What's happening
This bill requires that 10% of fines from the Banking and Insurance Laws be deposited in the Community Development Financial Institution Fund.
Why it matters
Redirects a portion of enforcement revenue. By allocating 10% of banking and insurance penalties to the Community Development Financial Institution (CDFI) Fund, the bill ensures that money collected from corporate wrongdoing is reinvested into local economic development rather than being absorbed entirely into the state’s general budget.
Supports underserved communities. The CDFI Fund specifically aids institutions that provide financial services to low-income and underserved populations, potentially increasing access to small business loans, affordable housing, and community projects in areas that traditional banks might overlook.
Creates a new, stable funding stream for CDFIs. This amendment would offer CDFIs a predictable source of funding tied directly to regulatory enforcement actions, which could make long-term community investment planning more feasible and encourage more ambitious development initiatives.
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Who cares
Headline styles
Fund Community Banks with Fines
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred to banks
- Reported and committed to finance
- Referred to banks
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3212
2019-2020 Regular Sessions
IN SENATE
February 4, 2019
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Banks
AN ACT to amend the banking law and the insurance law, in relation to dedicating ten percent of the fines and penalties imposed by the superintendent of financial services for deposit into the community development financial institution fund
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 44 of the banking law is amended by adding a new subdivision 10 to read as follows:
10. Notwithstanding any provision of law to the contrary, ten percent of all penalties imposed and collected pursuant to this section shall be dedicated to and deposited into the community development financial institution fund established pursuant to subdivision three of section sixteen-o of the New York state urban development corporation act.
§ 2. Section 109 of the insurance law is amended by adding a new subsection (e) to read as follows:
(e) Notwithstanding any provision of law to the contrary, ten percent of all penalties imposed and collected pursuant to this section shall be dedicated to and deposited into the community development financial institution fund established pursuant to subdivision three of section sixteen-o of the New York state urban development corporation act.
§ 3. This act shall take effect September 1, 2019.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06123-01-9
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 and the insurance law, in relation to dedicating ten percent of the fines and penalties imposed by the super- intendent of financial services for deposit into the community develop- ment financial institution fund
Purpose
To dedicate ten percent of the fines assessed by the New York State Department of Financial Services to the NYS community development finan- cial institution fund.
Summary of provisions
Section 1 adds a new Subdivision (10)to Section 44 of the banking law, which provides for ten percent of all penalties imposed and collected pursuant to this section be deposited into the community development financial institution fund that was established pursuant to subdivision three of section 16-0 of the New York state urban development act.
Section 2 amends Section 109 of the Insurance law to provide that ten percent of all penalties imposed and collected pursuant to this section be deposited into the community development financial institution fund that was established pursuant to subdivision three of section 16 of the New York state urban development act.
Justification
Penalties imposed by the New York State Department of Financial Services should be returned used to benefit new Yorkers who have been victimized either by illegal practices or to those who do not have adequate access to financial services or capital. We would like ten percent of the monies recovered dedicated to the community development financial insti- tution fund. Monies generated because of fines and penalties should go benefit those you New Yorkers who lack access to financial capital & services. The Community Development Financial Institution Assistance Program bolsters institutions providing microloans to small businesses that often do not qualify for bank loans, as well as provide one-on-one counseling and business development assistance to facilitate credit readiness. Consumers are forced to pay higher rates because of access to credit is limited, by funding this groups we attempt to make it easier for small business to access capital.
Legislative history
S.6560 of 2017-18.
Fiscal implications
No cost to the State.
Effective date
This act shall take effect September 1, 2019.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.