By Steve Rice, IBANYS Director of Government Relations, Policy & Services Development
The NYS Legislature adjourned Thursday night, June 21. While there is speculation they may return in November to consider a pay raise for members of the Legislature and for Commissioners appointed by the Governor, nothing is certain. If they do, the special session should not involve consideration of any banking issues considered during the regular session without special circumstances. If they do not, they will next return to Albany in January, 2013, when a new Legislature has been elected and a new two-year session will begin.
The Independent Bankers Association of New York State was on the scene until the very end of session, advocating for legislation to benefit our members and industry and playing strong defense to amend or stop measures that threatened a negative impact. In its closing days and hours, the Legislature did complete action on several IBANYS' objectives, and a number of initiatives we opposed were not enacted.
S.5135 Martins/A.8971 Magnarelli), the "CDARS legislation" which IBANYS strongly supported, allows New York State, its municipalities, agencies and public authorities to arrange for redeposit of monies through a deposit placement program. The credit unions sought an amendment to include them, subject to approval by the National Credit Union Administration. That tactic was successful in other states. IBANYS opposed the inclusion of credit unions. The final legislation approved by the Legislature did not include credit unions in its purview.
A.10567-A (Robinson, Kearns)/S.6777-B, Griffo) was introduced at the request of the Department of Financial Services (DFS) to conform New York's Banking Law regarding branching to the Dodd-Frank Act. As introduced, it would have exempted automated teller machines of out-of-state state banks from home office protection. IBANYS discovered this change in treatment of ATMs, and suggested amending the legislation to correct the problem. In consultation with the DFS, the bill's sponsors - Senate Banks Chair Griffo and Assembly Banks Chair Robinson - agreed to our suggested amendment and it was approved by the Legislature.
A8145-C (Jeffries)/S. 4567-C (Griffo) would have significantly expanded membership opportunities and investment powers for state chartered credit unions by combining categories of membership which are currently singular, and providing many of the investment powers and incidental powers related to investing, taxation and branching currently possessed by federal credit unions. IBANYS opposed this legislation. Despite considerable pressure from the credit unions, it was held in the Assembly Ways & Means and Senate Finance Committees.
A.5932 (Kavanagh, et al)/S34 (Squadron) would have amended the NYS Banking Law to include low-income credit unions in the State Banking Development District Program. IBANYS opposed the legislation. Despite pressure from the credit unions, it was held in the Senate and Assembly Banks Committees.
A10395/S757, proposed by the Office of Court Administration, would have imposed new burdens on plaintiffs in foreclosure actions. IBANYS opposed the legislation and sought to either stop it, or amend it to exempt institutions which either have assets of less than $8 billion or fewer than 25 active foreclosure actions annually. The Assembly approved the original bill as written. The legislation was held in the Senate Rules Committee.
A1362 Jeffries/S4406 Robach would have significantly expanded the State's Community Reinvestment Act, requiring the assessment of banks' records of meeting credit needs to include a separate discussion of each assessment factor applicable to branches, rather than system-wide. IBANYS opposed this legislation, which passed the Assembly but was held in the Senate Banks Committee.
A9296 Robinson/S6692 Griffo, introduced by Senate Banks Chair Griffo and Assembly Banks Chair Robinson, would have imposed additional criteria regarding "affordable products and services" (including financial education) on banks seeking to qualify for renewal of their state deposits under the State Banking Development District. This would have significantly increased the required paperwork burden on participating banks. IBANYS opposed the bill, and attempted to offer alternative and less onerous provisions which were not adopted. The bill reached the Assembly Calendar, but was held in the Senate Banks Committee.
S.4927 (Griffo)/A.8147 (Magee) would have increased the overall cap on available funding under the State Community Deposit Program from $250 million to $350 million, and the individual cap on per-bank bank deposits from $10 million to $20 million. IBANYS supported the bill. When the Assembly saw no need to increase the overall cap (only about $90 million in total funding has been used), IBANYS suggested the legislation be amended to increase only the per bank cap from $10 million to $20 million. This was done, but the bill was held in the Senate Rules Committee once it was determined the Assembly Banks Committee wouldn't report the bill.
A.7764/S5461, New York City's Tax Data Match Program, creates a "tax data match" system for "deadbeat" City taxpayers with all banks throughout the State. Once an agreement was reached that the system would be merged with the existing State tax data match so no additional burden would be imposed on any banks, IBANYS withdrew our objection.
With state lawmakers having departed, much of Albany's focus will now turn to the November elections, when every seat in the New York State Legislature will be on the ballot.
June 26 Primary Update: Key Political Races Settled Around State
Tuesday, June 26 was Primary Day for Congressional races, and several battles were settled across New York State. Republicans nominated Wendy Long, a Manhattan lawyer also backed by the State's Conservative Party, to oppose Democratic incumbent Senator Kirsten Gillibrand.
In Congressional primaries: In the 6th CD (Queens), Democratic Assemblywoman Grace Meng won a four-way Democratic primary to run for the open House seat created by the retirement of Democratic Rep. Gary Ackerman. In the 7th CD (Brooklyn/Queens/Manhattan), 10-term incumbent Democrat Nydia Velázquez defeated City Councilman Erik Dilan. In the 8th CD (Brooklyn), Democratic Assemblyman Hakeem Jeffries is the Democratic choice to succeed retiring Democratic Rep. Edolphus Towns. In the 17th CD (Westchester), Rye Town Supervisor Joe Carvin won the GOP primary to challenge Democratic Rep. Nita Lowey. In the 18th CD (Lower Hudson Valley), former Spitzer/Paterson administration official Sean Patrick Maloney won a five-way Democratic primary to face GOP incumbent Rep. Nan Hayworth. In the 19th CD, attorney Julian Schreibman is the Democratic nominee against GOP Rep. Chris Gibson. In the 21st CD (North Country), Matt Dohney won the GOP primary to oppose Democratic Rep. Bill Owens. In 22nd CD, incumbent GOP Rep. Richard Hanna defeated Tea Partier Michael Kicinski, and will face Democrat Dan Lamb, a former aide to retiring Rep. Maurice Hinchey. In 23rd CD, Tompkins County Legislator Nate Shinawaga won a three-way Democratic primary and will face GOP incumbent Rep. Tom Reed. In the 27th CD (Western New York), former Erie County Executive Chris Collins is the GOP nominee against incumbent Democratic Rep. Kathy Hochul. The congressional primaries were run in the new districts, which were redrawn during reapportionment. New York lost two congressional seats due to population loss, and will have a 27-member House delegation beginning in 2013.
...As In Washington, The Session Continues
Congress continues in session, but with elections looming the legislative agenda between now and November will likely be quite limited. (The full House of Representatives and one third of the Senate will be on the ballot.) However, there will almost certainly be a post-election "lame duck" session to address a number of sweeping initiatives, including tax reform and deficit and debt reduction. IBANYS continues to work with the Independent Community Bankers of America (ICBA) on several targeted industry initiatives that still on the table. The top three priorities remain: urging a five-year extension of the FDIC's transaction account guarantee (TAG) program, supporting Communities First Act to provide much needed regulatory and tax relief, and opposing legislation to allow tax-exempt credit unions to expand into prohibited commercial lending, more than doubling their current cap on business loans from 12.12% to 27.5%. IBANYS joins with ICBA in urging members to call, write and meet with their local congressional representatives to discuss these three federal priorities.
debt incurred for eligible fixed assets. Time and time again, our 504 borrowers tell us that the lender's offer of the 504 loan program was a determining factor in their selection of a first mortgage lender. Don't miss the opportunity to get the deal and give your customers access to this terrific loan program.