S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6808
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 8, 2021
                                ___________
 
 Introduced  by  M.  of  A. GALEF, O'DONNELL, STECK, L. ROSENTHAL, QUART,
   BARNWELL -- Multi-Sponsored by -- M. of A. GOTTFRIED -- read once  and
   referred to the Committee on Banks
 
 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:
 
   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  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 could provide for the New York state government, local govern-
 ments, communities, private businesses, community banks,  credit  unions
 and people.
   §  2.  a.  The  commission  shall  consist of seventeen members, to be
 appointed as follows:
   (i) eight members shall be appointed by  the  governor,  one  of  whom
 shall  be a representative of the New York state department of financial
 services, one shall be a representative from the New York state  depart-
 ment  of  taxation  and finance, the remaining six governor's appointees
 shall not be employees of the executive branch and at least  one  member
 shall represent the banking and financial industries;
   (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;
   (iv)  one  member  shall  be  appointed  by the minority leader of the
 senate;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10698-01-1

 A. 6808                             2
 
   (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.
   § 3. The commission shall:
   a. determine what the existing laws and  regulatory  structures  would
 need to be amended to create a public bank in New York state;
   b.  evaluate the experiences of other states and countries 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;
   c. identify changes to the current financial system that  would  maxi-
 mize the state's independence and free up capital for public priorities,
 including but not limited to:
   (i)  a  public  bank model in which the state creates a public bank to
 serve its own banking needs as currently provided by  commercial  banks;
 and
   (ii)  a  public bank model in which the state creates a public bank to
 serve its own banking needs as currently provided  by  commercial  banks
 and  engages  in  supplemental  activities,  including  accepting public
 deposits, accepting deposits from the general public, and issuing loans.
   d. identify steps that can be taken immediately to  further  the  ends
 identified in subdivision c of this section and to create a gradual plan
 under which the state could comply with both models listed in paragraphs
 (i) and (ii) of subdivision c of this section;
   e.    examine  the  lending  practices,  including  lending to support
 infrastructure, of the  existing  public  agencies  in  the  state  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;
   f. determine the benefits with respect to the availability of afforda-
 ble credit; job and wealth creation; the diminishment of racial,  gender
 and other social disparities in economic outcomes; and any other benefit
 that  the commission deems appropriate that a state-owned public bank or
 network of locally-controlled public banks could provide  to:  New  York
 state  government;  industry,  including  agriculture; small businesses;
 local governments; communities; credit unions and community  banks;  and
 people; and
   g. examine the political, economic, and social climate of public banks
 world-wide,  and recommend safeguards to insulate a New York public bank
 from such conditions.
   § 4. The commission shall:
   a. hold at least three public hearings in distinct geographic  regions
 of the state; and
   b.  publish  its findings and recommendations, together with the draft
 of legislation 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.

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   § 5. The members of the commission shall receive no  compensation  for
 their services, but shall be allowed their actual and necessary expenses
 incurred  in  the performance of their duties pursuant to this act.  The
 department of financial services shall provide staff and other resources
 to the commission.
   §  6.  This  act shall take effect immediately and shall expire and be
 deemed repealed one year after such effective date.