The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8857
 
                           I N  A S S E M B L Y
 
                             January 19, 2022
                                ___________
 
 Introduced  by  M. of A. PEOPLES-STOKES -- read once and referred to the
   Committee on Banks
 
 AN ACT to amend the state finance law, in relation to  establishing  the
   state of New York public bank; and providing for the repeal of certain
   provisions upon expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The state finance law is amended by adding a new article 17
 to read as follows:
                                ARTICLE 17
                     STATE OF NEW YORK PUBLIC BANK ACT
 SECTION 254. LEGISLATIVE INTENT.
         255. DEFINITIONS.
         256. CREATION.
         257. COMMISSION.
         258. GOVERNANCE.
         259. DEPOSIT OF PUBLIC FUNDS.
         260. INVESTMENT OF STATE MONEYS.
         261. INFRASTRUCTURE LOANS.
         262. STUDENT LOANS.
         263. BUSINESS, NON-PROFIT AND INDIVIDUAL LOANS.
         264. TREASURY AND BANKING SERVICES.
         265. MANAGEMENT.
         266. ADVISORY BOARD.
         267. FINANCIAL REGULATION.
         268. REPORTING REQUIREMENTS.
         269. ETHICAL REQUIREMENTS.
         270. FEES AND TAXES.
         271. BANK RECORDS.
         272. CAPITALIZATION.
         273. PUBLIC DEPOSITARY.
         274. APPLICATION OF THIS CHAPTER TO THE PRESIDENT.
         275. CASH AND DEMAND DEPOSITS AVAILABLE.
         276. PERMITTED INVESTMENTS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06138-02-1
 A. 8857                             2
 
         277. SEVERABILITY.
   §  254.  LEGISLATIVE  INTENT.  1. THE LEGISLATURE FINDS THAT THERE ARE
 SIGNIFICANT PUBLIC INFRASTRUCTURE, HIGHER  EDUCATION,  HOME  LOANS,  AND
 SMALL BUSINESS DEVELOPMENT  NEEDS,  INCLUDING  THOSE  INVOLVING   MINOR-
 ITY-  AND WOMEN-OWNED BUSINESS ENTERPRISES, OF THE STATE THAT ARE UNMET.
 THE LEGISLATURE FURTHER FINDS THAT THERE ARE OPPORTUNITIES  TO  USE  THE
 STATE'S  DEPOSITORY ASSETS TO GENERATE ADDITIONAL BENEFIT FOR THE PEOPLE
 AND THE ECONOMY OF THE STATE.  THEREFORE,  THE  LEGISLATURE  INTENDS  TO
 CREATE  THE  STATE  OF NEW YORK PUBLIC BANK AS A LEGACY INSTITUTION THAT
 AMASSES SUFFICIENT CAPITAL RESERVES TO ADDRESS OPPORTUNITIES NOW AND  IN
 THE FUTURE.
   2. THE LEGISLATURE INTENDS THAT THE PUBLIC BANK MAY:
   (A)  FACILITATE INVESTMENT IN, AND FINANCING OF, PUBLIC INFRASTRUCTURE
 SYSTEMS AND PROJECTS THAT WILL INCREASE PUBLIC HEALTH, SAFETY, AND QUAL-
 ITY OF LIFE, IMPROVE ENVIRONMENTAL CONDITIONS, INCLUDING  THE  RETROFIT-
 TING OF HOMES AS GREEN HOMES, AND PROMOTE COMMUNITY VITALITY AND ECONOM-
 IC GROWTH;
   (B)  ASSIST  STUDENTS  WHO  ARE IN NEED OF ADDITIONAL LOW-COST STUDENT
 LOANS IN ORDER TO FINANCE THE COST OF HIGHER EDUCATION;
   (C) ACQUIRE AND CONTRACT TO ACQUIRE EXISTING MORTGAGES OWNED BY  BANKS
 AND  ENTER  INTO  ADVANCE  COMMITMENTS TO BANKS FOR THE PURCHASE OF SUCH
 MORTGAGES, AND TO PROVIDE LOW-COST HOME LOANS TO FIRST TIME HOME BUYERS;
   (D) PROVIDE ACCESS TO CREDIT FOR SMALL BUSINESSES, INCLUDING MINORITY-
 AND WOMEN-OWNED BUSINESS ENTERPRISES AND FARMERS; AND
   (E) PROVIDE BANKING TO UNDERSERVED COMMUNITIES AND ECONOMICALLY DISAD-
 VANTAGED COMMUNITIES OF OUR STATE  TO  PROVIDE  ACCESS  TO  LOW-INTEREST
 CAPITAL; AND
   (F)  LEVERAGE  NEW YORK'S FINANCIAL CAPITAL AND RESOURCES, AND WORK IN
 PARTNERSHIP WITH FINANCIAL INSTITUTIONS, INCLUDING CREDIT UNIONS, COMMU-
 NITY DEVELOPMENT FINANCIAL INSTITUTIONS, INDEPENDENT  BANKS,  COMMUNITY-
 BASED  ORGANIZATIONS, ECONOMIC DEVELOPMENT ORGANIZATIONS, GUARANTY AGEN-
 CIES, AND OTHER SIMILAR ORGANIZATIONS.
