Senate Banks Committee advances four bills on community banking, fines, licensing and minority branches

During a brief session, the New York State Senate Banks Committee reported four separate banking-related measures to the Senate Finance Committee.

Senate Bill 2027 (sponsor: Senator Sanders) would create a banking development district working group with provisions to repeal upon expiration. Chair Senator James Sanders Jr. told the committee that the districts have not been as successful as intended and said the committee has pressed the State Controller to consider additional funding; he announced a press conference next week with the State Controller about adding money to banking development districts. The bill was moved, seconded and referred to the Senate Finance Committee.

Senate Bill 2327 (sponsor: Senator Connery) would dedicate 10% of fines and penalties imposed by the Superintendent of Financial Services into a Community Development Financial Institution (CDFI) fund. The measure was read, moved, seconded, and reported out to finance by voice vote.

Senate Bill 3177 (sponsor: Senator Sanders) would amend banking law and the New York City administrative code to regulate commercial finance licensing. The committee moved the measure and referred it to the Finance Committee.

Senate Bill 3615 (sponsor: Senator Sanders) would encourage minority institutions to establish branches in unbanked or underbanked communities. An unnamed cosponsor noted that rural communities suffer from lack of banking access; the bill was moved, seconded and reported out to finance. Chair Sanders framed the measure as “an example of nonpartisanship.”

In each case the committee proceeded by motion and voice vote; the transcript records committee-level voice votes and referrals to the Senate Finance Committee but does not provide individual roll-call tallies or detailed fiscal notes in this excerpt. Further review in Finance or on the floor will be needed to determine amendments, fiscal impacts, and final outcomes.