One comment was received from an industry association of New York financial institutions. While the association supported the goal of the current proposal to streamline the application and approval process for electronic facilities, it requested that further consideration be given to eliminating the prior approval requirement for electronic facilities, at least for banking organizations with a CRA rating of “satisfactory” or better.

The Department had originally taken this approach in amendments to Part 73 that were proposed in April, 2005 as part of a larger package of applications streamlining measures.

The State Assembly Regulations Review Commission objected to that earlier proposal. Specifically, the Assembly Commission objected to the alteration of the pre-notice and non-objection process in order that banking institutions may establish ATM facilities. The Commission represented the legislative intent of sections 105-a, 240-a and 396-a of the Banking Law is to ensure the Superintendent's review of a banking institution's performance in meeting the CRA standards prescribed by section 28-b of the Banking Law, as a pre-condition to obtain approval to establish a new facility. After considering the views of the Assembly Commission, the Department determined not to proceed with the proposal to amend Part 73 at that time.

The Department has no reason to believe that the known objections of the Assembly Commission to moving to an after-the-fact notice procedure for well rated banks have altered or diminished in the two years since it was initially proposed by the Department. It has therefore determined to adopt the amendments to Part 73 in the form proposed.