Bill Text: NY A06522 | 2019-2020 | General Assembly | Amended
Bill Title: Establishes the New York state commission on establishing a bank owned by New York state for purposes of determining what benefits a public bank or network of public banks owned by the state of New York or by a public authority constituted by the state of New York could provide for the New York State government, local governments, communities, private businesses, community banks, credit unions and people; requires publication of the commission's findings and recommendations.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A06522 Detail]
Download: New_York-2019-A06522-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6522--A 2019-2020 Regular Sessions IN ASSEMBLY March 11, 2019 ___________ Introduced by M. of A. GALEF, O'DONNELL, STECK, MOSLEY, L. ROSENTHAL, QUART, BARNWELL -- Multi-Sponsored by -- M. of A. BUCHWALD, GOTTFRIED -- read once and referred to the Committee on Banks -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to establish a commission to determine what benefits a public bank or network of public banks owned by the state of New York or by a public authority constituted by the state of New York can provide; and providing for the repeal of such provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. A temporary state commission, to be known as the New York 2 state commission on establishing a bank owned by New York state, herein- 3 after referred to as the commission, is hereby established to determine 4 what benefits a public bank or network of public banks owned by the 5 state of New York or by a public authority constituted by the state of 6 New York could provide for the New York state government, local govern- 7 ments, communities, private businesses, community banks, credit unions 8 and people. 9 § 2. a. The commission shall consist of seventeen members, to be 10 appointed as follows: 11 (i) eight members shall be appointed by the governor, one of whom 12 shall be a representative of the New York state department of financial 13 services, one shall be a representative from the New York state depart- 14 ment of taxation and finance, the remaining six governor's appointees 15 shall not be employees of the executive branch and at least one member 16 shall represent the banking and financial industries; 17 (ii) one member shall be the New York state comptroller or the comp- 18 troller's designee; 19 (iii) three members shall be appointed by the temporary president of 20 the senate, one of whom shall be a member of the senate; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00222-09-9A. 6522--A 2 1 (iv) one member shall be appointed by the minority leader of the 2 senate; 3 (v) three members shall be appointed by the speaker of the assembly, 4 one of whom shall be a member of the assembly; and 5 (vi) one member shall be appointed by the minority leader of the 6 assembly. 7 b. The governor shall designate one of his or her appointees as the 8 chair of the commission. 9 c. The members of the commission shall be appointed no later than 10 ninety days after the effective date of this act. 11 § 3. The commission shall: 12 a. determine what the existing laws and regulatory structures would 13 need to be amended to create a public bank in New York state; 14 b. evaluate the experiences of other states and countries with state- 15 owned banks, identifying the financial performance of such banks and 16 evaluating the lending practices of such banks to show whether such 17 banks successfully fill lending gaps not filled by the private sector; 18 c. identify changes to the current financial system that would maxi- 19 mize the state's independence and free up capital for public priorities, 20 including but not limited to: 21 (i) a public bank model in which the state creates a public bank to 22 serve its own banking needs as currently provided by commercial banks; 23 and 24 (ii) a public bank model in which the state creates a public bank to 25 serve its own banking needs as currently provided by commercial banks 26 and engages in supplemental activities, including accepting public 27 deposits, accepting deposits from the general public, and issuing loans. 28 d. identify steps that can be taken immediately to further the ends 29 identified in subdivision c of this section and to create a gradual plan 30 under which the state could comply with both models listed in paragraphs 31 (i) and (ii) of subdivision c of this section; 32 e. examine the lending practices, including lending to support 33 infrastructure, of the existing public agencies in the state that 34 perform lending services. Any other public authority in the state that 35 lends money shall cooperate fully with the commission and shall supply 36 information reasonably required by the commission to carry out its 37 charge; 38 f. determine the benefits with respect to the availability of afforda- 39 ble credit; job and wealth creation; the diminishment of racial, gender 40 and other social disparities in economic outcomes; and any other benefit 41 that the commission deems appropriate that a state-owned public bank or 42 network of locally-controlled public banks could provide to: New York 43 state government; industry, including agriculture; small businesses; 44 local governments; communities; credit unions and community banks; and 45 people; and 46 g. examine the political, economic, and social climate of public banks 47 world-wide, and recommend safeguards to insulate a New York public bank 48 from such conditions. 49 § 4. The commission shall: 50 a. hold at least three public hearings in distinct geographic regions 51 of the state; and 52 b. publish its findings and recommendations, together with the draft 53 of legislation necessary to carry those recommendations into effect, in 54 a written report not later than one year after the effective date of 55 this act. The report shall be published on the official website of theA. 6522--A 3 1 state, and shall be contemporaneously filed with the senate finance 2 committee and the assembly ways and means committee. 3 § 5. The members of the commission shall receive no compensation for 4 their services, but shall be allowed their actual and necessary expenses 5 incurred in the performance of their duties pursuant to this act. The 6 department of financial services shall provide staff and other resources 7 to the commission. 8 § 6. This act shall take effect immediately and shall expire and be 9 deemed repealed one year after such effective date.
