Provides for the inclusion of low income credit unions in the banking development district program in cities having a population of one million or more persons.

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S34-2011 Actions

• Jan 4, 2012: REFERRED TO BANKS
• Jan 5, 2011: REFERRED TO BANKS

S34-2011 Memo

BILL NUMBER:S34

TITLE OF BILL:
An act
to amend the banking law, in relation to including low income credit
unions in the banking development district program

PURPOSE OF BILL:
To include low-income credit unions in the state's banking development
districts program in cities with a population of one million or more.

SUMMARY OF PROVISIONS:
The bill amends Section 96-d of the banking law to include credit
unions that have been designated low-income credit unions by the
State or the National Credit Union Administration, in the banking
development districts program in the City of New York.

JUSTIFICATION:
Section 96-d of the Banking Law, entitled "Banking Development
Districts" (BDD's) is designed to increase access to banking services
by supporting branches in areas where there is a demonstrated need
for such services. In this way, the program aims to enable local
residents and small business owners to more easily become part of
the financial mainstream, promote economic development, and stimulate
the local economy by enhancing access to capital for local businesses.

In order to support branches in designated BDD's, the state
comptroller, public authorities or public benefit corporations of the
state, the commissioner of taxation and finance, and municipalities
may deposit public funds in these branches.

Section 96-d currently allows state and national banks, trust
companies, savings banks, savings and loan associations, and federal
savings banks to participate in the program, but omits credit unions.

By adding state low-income credit unions (already defined in section
450-a of the banking law), and any federal credit union designated
low income by the National Credit Union Administration, to the BDD
program, this bill will help them to continue their historic work
of providing affordable financial services to consumers who might
otherwise have difficulty accessing these services.

This bill will not require support of any particular low-income
credit union by any state or municipal agency, but will merely allow
state and federal low-income credit unions to be
considered for such support, on par with other
types of financial institutions already included in the BDD program.

LEGISLATIVE HISTORY:
2010: S.5279B (Squadron) - Third Reading, A.238C (Kavanagh) - Banks
2009: S.5279B (Squadron) - Banks Banks, A.238C (Kavanagh) -
Banks
2008: A.8883 (Kavanagh) - Banks
2007: A.8883 (Kavanagh) - Banks

FISCAL IMPACT ON THE STATE:


None.

EFFECTIVE DATE:
This act shall take effect immediately, provided, however, that the
amendments subdivision 5 of section 96-d of the banking law made by
section one of this act shall not affect the repeal of such
subdivision and shall be deemed to be repealed therewith.

S34-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                     34

                         2011-2012 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 5, 2011
                                 ___________

  Introduced by Sens. SQUADRON, ADAMS, HASSELL-THOMPSON, KRUEGER, SAMPSON,
    SERRANO,  STAVISKY -- 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  including  low  income
    credit unions in the banking development district program

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. Subdivision 5 of section 96-d of the banking law, as  added
  by  chapter 526 of the laws of 1998, paragraph (a) as amended by chapter
  328 of the laws of 1999, is amended to read as follows:

    5. (a) Notwithstanding the provisions of subdivision  two  of  section
  two  hundred  thirty-seven  of  this  chapter;  for the purposes of this
  section, paragraph c of subdivision two of section ten  of  the  general
  municipal  law, subdivision six of section one hundred five of the state
  finance law and section four hundred eighty-five-f of the real  property
  tax  law,  any reference to a bank, trust company or national bank shall
  be deemed to include a  savings  bank,  savings  and  loan  association,
  federal  savings  and  loan  association  or federal savings bank OR, IN
  CITIES HAVING A POPULATION OF ONE  MILLION  OR  MORE  PERSONS,  ANY  LOW
  INCOME  CREDIT  UNION  AS  DESIGNATED BY SECTION FOUR HUNDRED FIFTY-A OF
  THIS CHAPTER OR ANY FEDERAL CREDIT UNION THAT HAS BEEN DESIGNATED A  LOW
  INCOME  CREDIT  UNION  BY  THE  NATIONAL  CREDIT  UNION  ADMINISTRATION;
  provided, however, that such provisions of law do not  grant  a  savings
  bank, savings and loan association, federal savings and loan association
  or federal savings bank OR, IN CITIES HAVING A POPULATION OF ONE MILLION
  OR  MORE  PERSONS,  ANY LOW INCOME CREDIT UNION AS DESIGNATED BY SECTION
  FOUR HUNDRED FIFTY-A OF THIS CHAPTER OR ANY FEDERAL  CREDIT  UNION  THAT
  HAS  BEEN  DESIGNATED  A  LOW INCOME CREDIT UNION BY THE NATIONAL CREDIT
  UNION ADMINISTRATION eligibility to accept municipal or public funds  or
  municipal  or  public  moneys other than for the limited purposes of the

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD00025-01-1

 S. 34                               2

  establishment of a branch in a banking development district pursuant  to
  this  section.  Any  such  municipal  or public funds or moneys shall be
  deposited only at the branch established pursuant to this  section,  and
  any  municipal  funds  or moneys may be deposited only by the sponsoring
  municipality in which the branch and banking  development  district  are
  located;  provided  further  that  any such municipal or public funds or
  moneys shall be subject to the same requirements which apply to  munici-
  pal  or  public  funds  or  moneys deposited in a bank, trust company or
  national bank and shall also be subject to the provisions of section one
  hundred five of the state finance law or  section  ten  of  the  general
  municipal law relating to such deposits.
    (b)  Notwithstanding  any  other  provision  of law, the banking board
  shall promulgate rules and regulations to authorize the participation of
  savings banks, savings and loan associations, federal savings banks  and
  federal  savings and loan associations OR, IN CITIES HAVING A POPULATION
  OF ONE MILLION OR MORE PERSONS, ANY LOW INCOME CREDIT  UNION  AS  DESIG-
  NATED  BY  SECTION  FOUR  HUNDRED FIFTY-A OF THIS CHAPTER OR ANY FEDERAL
  CREDIT UNION THAT HAS BEEN DESIGNATED A LOW INCOME CREDIT UNION  BY  THE
  NATIONAL CREDIT UNION ADMINISTRATION in the program established pursuant
  to this section.
    S  2.  This act shall take effect immediately, provided, however, that
  the amendments to subdivision 5 of section 96-d of the banking law  made
  by  section one of this act shall not affect the repeal of such subdivi-
  sion and shall be deemed repealed therewith.