   3. THE MISSION OF THE BANK IS TO USE NEW YORK'S DEPOSITORY  ASSETS  IN
 WAYS  THAT  AFFORD  MOST  EFFICIENT  USE OF TAXPAYER REVENUES AND PUBLIC
 RESOURCES FOR THE BENEFIT OF THE PEOPLE AND ECONOMY OF  THE  STATE.  THE
 LEGISLATURE  INTENDS FOR THE BANK TO APPLY BUSINESS STRATEGIES TO MANAGE
 TAXPAYER REVENUES WHILE CONCURRENTLY MEETING IDENTIFIED NEEDS AND  STRA-
 TEGIC  OPPORTUNITIES  ACROSS  THE  STATE.  IN  ACHIEVING  ITS PURPOSE OF
 IMPROVING PUBLIC INFRASTRUCTURE AND INCREASING ACCESS TO  HIGHER  EDUCA-
 TION, CREATING A PATHWAY TO HOME OWNERSHIP AND STRENGTHENING THE STATE'S
 ECONOMY  BY  INVESTING  IN  SMALL  BUSINESSES,  INCLUDING  MINORITY- AND
 WOMEN-OWNED BUSINESS ENTERPRISES, AND FARMERS, THE  LEGISLATURE  INTENDS
 FOR THE BANK TO ADHERE TO THE FOLLOWING PRIORITIES:
   (A) INSTITUTIONAL SAFETY AND SOUNDNESS;
   (B) LONG-TERM VIABILITY;
   (C) SOCIAL RETURN AND MONETARY RETURN ON INVESTMENTS;
   (D) PRUDENT AND BEST BANKING AND BUSINESS PRACTICES;
   (E) HIGHEST ETHICAL, ACCOUNTABILITY, AND TRANSPARENCY STANDARDS; AND
   (F) INSULATION FROM POLITICAL INFLUENCE.
   §  255.  DEFINITIONS. THE DEFINITIONS IN THIS SECTION APPLY THROUGHOUT
 THIS ARTICLE UNLESS THE CONTEXT CLEARLY REQUIRES OTHERWISE.
   1. "BOARD" MEANS THE ADVISORY BOARD OF THE STATE OF  NEW  YORK  PUBLIC
 BANK.
   2. "COMMISSION" MEANS THE STATE OF NEW YORK PUBLIC BANK COMMISSION.
   3. "DEPARTMENT" MEANS THE DEPARTMENT OF FINANCIAL SERVICES.
 A. 8857                             3
 
   4.  "DIRECTOR"  MEANS  THE  DIRECTOR  OF  THE  DEPARTMENT OF FINANCIAL
 SERVICES.
   5.  "ECONOMIC DISTRESSED COMMUNITIES" MEANS THOSE COMMUNITIES WHERE AT
 LEAST THIRTY PERCENT OF RESIDENTS HAVE INCOMES THAT ARE  LESS  THAN  THE
 NATIONAL  POVERTY  LEVEL AND WHERE THE UNEMPLOYMENT RATE IS GREATER THAN
 THE NATIONAL UNEMPLOYMENT RATE, OR ECONOMIC OPPORTUNITY ZONE  DESIGNATED
 COMMUNITIES.
   6.  "SUPERINTENDENT"  MEANS  THE  SUPERINTENDENT  OF THE DEPARTMENT OF
 FINANCIAL SERVICES.
   7. "PUBLIC INFRASTRUCTURE SYSTEM" MEANS A SYSTEM OF A LOCAL GOVERNMENT
 OR POLITICAL SUBDIVISION, A SPECIAL PURPOSE DISTRICT,  A  PUBLIC  SCHOOL
 DISTRICT,  AN  INSTITUTION  OF  HIGHER EDUCATION, A FEDERALLY RECOGNIZED
 INDIAN TRIBE, OR THE STATE,  INCLUDING  BUT  NOT  LIMITED  TO  A  SYSTEM
 INVOLVING:    WASTEWATER  TREATMENT; STORM WATER MANAGEMENT; SOLID WASTE
 DISPOSAL; DRINKING WATER TREATMENT; FLOOD CONTROL LEVEES;  ENERGY  EFFI-
 CIENCY ENHANCEMENTS; ROADS, STREETS, AND BRIDGES; TRANSPORTATION INFRAS-
 TRUCTURE,  INCLUDING  FREIGHT  AND  PASSENGER  RAIL  AND PUBLIC TRANSIT;
 BROADBAND AND TELECOMMUNICATIONS INFRASTRUCTURE; OUTDOOR RECREATION  AND
 HABITAT  PROTECTION  FACILITIES;  COMMUNITY,  SOCIAL  SERVICE, OR PUBLIC
 SAFETY FACILITIES; SCHOOLS AND EDUCATIONAL  FACILITIES;  AND  AFFORDABLE
 HOUSING.
   8. "SPECIAL PURPOSE CHARTER" MEANS ANY PUBLIC BANK ORGANIZED UNDER THE
 LAWS  OF  THIS  STATE  THAT IS ENGAGED IN BANKING FOR THE BENEFIT OF THE
 PUBLIC.
   9. "STATE MONEYS" MEANS ALL MONEYS OR FUNDS BELONGING  TO  OR  IN  THE
 CUSTODY OF THE STATE UNDER THE CONTROL OF THE STATE COMPTROLLER SHALL BE
 CONSIDERED AS STATE MONEYS OR FUNDS.
   10. "COMPTROLLER" MEANS THE COMPTROLLER OF THE STATE OF NEW YORK.
   11. "BANK" MEANS THE STATE OF NEW YORK PUBLIC BANK.
   § 256. CREATION. THE STATE OF NEW YORK PUBLIC BANK IS CREATED.
   §  257. COMMISSION. 1. THE STATE OF NEW YORK PUBLIC BANK COMMISSION IS
 CREATED AS THE PRIMARY GOVERNING AUTHORITY OF THE BANK.  THE  COMMISSION
 SHALL  BE  AN INDEPENDENT BOARD CONSISTING OF NO LESS THAN SEVEN MEMBERS
 WITH SUBSTANTIAL BANKING AND  FINANCIAL  EXPERIENCE,  WITH  TWO  MEMBERS
 APPOINTED  BY THE GOVERNOR, ONE MEMBER APPOINTED BY THE TEMPORARY PRESI-
 DENT OF THE SENATE, ONE MEMBER APPOINTED BY THE SENATE MAJORITY  LEADER,
 ONE  MEMBER  APPOINTED  BY  THE  SPEAKER  OF  THE  ASSEMBLY,  ONE MEMBER
 APPOINTED BY THE ASSEMBLY MAJORITY LEADER, ONE MEMBER APPOINTED  BY  THE
 CHAIR  OF  THE SENATE BANKS COMMITTEE, ONE MEMBER APPOINTED BY THE CHAIR
 OF THE ASSEMBLY BANKS COMMITTEE, AND ONE MEMBER APPOINTED BY  THE  STATE
 COMPTROLLER.
