S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6110

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             March 16, 2015
                               ___________

Introduced  by  M.  of  A.  GALEF,  O'DONNELL, STECK, MOSLEY, SKARTADOS,
  ROSENTHAL, QUART -- Multi-Sponsored by -- M.  of  A.  BUCHWALD,  GOTT-
  FRIED, MAYER -- read once and referred to the Committee on Banks

AN  ACT to establish a commission to study the feasibility of establish-
  ing a bank owned by the state of New York or  by  a  public  authority
  constituted  by the state of New York; 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:

  Section  1.  A temporary state commission, to be known as the New York
state commission on establishing a bank owned by New York state, herein-
after referred to as the commission, is hereby established to study  the
feasibility  of establishing a bank owned by the state of New York or by
a public authority constituted by the state of New York.
  S 2. a. The  commission  shall  consist  of  fifteen  members,  to  be
appointed as follows:
  (i)  six members shall be appointed by the governor, one of whom shall
be a representative of the New York state banking department, one  shall
be  a  representative from the New York state department of taxation and
finance, the remaining four governor's appointees shall not be employees
of the executive branch and at least  one  member  shall  represent  the
banking and financial industries of the state including, but not limited
to,  the  New York Bankers Association, at least one member shall repre-
sent community banking, and no more than one member may be  a  represen-
tative  of any financial services firm located within the state, includ-
ing, but not limited to, the New York state small  business  development
center;
  (ii)  one  member shall be the New York state comptroller or the comp-
troller's designee;
  (iii) three members shall be appointed by the temporary  president  of
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.
                                                           LBD00139-01-5
              

A. 6110                             2

  (iv)  one  member  shall  be  appointed  by the minority leader of the
senate;
  (v)  three  members shall be appointed by the speaker of the assembly,
one of whom shall be a member of the assembly; and
  (vi) one member shall be appointed  by  the  minority  leader  of  the
assembly.
  b.  The  governor  shall designate one of his or her appointees as the
chair of the commission.
  c. The members of the commission shall  be  appointed  no  later  than
ninety days after the effective date of this act.
  S 3. The commission shall:
  (i)  examine  the technical, legal and financial feasibility of estab-
lishing a state-owned bank, including but not limited to  a  state-owned
bank for infrastructure investment purposes;
  (ii) seek participation in its deliberations from the president of the
Federal Reserve Bank of New York or the president's designee;
  (iii) evaluate the experiences of other states with state-owned banks,
identifying  the  financial performance of such banks and evaluating the
lending practices of such banks to show whether such banks  successfully
fill lending gaps not filled by the private sector;
  (iv)  evaluate the manner in which public funds are invested or depos-
ited by the state and its political subdivisions including funds managed
by the state comptroller including state and local pension funds;
  (v) examine the  infrastructure  investment  activities  conducted  by
other states with state-owned banks;
  (vi)  examine  the  lending  practices,  including  lending to support
infrastructure, of the existing public agencies in the commonwealth that
perform lending services. Any other public authority in the  state  that
lends  money  shall cooperate fully with the commission and shall supply
information reasonably required by  the  commission  to  carry  out  its
charge;
  (vii) investigate how a state bank can promote the agriculture, educa-
tion, community development, economic development, commerce and industry
within the state;
  (viii)  hold  at  least  three  public hearings in distinct geographic
regions of the state; and
  (ix) publish its findings and recommendations, together with drafts of
legislation, if any,  necessary  to  carry  those  recommendations  into
effect,  in a written report not later than one year after the effective
date of this act. The report shall be published on the official  website
of  the  state,  and  shall  be  contemporaneously filed with the senate
finance committee and the assembly ways and means committee.
  S 4. This act shall take effect immediately and shall  expire  and  be
deemed repealed one year after such effective date.