STATE OF NEW YORK ________________________________________________________________________ 7964--A IN SENATE March 13, 2018 ___________ Introduced by Sens. HAMILTON, PERALTA, SEPULVEDA -- read twice and ordered printed, and when printed to be committed to the Committee on Banks -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the banking law, in relation to assessment of the record of performance of banking institutions in helping to meet the credit needs of local communities The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 3 of section 28-b of the banking law, as 2 amended by chapter 315 of the laws of 2008, the opening paragraph and 3 paragraph 12 of paragraph (a) as amended by chapter 227 of the laws of 4 2013, is amended to read as follows: 5 3. (a) When taking any action on an application or notice made by a 6 banking institution under (i) section one hundred five, two hundred 7 twenty-four, two hundred forty, or three hundred ninety-six of this 8 chapter for a branch office, (ii) section one hundred ninety-one of this 9 chapter for a public accommodation office, (iii) section six hundred 10 one-b of this chapter for approval of a merger or purchase of assets, or 11 (iv) under section one hundred five-a, two hundred forty-a or three 12 hundred ninety-six-a of this chapter for the use or installation of an 13 automated teller machine, point-of-sale terminal or similar electronic 14 facility or on any other application or notice to which the superinten- 15 dent of financial services shall by rule or regulation make applicable 16 the provisions of this section, the superintendent shall take into 17 account, among other factors, an assessment, in writing, of the record 18 of performance of the banking institution in helping to meet the credit 19 needs of its entire community, including low and moderate-income neigh- 20 borhoods and minority- and women-owned businesses, consistent with safe 21 and sound operation of the banking institution. Such assessment and any 22 written communications from the department of financial services to a 23 banking institution relating to such assessment shall be made available 24 to the public upon request, provided that nothing contained in this 25 subdivision shall be deemed to alter, amend or affect the provisions of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15042-04-8S. 7964--A 2 1 subdivision ten of section thirty-six of this chapter. In making such 2 assessment the superintendent shall review all reports and documents 3 filed pursuant to subdivision one of this section and any signed, writ- 4 ten comments received by the superintendent which specifically relate to 5 the banking institution's performance in helping to meet the credit 6 needs of its community. In addition, the superintendent shall consider 7 the following factors in assessing a banking institution's record of 8 performance: 9 (1) Activities conducted by the banking institution to ascertain cred- 10 it needs of its community, including the extent of the banking insti- 11 tution's efforts to communicate with members of its community regarding 12 the credit services being provided by the banking institution; 13 (2) The extent of the banking institution's marketing and special 14 credit-related programs to make members of the community aware of the 15 credit services offered by the banking institution; 16 (3) The extent of participation by the banking institution's board of 17 directors or board of trustees in formulating the banking institution's 18 policies and reviewing its performance with respect to the purposes of 19 the Community Reinvestment Act of 1977; 20 (4) Any practices intended to discourage application for types of 21 credit set forth in the banking institution's Community Reinvestment Act 22 Statement(s); 23 (5) The geographic distribution of the banking institution's credit 24 extensions, credit applications and credit denials; 25 (6) Evidence of prohibited discriminatory or other illegal credit 26 practices; 27 (7) The banking institution's record of opening and closing offices 28 and providing services at offices; 29 (8) The banking institution's participation, including investments, in 30 local community development and redevelopment projects or programs and 31 in technical assistance programs for small businesses and minority- and 32 women-owned businesses; 33 (9) The banking institution's origination of residential mortgage 34 loans, housing rehabilitation loans, home improvement loans and small 35 business or small farm or minority- and women-owned business loans with- 36 in its community or the purchase of such loans originated in its commu- 37 nity; 38 (10) The banking institution's participation in governmentally-in- 39 sured, guaranteed or subsidized loan programs for housing, small busi- 40 nesses or small farms; 41 (11) The banking institution's ability to meet various community cred- 42 it needs based on its financial condition, size, legal impediments, 43 local economic condition and other factors; 44 (11-a) The geographic distribution, availability and use of automated 45 teller machines, point-of-sale terminals, personal computer banking, 46 debit cards or similar electronic facilities or services; and any train- 47 ing of customers thereon among every branch of the banking institution, 48 if the institution offers such services to any of its customers; and 49 (12) Other factors that, in the judgment of the superintendent, 50 reasonably bear upon the extent to which a banking institution is help- 51 ing to meet the credit needs of its entire community, including, without 52 limitation, the banking institution's participation in credit counseling 53 services. 54 (b) In assessing the record of performance of a banking institution 55 pursuant to the provisions of paragraph (a) of this subdivision, the 56 superintendent may, where he or she deems it appropriate, provide forS. 7964--A 3 1 public hearings when an objection to the banking institution's applica- 2 tion or notification has been submitted. 3 (c) An assessment of a banking institution's record of performance 4 under paragraph (a) of this subdivision may be the basis for denying an 5 application or notice under the provisions of this section. 6 (d) When taking any action pursuant to paragraph (a) of this subdivi- 7 sion, the superintendent shall request from the applicant or notificant 8 banking institution and from the appropriate federal bank regulatory 9 authorities any documents, other than those required to be filed with 10 the superintendent by this section or by other applicable statutes or 11 regulations, which are (1) filed with the federal bank regulatory 12 authorities in connection with the application or notice or (2) produced 13 by the applicant or notificant banking institution or others in 14 connection with the application or notice. 15 § 2. This act shall take effect on the one hundred twentieth day after 16 it shall have become a law. Effective immediately, the addition, amend- 17 ment and/or repeal of any rules or regulations necessary for the imple- 18 mentation of the foregoing section of this act on its effective date are 19 authorized to be made on or before such effective date.