S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9947
 
                           I N  A S S E M B L Y
 
                             February 27, 2020
                                ___________
 
 Introduced  by  M.  of  A.  ZEBROWSKI  --  read once and referred to the
   Committee on Banks
 
 AN ACT to amend the banking law, in relation  to  clarifying  the  defi-
   nition of "community bank institution", expanding eligible deposits to
   a  community bank institution under the community bank deposit program
   and requiring an annual  report  by  the  state  comptroller  and  the
   commissioner  of taxation and finance on the efficacy on the community
   bank deposit program
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 86 of the banking law, as amended by chapter 274 of
 the laws of 2007, is amended to read as follows:
   § 86. Eligibility. 1. FOR PURPOSES OF THIS ARTICLE, THE TERM "COMMUNI-
 TY BANK INSTITUTION" SHALL MEAN ANY STATE OR FEDERALLY CHARTERED BANKING
 INSTITUTION  AND  SHALL INCLUDE ANY BANK, TRUST COMPANY, SAVINGS BANK OR
 SAVINGS AND LOAN ASSOCIATION WITH  LESS  THAN  TEN  BILLION  DOLLARS  IN
 ASSETS  THAT IS HEADQUARTERED IN THIS STATE AND WHOSE PREDOMINANT RETAIL
 AND COMMERCIAL BANKING OPERATIONS SERVE RESIDENTS AND BUSINESSES OF THIS
 STATE, AS DETERMINED BY THE SUPERINTENDENT IN HIS OR HER SOLE DISCRETION
 AND PURSUANT TO SUCH RULES AND REGULATIONS AS THE  SUPERINTENDENT  DEEMS
 NECESSARY TO IMPLEMENT AND ADMINISTER THESE PROVISIONS.
   2.  To  be eligible to receive deposits, or to renew existing deposits
 under this program, a [bank, trust company, savings bank or savings  and
 loan  association:  (a)  must  be chartered under the provisions of this
 chapter and (b)] COMMUNITY BANK INSTITUTION:
   (A) must have a current CRA rating  of  satisfactory  or  better.  The
 superintendent  shall,  if  requested  by  the  state comptroller or the
 commissioner of taxation and finance, confirm whether a particular bank-
 ing institution meets the criteria specified in this section; AND
   (B) MEET ANY ADDITIONAL CRITERIA ESTABLISHED BY  THE  COMPTROLLER  AND
 THE  COMMISSIONER  OF  TAXATION AND FINANCE TO DETERMINE ELIGIBILITY FOR
 PARTICIPATION IN THE PROGRAM. SUCH CRITERIA MAY INCLUDE AN INSTITUTION'S
 LOAN TO DEPOSIT RATIO, ITS RECORD OF SMALL  BUSINESS  LENDING,  AND  THE
 IMPACT  SUCH  DEPOSITS WOULD HAVE ON AN AREA'S ECONOMIC ACTIVITY.  [2. A

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14970-01-0

 A. 9947                             2

 federal bank, trust company, savings bank or savings  and  loan  associ-
 ation  may  also  be  eligible to receive deposits, or to renew existing
 deposits, under this program if: (a) its principal office is located  in
 this  state;  (b) it has a current CRA rating of satisfactory or better;
 and (c) it meets any additional criteria established by the  comptroller
 and  the  commissioner  of taxation and finance to determine eligibility
 for participation in the program. Such criteria may  include  an  insti-
 tution's  loan  to  deposit ratio, its record of small business lending,
 and the impact such deposits would have on an area's economic activity.]
   § 2. Subdivision 2 of section 87 of the banking  law,  as  amended  by
 chapter  495  of the laws of 2013, is amended and a new subdivision 5 is
 added to read as follows:
   2. The maximum amount of funds which the  state  comptroller  and  the
 commissioner  of  taxation  and  finance  may deposit under this program
 shall not exceed [two] THREE hundred [fifty] million dollars each.  [The
 maximum  amount  of  funds on deposit at a community banking institution
 shall not exceed twenty million dollars.]
   5. THE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE  SHALL
 ANNUALLY  SUBMIT A JOINT REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT
 OF THE SENATE, THE SPEAKER OF THE ASSEMBLY,  THE  CHAIR  OF  THE  SENATE
 FINANCE  COMMITTEE,  THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE,
 THE CHAIR OF THE SENATE STANDING COMMITTEE ON BANKS, AND  THE  CHAIR  OF
 THE ASSEMBLY STANDING COMMITTEE ON BANKS ON THE EFFICACY OF THE COMMUNI-
 TY  BANK  DEPOSIT PROGRAM, INCLUDING INFORMATION ON THE NUMBER OF QUALI-
 FIED COMMUNITY BANKING INSTITUTIONS, THE  NUMBER  OF  COMMUNITY  BANKING
 INSTITUTIONS  WHICH HAVE RECEIVED DEPOSITS, THE SIZE OF EACH PARTICIPAT-
 ING COMMUNITY BANK, THE NUMBER AND  AMOUNT  OF  SUCH  DEPOSITS  AND  THE
 PERCENTAGE  OF  TOTAL  STATE  FUNDS DEPOSITED IN SUCH INSTITUTIONS UNDER
 THIS PROGRAM.
   § 3. This act shall take effect on the one hundred twentieth day after
 it shall have become a law. Effective immediately the  addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such date.