The state Assembly Banks Committee passed an important bill yesterday that would grant credit unions access to the state Banking Development District Program. The legislation was introduced and sponsored by Assembly Banks Committee Chairman Kenneth Zebrowski, D-Westchester-Rockland, and is now headed to the Ways and Means Committee.

Passage of the legislation, A.3320, includes credit unions within the definition of a bank, trust company or national bank for the purpose of a Banking Development District Program.

The New York Credit Union Association strongly supports the legislation and has discussed the bill extensively with lawmakers. Including credit unions in the Banking Development District Program would be a key victory for New York’s credit unions, which the Association believes are already well-positioned to serve the needs of the state’s underserved communities.

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 remain unable to participate.

As previously reported, the state Senate Banks Committee passed legislation, S.727, which includes credit unions within the definition of a bank, trust company or national bank for the purpose of a BDD Program.

The Association is closely monitoring the legislation and will provide updates on future developments.