   2. THE COMMISSION SHALL ADOPT RULES REGARDING THE:
   (A) SAFETY AND SOUNDNESS STANDARDS OF THE BANK;
   (B) CRITERIA FOR EVALUATING, APPROVING, AND MONITORING LOANS;
   (C) ELIGIBILITY REQUIREMENTS AND LIMITS FOR BORROWING;
   (D) TRANSPARENCY REQUIREMENTS FOR BANK OPERATIONS;
   (E)  ETHICS  AND CONFLICT OF INTEREST REQUIREMENTS FOR THE COMMISSION,
 THE BOARD, AND OFFICERS AND EMPLOYEES OF THE BANK,  INCLUDING  RULES  TO
 ENSURE  THAT  THEY PERFORM THEIR FUNCTIONS IN COMPLIANCE WITH THE PUBLIC
 OFFICERS LAW; AND
   (F) OTHER TOPICS AS NEEDED FOR EFFICIENT ADMINISTRATION OF THE BANK.
   3. THE COMMISSION SHALL COMMENCE BANK OPERATIONS BY APRIL  FIRST,  TWO
 THOUSAND TWENTY-THREE.
   4.  THE  COMMISSION MAY DELEGATE TO THE BANK PRESIDENT SUCH DUTIES AND
 POWERS AS DEEMED NECESSARY TO CARRY ON THE  BUSINESS  OF  THE  BANK  AND
 A. 8857                             4
 
 ENFORCE THIS ARTICLE EFFICIENTLY AND EFFECTIVELY. THE COMMISSION MAY NOT
 DELEGATE ITS RULE-MAKING OR POLICY-MAKING AUTHORITY.
   5.  THE  COMMISSION  SHALL  ADOPT  POLICIES AND PROCEDURES FOR ITS OWN
 GOVERNANCE.
   6. THE COMMISSION  MAY  ESTABLISH  TECHNICAL  ADVISORY  COMMITTEES  OR
 CONSULT  WITH  PUBLIC  AND  PRIVATE  SECTOR EXPERTS IN SUBSTANTIVE AREAS
 RELATED TO THE BANK'S MISSION, OBJECTIVES, AND DUTIES.
   § 258. GOVERNANCE. 1.  THE PUBLIC BANK SHALL BE GOVERNED BY  A  BOARD.
 SUCH  BOARD SHALL BE COMPOSED OF NINE OR ELEVEN DIRECTORS. EACH DIRECTOR
 SHALL LIVE WITHIN THE JURISDICTIONAL BOUNDARIES OF THE SPONSOR.
   2. THE STATE SHALL DETERMINE THE PUBLIC BANK'S INITIAL  BOARD  IN  THE
 FOLLOWING MANNER:
   (A)  THE GOVERNOR SHALL APPOINT THREE MEMBERS, WITH A LEAST ONE MEMBER
 HAVING COMMUNITY BANKING OR FINANCIAL EXPERIENCE;
   (B) THE TEMPORARY PRESIDENT OF THE SENATE SHALL APPOINT  TWO  MEMBERS,
 WITH  AT  LEAST ONE MEMBER HAVING COMMUNITY BANKING OR FINANCIAL EXPERI-
 ENCE;
   (C) THE SPEAKER OF THE ASSEMBLY SHALL APPOINT  TWO  MEMBERS,  WITH  AT
 LEAST ONE MEMBER HAVING COMMUNITY BANKING OR FINANCIAL EXPERIENCE;
   (D)  THE COMPTROLLER, WHO SHALL BE A PERMANENT MEMBER OF THE GOVERNING
 BOARD, SHALL APPOINT ONE MEMBER  WITH  COMMUNITY  BANKING  OR  FINANCIAL
 EXPERIENCE; AND
   (E)  THE BOARD MEMBERS SELECTED PURSUANT TO PARAGRAPHS (A) THROUGH (C)
 OF THIS SUBDIVISION SHALL, PURSUANT TO A MAJORITY VOTE, SELECT AT  THEIR
 DISCRETION  EITHER SEVEN OR NINE ADDITIONAL BOARD MEMBERS, WITH THE SOLE
 PURPOSE OF MAXIMIZING BOARD DIVERSITY OF THE STATE.
   3. AT LEAST ONE BOARD MEMBER SELECTED PURSUANT TO EACH  OF  PARAGRAPHS
 (A)  THROUGH (C) OF SUBDIVISION TWO OF THIS SECTION SHALL BE AN INDIVID-
 UAL WITH EXPERIENCE IN THE FINANCE INDUSTRY OR THE BUSINESS OF COMMUNITY
 BANKING WITH AN EMPHASIS ON COMMUNITY LENDING.
   4. AT LEAST ONE BOARD MEMBER SELECTED PURSUANT TO EACH  OF  PARAGRAPHS
 (A)  THROUGH (C) OF SUBDIVISION TWO OF THIS SECTION SHALL BE AN INDIVID-
 UAL REPRESENTATIVE OF AT LEAST ONE OF THE COMMUNITY STAKEHOLDERS  PRIOR-
 ITIZED BY THE PUBLIC BANK'S UNDERWRITING AND FINANCIAL POLICIES.
