GOVERNMENT RELATIONS 

IN ALBANY:  

2014 NYS LEGISLATIVE SESSION ENDS

The New York State Legislature adjourned its 2014 session Friday night, June 20. For New York community banks, the session was highlighted by major tax reforms that will generate significant bottom line savings. 

  

That landmark victory concluded the process initiated at IBANYS last fall, when our legislative representatives and special tax consultant began developing and advocating for proposals in response to recommendations by the Governor's Tax Reform Task Force that would have imposed serious tax burdens on community banks, including the elimination of the REIT. After many months of working with the Legislature and Executive Department, including the Tax Department and Division of Budget IBANYS' proposals were adopted and incorporated into the sweeping 2014-15 state tax reforms.

Please see this attachment for full details.

  

The session included numerous bills supported, opposed or closely monitored by IBANYS on behalf of community banks. The state's "wild card law" (supported by IBANYS) was extended, and could prove even more important in the future if Congress moves ahead and approves new regulatory reforms for community banks contained in ICBA's CLEAR ACT and Plan for Prosperity -- strongly supported by IBANYS. 

  

A number of foreclosure-related bills were considered, including one requiring banks to maintain abandoned properties and another mandating the appointment of receivers (opposed by IBANYS and tabled). One bill (A9354 Weinstein/S7119 Klein) that did pass extends for five years legislation enacted in 2009 that provides for a settlement conference and pre-foreclosure notice in foreclosure actions.

 

Whistleblower legislation that would have expanded protections of bank employees against retribution for reporting alleged violations by their employers was tabled, and a bill to lower the sub-prime threshold rate on FHA loans was approved. 

  

A number of bills that involved banks' responsibilities regarding possible financial exploitation of vulnerable elderly bank customers were considered, but tabled, though they will likely return in the future. The Legislature also passed S2933 Farley/A977A Fahy, to allow electronic storage in preserving certain banking records. 

  

The 2014 session also included a major push by the state's credit unions, who aggressively fought for a number of initiatives. The Legislature, having provided significant benefits and relief to community banks over the past two years, appeared ready to now provide satisfaction to credit unions as well. IBANYS actively opposed and helped to defeat credit union initiatives that would have:

• allowed credit unions to accept municipal deposits; 
• given credit unions entree into the State Business Development Districts program and realize tax deductions; 
• created a new state Credit Union Deposit Program (modeled after our Community Bank Deposit Program) that would have allowed them to accept state funds.    

The Legislature did pass two bills involving state credit unions in the closing days and hours of the session, over IBANYS' opposition. Both also passed in 2013, but were subsequently vetoed by the Governor at the urging of IBANYS. 

• A.9408 Robinson/S.7112 Griffo (sponsored by the chairs of the Senate and Assembly Banks Committees) would expand state credit unions' qualifications for membership and enhance their investment powers. 
• The second bill, A.9037A Robinson/S.6805B Lanza, would allow credit unions to conduct savings promotion prize giveaways, linked to savings accounts. Both bills were amended in an effort to overcome the opposition expressed by IBANYS and in last year's veto messages. IBANYS will once again work with the NYS Department of Financial Services and Governor's office in an attempt to demonstrate why they should again be vetoed.

While it provided some major accomplishments, the 2014 legislative session was also filled with challenges, and there is no reason to expect that future sessions will be any different. The credit unions are perhaps more aggressive than ever, and their political action efforts are now extremely well funded. 

In announcing the State Department of Financial Services' Community Bank Study last year, the Governor noted community banks represent a strong economic engine that drives growth in New York, and described their performance as remarkable. IBANYS will continue representing your interests and demonstrating your importance: to the state and local economies, to the social fabric of our communities throughout New York and to New York's future success.

 

We Need YOUR Help: Support IBANYS' 

Political Action Efforts

 

2014 is an election year, with every member of the New York State Senate and Assembly and all four statewide officials on the ballot this November. As your state trade association representing the interests of New York community banks, IBANYS needs your help to stay competitive in the political process in Albany. The just concluded 2014 state legislative session provided important results for community banks, but the political climate  has become ever-more challenging, and competitors are well-funded and aggressive. To protect and enhance community banks' interests at the state level, we need to support candidates and officials who understand and value the vital role we play in our local and state economies, and in strengthening New York's neighborhoods. In short, our state political action committee, NYSIBPAC, needs YOUR financial support to effectively compete and act on your behalf in the future. Click here for more information.

 

IN WASHINGTON:

   

 NY Community Bankers: Ask Senators Schumer And Gillibrand To Support CLEAR Act

  

More than one-third of the members of the U.S. Senate, from both parties, have signed on as co-sponsors of S.1349 -- the ICBA CLEAR ACT (Community Lending Enhancement and Regulatory Relief Act) that would provide important regulatory relief for community banks. Neither of our New York Senators are listed as co-sponsors. ICBA's CLEAR ACT and Plan for Prosperity have been strongly endorsed by IBANYS, and we discussed these provisions during our recent hill visits in Washington. Please take a moment to contact Senators Schumer and Gillibrand and ask them to co-sponsor and support S.1349 to help reduce the oppressive regulatory burden on community banks, and boost local lending and economic growth.

 CONTACT:

 

Sen. Schumer: (202) 224-6542,

 www.schumer.senate.gov/Contact/contact_chuck.cfm 

  

Sen. Gillibrand: (202) 224-4451,

www.gillibrand.senate.gov/contact/

  

 

UPCOMING EVENTS

IBANYS 2014 Convention 

Sept. 7-9, Lake Placid, New York. . .

