Bill Text: NY S05308 | 2017-2018 | General Assembly | Introduced

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Bill Title: Relates to the banking development district program.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO BANKS [S05308 Detail]

Download: New_York-2017-S05308-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5308
                               2017-2018 Regular Sessions
                    IN SENATE
                                     March 20, 2017
                                       ___________
        Introduced  by  Sen. HAMILTON -- (at request of the Department of Finan-
          cial Services) -- 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 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;  and  to
          repeal certain provisions of such law relating thereto
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The opening paragraph of subdivision 1 of section  96-d  of
     2  the  banking  law,  as amended by chapter 526 of the laws of 1998 and as
     3  further amended by section 104 of part A of chapter 62 of  the  laws  of
     4  2011, is REPEALED.
     5    §  2.  Subdivision  2  of section 96-d of the banking law, as added by
     6  chapter 204 of the laws of 1997, is amended to read as follows:
     7    2. A local government, in conjunction with a bank,  trust  company  or
     8  national  bank,  may submit an application to the superintendent for the
     9  designation of a banking development district. The superintendent  shall
    10  issue  a  determination  on  such  an  application  within sixty days of
    11  receiving such application. If an application is  approved,  the  super-
    12  intendent shall transmit notification of [such approval] the designation
    13  of  a  banking  development  district to the local government, the bank,
    14  trust company or national bank, the state comptroller, the  commissioner
    15  of  taxation and finance, the commissioner of the department of economic
    16  development, the temporary president of the senate and  the  speaker  of
    17  the assembly. The designation of a banking development district shall be
    18  valid  for fourteen years. Prior to the expiration of a banking develop-
    19  ment district designation, the superintendent may extend the designation
    20  for one or more additional five or ten year periods.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10007-02-7
        S. 5308                             2
     1    § 3. Section 4 of chapter 526 of the laws of 1998, amending the  bank-
     2  ing  law  relating to participation in the banking development districts
     3  program, as amended by chapter 46 of the laws of  2016,  is  amended  to
     4  read as follows:
     5    §  4.  This  act  shall  take  effect on the first day of January next
     6  succeeding the date on which it shall have  become  a  law  and  section
     7  three of this act shall remain in effect until January 1, 2023 when upon
     8  such  date it shall expire and be deemed repealed; provided however that
     9  any branch established prior to the expiration and repeal of this act by
    10  a savings bank, savings and loan association, federal  savings  bank  or
    11  federal  savings  and loan association in a banking development district
    12  pursuant to this act shall continue to operate in accordance  with  this
    13  act  and remain eligible for all the rights and privileges authorized by
    14  this act.
    15    § 4. Section 96-d of the banking law is amended by adding a new subdi-
    16  vision 3-a to read as follows:
    17    3-a. In order to meet the demonstrated need for banking services in  a
    18  banking  development  district, any bank, trust company or national bank
    19  that has established a branch  within  a  banking  development  district
    20  shall  offer  affordable  products  and  services  and provide financial
    21  education tailored to the banking needs of the community  in  which  the
    22  branch is located.
    23    §  5.  Subdivision  5  of section 96-d of the banking law, as added by
    24  chapter 526 of the laws of 1998, paragraph (a) as amended by chapter 328
    25  of the laws of 1999 and paragraph (b) as further amended by section  104
    26  of  part  A  of  chapter  62  of the laws of 2011, is amended to read as
    27  follows:
    28    5. (a) Notwithstanding the provisions of subdivision  two  of  section
    29  two  hundred  thirty-seven  of  this  chapter;  for the purposes of this
    30  section, paragraph c of subdivision two of section ten  of  the  general
    31  municipal  law, subdivision six of section one hundred five of the state
    32  finance law and section four hundred eighty-five-f of the real  property
    33  tax  law,  any reference to a bank, trust company or national bank shall
    34  be deemed to include a  savings  bank,  savings  and  loan  association,
    35  federal  savings and loan association [or], federal savings bank, credit
    36  union, or federal credit union; provided, however, that such  provisions
    37  of law do not grant a savings bank, savings and loan association, feder-
    38  al  savings  and  loan  association  [or],  federal savings bank, credit
    39  union, or federal credit union eligibility to accept municipal or public
    40  funds or municipal or public moneys other than for the limited  purposes
    41  of  the  establishment  of  a  branch  in a banking development district
    42  pursuant to this section. Any such municipal or public funds  or  moneys
    43  shall  be  deposited  only  at  the  branch established pursuant to this
    44  section, and any municipal funds or moneys may be deposited only by  the
    45  sponsoring  municipality  in  which  the  branch and banking development
    46  district are located; provided further that any such municipal or public
    47  funds or moneys shall be subject to the same requirements which apply to
    48  municipal or public funds or moneys deposited in a bank,  trust  company
    49  or  national bank and shall also be subject to the provisions of section
    50  one hundred five of the state finance law or section ten of the  general
    51  municipal law relating to such deposits.
    52    (b)  Notwithstanding any other provision of law, the superintendent of
    53  financial services shall promulgate rules and regulations  to  authorize
    54  the  participation  of  savings  banks,  savings  and loan associations,
    55  federal savings banks [and],  federal  savings  and  loan  associations,
        S. 5308                             3
     1  credit  unions,  and  federal  credit  unions in the program established
     2  pursuant to this section.
     3    §  6.  This act shall take effect immediately; provided, however, that
     4  the amendments to subdivision 5 of section 96-d of the banking law  made
     5  by section five of this act shall not affect the repeal of such subdivi-
     6  sion and shall be deemed repealed therewith.