NY State Senate Bill 2009-S3724

Senate Bill S3724

Signed By Governor

2009-2010 Legislative Session

Extends the effectiveness of certain provisions of sections 12-a and 42 of the banking law

download bill text pdf

Archive: Last Bill Status Via A6923 - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 11, 2009	signed chap.122
Jul 10, 2009	delivered to governor
Jul 09, 2009	returned to assembly repassed senate vote reconsidered - restored to third reading
Jun 30, 2009	passed senate 3rd reading cal.630 substituted for s3724a
Jun 30, 2009	substituted by a6923a
Jun 08, 2009	advanced to third reading
Jun 04, 2009	2nd report cal.
Jun 03, 2009	1st report cal.630
May 20, 2009	print number 3724a
May 20, 2009	amend (t) and recommit to banks
Mar 30, 2009	referred to banks

Votes

- Jul 9, 2009 - Floor Vote
  A6923
  
  62
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jul 9, 2009
      
      aye (62)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Foley
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Monserrate
      
      Montgomery
      
      Morahan
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Squadron
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young

Bill Amendments

Original

A (Active)

2009-S3724 - Details

2009-S3724 - Summary

Repeals the sunset provisions of section 12-a of the banking law and makes corresponding technical corrections to repeal the sunset of certain insurance law provisions.

2009-S3724 - Sponsor Memo

                                 BILL NUMBER:  S3724

 TITLE OF BILL :

An act to amend chapter 322 of the laws of 2007, amending the banking
law relating to the power of banks, private bankers, trust companies,
savings banks, savings and loan associations, credit unions and
foreign banking corporations to exercise the rights of national banks,
federal savings associations, federal credit unions and federal
branches and agencies of foreign banks, in relation to making certain
provisions of such chapter permanent; and to amend chapter 3 of the
laws of 1997, amending the banking law and the insurance law relating
to authorizing the banking board to permit banks and trust companies
to exercise the rights of national banks, in relation to making
certain provisions of such chapter permanent


 PURPOSE :

This bill would repeal the sunset provisions now applicable to Banking
Law § 12a, which expanded the authority of New York banks to exercise
the powers of their federal counterparts, and Insurance Law § 2123(e)
and (f), which contain provisions regulating the sale of insurance
products at banking institutions.

 SUMMARY OF PROVISIONS :

Currently, Banking Law § 12-a and provisions of Insurance Law §§ 2123
and 2502 sunset on September 10, 2009. This bill would repeal these
sunset provisions.

 EXISTING LAW :

Banking Law Section § 12-a was added to the Banking Law effective
September 1, 2007 to, among other things, expand the authority of
state banks to exercise the powers of their federal counterparts.
Section 12-a is scheduled to expire on September 10, 2009.

Insurance Law §§ 2123 and 2502 were also added in 1997, to regulate
insurance activities of banks granted under the wildcard authority.
They were amended in the laws of 2008 to expand the type of banking
organizations to which they apply.

 LEGISLATIVE HISTORY :

This is a new proposal.

 STATEMENT IN SUPPORT :

A critical recent piece in efforts to enhance the New York banking
charter was the enactment in 2007 of Banking Law § 12-a, which
expanded the authority of New York banks, thrifts and credit unions,
as well as the New York branches of foreign banks, to exercise the
powers of their federal counterparts as authorized in a resolution
adopted by the Banking Board. The purpose of this legislation is to
ensure that state-chartered financial institutions are not placed at a
competitive disadvantage compared to their federal counterparts by
creating a mechanism to allow state-chartered institutions to exercise
the powers of their counterparts with appropriate oversight and
controls.

However, Banking Law § 12-a sunsets after only two years. The Banking
Department ("Department") believes that this provision creates
instability because it brings into question what will be the ongoing
powers of New York banks compared with their federal counterparts.
Given the competition between state and federally chartered
institutions, this uncertainty is particularly unhelpful. The
Department believes that it is appropriate not only to extend the
sunset date, but to eliminate it entirely. The latter step also will
reinforce the perception of New York's commitment to its financial
institutions.  The corresponding provisions in the Insurance Law also
would be made permanent.  These amendments are effected by deleting
the sunset provision in Chapter 3 of the Laws of 1997 (in the case of
the Insurance Law) and Chapter 322 of the Law of 2007 (in the case of
the Banking Law).

