Bill S2494-2013

Relates to the maximum amount of funds which the state comptroller and the commissioner of taxation and finance may deposit

Relates to the maximum amount of funds which the state comptroller and the commissioner of taxation and finance may deposit and the maximum amount of funds on deposit at a community banking institution.

Details

Actions

  • Nov 13, 2013: SIGNED CHAP.495
  • Nov 1, 2013: DELIVERED TO GOVERNOR
  • Jun 17, 2013: returned to senate
  • Jun 17, 2013: passed assembly
  • Jun 17, 2013: ordered to third reading rules cal.210
  • Jun 17, 2013: substituted for a3236
  • Apr 16, 2013: referred to banks
  • Apr 16, 2013: DELIVERED TO ASSEMBLY
  • Apr 16, 2013: PASSED SENATE
  • Mar 24, 2013: ADVANCED TO THIRD READING
  • Mar 21, 2013: 2ND REPORT CAL.
  • Mar 20, 2013: 1ST REPORT CAL.269
  • Feb 12, 2013: REPORTED AND COMMITTED TO FINANCE
  • Jan 17, 2013: REFERRED TO BANKS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Banks - Feb 12, 2013
Ayes (18): Griffo, Farley, Bonacic, DeFrancisco, Golden, Marchione, Martins, O'Mara, Marcellino, Ranzenhofer, Valesky, O'Brien, Breslin, Diaz, Avella, Parker, Sanders, Gipson

Memo

BILL NUMBER:S2494

TITLE OF BILL: An act to amend the banking law, in relation to the community bank deposit program

PURPOSE: To permit participating banks to expand their usage of the community bank deposit program.

SUMMARY OF PROVISIONS: This bill amends subdivision 2 of section 87 of the Banking Law to cap the amount of funds which an individual bank may have on deposit to $20 million.

JUSTIFICATION: The community bank deposit program seeks to encourage the State Comptroller and the Commissioner of Taxation and Finance to consider placing State funds into local banks. This program recognizes that local banks are well-positioned to use their deposits to support economic activities in their communities. This bill seeks to expand the program to ensure additional availability of funds.

By encouraging the placement of State deposits in local banks, this program creates an opportunity for New York State to help stimulate local economic development. Currently, much of the State's funds may be placed in brokerage firms or in large banking institutions, many of which may be head quartered in another state. In either of those cases, the economic benefits of the State deposits may flow out of the state, and the resulting local economic benefit can be minimal.

In contrast, deposits in local community banks can have a significant impact within that particular community. The placement of state deposits would help enable these community banking institutions to meet the economic needs of their local communities. Because many small communities are home to small state and national banks, expanding the program would be of benefit to the economies of these small communities.

California has had a successful program for a number of years in which the State broadly deposits its funds into a large number of financial institutions and local communities. The intent of New York's law is to encourage the State to consider a similar approach by placing more of its funds in local community banks. While the Comptroller and the Commissioner are not required to make such deposits, they are encouraged to consider the benefits of such an approach. This would enhance the ability of small local banks to support the economies of their communities by making commercial loans to local businesses.

LEGISLATIVE HISTORY: 2011-12 S. 4927a Passed Senate/A. 8147a - Banks Committee.

FISCAL IMPLICATIONS: This bill would have only a minimal fiscal impact, depending on the rate of return received on any deposits placed under this program.

EFFECTIVE DATE: Immediate.


Text

STATE OF NEW YORK ________________________________________________________________________ 2494 2013-2014 Regular Sessions IN SENATE January 17, 2013 ___________
Introduced by Sen. GRIFFO -- 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 community bank deposit program THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 2 of section 87 of the banking law, as amended by chapter 274 of the laws of 2007, is amended to read as follows: 2. The maximum amount of funds which the state comptroller and the commissioner of taxation and finance may deposit under this program shall not exceed two hundred fifty million dollars each. THE MAXIMUM AMOUNT OF FUNDS ON DEPOSIT AT A COMMUNITY BANKING INSTITUTION SHALL NOT EXCEED TWENTY MILLION DOLLARS. S 2. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus