Bill Text: NY S02120 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to the banking development district program, such designation shall be valid for 14 years.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2019-01-22 - REFERRED TO BANKS [S02120 Detail]

Download: New_York-2019-S02120-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          2120
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 22, 2019
                                       ___________
        Introduced by Sens. SANDERS, MONTGOMERY -- read twice and ordered print-
          ed, 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; and to amend chapter 526 of the laws of 1998, amend-
          ing the banking law relating to participation in the banking  develop-
          ment districts program, in relation to the effectiveness thereof
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subdivision 2 of section 96-d of the banking law, as  added
     2  by chapter 204 of the laws of 1997, is amended to read as follows:
     3    2.  A  local  government, in conjunction with a bank, trust company or
     4  national bank, may submit an application to the superintendent  for  the
     5  designation  of a banking development district. The superintendent shall
     6  issue a determination on  such  an  application  within  sixty  days  of
     7  receiving  such  application.  If an application is approved, the super-
     8  intendent shall transmit notification of [such approval] the designation
     9  of a banking development district to the  local  government,  the  bank,
    10  trust  company or national bank, the state comptroller, the commissioner
    11  of taxation and finance, the commissioner of the department of  economic
    12  development,  the  temporary  president of the senate and the speaker of
    13  the assembly. The designation of a banking development district shall be
    14  valid for fourteen years. Prior to the expiration of a banking  develop-
    15  ment district designation, the superintendent may extend the designation
    16  for one or more additional five or ten year periods.
    17    §  2. Section 4 of chapter 526 of the laws of 1998, amending the bank-
    18  ing law relating to participation in the banking  development  districts
    19  program,  as  amended  by  chapter 46 of the laws of 2016, is amended to
    20  read as follows:
    21    § 4. This act shall take effect on  the  first  day  of  January  next
    22  succeeding  the  date  on  which  it shall have become a law and section
    23  three of this act shall remain in effect until January 1, 2023 when upon
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06016-01-9

        S. 2120                             2
     1  such date it shall expire and be deemed repealed; provided however  that
     2  any  branch  established  prior  to the expiration and repeal of section
     3  three of this act by a  savings  bank,  savings  and  loan  association,
     4  federal  savings bank or federal savings and loan association in a bank-
     5  ing development district pursuant to this act shall continue to  operate
     6  in  accordance  with this act and remain eligible for all the rights and
     7  privileges authorized by this act.
     8    § 3. Subdivisions 5 and 6 of section 96-d of the banking law, subdivi-
     9  sion 5 as added by chapter 526 of the laws of  1998,  paragraph  (a)  of
    10  subdivision  5  as amended by chapter 328 of the laws of 1999, paragraph
    11  (b) of subdivision 5 as further amended by section  104  of  part  A  of
    12  chapter  62  of the laws of 2011 and subdivision 6 as amended by chapter
    13  330 of the laws of 2009, are amended to read as follows:
    14    5. (a) Notwithstanding the provisions of subdivision  two  of  section
    15  two  hundred  thirty-seven  of  this  chapter;  for the purposes of this
    16  section, paragraph c of subdivision two of section ten  of  the  general
    17  municipal  law, subdivision six of section one hundred five of the state
    18  finance law and section four hundred eighty-five-f of the real  property
    19  tax  law,  any reference to a bank, trust company or national bank shall
    20  be deemed to include a  savings  bank,  savings  and  loan  association,
    21  federal  savings and loan association [or], federal savings bank, credit
    22  union, or federal credit union; provided, however, that such  provisions
    23  of law do not grant a savings bank, savings and loan association, feder-
    24  al  savings  and  loan  association  [or],  federal savings bank, credit
    25  union, or federal credit union eligibility to accept municipal or public
    26  funds or  municipal  or  public  moneys  other  than  for  the  [limited
    27  purposes]  sole  purpose  of  the establishment of a branch in a banking
    28  development district pursuant to this  section;  provided,  however,  no
    29  credit  union  or  federal  credit  union  may accept municipal funds or
    30  moneys from a municipal corporation in  excess  of  the  standard  share
    31  insurance  amount  per  share  owner as set by the national credit union
    32  administration.  Any such municipal or public funds or moneys  shall  be
    33  deposited  only  at the branch established pursuant to this section, and
    34  any municipal funds or moneys may be deposited only  by  the  sponsoring
    35  municipality  in  which  the branch and banking development district are
    36  located; provided further that any such municipal  or  public  funds  or
    37  moneys  shall be subject to the same requirements which apply to munici-
    38  pal or public funds or moneys deposited in  a  bank,  trust  company  or
    39  national bank and shall also be subject to the provisions of section one
    40  hundred  five  of  the  state  finance law or section ten of the general
    41  municipal law relating to such deposits.
    42    (b) Notwithstanding any other provision of law, the superintendent  of
    43  financial  services  shall promulgate rules and regulations to authorize
    44  the participation of  savings  banks,  savings  and  loan  associations,
    45  federal  savings  banks  [and],  federal  savings and loan associations,
    46  credit unions, and federal credit  unions  in  the  program  established
    47  pursuant to this section.
    48    6.  For  the  purposes of this section, nothing shall preclude a bank,
    49  trust company or national bank from seeking approval to establish one or
    50  more branches in an existing banking development district  where  it  or
    51  another bank has or is authorized to have a branch. The department shall
    52  have  the  authority to approve any bank, trust company or national bank
    53  for participation in the banking development district program,  and  any
    54  branch  approved  pursuant  to  this section shall operate in accordance
    55  with this section and is eligible for  all  the  rights  and  privileges
    56  authorized by this section; provided however, an application for partic-

        S. 2120                             3
     1  ipation in the banking development district program submitted by a cred-
     2  it  union  or federal credit union may be approved by the superintendent
     3  only upon a finding that: (a) the application meets the criteria  estab-
     4  lished  herein  and  by  rule,  (b) the banking development district for
     5  which the application is submitted  has  an  unmet  need  for  financial
     6  services  as  determined by the superintendent, and (c) that no applica-
     7  tion by a bank, trust company or national  bank,  other  than  a  credit
     8  union  or  federal  credit  union  has  a pending application before the
     9  superintendent that, in the opinion of the superintendent, will  fulfill
    10  the unmet need for such services.
    11    §  4.  This act shall take effect immediately; provided, however, that
    12  the amendments to subdivision 5 of section 96-d of the banking law  made
    13  by  section three of this act shall not affect the repeal of such subdi-
    14  vision and shall be deemed repealed therewith.
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