   5.  WHEN  A  BOARD MEMBER RESIGNS OR LEAVES OFFICE FOR ANY REASON, THE
 INDIVIDUAL SELECTED TO REPLACE SUCH BOARD MEMBER SHALL  BE  SELECTED  IN
 THE SAME MANNER AS THE INITIAL APPOINTMENT.
   6. THE SPONSOR AND BOARD SHALL TAKE ALL NECESSARY STEPS TO ENSURE THAT
 THE  COMPOSITION OF THE BOARD REFLECTS THE COMPOSITION OF THE POPULATION
 IN TERMS OF PEOPLE OF COLOR AND WOMEN.
   7. A MAJORITY OF THE BOARD SHALL BE COMPOSED OF INDEPENDENT  DIRECTORS
 WHO  ARE  NOT  GOVERNMENT  EMPLOYEES. THE CHAIR OF THE BOARD SHALL BE AN
 INDEPENDENT DIRECTOR.
   8. THE BOARD SHALL SET POLICY FOR THE PUBLIC BANK; PROVIDED,  HOWEVER,
 THAT  NEITHER THE BOARD NOR ANY DIRECTOR SHALL BE INVOLVED IN DAY-TO-DAY
 OPERATIONS REGARDING PARTICULAR INSTRUMENTS. MANAGEMENT DECISIONS  SHALL
 BE  MADE  INDEPENDENTLY BY BANK MANAGEMENT WHO SHALL BE APPOINTED BY THE
 BOARD IN A MANNER CONSISTENT WITH BANK POLICY.
   9. THE BOARD MAY ESTABLISH ONE OR MORE COMMITTEES TO MANAGE THE PUBLIC
 BANK.
   10. THE BOARD SHALL ADHERE TO ALL REPORTING  REQUIREMENTS  UNDER  THIS
 CHAPTER REGARDING THE PUBLIC BANK'S FINANCIAL CONDITION.
   11.  A  PUBLIC BANK SHALL FORM ONE OR MORE ADVISORY BOARDS IN ORDER TO
 PROVIDE ADVICE AND CARRY OUT ANY OTHER  DUTIES,  AS  DETERMINED  BY  THE
 PUBLIC BANK, INCLUDING BUT NOT LIMITED TO, THE FOLLOWING:
 A. 8857                             5
 
   (A)  PROVIDE  INPUT  TO  THE  BOARD  REGARDING  WAYS TO ACCOMPLISH ITS
 MISSION;
   (B)  ENSURE  THAT THE BOARD FOLLOWS STRICT ETHICAL STANDARDS AS DETER-
 MINED BY THE SPONSOR IN THE PUBLIC BANK'S GOVERNING  DOCUMENTS,  THROUGH
 THE APPROVAL OF BYLAWS, TO GOVERN THE BOARD'S MANAGEMENT;
   (C) PROVIDE TECHNICAL ADVICE AS NEEDED; AND
   (D)  PROVIDE AN ANNUAL REPORT TO THE PUBLIC AND THE SPONSOR EVALUATING
 THE PUBLIC BANK'S PERFORMANCE IN RELATION TO ITS  MISSION,  ITS  ETHICAL
 STANDARDS AND ITS FINANCIAL SOUNDNESS.
   12.  THE  STATE SHALL DETERMINE THE INITIAL ADVISORY BOARD MEMBERSHIP,
 THE TERM OF ITS MEMBERS, THE QUALIFICATIONS OF MEMBERS  AND  THE  METHOD
 FOR  REPLACING  ITS  MEMBERS,  PROVIDED THAT A MAJORITY OF EACH ADVISORY
 BOARD IS MADE UP OF INDEPENDENT MEMBERS WHO ARE NOT  GOVERNMENT  EMPLOY-
 EES. SUCH ADVISORY BOARD SHALL BE COMPOSED OF NO FEWER THAN FIVE MEMBERS
 AND  NO  MORE  THAN  ELEVEN MEMBERS. ALL ADVISORY BOARD MEMBERS SHALL BE
 RESIDENTS OF THE STATE.
   13. ANY ACTION REQUIRED OR PERMITTED BY THIS CHAPTER TO  BE  TAKEN  BY
 THE  BOARD,  OR AN ADVISORY BOARD, MAY BE TAKEN AT A DULY CALLED MEETING
 OF SUCH BOARD IN ACCORDANCE WITH ITS GOVERNING DOCUMENTS  OR  WITHOUT  A
 MEETING IF THE ACTION TAKEN IS EVIDENCED BY ONE OR MORE WRITTEN CONSENTS
 DESCRIBING THE ACTION TAKEN AND SIGNED BY EACH MEMBER OF SUCH BOARD.
   14.  THE  DEPARTMENT  SHALL PROVIDE TECHNICAL ASSISTANCE TO THE BOARD.
 THE BOARD MAY ALSO CONTRACT WITH ADDITIONAL PERSONS  WHO  HAVE  SPECIFIC
 TECHNICAL  EXPERTISE  IF  SUCH  EXPERTISE  IS NECESSARY TO CARRY OUT THE
 REQUIREMENTS OF THIS SECTION. WHEN SEEKING TECHNICAL  ASSISTANCE  AND/OR
 ADVICE, THE BOARD SHALL ALSO CONSULT MINORITY-OWNED OR WOMEN-OWNED BUSI-
 NESSES WHEN APPLICABLE.
   § 259. DEPOSIT  OF  PUBLIC  FUNDS.  1. (A) THE BANK SHALL SERVE AS THE
 DEPOSITORY FOR STATE MONEYS ONCE THE BANK HAS BUILT SUFFICIENT  CAPACITY
 TO  ACCEPT AND MANAGE STATE MONEYS, AS DETERMINED BY THE COMMISSION. THE
 COMMISSION SHALL ESTABLISH A PROCESS AND TIME FRAME FOR THE  DEPOSIT  OF
 STATE MONEYS INTO THE BANK.