 BUDGET IMPLICATIONS :

This bill will not have an impact on state finances.

 EFFECTIVE DATE :
This bill would take effect immediately.

2009-S3724 - Bill Text download pdf

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

                                  3724

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 30, 2009
                               ___________

Introduced  by  Sen.  FOLEY -- (at request of the Banking Department) --
  read twice and ordered printed, and when printed to  be  committed  to
  the Committee on Banks

AN  ACT  to  amend chapter 322 of the laws of 2007, amending the banking
  law relating to the power of banks, private bankers, trust  companies,
  savings  banks,  savings  and  loan  associations,  credit  unions and
  foreign banking corporations to exercise the rights of national banks,
  federal  savings  associations,  federal  credit  unions  and  federal
  branches  and agencies of foreign banks, in relation to making certain
  provisions of such chapter permanent; and to amend chapter  3  of  the
  laws  of 1997, amending the banking law and the insurance law relating
  to authorizing the banking board to permit banks and  trust  companies
  to  exercise  the  rights  of  national  banks,  in relation to making
  certain provisions of such chapter permanent

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

  Section  1. Section 6 of chapter 322 of the laws of 2007, amending the
banking law relating to the  power  of  banks,  private  bankers,  trust
companies,  savings  banks, savings and loan associations, credit unions
and foreign banking corporations to  exercise  the  rights  of  national
banks,  federal  savings associations, federal credit unions and federal
branches and agencies of foreign banks, is amended to read as follows:
  S 6. This act shall take effect immediately;  provided,  however  that
sections  one, two, three and four of this act shall take effect Septem-
ber 1, 2007[; and provided further that sections  one,  two,  three  and
four of this act shall expire and be deemed repealed September 10, 2009;
and  provided further that any federally permitted powers approved under
section three of this act shall remain in full force and effect  on  and
after such repeal date and shall not be affected by such repeal].
  S  2. Section 7 of chapter 3 of the laws of 1997, amending the banking
law and the insurance law relating to authorizing the banking  board  to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09492-03-9

S. 3724                             2

permit  banks  and  trust  companies  to exercise the rights of national
banks, as amended by chapter 322 of the laws of 2007, is amended to read
as follows:
  S  7. This act shall take effect immediately provided that section two
of this act shall take effect on the thirtieth day after it  shall  have
become  a  law and shall apply to violations prescribed in section 44 of
the banking law that occur on or after such date[; and provided  further
that  sections  one,  three,  four  and  five shall expire and be deemed
repealed September 10, 2009; and provided further  that  any  rules  and
regulations  promulgated  pursuant to sections one, three, four and five
shall remain in full force and effect on and after such expiration  date
and shall not be affected by such expiration date].
  S 3. This act shall take effect immediately.

co-Sponsors

2009-S3724A (ACTIVE) - Details

2009-S3724A (ACTIVE) - Summary

Repeals the sunset provisions of section 12-a of the banking law and makes corresponding technical corrections to repeal the sunset of certain insurance law provisions.

2009-S3724A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3724A

 TITLE OF BILL :

An act to amend chapter 322 of the laws of 2007, amending the banking
law relating to the power of banks, private bankers, trust companies,
savings banks, savings and loan associations, credit unions and
foreign banking corporations to exercise the rights of national banks,
federal savings associations, federal credit unions and federal
branches and agencies of foreign banks, in relation to extending the
effectiveness of certain provisions of such chapter; and to amend
chapter 3 of the laws of 1997, amending the banking law and the
insurance law relating to authorizing the banking board to permit
banks and trust companies to exercise the rights of national banks, in
relation to extending the effectiveness of certain provisions of such
chapter


 PURPOSE OR GENERAL IDEA OF BILL :

This bill would extend the sunset provisions now applicable to Banking
Law §12-a, which expanded the authority of New York banks to exercise
the powers of their federal counterparts, and Insurance Law §2123 (e)
and (f), which contain provisions regulating the sale of insurance
products at banking institutions.

