S308

SENATE, No. 308

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Senator INVERSO

An Act creating a commission to revise the laws of this State concerning certain financial institutions, prescribing its powers and duties and making an appropriation therefor.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. There is hereby created a Banking Law Revision Commission which shall consist of seven members, two of whom shall be appointed by the President of the Senate, two by the Speaker of the General Assembly, two by the Governor, and the Commissioner of Banking, ex officio, or the commissioner's designee. All members of the commission shall serve without compensation but shall be entitled to receive reimbursement for expenses incurred in performing their duties. In the event of a vacancy of the commission, that vacancy shall be filled in the same manner in which the original appointment was made.

2. The commission shall organize as soon as convenient after the appointment of its members and shall select a chair from among its members, who shall be the approval officer for all expenditures by the commission. In the event of a vacancy in the position of chair, that vacancy shall be filled by election among the members of the commission who shall be serving following the occurrence of that vacancy. The commission may also designate from time to time a member of its staff or any other person to serve as its secretary.

3. The Banking Law Revision Commission shall study and prepare for enactment by the Legislature, if the Legislature shall so determine, revisions to, or supplements for, the laws of this State related to banks, savings banks and savings and loan associations, as presently contained in Title 17 of the Revised Statutes, and if deemed advisable by the commission, as presently contained in other titles of the Revised Statues, insofar as they relate to the organization, powers, business activities and limitations applicable to those financial institutions. The goal of the commission shall be to propose comprehensive revisions which, consistent with the interests of New Jersey consumers, allow New Jersey based financial institutions to compete effectively and efficiently in the changing environment of interstate banking and branching, as well as international banking, with specific emphasis on the elimination of inconsistencies between federal and State law, coordination with the law of other jurisdictions which affects banks with branches in multiple jurisdictions, and generally to insure that New Jersey is an attractive and productive location from which banks, savings banks and savings and loan associations may conduct business. In so doing, the commission shall endeavor to modernize the banking laws of this State so as to embody principles and procedures representing the best in modern American statutory law applicable to banks, savings banks and savings and loan associations in general, to eliminate ambiguities, outmoded procedures and conflicting, overlapping and redundant provisions, and to present statutes applicable to banks, savings banks and savings and loan associations in a logical, clear and concise manner. The commission shall solicit the comments of officers, attorneys and accountants for national and State banks, savings banks and savings and loan associations located in New Jersey, international banks which may be located or contemplate locating in New Jersey, consumer groups in New Jersey and their advocates, the Department of Banking, other bank regulatory agencies, and other constituencies and persons as the commission deems appropriate.

4. In the performance of its work, the commission may utilize consultants and shall be entitled to accept the assistance and services of employees of any department of the State Government, board, bureau, commission, office or agency as may be made available to it, and to employ legal, stenographic, technical and clerical assistance, and incur such traveling, printing, and other miscellaneous expenses as it may deem necessary in order to perform its duties and to disseminate its reports and proposals among those interested in the State, provided that the aggregate of all expenditures for those purposes shall be within the limits of the funds appropriated or otherwise made available to it therefor.

5. The commission shall prepare and submit to the Legislature and to the Governor one or more reports, setting forth the text of any proposed revisions, in the form of legislative bills and statements of the basic policy determinations involved therein, and the principal changes in existing law, which the proposed revisions will accomplish, as soon as may be feasible, but not later than September 30, 1997.

6. There is appropriated to the commission from the General Fund the sum of $25,000 to carry out the purposes of this act.

7. This act shall take effect immediately.

STATEMENT

This bill creates a Banking Law Revision Commission for the purpose of studying and suggesting revisions to existing laws affecting the establishment and operation of banks, savings banks and savings and loan associations in this State. With the passage of the federal "Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994" and the advent of interstate branching, the general context of banking has changed dramatically necessitating a review and revision of the statutes.

The commission shall consist of seven members, two of whom shall be appointed by the President of the Senate, two by the Speaker of the General Assembly, two by the Governor, and the Commissioner of Banking, ex officio, or the commissioner's designee. The goal of the commission shall be to propose comprehensive revisions which, consistent with the interests of New Jersey consumers, will allow New Jersey-based financial institutions to compete effectively and efficiently in the changing environment of interstate banking and branching, as well as international banking, with specific emphasis on the elimination of inconsistencies between federal and State law, coordination with the law of other jurisdictions which affects banks with branches in multiple jurisdictions, and to insure that New Jersey is an attractive and productive location from which banks, savings banks and savings and loan associations may conduct business.

In the performance of its work, the commission may utilize consultants and shall be entitled to accept the assistance and services of employees of any department, board, bureau, commission, office or agency of the State Government as may be made available to it, and to employ legal, stenographic, technical and clerical assistance, and incur such traveling, printing, and other miscellaneous expenses as it may deem necessary in order to perform its duties and to disseminate its reports and proposals among those interested in the State, provided that the aggregate of all expenditures for those purposes shall be within the limits of the funds appropriated or otherwise made available to it.

As soon as may be feasible, but not later than September 30, 1997, the commission shall prepare and submit to the Legislature and to the Governor one or more reports setting forth the text of any proposed revisions, in the form of legislative bills and statements of the basic policy determinations involved therein, and the principal changes in existing law which the proposed revisions will accomplish.

The bill appropriates to the commission from the General Fund the sum of $25,000 to carry out the purposes of this act.

Creates a Banking Law Revision Commission, appropriates $25,000.