Requires 10% of the penalties imposed by the superintendent of financial services to be deposited in the community development financial institution fund.
Summary
This bill would require that 10 percent of all penalties and fines imposed and collected by the Superintendent of Financial Services under the Banking Law and the Insurance Law be deposited into the Community Development Financial Institution (CDFI) Fund. The bill amends two penalty provisions: Banking Law section 44 and Insurance Law section 109. Its purpose is to direct a portion of financial regulatory enforcement revenue toward community development financing.
The CDFI Fund referenced in the bill is a state-level fund established under the New York State Urban Development Corporation Act. By earmarking a fixed share of penalties for that fund, the bill creates a dedicated revenue stream intended to support community development financial institutions, which typically provide lending and financial services in underserved communities. The bill would take effect on September 1 following enactment.
Impact
The bill would change the disposition of certain enforcement penalties collected by the Department of Financial Services by diverting 10 percent of those receipts from the general penalty flow to the Community Development Financial Institution Fund. It would affect the Banking Law and the Insurance Law, and indirectly benefit CDFIs and the communities they serve by increasing available funding for community lending, economic development, and related programs.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes, the measure appears to be framed as a targeted funding mechanism rather than a controversial regulatory change. Its stated policy direction suggests support for community development and financial inclusion, with no documented opposition or amendments in the available record. The overall sentiment is therefore neutral to favorable toward directing penalty revenue to underserved communities.
Contention
The main policy question raised by the bill is whether a portion of regulatory fines and penalties should be earmarked for a specific fund rather than remaining available for general state use. Potential points of contention could include the reduction in unrestricted penalty revenue and whether the CDFI Fund is the best recipient of these funds, but no specific objections, supporters, or negotiated compromises are reflected in the available committee or voting history.
Same As
Requires 10% of the penalties imposed by the superintendent of financial services to be deposited in the community development financial institution fund.
Requires 10% of the penalties imposed by the superintendent of financial services to be deposited in the community development financial institution fund.
Requires 10% of the penalties imposed by the superintendent of financial services to be deposited in the community development financial institution fund.
Requires 10% of the penalties imposed by the superintendent of financial services to be deposited in the community development financial institution fund.
Provides that persons engaged in activity for which a license or other authorization from the superintendent of financial services is required under the banking law or financial services law will be subject to a civil penalty.
Provides that persons engaged in activity for which a license or other authorization from the superintendent of financial services is required under the banking law or financial services law will be subject to a civil penalty.