S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3320
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 29, 2019
                                ___________
 
 Introduced  by  M.  of  A.  ZEBROWSKI,  BLAKE, LUPARDO, COLTON, WALLACE,
   JONES, RICHARDSON, WALSH, BRABENEC -- read once and  referred  to  the
   Committee on Banks
 
 AN  ACT to amend the banking law, in relation to the banking development
   district program; to amend chapter 526 of the laws of  1998,  amending
   the  banking  law relating to participation in the banking development
   districts program, in relation to the effectiveness thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 2 of section 96-d of the banking law, as added
 by chapter 204 of the laws of 1997, is amended to read as follows:
   2. A local government, in conjunction with a bank,  trust  company  or
 national  bank,  may submit an application to the superintendent for the
 designation of a banking development district. The superintendent  shall
 issue  a  determination  on  such  an  application  within sixty days of
 receiving such application. If an application is  approved,  the  super-
 intendent shall transmit notification of [such approval] THE DESIGNATION
 OF  A  BANKING  DEVELOPMENT  DISTRICT to the local government, the bank,
 trust company or national bank, the state comptroller, the  commissioner
 of  taxation and finance, the commissioner of the department of economic
 development, the temporary president of the senate and  the  speaker  of
 the assembly. THE DESIGNATION OF A BANKING DEVELOPMENT DISTRICT SHALL BE
 VALID  FOR FOURTEEN YEARS. PRIOR TO THE EXPIRATION OF A BANKING DEVELOP-
 MENT DISTRICT DESIGNATION, THE SUPERINTENDENT MAY EXTEND THE DESIGNATION
 FOR ONE OR MORE ADDITIONAL FIVE OR TEN YEAR PERIODS.
   § 2. Section 4 of chapter 526 of the laws of 1998, amending the  bank-
 ing  law  relating to participation in the banking development districts
 program, as amended by chapter 46 of the laws of  2016,  is  amended  to
 read as follows:
   §  4.  This  act  shall  take  effect on the first day of January next
 succeeding the date on which it shall have  become  a  law  and  SECTION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02673-01-9

 A. 3320                             2
 
 THREE OF THIS ACT shall remain in effect until January 1, 2023 when upon
 such  date it shall expire and be deemed repealed; provided however that
 any branch established prior to the expiration  and  repeal  of  SECTION
 THREE  OF  this  act  by  a  savings bank, savings and loan association,
 federal savings bank or federal savings and loan association in a  bank-
 ing  development district pursuant to this act shall continue to operate
 in accordance with this act and remain eligible for all the  rights  and
 privileges authorized by this act.
   §  3.  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 and 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, CREDIT
 UNION, OR 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
 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.
   § 4. 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 three of this act shall not affect the repeal of such  subdi-
 vision and shall be deemed repealed therewith.