New York Senate Bill S02027

New York 2025-2026 Regular Session

• Introduced: 1/15/25
• Refer: 1/15/25
• Engrossed: 2/24/25
• Refer: 2/24/25
• Refer: 1/7/26
• Report Pass: 2/26/26

Caption

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.

Summary

This bill creates a temporary Banking Development District working group within New York’s Banking Law to evaluate the state’s Banking Development District program and make recommendations for its future. The group is tasked with assessing how well the program is serving unbanked and underbanked communities, identifying strengths and weaknesses, and proposing measures to improve the program. It must submit an initial report to the governor and legislature within one year of the law’s effective date and then continue to provide annual assessments and future goals thereafter. The bill also amends the Banking Law to require that Banking Development District assessments include the number of unbanked and underbanked individuals in each district. It adds statutory definitions for those terms: “unbanked” means individuals not served by an insured institution in any capacity, and “underbanked” means individuals who have an account at an insured institution but have used alternative nonbank financial services in the prior 12 months. The act takes effect immediately and expires two years later, making the working group and related provisions sunset after that period unless renewed.

Impact

The bill would modify Banking Law section 96-d by adding reporting requirements tied to the number of unbanked and underbanked residents in each banking development district, and by formally defining those terms for purposes of the program. It also creates a new section establishing the working group, authorizing the superintendent to impose an assessment on bank branches located in banking development districts to fund the group’s work. The practical effect is to increase oversight, data collection, and policy review of a program intended to expand access to banking services in underserved communities.

Sentiment

The available voting history suggests broad support for the bill. It passed the Senate Banks Committee unanimously and later received unanimous final passage on the Senate floor, indicating little visible opposition in the recorded votes. The bill’s framing around improving access to banking services for unbanked and underbanked residents appears to have been viewed favorably by lawmakers.

Contention

No committee transcript is available, and the recorded votes show no opposition, so there is no documented substantive controversy in the provided materials. The main policy questions implied by the bill are whether the Banking Development District program is effective, how best to measure service to unbanked and underbanked populations, and whether the assessment on bank branches in these districts is an appropriate way to fund the working group. Any disagreement would likely center on regulatory burden, program effectiveness, and the scope of reporting rather than on the bill’s core purpose.