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April 3, 2019 — Banking Legislation Activity

April 3, 2019 — Banking Legislation Activity

  • S. 727 (Montgomery) would permit state and federal credit unions to participate in the State Business Development District Program. There is no companion bill yet in the Assembly. IBANYS is once again opposing this legislation, based on the fact that credit unions pay no income taxes to NYS and should not receive the benefits funded by taxpayer dollars.
  • S. 1461 (Sanders) would allow credit unions to join the Excelsior Linked Deposit Program. IBANYS continues to oppose it this year, for reasons noted above on S.727.
  • S. 2106A (Sanders)/A. 4618 (Wright) requires banks to disclose negative consequences of establishing alternative payment schedule on a loan (e.g., due to renegotiation, default) has passed the State Senate. For example, providing a disclosure that the transaction could have a negative consequence on their credit score. IBANYS is seeking modifications to the bill, such as restricting the application to consumer mortgages and consumer loans, not commercial loans, and perhaps inserting the disclosure as an add-on.
  • S. 133 (Carlucci)/A. 5635 (DenDekker) proposed at the request of State Attorney General James, would expand current data breach notification areas to include biometric data, credit and debit cards, and emails with passwords/security questions. It includes a limited exemption for banks who notify of breaches (under the federal Gramm-Leach-Bliley Act) to avoid duplicate obligations.
  • S. 1864 (Gaughran)/A. 4403 (McDonald), which would update the state’s “zombie property” law, has passed the State Senate and been reported by the Assembly Real Property Tax Committee. The bill would reduce from two years to one the time a city, town or village must wait before beginning the process to take ownership of an abandoned property.
  • S. 4182 (Salazar)/A. 1800 (Magnarelli) would expand the current vacant and abandoned property requirements to include covering HOA/co-op fees. The legislation was on the floor in the Assembly this week, and on the Senate Housing Committee’s agenda.
  • A. 5610 (Weinstein)/S. 2396 (Hoylman) which would allow for an arbitration ruling to be vacated where an arbitrator disregards the law, passed the Assembly this week. It has not yet moved in the Senate.
  • S. 2884A (Sanders)/A. 2611A (Dinowitz), which would prohibit the disclosure or use of consumer credit history in hiring, employment and licensing determinations, with an exemption for those required to utilize the credit histories for “licensing or permitting purposes,” was reported out of the Senate Consumer Protection Committee. It has not yet moved in the Assembly.
  • A. 02071C (Zebrowski) would require certain loan servicers to obtain a license from the Department of Financial Services and prohibit certain practices by servicers that could defraud or mislead borrowers. The bill was referred to the Assembly Codes Committee. There is no Senate companion bill as of yet.
  • A. 03408 (Zebrowski) (same as S. 02426) would amend the financial services law in relation to student debt consultants and set standards of practice for the student debt consulting industry in New York. The bill was referred to the Assembly Codes Committee.
  • A.1800 (Magnarelli)/S.4152 (Salazar) would expand current vacant and abandoned property requirements to include covering HOA/co-op fees. It has been passed by the Senate and the Assembly and will be forwarded to Governor Cuomo.

  • A.6522 (Galef)/S.2115 (Sanders) would allow for a commission to study the feasibility of establishing a bank owned by the state of New York. It has been reported by the Senate Rules Committee, but has not moved in the Assembly. 

Legislation recently introduced:

  • A.6909 (Weinstein)/S.4827 (Thomas) would enact the “Credit Consumer Fairness Act.” It  would shorten the statute of limitations for consumer credit transactions from the current six yearsdown to three years, and would revise procedures governing actions to enforce consumer credit obligations.
  • A.5613 (Weinstein)/S.4806 (Thomas) would require a recording officer not to record or accept a transfer or assignment of interest in a mortgage unless it is accompanied by a mortgage ownership assignment. 

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