   (B)  THE COMPTROLLER SHALL DEPOSIT STATE MONEYS IN THE BANK IN ACCORD-
 ANCE WITH THE TIME FRAME AND GUIDELINES  DETERMINED  BY  THE  COMMISSION
 UNDER THIS SECTION.
   2. ALL DEPOSITS IN THE BANK ARE GUARANTEED BY THE STATE.
   3. ALL INCOME EARNED BY THE BANK ON STATE MONEYS THAT ARE DEPOSITED IN
 OR  INVESTED  WITH THE BANK MUST BE CREDITED TO AND BECOME A PART OF THE
 REVENUES AND INCOME OF THE BANK.
   4. THE BANK MAY ACCEPT DEPOSITS OF PUBLIC FUNDS.
   5. THE BANK MAY ACCEPT FUNDS FROM ANY SOURCE, INCLUDING FEDERAL  FUNDS
 OR OTHER PUBLIC FUNDS, INCLUDING BUT NOT LIMITED TO, TWENTY PERCENT OF A
 CANNABIS  REVENUE FUND AS PART OF THE STATE'S SOCIAL AND ECONOMIC EQUITY
 PLAN. SPECIFICALLY, FIFTY PERCENT OF ALL PUBLIC DEPOSITS MADE  INTO  THE
 PUBLIC  BANK SHALL PRIORITIZE LENDING IN UNBANKED AND UNDERSERVED COMMU-
 NITIES THAT HAVE AN INCOME LOWER  THAN  EIGHTY  PERCENT  OF  THE  MEDIAN
 INCOME  OF  THE  COUNTY  IN WHICH THE APPLICANT RESIDES, HAS A MINORITY-
 OWNED OR WOMEN-OWNED BUSINESS OR IS A DISADVANTAGED FARMER.
   6. THE COMMISSION SHALL REVIEW  STATE  ACCOUNTS  THAT  CONTAIN  PUBLIC
 FUNDS  THAT  ARE NOT STATE MONEYS, SUCH AS THE STATE INSURANCE FUND, AND
 MAKE RECOMMENDATIONS TO THE GOVERNOR AND THE APPROPRIATE  COMMITTEES  OF
 THE LEGISLATURE AS TO WHICH ACCOUNTS SHOULD BE DEPOSITED IN THE BANK.
   7.  THE  BANK SHALL MAKE DISBURSEMENTS TO THE STATE FUNDS AS NECESSARY
 FOR THE FUNCTION OF STATE GOVERNMENT.
   8. THE BANK IS AUTHORIZED TO  ESTABLISH  A  MASTER  ACCOUNT  WITH  THE
 FEDERAL RESERVE TO ENHANCE ITS LIQUIDITY.
 A. 8857                             6
 
   §  260.  INVESTMENT  OF STATE MONEYS. THE BANK MAY INVEST STATE MONEYS
 DEPOSITED IN THE BANK THAT ARE NOT REASONABLY EXPECTED TO  BE  NECESSARY
 TO MEET THE SHORT OR INTERMEDIATE-TERM LIQUIDITY NEEDS OF THE STATE. THE
 STATE  COMPTROLLER  RETAINS AUTHORITY TO MANAGE AND INVEST THE AMOUNT OF
 FUNDS NECESSARY TO MEET THE OPERATIONAL NEEDS OF STATE GOVERNMENT.
   §  261.  INFRASTRUCTURE  LOANS.  THE  BANK IS AUTHORIZED TO FACILITATE
 INVESTMENT IN, AND FINANCING OF, CONSTRUCTION, REHABILITATION,  REPLACE-
 MENT, AND IMPROVEMENT OF NEW AND EXISTING PUBLIC INFRASTRUCTURE SYSTEMS.
 BEFORE  INITIATING OPERATIONS, THE COMMISSION SHALL PRESENT AN IMPLEMEN-
 TATION PLAN AND ANY NECESSARY LEGISLATION TO THE GOVERNOR AND  APPROPRI-
 ATE LEGISLATIVE COMMITTEES, THAT:
   1. IDENTIFIES THE PUBLIC INFRASTRUCTURE SYSTEMS THAT THE BANK PLANS TO
 TARGET INITIALLY;
   2.  IDENTIFIES ANY EXISTING STATE PROGRAMS THAT THE BANK RECOMMENDS BE
 TRANSFERRED UNDER ITS UMBRELLA, AND THE  STEPS  AND  TIMELINES  FOR  THE
 TRANSITIONS;
   3. DESCRIBES ADDITIONAL FINANCING PRODUCTS AND SERVICES THE BANK PLANS
 TO OFFER, THE TARGET MARKETS, ANTICIPATED RATES, TERMS, AND CONDITIONS;
   4. DEMONSTRATES HOW BANK PRODUCTS AND SERVICES WILL INCREASE ACCESS TO
 CAPITAL FOR PUBLIC INFRASTRUCTURE SYSTEMS AND COMPLEMENT THOSE OF EXIST-
 ING PUBLIC AND PRIVATE SOURCES; AND
   5.  DEMONSTRATES  HOW  THE  BANK PLANS TO MAXIMIZE REVENUES AND PUBLIC
 BENEFIT.
