Creates a banking development district working group to assess the banking development district program and provide an annual report to the governor and legislature on the strengths and weaknesses of such program; defines unbanked and underbanked.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9636A
SPONSOR: Anderson TITLE OF BILL:
An act to amend the banking law, in relation to creating a banking
development district working group; and providing for the repeal of such
provisions upon expiration thereof
PURPOSE:
This bill creates a banking development district working group to assess
and provide recommendations and future goals for the banking development
district program
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Establishes the makeup of the banking development district
working group and authorizes DFS to promulgate assessment fees on bank
branches located in banking development districts. These assessment fees
would finance the banking development district working group.
Section 2-3: Relates to the number of unbanked and underbanked with a
district and definitions
Section 4: This act shall take effect immediately.
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. 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.
This bill is necessary to ensure that Banking Development Districts are
effectively serving the communities they aim to impact. The creation of
a banking development district working group" would help to improve the
current banking development districts as well as create new ones.
LEGISLATIVE HISTORY:
(2023) A.6222A Anderson
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect immediately
STATE OF NEW YORK
________________________________________________________________________
9636--A
IN ASSEMBLY
March 26, 2024
___________
Introduced by M. of A. ANDERSON -- read once and referred to the Commit-
tee on Banks -- committee discharged, bill amended, ordered reprinted
as amended and recommitted to said committee
AN ACT to amend the banking law, in relation to creating a banking
development district working group; and providing for the repeal of
such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The banking law is amended by adding a new section 96-dd to
2 read as follows:
3 § 96-dd. Banking development district working group. 1. A banking
4 development district working group is hereby established to assess and
5 provide recommendations and future goals for the banking development
6 district program created under section ninety-six-d of this article.
7 The superintendent shall impose an assessment on bank branches located
8 within banking development districts to cover all costs associated with
9 this work group.
10 2. The banking district working group shall include the following
11 individuals or their representatives, the superintendent, the state
12 comptroller, the New York city comptroller, the commissioner of the New
13 York city department of finance, the commissioner of empire state devel-
14 opment, the chair of the senate banks committee, the chair of the senate
15 commerce, economic development and small business committee, the chair
16 of the assembly banks committee and the chair of the banking in under-
17 served communities subcommittee.
18 3. No later than one year after the effective date of this section,
19 the working group shall provide an assessment of the current state of
20 the banking development district program to the governor and the legis-
21 lature, including, but not limited to the following information:
22 a. the number of participating banking development district branches
23 and where such branches are located;
24 b. ways the program is helping to serve the unbanked and underbanked
25 as defined in subdivision one-a of section ninety-six-d of this article;
26 c. the strengths and weaknesses of the program; and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10318-08-4
A. 9636--A 2
1 d. necessary measures that should be taken to build upon the strengths
2 of the program and eliminate identified weaknesses.
3 4. Annually thereafter, such working group shall continue to provide
4 an assessment of the banking development district program to the gover-
5 nor and the legislature. Along with the information required under
6 subdivision three of this section, such assessment shall provide future
7 goals for the program that shall be incorporated in the upcoming year to
8 continue strengthening such program.
9 § 2. Subdivision 1 of section 96-d of the banking law is amended by
10 adding a new paragraph (b-1) to read as follows:
11 (b-1) the numbers of unbanked and underbanked individuals within the
12 district;
13 § 3. Section 96-d of the banking law is amended by adding a new subdi-
14 vision 1-a to read as follows:
15 1-a. For the purposes of this section, the following terms shall have
16 the following meanings:
17 a. "unbanked" shall mean an individual not served by an insured insti-
18 tution in any capacity; and
19 b. "underbanked" shall mean an individual with an account at an
20 insured institution but who has obtained alternative, nonbank, financial
21 services in the past twelve months.
22 § 4. This act shall take effect immediately and shall expire and be
23 deemed repealed 2 years after such date.
