Bill S217-2013

Relates to the procurement of banking services

Relates to the procurement of banking services.

Details

Actions

  • Jan 8, 2014: REFERRED TO FINANCE
  • Jan 9, 2013: REFERRED TO FINANCE

Memo

BILL NUMBER:S217

TITLE OF BILL: An act to amend the state finance law, in relation to the procurement of banking services

PURPOSE: To provide an incentive to financial institutions to comply with the cap on the rates of interest authorized in section 5-501 of the General Obligations Law and established by subdivision one of section fourteen-a of the Banking Law.

SUMMARY OF PROVISIONS:

Section 1 of the bill would add a new section 163-c to the State Finance Law which relates to the procurement of banking services. The new Section 163-c would provide that state agencies, as part of the process of evaluating proposals for procuring banking services, take into account whether a financial institution complies with the cap on the rate of interest for credit cards and loans authorized in section 5-501 of the General Obligations Law and established by subdivision one of section fourteen-a of the Banking Law. The scoring would be accomplished in accord with regulations adopted by the superintendent of Financial Services in consultation with the State comptroller..

Section 2 of the bill sets forth the effective date.

JUSTIFICATION: People throughout the State have fallen victim to financial institutions applying usurious credit card and loan interest rates. The current cap on interest rates authorized in section 5-501 of the General Obligations Law and established by subdivision one of section fourteen-a of the Banking Law is applicable only to State-chartered banks. By including compliance with this provision in procurement for State agency banking services, the proposed legislation would create an incentive for banks chartered outside the State to comply with these provisions when offering credit or making loans to residents of the State.

LEGISLATIVE HISTORY: This is a new bill. 2012: Committee Discharged and Committed to Rules

FISCAL IMPACT ON THE STATE: This bill would have no significant fiscal impact.

EFFECTIVE DATE: This act shall take effect on the one hundred twentieth day after it shall have become a law provided, however, that effective immediately the addition, amendment and/or repeal of any rule or regulation necessary for implementation of this act on its effective date are authorized and directed to be made and completed by the department of financial services on or before such effective date.


Text

STATE OF NEW YORK ________________________________________________________________________ 217 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. SQUADRON -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend the state finance law, in relation to the procurement of banking services THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The state finance law is amended by adding a new section 163-c to read as follows: S 163-C. PROCUREMENT OF BANKING SERVICES. IN MAKING AN AWARD OF CONTRACTS FOR BANKING SERVICES, AS PART OF THE SCORING OF OFFERS, IN ADDITION TO CONSIDERATION OF QUALITY, COST AND EFFICIENCY, A STATE AGEN- CY SHALL CONSIDER WHETHER THE FINANCIAL INSTITUTION HAS CHOSEN TO COMPLY WITH THE CAP ON THE RATE OF INTEREST AUTHORIZED IN SECTION 5-501 OF THE GENERAL OBLIGATIONS LAW AND ESTABLISHED BY SUBDIVISION ONE OF SECTION FOURTEEN-A OF THE BANKING LAW IN MAKING LOANS TO THE RESIDENTS OF THE STATE. THE SCORING SHALL BE ACCOMPLISHED IN ACCORD WITH REGULATIONS ADOPTED BY THE SUPERINTENDENT OF FINANCIAL SERVICES IN CONSULTATION WITH THE STATE COMPTROLLER. S 2. This act shall take effect on the one hundred twentieth day after it shall have become a law provided, however, that effective immediately the addition, amendment and/or repeal of any rule or regulation neces- sary for the implementation of this act on its effective date are authorized and directed to be made and completed by the department of financial services on or before such effective date.

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