   § 262. STUDENT LOANS. THE BANK, IN PARTNERSHIP WITH INDEPENDENT COMMU-
 NITY BANKS, CREDIT UNIONS  OR  COMMUNITY  DEVELOPMENT  INSTITUTIONS,  IS
 AUTHORIZED  TO  ADMINISTER  A  STATE  GUARANTEE  LOAN  PROGRAM TO ASSIST
 STUDENTS IN NEED OF LOW-COST STUDENT LOANS AND RELATED LOAN BENEFITS  TO
 ADDRESS  EDUCATIONAL  NEEDS  AS  NECESSARY  TO  SUPPORT STUDENT SUCCESS,
 INCLUDING THE REFINANCING OF AN EXISTING STUDENT DEBT.   THE  COMMISSION
 SHALL DEVELOP AN IMPLEMENTATION PLAN THAT:
   1.  IDENTIFIES  THE  NEEDS  AND BENEFITS TO SELECTED STUDENTS THAT THE
 PROGRAM WILL TARGET INITIALLY;
   2. DEMONSTRATES HOW THE BANK PLANS TO  MAXIMIZE  REVENUES  AND  PUBLIC
 BENEFIT WHILE MINIMIZING PUBLIC RISK;
   3.  DEMONSTRATES  HOW  THE  BANK  WILL  COORDINATE  WITH THE OFFICE OF
 STUDENT FINANCIAL ASSISTANCE; AND
   4. IDENTIFIES THE WAYS THAT THE PROGRAM  WILL  ADDRESS  THE  FOLLOWING
 ISSUES RELATED TO LOANS:
   (A) QUALIFICATION CRITERIA FOR STUDENTS;
   (B) OBLIGATIONS AND OPTIONS FOR LOAN REPAYMENT;
   (C) REQUIREMENTS FOR LOAN GUARANTEES AND RESERVES;
   (D) ESTABLISHING CRITERION FOR REFINANCING AN EXISTING DEBT;
   (E) FEE AND INTEREST RATE STRUCTURE;
   (F) MAXIMUM LOAN AMOUNTS; AND
   (G)  ENSURING  STUDENT  AWARENESS  OF GRANTS, FEDERAL LOANS, AND OTHER
 FINANCIAL AID PROGRAMS.
   § 263. BUSINESS, NON-PROFIT AND INDIVIDUAL LOANS. THE BANK,  IN  PART-
 NERSHIP  WITH  INDEPENDENT  COMMUNITY  BANKS, CREDIT UNIONS OR COMMUNITY
 DEVELOPMENT FINANCIAL INSTITUTIONS, IS  AUTHORIZED  TO  LEVERAGE  THIRTY
 PERCENT OF PUBLIC DEPOSITS AS FINANCIAL CAPITAL AND RESOURCES TO PROVIDE
 ACCESS  TO LOW-COST CAPITAL AND/OR CREDIT TO SMALL BUSINESSES, MINORITY-
 AND WOMEN-OWNED  BUSINESS  ENTERPRISES,  ENTREPRENEURS,  START-UP  BUSI-
 NESSES, FARMERS  AND BELOW AVERAGE INCOME COMMUNITIES AND INDIVIDUALS OF
 THIS STATE TO FURTHER ECONOMIC GROWTH, CREATE JOBS AND BUILD AND SUSTAIN
 AFFORDABLE  HOUSING  FOR  THE RESIDENTS OF THIS STATE AS PROVIDED FOR BY
 THIS SECTION. THE BANK IS ALSO  AUTHORIZED  TO  LEVERAGE  ITS  FINANCIAL
 A. 8857                             7
 
 CAPITAL  AND  RESOURCES  TO  PROVIDE ACCESS TO LOW-COST CAPITAL TO BRING
 FISCALLY SOUND AND FINANCIALLY SUCCESSFUL BUSINESSES INTO THIS STATE  AS
 PROVIDED  FOR  BY THIS SECTION.  THE BANK IS ALSO AUTHORIZED TO LEVERAGE
 ITS  FINANCIAL CAPITAL AND RESOURCES TO PROVIDE ACCESS TO LOW-COST CAPI-
 TAL AND/OR CREDIT TO  ESTABLISHED  BUSINESSES  IN  THIS  STATE  FOR  THE
 PURPOSE OF PROVIDING FINANCIAL STABILITY FOR THE BANK AS PROVIDED FOR BY
 THIS SECTION.
   1.  THE BANK, IN PARTNERSHIP WITH THE STATE OF NEW YORK MORTGAGE AGEN-
 CY, MAY PURCHASE, GUARANTEE OR HOLD LOANS MADE BY PRIVATE BANKS,  CREDIT
 UNIONS OR OTHER FINANCIAL INSTITUTIONS DOING BUSINESS IN THIS STATE.
   2.  THE  BANK  MAY  MAKE LOANS IN THE FORM OF PARTICIPATION LOANS WITH
 COMMUNITY BANKS,  CREDIT  UNIONS  AND  COMMUNITY  DEVELOPMENT  FINANCIAL
 INSTITUTIONS  IN  THIS  STATE  TO  QUALIFIED  INDIVIDUALS AND BUSINESSES
 RESIDING OR DOING BUSINESS IN THIS STATE WHEN THE ORIGINATOR OF THE LOAN
 IS A PRIVATE BANK, CREDIT UNION OR OTHER FINANCIAL INSTITUTION.
   3. THE BANK MAY SERVE AS A BANKER'S BANK FOR CHARTERED BANKS  IN  THIS
 STATE  BY  PROVIDING  CORRESPONDENT  BANKING  SERVICES AND OTHER RELATED
 SERVICES IN KEEPING  WITH  ITS  MISSION  TO  CREATE  REGIONAL  BANKS  IN
 UNBANKED AND UNDERSERVED COMMUNITIES. THE BANK AND REGIONAL BANKS ESTAB-
 LISHED  PURSUANT  TO  THIS STATUTE SHALL NOT COMPETE WITH PRIVATE BANKS,
 PARTICULARLY IN UNBANKED AND UNDERSERVED COMMUNITIES.
   4. THE BANK MAY ACCEPT DEPOSITS  RELATED  TO  SUCH  TRANSACTIONS  FROM
 BANKS AND OTHER FINANCIAL INSTITUTIONS.
