Requires certain financial institutions to provide notices of branch closings.
Impact
The legislation aims to enhance consumer protection by ensuring that communities are informed well in advance of branch closures, thereby allowing time for dialogue and potential alternatives to be considered. By requiring public meetings facilitated by the Commissioner of Banking and Insurance, the bill fosters engagement between financial institutions and local governance, which can lead to addressing community needs more effectively.
Summary
Assembly Bill A3987 requires financial institutions, including banks and savings associations, to notify relevant authorities and the public 90 days prior to closing any branch office. The notification must detail the branch's location, closure date, reasons for the decision, and the anticipated effects on local financial service availability. These notifications aim to ensure transparency and community awareness amidst branch closures, addressing concerns of potential adverse impacts on service access.
Contention
Points of contention surrounding A3987 may include concerns from financial institutions about the administrative burden and potential negative operational impacts due to the mandatory 90-day notification period. Critics may argue that such requirements could disincentivize banks from maintaining branches in less profitable areas, thus exacerbating the issue of accessibility to banking services in underserved communities. Supporters of the legislation argue that it is a necessary measure to protect consumers from the inconveniences caused by sudden branch closures.
Postsecondary institutions prohibited from considering certain criminal records during application process, postsecondary education made to satisfy postprison supervised release employment requirements, and other Department of Correction education policy provisions modified.