WeVote
Log In

Bill

Bill

S 8357

Relates to a deposit placement program for the Banking Development District Program

2025 Regular Session Introduced by James Sanders

Directs public deposits to BDD-participating banks to boost lending and development in underserved districts.

ADVANCED TO THIRD READING
0
WeVote Research Nonpartisan
Bill Summary · S 8357

Summary of S 8357 — Relates to a deposit placement program for the Banking Development District Program

Overview

S 8357 is a New York State Senate bill introduced on June 4, 2025, sponsored by James Sanders Jr. The bill relates to a deposit placement program within the Banking Development District (BDD) Program. The current status shows it has progressed through Senate consideration and been delivered to the Assembly, with a referral to the Banks committee. This indicates ongoing legislative action and consideration of how public deposits may be placed with BDD-participating banks.

Legislative History (as of the provided information)

  • Introduced: June 4, 2025
  • Senate actions (June 9, 2025): Passed the Senate, ordered to third reading (CAL.1666), delivered to Assembly, then referred to Banks
  • Assembly actions: Referred to Banks (following delivery from the Senate)
  • Sponsor: James Sanders Jr. (primary)

Purpose and intent

  • The bill aims to establish or modify a deposit placement program within the Banking Development District Program. The objective of such programs generally is to direct public deposits to financial institutions that participate in the BDD framework to support banking access, investment, and development in designated underserved or economically challenged districts.

Key provisions (not specified in the provided text)

  • The exact statutory changes are not included in the summary. Based on the title and typical BDD-related initiatives, the bill would likely:
    • Define or refine criteria for BDD-participating banks eligible for deposit placement.
    • Establish a process for public funds to be placed with eligible banks (e.g., state and local government deposits).
    • Set reporting and oversight requirements for deposit placements and program performance.
    • Outline safeguards to protect public funds (collateral, risk management, audit provisions).
    • Specify terms, duration, and renewal options for deposit placements.
    • Clarify enforcement and compliance mechanisms, including penalties for noncompliance.

Note: The exact provisions, thresholds, timelines, and operational details would be found in the bill’s text upon formal release.

Who would be affected

  • Public entities and funds that hold government deposits (state, municipalities, and other public funds) that would participate in the deposit placement program.
  • Banks and financial institutions that participate in the Banking Development District Program.
  • BDD communities and districts, which could benefit from enhanced banking access and potential economic development support.
  • Regulators and state banking authorities responsible for oversight and reporting.

Potential impact

  • Positive: Increased deposits routed to banking institutions within BDDs could bolster lending and investment in designated districts, potentially supporting local job creation and economic development.
  • Risks/Considerations: Ensuring prudent management and safeguards for public funds, maintaining diversification and risk controls, and maintaining transparency and accountability in deposit placements.

Procedural and timeline notes

  • The bill is currently in the Assembly after Senate passage on June 9, 2025.
  • Next steps include Assembly committee consideration (Banks) and potential floor action, followed by conference if needed and a potential governor action.
  • For interested readers, monitoring the Assembly Banks committee agenda and the bill’s text will provide precise provisions and any amendments.

Next steps for readers

  • Review the full text of S 8357 when publicly available to understand exact eligibility criteria, deposit placement processes, reporting requirements, and safeguards.
  • Track Assembly Banks committee hearings and votes to see how the bill progresses and if amendments are adopted.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.