IBANYS continues to monitor developments regarding legislation that would allow credit unions to enter the public deposits (state and/or municipal deposits) business. We have testified and submitted memos in opposition on these initiatives, and have asked member banks to reach out to local members of the State Senate and Assembly to urge their opposition as the bills would seriously impact community banks and the municipalities and customers they serve.
- A.3262, Zebrowski/S.6079, Sanders would amend the general municipal law and the banking law, allowing credit unions (and savings banks, savings and loan associations and federal savings associations) to accept and secure deposits from municipal corporations. Chairman Sanders held the bill in the final Banks Committee meeting, but remains generally supportive. The Assembly has not decided on a course of action. With the 2019 session heading into its final days, this legislation remains under consideration. Read IBANYS’ Memo in Opposition.
- S.3312, Sanders/A.3320, Zebrowski would permit tax-exempt credit unions to participate in the State Business Development District (BDD) Program. Credit unions continue to seek expansion of their powers without accepting the burdens associated with taxes and additional regulation. The BDD program was established in 1997 to provide incentives for banks to establish bricks and mortar branches in areas with a demonstrated need for banking services. The incentives include the ability to accept municipal deposits, and a real property tax exemption for ten years. Assemblyman Zebrowski’s bill has been reported to the calendar for passage in the Assembly. Senator Montgomery’s Senate bill on Banking Development Districts has been amended and is now identical to the Zebrowski bill, and is currently on the calendar in the Senate. It will be ready for passage on Thursday. Read IBANYS’ Memo in Opposition.
Credit unions are putting on a full court press in support of these bills. Please write to your local State Senators & Members of Assembly and members of the State Assembly and State Senate Committees on Banks and Local Government.
- Share your own bank’s perspective;
- Urge them to vote no on this legislation; and
- Explain the impact of allowing credit unions into the municipal deposits business would have on your bank and your community.
You can access individual legislators and committee members at: