NY State Senate Bill 2017-S5187

Senate Bill S5187

2017-2018 Legislative Session

Includes credit unions and federal credit unions within the definition of bank, trust company or national bank for purpose of banking development district program

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Archive: Last Bill Status - In Senate Committee Banks Committee

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to banks
Mar 13, 2017	referred to banks

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2017-S5187 (ACTIVE) - Details

See Assembly Version of this Bill:: A5776
Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Amd §§96-d & 451-a, Bank L
Versions Introduced in Other Legislative Sessions:: 2013-2014: A8693
2015-2016: S5521, A3521
2019-2020: S727

2017-S5187 (ACTIVE) - Summary

Relates to including credit unions and federal credit unions within the definition of bank, trust company or national bank for the purpose of the banking development district program (which was created to encourage the establishment of bank branches in geographic locations where there is a demonstrated need for banking services); relates to directing the banking board to promulgate rules and regulations to authorize the participation of credit unions and federal credit unions in such program; provides that for purposes of such program, a credit union may include in its membership any person or organization located within a local community, neighborhood or rural district where there is a demonstrated need for banking services.

2017-S5187 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5187

 TITLE OF BILL :  An act to amend the banking law, in relation to
including credit unions and federal credit unions within provisions
regarding banking development district program

 PURPOSE OR GENERAL IDEA OF BILL :

To include credit unions and federal credit unions within the
definition of bank or trust company for the purpose of provisions
regarding banking development districts.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1. Amends subdivision 5 of section 96-d of the banking law, as
added by chapter 526 of the laws of 1998, to include credit unions and
federal credit unions in the definition of a bank, trust company, or
national bank.

Section 2. Subdivision 1 of section 451-a of the banking law, as added
by chapter 153 of the laws of 2015 , is amended to state that for the
purposes of section 96-d of this chapter, the credit union may include
in its membership any person or organization located within a local
community, neighborhood or rural district where there is a
demonstrated need for banking services as determined by the
superintendent.

Section 3. Effective Date

 JUSTIFICATION :

Chapter 204 of the laws of 1997 authorized the creation of a banking
development district program, which enables municipalities and New
York State to offer certain economic incentives to encourage the
establishment of commercial bank branches in areas where there is a
demonstrated need for banking services. Chapter 526 of the laws of
1998 incorporated savings and loans into this program. This
legislation includes credit unions within the economic development
program.

Credit unions will be able to offer small business services, such as
member business lending, similar to those currently offered by
commercial banks and savings and loans. By enabling credit unions to
participate in this program there will be more opportunities for
municipalities to work with different types of banking institutions to
encourage better banking services in developing areas.

 PRIOR LEGISLATIVE HISTORY :

A3134 of 2008-2009.
A9352 of 2009-2010.
A2549 of 2013-2014 (enacting clause stricken)
A8693 of 2014

 FISCAL IMPLICATIONS :

None to the State

 EFFECTIVE DATE :
This act shall take effect January 1, 2019.

2017-S5187 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5187
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 13, 2017
                                ___________
 
 Introduced  by  Sens. MONTGOMERY, BROOKS, COMRIE, DILAN, HAMILTON, HOYL-
   MAN, PARKER, SANDERS, 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 credit unions
   and federal credit unions within provisions regarding banking develop-
   ment 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, paragraph (b) as further amended by section 104
 of  part  A  of  chapter  62  of the laws of 2011, 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, CREDIT
 UNION OR FEDERAL CREDIT UNION; provided, however, that  such  provisions
 of law do not grant a savings bank, savings and loan association, feder-
 al  savings  and  loan  association [or], federal savings bank, A CREDIT
 UNION OR A FEDERAL CREDIT  UNION  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01054-01-7

 S. 5187                             2
 
 district are located; provided further that any such municipal or public
 funds or moneys shall be subject to the same requirements which apply to
 municipal  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 superintendent of
 financial services 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,
 CREDIT  UNIONS  AND  FEDERAL  CREDIT  UNIONS  in the program established
 pursuant to this section.
   § 2. Paragraph (f) of subdivision 1 of section 451-a  of  the  banking
 law, as amended by chapter 153 of the laws of 2015, is amended and a new
 paragraph (g) is added to read as follows:
   (f)  Any  incorporated or unincorporated organization composed princi-
 pally of persons eligible to membership in the  credit  union  and  that
 organization's employees[.]; OR
   (G)  ANY  PERSON  OR  ORGANIZATION  LOCATED  WITHIN A LOCAL COMMUNITY,
 NEIGHBORHOOD, OR RURAL DISTRICT WHERE THERE IS A DEMONSTRATED  NEED  FOR
 BANKING SERVICES AS DETERMINED BY THE SUPERINTENDENT.
   §  3.  This  act shall take effect January 1, 2019; provided, 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 subdivision
 and shall be deemed to be repealed therewith as provided in section 4 of
 chapter 526 of the laws of 1998, as amended.

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