pdf

Comments