Requires 10% of the penalties imposed by the superintendent of financial services to be deposited in the community development financial institution fund.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1509
SPONSOR: Rosenthal L TITLE OF BILL:
An act to amend the banking law and the insurance law, in relation to
dedicating ten percent of the fines and penalties imposed by the super-
intendent of financial services for deposit into the community develop-
ment financial institution fund
PURPOSE:
To dedicate ten percent of the fines assessed by the New York State
Department of Financial Services to the NYS community development finan-
cial institution fund.
SUMMARY OF PROVISIONS:
Section 1 adds a new Subdivision (10) to Section 44 of the banking law,
which provides for ten percent of all penalties imposed and collected
pursuant to this section be deposited into the community development
financial institution fund that was established pursuant to subdivision
three of section 16-0 of the New York state urban development act.
Section 2 amends Section 109 of the Insurance law to provide that ten
percent of all penalties imposed and collected pursuant to this section.
be deposited into the community development financial institution fund
that was established pursuant to subdivision three of section 16 of the
New York State Urban Development Act.
JUSTIFICATION:
Penalties imposed by the New York State Department of Financial Services
should be returned used to benefit New Yorkers who have been victimized
either by illegal practices or to those who do not have adequate access
to financial services or capital. We would like ten percent of the
monies recovered dedicated to the community development financial insti-
tution fund. Monies generated because of fines and penalties should go
benefit those you New Yorkers who lack access to financial capital &
services. The Community Development Financial Institution Assistance
Program bolsters. institutions providing microloans to small businesses
that often do not qualify for bank loans, as well as provide one-on-one
counseling and business development assistance to facilitate credit
readiness. Consumers are forced to pay higher rates because of access to
credit is limited, by funding this groups we attempt to make it easier
for small business to access capital.
LEGISLATIVE HISTORY:
2021-22: A.1638 - Referred to Banks
FISCAL IMPLICATIONS:
No cost to the State.
EFFECTIVE DATE:
This act shall take effect September 1, 2022.
STATE OF NEW YORK
________________________________________________________________________
1509
2023-2024 Regular Sessions
IN ASSEMBLY
January 17, 2023
___________
Introduced by M. of A. L. ROSENTHAL -- read once and referred to the
Committee on Banks
AN ACT to amend the banking law and the insurance law, in relation to
dedicating ten percent of the fines and penalties imposed by the
superintendent of financial services for deposit into the community
development financial institution fund
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 44 of the banking law is amended by adding a new
2 subdivision 10 to read as follows:
3 10. Notwithstanding any provision of law to the contrary, ten percent
4 of all penalties imposed and collected pursuant to this section shall be
5 dedicated to and deposited into the community development financial
6 institution fund established pursuant to subdivision three of section
7 sixteen-o of the New York state urban development corporation act.
8 § 2. Section 109 of the insurance law is amended by adding a new
9 subsection (e) to read as follows:
10 (e) Notwithstanding any provision of law to the contrary, ten percent
11 of all penalties imposed and collected pursuant to this section shall be
12 dedicated to and deposited into the community development financial
13 institution fund established pursuant to subdivision three of section
14 sixteen-o of the New York state urban development corporation act.
15 § 3. This act shall take effect on the first of September next
16 succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03542-01-3