   § 264. TREASURY  AND  BANKING  SERVICES. 1. FOR FINANCIAL INSTITUTIONS
 THAT MAKE THE BANK A RESERVE DEPOSITORY, THE BANK MAY SERVE AS A  CLEAR-
 INGHOUSE,  INCLUDING  ALL  FACILITIES FOR PROVIDING DOMESTIC AND FOREIGN
 EXCHANGE, AND MAY REDISCOUNT PAPER, ON TERMS THE COMMISSION PROVIDES.
   2. THE BANK MAY PROVIDE CORPORATE TRUST SERVICES FOR THE STATE AND ITS
 POLITICAL SUBDIVISIONS INCLUDING TRUSTEE, ESCROW  AGENT,  PAYING  AGENT,
 BOND REGISTRAR, AND TRANSFER AGENT.
   3.  THE  BANK  MAY BUY AND SELL FEDERAL FUNDS; ISSUE LETTERS OF CREDIT
 FOR PUBLIC DEPOSITS; AND PROVIDE A SAFEKEEPING SERVICE FOR UNITED STATES
 TREASURY SECURITIES, FEDERAL AGENCY SECURITIES,  CORPORATE  BONDS,  TAX-
 FREE BONDS, MONEY MARKET INVESTMENTS, AND MORTGAGE-BACKED SECURITIES.
   4.  THE  BANK  MAY  PERFORM  SERVICES  CURRENTLY CONTRACTED OUT BY THE
 OFFICE OF TEMPORARY DISABILITY SERVICES  REGARDING  ELECTRONIC  BENEFITS
 TRANSFER CARDS.
   §  265.  MANAGEMENT.  1. THE COMMISSION SHALL APPOINT A BANK PRESIDENT
 WITH DEMONSTRATED AND SUBSTANTIAL EXPERIENCE IN COMMUNITY  BANKING.  THE
 PRESIDENT  SHALL  SERVE  AT THE COMMISSION'S PLEASURE, ON SUCH TERMS AND
 CONDITIONS AS THE COMMISSION DETERMINES.
   2. THE PRESIDENT SHALL PROVIDE SUPPORT TO THE COMMISSION AND THE ADVI-
 SORY BOARD, CARRY OUT BANK POLICIES AND  PROGRAMS,  AND  EXERCISE  ADDI-
 TIONAL AUTHORITY AS MAY BE DELEGATED BY THE COMMISSION.
   3.  SUBJECT TO AVAILABLE FUNDING AND CONSISTENT WITH COMMISSION DIREC-
 TION, THE BANK PRESIDENT:
   (A) MAY EMPLOY SUCH ADDITIONAL  PERSONNEL  AS  ARE  NECESSARY  TO  THE
 BANK'S  OPERATIONS.    THIS  EMPLOYMENT  SHALL BE IN ACCORDANCE WITH THE
 STATE CIVIL SERVICE LAW; AND
   (B) MAY CONTRACT WITH PERSONS WHO HAVE THE TECHNICAL EXPERTISE  NEEDED
 TO CARRY OUT A SPECIFIC, TIME-LIMITED PROJECT.
   § 266. ADVISORY  BOARD. 1. (A) A PUBLIC BANK ADVISORY BOARD CONSISTING
 OF ELEVEN MEMBERS IS CREATED TO REVIEW THE BANK'S  OPERATIONS  AND  MAKE
 RECOMMENDATIONS  RELATING  TO THE BANK'S MANAGEMENT, SERVICES, POLICIES,
 AND PROCEDURES.
 A. 8857                             8
 
   (B) THE GOVERNOR SHALL APPOINT MEMBERS OF THE ADVISORY BOARD,  SUBJECT
 TO  CONFIRMATION  BY THE SENATE. THE MEMBERS OF THE ADVISORY BOARD SHALL
 BE KNOWLEDGEABLE IN COMMUNITY BANKING OR FINANCE AND SHALL  REPRESENT  A
 DIVERSITY  OF EXPERIENCE RELEVANT TO ACTIVITIES OF THE BANK. SIX OR MORE
 OF THE MEMBERS SHALL HAVE EXPERTISE IN COMMUNITY BANKING OR FINANCE. TWO
 MEMBERS SHALL BE FROM A CONSUMER ADVOCACY OR SOCIAL JUSTICE ORGANIZATION
 OR HAVE A BACKGROUND IN THE AREA OF CONSUMER ADVOCACY OR SOCIAL JUSTICE.
 ADVISORY BOARD MEMBERS SERVE AT THE PLEASURE OF THE GOVERNOR.
   (C) THE BOARD SHALL CHOOSE ITS CHAIR FROM AMONG ITS MEMBERSHIP.
   2.  THE  TERM OF THE MEMBERS IS THREE YEARS. FIVE OF THE INITIAL BOARD
 MEMBERS SHALL BE APPOINTED TO SERVE AN  INITIAL  TERM  OF  THREE  YEARS,
 THREE  SHALL BE APPOINTED TO SERVE AN INITIAL TERM OF TWO YEARS, AND THE
 THREE REMAINING MEMBERS SHALL BE APPOINTED TO SERVE AN INITIAL  TERM  OF
 ONE YEAR. ALL SUBSEQUENT TERMS ARE THREE YEARS. TO ENSURE THAT THE BOARD
 CAN CONTINUE TO ACT, A MEMBER WHOSE TERM EXPIRES SHALL CONTINUE TO SERVE
 UNTIL HIS OR HER REPLACEMENT IS APPOINTED. IN THE CASE OF ANY VACANCY ON
 THE  BOARD  FOR  ANY  REASON, THE GOVERNOR SHALL APPOINT A NEW MEMBER TO
 SERVE OUT THE TERM OF THE PERSON WHOSE POSITION  HAS  BECOME  VACANT.  A
 BOARD MEMBER MAY BE REMOVED FOR MISCONDUCT INCONSISTENT WITH THE MISSION
 OF THE BANK BY THE GOVERNOR.
