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History
- Substituted by A9480
- Advanced to third reading
- 2nd report cal.
- 1st report cal.819
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Extends provisions relating to participation in the banking development districts program to January l, 2023
Signed by Governor · Sponsor Kimberly Jean-Pierre
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act 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 extending the effectiveness thereof
Purpose
To extend, for an additional six years, the provisions of Chapter 526 of 1998 which authorize savings institutions to participate in the Banking Development District program.
Summary of provisions
The bill amends the effective date of Chapter 526 of 1998 to extend the Provisions of this law for another 6 years (to January 1, 2023).
Justification
The Banking Development District Program was created in 1997. This program enables municipalities to offer certain incentives in order to encourage the establishment of bank branches in underserved areas. Under the program, a municipality and a banking institution may jointly apply to designate a "Banking Development District." By establishing a branch in such a district, the bank would be eligible -- at local and state option -- to receive municipal and state deposits at reduced rates, and to receive a partial exemption on municipal property taxes.
In 1998, the program was amended to authorize participation by thrift institutions, and to waive the branch application fee for branches established in a banking development district. However, these 1998 amendments were made subject to a January 1, 2005 sunset date. These provisions were subsequently extended to January 1, 2012 by Chapter 300 of 2004.
About 40 Bank Development Districts have been established, with several of these being created by savings banks. This bill is necessary to allow thrift institutions to continue to participate in the program. The creation of local bank offices should help provide needed banking services and easier access to capital, thereby fostering economic activity and development in these areas.
Fiscal implications
The Banking Development District program is a local option program. If a local government chooses to enter into an agreement with a participating banking institution in which it would earn interest at a rate lower than the institution's posted two-year CD rate, then the local government would forgo some interest income on those municipal funds. However, because the banking development district program is intended to spur the establishment of a bank facility which would not otherwise exist, any branches established by thrift institutions should result in a net increase in property tax revenue. Such increase would grow each year as the partial property tax exemption declines. If the State chooses to enter into an agreement with a participating bank in which it would earn interest at a rate lower than the institution's posted two year CD rate, then the State would forgo some interest income on those deposits. The State would also forgo a minimal amount of revenue by waiving the application fee for establishing a branch.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.