Senate Bill S1492

                                 
BILL NUMBER: S1492

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the banking law and the insurance law, in relation to
dedicating ten percent of the fines and penalties imposed by the super-
intendent of financial services for deposit into the community develop-
ment financial institution fund

 
PURPOSE:

To dedicate ten percent of the fines assessed by the New York State
Department of Financial Services to the NYS community development finan-
cial institution fund.

 
SUMMARY OF PROVISIONS:

Section 1 adds a new Subdivision (10)to Section 44 of the banking law,
which provides for ten percent of all penalties imposed and collected
pursuant to this section be deposited into the community development
financial institution fund that was established pursuant to subdivision
              

three of section 16-0 of the New York state urban development act.

Section 2 amends Section 109 of the Insurance law to provide that ten
percent of all penalties imposed and collected pursuant to this section.
be deposited into the community development financial institution fund
that was established pursuant to subdivision three of section 16 of the
New York state urban development act.

 
JUSTIFICATION:

Penalties imposed by the New York State Department of Financial.
Services should be returned used to benefit new Yorkers who have been
victimized either by illegal practices or to those who do not have
adequate access to financial services or capital. We would like ten
percent of the monies recovered dedicated to the community development
financial institution fund. Monies generated because of fines and penal-
ties should go benefit those you New Yorkers who lack access to finan-
cial capital & services. The Community Development Financial Institution
Assistance Program bolsters institutions providing microloans to small
businesses that often do not qualify for bank loans, as well as provide
one-on-one counseling and business development assistance to facilitate
credit readiness. Consumers are forced to pay higher rates because of
access to credit is limited, by funding this groups we attempt to make
1.t easier for small business to access capital.

 
LEGISLATIVE HISTORY:

S3676: 2022

S.6560 of 2017-18.

 
FISCAL IMPLICATIONS:

No cost to the State.

 
EFFECTIVE DATE:
This act shall take effect September 1, 2023.