BILL NUMBER: S2027
SPONSOR: SANDERS
 
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

Statutes affected:
S2027: 96-d banking law, 96-d(1) banking law