What's happening
This bill extends the expiration date for certain state banking law provisions from September 10, 2019 to September 10, 2024.
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Headline styles
Extend State Bank Powers
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Substituted by A7604
- Advanced to third reading
- 2nd report cal.
- 1st report cal.900
- 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.
Extend Bank Powers Deadline
Signed by Governor · Sponsor Marianne Buttenschon
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5411
2019-2020 Regular Sessions
IN SENATE
April 30, 2019
Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Banks
AN ACT to amend chapter 3 of the laws of 1997, amending the banking law and the insurance law relating to authorizing the banking board to permit banks and trust companies to exercise the rights of national banks, in relation to the effectiveness of certain… Show allHide
AN ACT to amend chapter 3 of the laws of 1997, amending the banking law and the insurance law relating to authorizing the banking board to permit banks and trust companies to exercise the rights of national banks, in relation to the effectiveness of certain provisions of such chapter; and to amend chapter 322 of the laws of 2007, amending the banking law relating to the power of banks, private bankers, trust companies, savings banks, savings and loan associations, credit unions and foreign banking corporations to exercise the rights of national banks, federal savings associations, federal credit unions and federal branches and agencies of foreign banks, in relation to the effectiveness of certain provisions of such chapter
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 7 of chapter 3 of the laws of 1997, amending the banking law and the insurance law relating to authorizing the banking board to permit banks and trust companies to exercise the rights of national banks, as amended by chapter 113 of the laws of 2014, is amended to read as follows:
§ 7. This act shall take effect immediately provided that section two of this act shall take effect on the thirtieth day after it shall have become a law and shall apply to violations prescribed in section 44 of the banking law that occur on or after such date; and provided further that sections one, three, four and five shall expire and be deemed repealed September 10, [2019] 2024; and provided further that any rules and regulations promulgated pursuant to sections one, three, four and five shall remain in full force and effect on and after such expiration date and shall not be affected by such expiration date.
§ 2. Section 6 of chapter 322 of the laws of 2007, amending the banking law relating to the power of banks, private bankers, trust compa-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11355-01-9
S. 5411 2
nies, savings banks, savings and loan associations, credit unions and foreign banking corporations to exercise the rights of national banks, federal savings associations, federal credit unions and federal branches and agencies of foreign banks, as amended by chapter 113 of the laws of 2014, is amended to read as follows:
§ 6. This act shall take effect immediately; provided, however that sections one, two, three and four of this act shall take effect September 1, 2007; and provided further that sections one, two, three and four of this act shall expire and be deemed repealed September 10, [2019] 2024; and provided further that any federally permitted powers approved under section three of this act shall remain in full force and effect on and after such repeal date and shall not be affected by such repeal.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend chapter 3 of the laws of 1997, amend- ing the banking law and the insurance law relating to authorizing the banking board to permit banks and trust companies to exercise the rights of national banks, in relation to the effectiveness of certain provisions of such chapter; and to amend chapter 322 of the laws of 2007, amending the banking law relating to the power of banks, private bankers, trust companies, savings banks, savings and loan associations, credit unions and foreign banking corporations to exercise the rights of national banks, federal savings associations, federal credit unions and federal branches and agencies of foreign banks, in relation to the effectiveness of certain provisions of such chapter
Purpose
To extend, for an additional five years, the banking "wild card" law, which provides an administrative mechanism to keep the state banking charter viable and competitive with the federal banking charter.
Summary of provisions
The effective date provisions of Chapter 322 of 2007 and Chapter 3 of the Laws of 1997 are amended to extend the sunset date from September 10, 2019 to September 10, 2024.
Existing law
Under the "wild card" law (Section 12-a of the Banking Law), the Super- intendent of Financial Services is authorized to permit state-chartered banking organizations to exercise banking powers that are available to corresponding federally-chartered institutions, but which are not expressly authorized under the Banking Law.
Statement in support
Under the nation's dual banking system, banking institutions may choose to operate under either a state or federal charter. Almost every state has a banking "wild card" law which provides an administrative mechanism to help maintain parity in regard to the powers of state banks and national banks.
In general, a banking wild card law enables a state regulator to admin- istratively authorize state banks to exercise the same powers as national banks. A wild card law can provide a timely, flexible and effi- cient mechanism for keeping a state's banking charter competitive, attractive and viable in comparison with the federal charter.
In 1997, a banking wild card law was enacted in New York State to help retain and promote the state banking charter and state banking system. With this law, the State sought to reassure its state-chartered banking institutions that it was committed and determined to keep the state charter competitive with the federal charter.
With the rapid and continuing changes in the financial system, state- chartered institutions were becoming increasingly concerned that they would find themselves at a significant disadvantage. While federally- chartered institutions were positioned to immediately take advantage of any expanded powers and new opportunities granted at the federal level, state institutions feared that lengthy delays and uncertainty at the state level would place them at a significant disadvantage.
The wild card law is intended to help address these concerns by estab- lishing an administrative process to enable New York State to quickly respond to significant parity issues. New York's wild card law included a sunset date, and the law has been extended several times since its original enactment in 1997. This bill would extend the law for an addi- tional five years.
Budget implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.