Bill Text: NY S05308 | 2017-2018 | General Assembly | Introduced
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
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526 of the laws of 1998 and as 3 further amended by section 104 of part A of chapter 62 of the laws of 4 2011, is REPEALED. 5 § 2.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. LBD10007-02-7S. 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.