Relates to minority depository institutions which apply to establish a home or branch office in an unbanked or underbanked community; provides that such institutions shall be entitled to receive deposits from the state comptroller and the commissioner of taxation and finance.
Summary
A08665 amends the Banking Law to expand access to public deposits for certain minority depository institutions. Specifically, it authorizes a minority depository institution that has a home or branch office in a community the Superintendent of Financial Services determines is unbanked or underbanked to receive deposits from the state comptroller and the commissioner of taxation and finance, in addition to the municipal deposits already available under current law. The bill applies only to institutions that are not exempt from corporate franchise taxes under Article 9-A of the Tax Law.
The authorization would be tied to the duration of the institution’s designation as part of a banking development district, and would continue if that designation is extended. The bill takes effect immediately, but the amendment is structured so it does not override the eventual repeal of the underlying subdivision of Banking Law section 96-d.
Impact
The bill would change Banking Law section 96-d by adding a new category of eligible institutions for public deposits, thereby broadening the pool of banks that can receive state funds. It would affect minority depository institutions operating in unbanked or underbanked communities and would involve the state comptroller, the commissioner of taxation and finance, and the Superintendent of Financial Services in determining and administering deposit eligibility and amounts. The measure is intended to support banking access and financial development in underserved communities without changing the basic framework of banking development districts.
Sentiment
The available voting history suggests strong support for the bill, as the Assembly Banks Committee reported it favorably by a 28-0 vote and referred it to Ways and Means. No committee transcript is available, but the bill’s framing indicates a generally pro-community-development and pro-access-to-capital sentiment, with emphasis on expanding banking services in underserved areas. There is no recorded opposition in the provided materials.
Contention
The main policy issue is whether state and municipal deposits should be directed to minority depository institutions in unbanked or underbanked communities, which may raise questions about deposit allocation, oversight, and the criteria used to determine community need. Another possible point of discussion is the bill’s limitation to institutions that are not exempt from corporate franchise taxes, which narrows eligibility and may exclude some entities. No explicit opposition is documented in the provided record, so any contention appears to be structural rather than partisan in the available materials.
Relates to minority depository institutions which apply to establish a home or branch office in an unbanked or underbanked community; provides that such institutions shall be entitled to receive deposits from the state comptroller and the commissioner of taxation and finance.
Enacting the Kansas bullion depository act to authorize the state treasurer to establish, administer or contract for the administration of bullion depositories and allowing for state moneys to be deposited in such bullion depositories and invested in specie legal tender.
AN ACT relating to banks, banking and finance; providing for the conversion of special purpose depository institutions into state banks; providing for the conversion of state banks into special purpose depository institutions; requiring rulemaking; and providing for effective dates.
AN ACT relating to banks, banking and finance; amending special purpose depository institution initial capital stock requirements; amending requirements for special purpose depository institutions to commence business as specified; amending requirements for the application to charter special purpose depository institutions as specified; amending the timeline special purpose depository institutions must commence business; authorizing appeals of decisions of the commissioner; amending the appealable court for decisions relating to special purpose depository institutions; creating a special purpose depository institution resolution fund account; specifying authorized expenditures and the investment of funds in the account; requiring a portion of supervisory fees to be paid to the account; repealing the requirement that special purpose depository institutions maintain a contingency account; making conforming amendments; requiring rulemaking; and providing for effective dates.
Allows a bank, in the discretion of the comptroller and the commissioner of taxation and finance, to arrange for the redeposit of moneys, in whole or in part, through a deposit placement program.
Allows a bank, in the discretion of the comptroller and the commissioner of taxation and finance, to arrange for the redeposit of moneys, in whole or in part, through a deposit placement program.