What's happening
This bill limits banking district designations to ten years and requires affordable, community-tailored banking services.
Why it matters
District time limits. Across New York, banking development district designations would last ten years rather than carry no expiration under this provision.
Needs-based extensions. The superintendent could extend a designation for another ten years upon finding a demonstrated need for banking services.
Branch obligations. Banks with branches in these districts would have to offer affordable products and services, including financial education, tailored to community banking needs.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Banks, trust companies and national banks
Those with branches in banking development districts would face explicit requirements for affordable, community-tailored services.
Residents of banking development districts
The bill would require local branches to offer products and financial education tailored to their banking needs.
Local governments
District designations sought jointly with banks would become time-limited and subject to needs-based extensions.
Superintendent overseeing banking development districts
The bill would authorize ten-year extensions based on demonstrated banking needs.
Headline styles
Require Affordable Banking District Services
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to banks
- Referred to banks
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2715
2017-2018 Regular Sessions
IN SENATE
January 17, 2017
Introduced by Sen. HAMILTON -- 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 banking development districts
The People of the State of New York, represented in Senate and Assembly, 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 superintendent shall transmit notification of such approval 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. A designation of a banking development district shall be valid for ten years from the date of designation. The superintendent may extend the term of a banking development district an additional ten year period upon a determination that there is a demonstrated need for banking services in such banking development district.
§ 2. Section 96-d of the banking law is amended by adding a new subdivision 3-a to read as follows:
3-a. In order to meet the demonstrated need for banking services in a banking development district, any bank, trust company or national bank that has established a branch within a banking development district shall offer affordable products and services, including financial education services, tailored to the banking needs of the community in which the branch is located.
§ 3. This act shall take effect on the one hundred eightieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00717-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the banking law, in relation to banking development districts
Purpose
This bill would strengthen the Banking Development District (BDD) program by clarifying the goals of the program and the criteria by which a branch's effectiveness should be measured.
Summary of provisions
This bill amends Section 96-d (6) of the Banking Law by adding a new subdivision 3(a) and (b);
(a)would require BDD branch's to provide affordable products and services, which include financial educational services within their community, and (b), would require participating BDD branch's to meet certain criteria in order to qualify for renewal of their deposit.
Justification
The Banking Development District (BDD) Program was created in 1997 to provide an incentive to banks to promote the establishment of new bank branches in communities with no or few branches and thereby stimulate the opening of bank accounts by community residents. The incentive of public deposits and other benefits provided to those banks that open a BUD branch in underserved communities is to better ensure that the new branch will have sufficient deposits to provide loans and other services.
The Banking Department conducted a study of the, BDD Program that was published in 2010 which identified "next steps" to be taken to improve the program. Based on feedback collected from the banks, community groups and other stakeholders involved in the BDD Program. This bill is based on the results of that study as well as on a Roundtable held by the Assembly Banks Committee in October 2011 on the BDD Program. While the BUD Program has been very effective, both the Banking Department study and the Assembly Roundtable identified several features of the Program where legislative clarification would be appropriate. Specifically, the findings included a need to clarify the goals of the program; provide standards by which renewals of deposits could better be measured; and, require branches participating in the program to provide financial education to members of the district in which it is located. This bill seeks to address those findings.
Legislative history
A6877-A of 2013-14: S6239 of the 2015-16 Legislative Session
Fiscal implications
None.
Effective date
This act shall take effect 180 days after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.