Provides criteria for membership in credit unions and permits the extension of certain services to nonmembers

2 Co-sponsors

• José Peralta
• Bill Perkins

Title of bill

An act to amend the banking law, in relation to credit union memberships and general powers

Purpose or general idea of bill

This bill would expand the qualifications for membership into credit unions.

Summary of specific provisions

Section 1: Subdivision 2 of section 451 of the banking law is amended to read as follows: Qualifications for membership shall be pursuant to section four hundred-fifty-one-a of this article and shall not apply to a corporate credit union.

Section 2: Adds a new section 451-a, to read as follows:

451-a: Qualifications for membership:

1. Membership of a credit union shall be determined by board of directors of such credit union and shall consist of persons within the credit union's field of membership who have been duly admitted members.

2. A credit union's field of membership may include: a} persons within one or more groups of the following, or a combination of such groups: 1) occupation, 2) association or interest, or 3) persons who reside, work, worship or attend school within a geographic area, identifiable neighborhood, community or rural district; and b) businesses, associations or organizations located within a geographic are; and c) family members of such persons; d) any employee of the credit union and e} any member who leaves the field of membership and who has not withdrawn or been expelled may retain membership; and f) any incorporated organization composed principally of persons eligible to membership in the credit union and that organization's employees.

3. Any person who is eligible for membership by reason of the fact that he or she is an employee of a common employer or of a credit union shall not become ineligible, after the termination of such employment, as long as he or she receives a pension or annuity from. Or under, a plan or other arrangement established by such common employers or credit union.

4. A credit union may extend membership to persons and organizations in an underserved local community, neighborhood or rural district where such area is considered an "investment area."

Justification

State subsidized jobs provide low wages and poor benefits which increases the need for government services. The purpose of this bill is to improve the effectiveness of economic development expenditures. take pressure off of state social services programs and improve the public health and welfare by ensuring that major state subsidies are used to support at least minimum living standards for working families.

Prior legislative history

2007-2008 - A.2793 01/09/08 - Referred to Rules

Fiscal implications

To be determined.

Effective date

Immediately.