The state Assembly passed an important bill that would grant credit unions access to the state Banking Development District Program. Passage of the legislation (A.6949B) is among the New York Credit Union Association’s top legislative priorities this year.
The BDD Program was created in 1997 to encourage financial institutions to establish branches in economically-distressed communities throughout New York where there is a demonstrated need for banking services. Banks and trust companies have continually declined to participate in the program, yet credit unions—which are well-positioned to serve these communities—have remained unable to participate.
The legislation, which the Association strongly supports and has actively advocated for, would amend the state banking law to allow credit unions to participate in the BDD Program.
The Assembly passed the bill in bipartisan fashion and without debate. The bill was sponsored by Assemblyman Kenneth Zebrowski, D-Westchester-Rockland, who chairs the Assembly Committee on Banks.
“The Assembly’s passage of this bill is an encouraging step toward seeing this common sense measure signed into law,” said Association President/CEO William J. Mellin. “On behalf of the state’s credit unions, I’d like to thank all of the members of the Assembly who voted in favor of this important legislation. In particular, Chairman Zebrowski should be commended for carrying this bill and the tremendous leadership he displayed in overseeing its passage.”
The Senate bill (S.6700) was introduced by Sen. Jesse Hamilton, IDC-Metropolitan, who chairs the Banks Committee. That bill has advanced to the Rules Committee, where the legislation can be taken up any time.
The Association will continue to work closely with lawmakers in the Senate and ardently advocate for its passage.