"A Look At Community Banking Today:

Doing MORE With Less"

 

 

 

 

Registration materials and program details for our 2014 Annual Convention scheduled September 7-9 in Lake Placid, New York have been sent to all New York community banks, IBANYS associate members, preferred providers and potential exhibitors. The package includes details on our conference agenda, information on the silent auction, and sponsorship and trade show booth opportunities.

• New York community bankers, associate members, preferred providers, vendors and exhibitors: Register Today! 

  Visit www.ibanys.net. 

The theme of this year's 41st annual conference is "A Look At Community Banking Today: Doing MORE With Less."  That's the very question faced by community banks and related industries as they plan for the next business cycle. Join us in Lake Placid: 

• Hear from top-notch speakers in our joint and concurrent educational sessions (CPE credits available!) 
• Enjoy our outstanding business trade show, with products and services to enhance community banks' operations and bottom line 
• Participate in our traditional silent auction to benefit IBANYS' political action efforts 
• Share in lots of recreational and professional networking opportunities
• We'll look at the future of bank branches; examine vendor management/regulatory expectations regarding management of third-party risk; hear the very latest on cyber security updates and best practices; community banks and social media: risk management and compliance tips; corporate governance best practices, compensation, and much more. 

Don't miss this signature meeting of IBANYS' year, set amid the beauty of New York's North Country in historic Lake Placid. New York community bank CEOs: Sign up today, and register your senior management teams and directors as well! Contact Linda Gregware (Lindag@ibanys.net) with your questions. 

 

2014 Annual Convention Speaker Profiles

Peter Weinstock On "Board Governance: 

Liabilities, Fiduciary Responsibilities & Best Practices For Directors"

 

Beginning this week, we will include snapshot profiles of a number of our outstanding speakers who will be addressing IBANYS' 41st Annual Convention in Lake Placid. Today, we highlight Peter Weinstock, Partner at Hunton & Williams. Peter's practice focuses on corporate and regulatory representation of small, regional and national financial institutions. He has also been involved with compliance, mergers and acquisitions, TRUPS repurchases, raising capital (public and private banks), ownership succession anddirector and officer compensation issues. Peter will speak to us on "Board Governance: Liabilities, Fiduciary Duties & Best Practices For Directors."  

 

Mark Your Calendars & Plan To Attend:

 

IBANYS Directors Conference:

October 7 In Syracuse. . .

 

IBANYS' 2014 Directors Conference will be held Tuesday, October 7 at the DoubleTree Hotel in Syracuse, New York. Make sure YOUR board members aren't in the dark about the many new challenges and responsibilities they face, now and in the future. For information, visit www.ibanys.net/Education/Upcoming. Don't forget: Earn up to 5.0 continuing professional education (CPE) credits. 

. . .And, IBANYS Security Conference:

October 16 In Rochester

IBANYS' Security Conference is Thursday, October 16 at the Holiday Inn Rochester Airport in Rochester, New York. This special one-day program will cover key topics and challenges impacting both cyber and brick-and-mortar branch facilities security. Watch your inbox, the IBANYS website and our future newsletters for further details. CPE credits are available.

IBANYS Offers CPE Credits

IBANYS is approved by the New York State Department of Education as an accredited provider for continuing professional education (CPE) credits at our in-person meetings! That includes our September 7 - 9 Annual Convention in Lake Placid, our October 7 Directors Conference in Syracuse and our October 16 Security Conference in Rochester. CPE credits are one more way that IBANYS provides real, tangible value to New York community banks!

A new Morning Consult Finance poll found that nearly 80% of respondents -- including Republicans, Democrats and Independents -- trusted community banks regarding banking, finance and the economy. The same poll found Wall Street was trusted by just 44% of Republicans, 35% of Independents and 36% of Democrats indicated they trusted such institutions. 

Former IBANYS and ICBA Chairman Sal Maranca (CEO, Cattaraugus County Bank) is once again demonstrating to the world the importance of "community" in community banking. The most recent example is this story from the pages of Buffalo Business First: 

Home prices increased 10.8% in April from one year ago according to the S&P/Case-Shiller home price indexes. That's a considerably lower year-ago rate than was found in March, but S&P did note near-term economic factors (lower mortgage rates, an improving labor market) favor further gains in housing.

The Conference Board's Consumer Confidence Index reported that consumer confidence improved to 85.2 in June (up from 82.2 in May). The June figure is the index's highest level since January 2008.

Yesterday was primary election day in New York State, and a number of the state's congressional districts held contests. Here's a rundown of all the results:

IBANYS' webinars offer New York community bankers the opportunity to participate in timely, important programs without leaving the bank or office. Our webinars are both effective, and cost-effective, and provide real bottom line value and convenience to your banks. The number of community banks taking part has continued to grow dramatically during the past year. Take a moment to review our webinar calendar below with your officers, directors and employees.  You'll discover why so many of your industry peers are signing up! 

New York community banks play a vital role in our state and local economies. Tell your customers, business and elected leaders and media.

Click here for quotes from Governor Cuomo and DFS Superintendent Lawsky extolling the performance and value of New York community banks.

Click here for the full NYS Study on community banking.

Click here to read IBANYS President & CEO John Witkowski's comments on the new tax changes and benefits for New York community banks as approved in the 2014-15 State Budget.

Click here for IBANYS' letter to the Editor of Consumer Reports Magazine correcting failure to mention community banks as an alternative to using "big banks."

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