 SUMMARY OF SPECIFIC PROVISIONS :

Currently, Banking Law § 12-a and provisions of Insurance Law § 2123
and 2502 sunset on September 10, 2009. This bill would extend these
sunset provisions to September 10, 2011.

 EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER :

Banking Law § 12-a was added to the Banking Law effective September 1,
2007, among other things, expand the authority of state banks to
exercise the powers of their federal counterparts. Section 12-a is
scheduled to expire on September 10, 2009.

Insurance Law § 2123 and 2502 were also added in 1997, to regulate
insurance activities of banks granted under the wildcard authority.
They were amended in the laws of 2008 to expand the type of banking
organizations to which they apply.

 JUSTIFICATION :

A critical recent piece in efforts to enhance the New York banking
charter was the enactment in 2007 of Banking Law § 12-a, which
expanded the authority of New York banks, thrifts and credits unions,
as well as the New York branches of foreign banks, to exercise the
powers of their federal Counterparts as authorized in a resolution
adopted by the Banking Board. The purpose of this legislation is to
ensure that state-chartered financial institutions are not placed at a
competitive disadvantage compared to their federal counterparts, by
creating a mechanism to allow state-chartered institutions to exercise
the powers of their counterparts with appropriate oversight and
controls.

  PRIOR LEGISLATIVE HISTORY :

This bill is new.

 EFFECTIVE DATE :
This bill would become effective immediately.

2009-S3724A (ACTIVE) - Bill Text download pdf

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

                                 3724--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 30, 2009
                               ___________

Introduced  by  Sens. FOLEY, THOMPSON -- 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

AN ACT to amend chapter 322 of the laws of 2007,  amending  the  banking
  law  relating to the power of banks, private bankers, trust companies,
  savings banks,  savings  and  loan  associations,  credit  unions  and
  foreign banking corporations to exercise the rights of national banks,
  federal  savings  associations,  federal  credit  unions  and  federal
  branches and agencies of foreign banks, in relation to  extending  the
  effectiveness  of  certain  provisions  of  such chapter; and to amend
  chapter 3 of the laws of 1997, amending the banking law and the insur-
  ance law relating to authorizing the banking board to permit banks and
  trust companies to exercise the rights of national banks, in  relation
  to extending the effectiveness of certain provisions of such chapter

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

  Section 1. Section 6 of chapter 322 of the laws of 2007, amending  the
banking  law  relating  to  the  power  of banks, private bankers, trust
companies, savings banks, savings and loan associations,  credit  unions
and  foreign  banking  corporations  to  exercise the rights of national
banks, federal savings associations, federal credit unions  and  federal
branches and agencies of foreign banks, is amended to read as follows:
  S  6.  This  act shall take effect immediately; provided, however that
sections one, two, three and four of this act shall take effect  Septem-
ber 1, 2007; and provided further that sections one, two, three and four
of  this  act  shall  expire and be deemed repealed September 10, [2009]
2011; and provided further that any federally permitted powers  approved
under section three of this act shall remain in full force and effect on
and after such repeal date and shall not be affected by such repeal.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09492-06-9

S. 3724--A                          2

  S  2. Section 7 of chapter 3 of the laws of 1997, amending the banking
law and the insurance law relating to authorizing the banking  board  to
permit  banks  and  trust  companies  to exercise the rights of national
banks, as amended by chapter 322 of the laws of 2007, is amended to read
as follows:
  S  7. This act shall take effect immediately provided that section two
of this act shall take effect on the thirtieth day after it  shall  have
become  a  law and shall apply to violations prescribed in section 44 of
the banking law that occur on or after such date; and  provided  further
that  sections  one,  three,  four  and  five shall expire and be deemed
repealed September 10, [2009] 2011; and provided further that any  rules
and  regulations  promulgated  pursuant to sections one, three, four and
five shall remain in full force and effect on and after such  expiration
date and shall not be affected by such expiration date.
  S 3. This act shall take effect immediately.

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