Bill S5279B-2009

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

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.

Details

Actions

  • Mar 26, 2010: ADVANCED TO THIRD READING
  • Mar 25, 2010: 2ND REPORT CAL.
  • Mar 24, 2010: 1ST REPORT CAL.318
  • Mar 10, 2010: PRINT NUMBER 5279B
  • Mar 10, 2010: AMEND AND RECOMMIT TO BANKS
  • Jan 6, 2010: REFERRED TO BANKS
  • Jun 4, 2009: PRINT NUMBER 5279A
  • Jun 4, 2009: AMEND AND RECOMMIT TO BANKS
  • Apr 27, 2009: REFERRED TO BANKS

Votes

VOTE: COMMITTEE VOTE: - Banks - Mar 24, 2010
Ayes (9): Onorato, Krueger, Klein, Stewart-Cousins, Kruger, Diaz, Savino, Peralta, Golden
Ayes W/R (9): Foley, Breslin, Adams, Farley, Johnson O, DeFrancisco, Bonacic, Marcellino, Ranzenhofer
Excused (1): Morahan

Memo

 BILL NUMBER:  S5279B

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 : 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.

Text

STATE OF NEW YORK ________________________________________________________________________ 5279--B 2009-2010 Regular Sessions IN SENATE April 27, 2009 ___________
Introduced by Sens. SQUADRON, ADAMS, HASSELL-THOMPSON, C. JOHNSON, KRUEGER, SAMPSON, SERRANO, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Banks -- commit- tee discharged, bill amended, ordered reprinted as amended and recom- mitted to said committee -- recommitted to the Committee on Banks in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee 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 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.

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