   §  267.  FINANCIAL  REGULATION.  1.  THE  BANK  SHALL MAINTAIN CAPITAL
 ADEQUACY AND OTHER STANDARD INDICATORS OF SAFETY  AND  SOUNDNESS  AS  IS
 APPROPRIATE FOR A PUBLICLY OWNED FINANCIAL INSTITUTION.
   2.  THE  SUPERINTENDENT  MAY  EXAMINE THE BANK IN THE SAME MANNER AS A
 STATE-CHARTERED FINANCIAL INSTITUTION.  THE  SUPERINTENDENT  SHALL  TAKE
 INTO  CONSIDERATION  THE UNIQUE CIRCUMSTANCES OF A PUBLICLY OWNED FINAN-
 CIAL INSTITUTION WHEN EXAMINING THE BANK. THE BANK SHALL PAY THE  DIREC-
 TOR FOR THE REASONABLE COSTS OF EXAMINATIONS.
   3.  THE  BANK  MUST  UNDERGO  INDEPENDENT  AUDITS ON THE SAME BASIS AS
 STATE-CHARTERED BANKS.
   § 268. REPORTING REQUIREMENTS. 1.  THE  BANK  SHALL  SUBMIT  QUARTERLY
 REPORTS TO THE COMMISSION IN A MANNER AND FORM PRESCRIBED BY THE COMMIS-
 SION.    LATE REPORTS ARE NOT PERMISSIBLE AND SHALL BE CAUSE FOR REMOVAL
 OF THE PERSON OR PERSONS RESPONSIBLE.
   2. THE COMMISSION SHALL MAKE  A  REPORT  TO  THE  LEGISLATURE  ON  THE
 AFFAIRS OF THE BANK BY DECEMBER FIRST OF EACH YEAR.
   § 269. ETHICAL REQUIREMENTS. THE BANK MAY NOT MAKE A LOAN TO ANY ADVI-
 SORY  BOARD  MEMBER,  THE PRESIDENT, PUBLIC OFFICERS OR EMPLOYEES OF THE
 BANK. ADVISORY BOARD MEMBERS, THE PRESIDENT, AND EMPLOYEES OF  THE  BANK
 MUST  FOLLOW ANY APPLICABLE ETHICAL REQUIREMENTS IN RULES, POLICIES, AND
 PROCEDURES ADOPTED BY THE COMMISSION.
   § 270. FEES AND TAXES. THE BANK IS EXEMPT FROM PAYMENT OF ALL FEES AND
 TAXES LEVIED BY THE STATE OR ANY OF ITS SUBDIVISIONS.
   § 271. BANK RECORDS. 1. CERTAIN BANK BUSINESS RECORDS AND  RECORDS  OF
 THE DEPARTMENT RELATING TO THE BANK ARE EXEMPT FROM PUBLIC DISCLOSURE AS
 AUTHORIZED BY THE DEPARTMENT OF FINANCIAL SERVICES.
   2.  FINANCIAL  AND  COMMERCIAL  INFORMATION  AND  RECORDS SUBMITTED TO
 EITHER THE DEPARTMENT OR THE COMMISSION FOR THE PURPOSE OF ADMINISTERING
 THIS ARTICLE MAY BE SHARED BETWEEN THE DEPARTMENT AND  THE  COMPTROLLER.
 THESE  RECORDS  MAY  ALSO  BE USED IN ANY SUIT OR ADMINISTRATIVE HEARING
 INVOLVING ANY PROVISION OF THIS CHAPTER.
   3. THIS SECTION DOES NOT PROHIBIT:
   (A) THE ISSUANCE OF GENERAL STATEMENTS BASED ON THE REPORTS OF PERSONS
 SUBJECT TO THIS ARTICLE AS LONG AS THE STATEMENTS DO  NOT  IDENTIFY  THE
 INFORMATION FURNISHED BY ANY PERSON; OR
 A. 8857                             9

   (B)  THE  PUBLICATION BY THE DIRECTOR OR THE COMMISSION OF THE NAME OF
 ANY PERSON VIOLATING THIS ARTICLE AND A STATEMENT OF THE MANNER  OF  THE
 VIOLATION BY THAT PERSON.
   §  272.  CAPITALIZATION.  THE COMMISSION SHALL MAKE RECOMMENDATIONS TO
 THE APPROPRIATE FISCAL COMMITTEES OF  THE  LEGISLATURE  ON  OPTIONS  FOR
 CAPITALIZATION  OF  THE  BANK.  ANY  RECOMMENDATIONS SHALL INCLUDE DRAFT
 LEGISLATION FOR CONSIDERATION BY THE LEGISLATURE.
   § 273. PUBLIC DEPOSITARY. THE STATE OF NEW YORK PUBLIC BANK CREATED IN
 SECTION TWO HUNDRED FIFTY-SIX OF THIS ARTICLE  MAY  ACCEPT  DEPOSITS  OF
 PUBLIC FUNDS, BUT IS NOT A PUBLIC DEPOSITARY.
   § 274. APPLICATION OF THIS CHAPTER TO THE PRESIDENT. THE PROVISIONS OF
 THIS  CHAPTER  OUTSIDE  THIS  ARTICLE  DO  NOT APPLY TO THE PRESIDENT AS
 DEFINED IN SECTION TWO HUNDRED SIXTY-FIVE OF THIS ARTICLE.
   § 275. CASH AND DEMAND DEPOSITS AVAILABLE. THE STATE COMPTROLLER SHALL
 MAINTAIN AT ALL TIMES CASH, OR DEMAND DEPOSITS IN THE STATE OF NEW  YORK
 PUBLIC BANK OR QUALIFIED PUBLIC DEPOSITARIES IN AN AMOUNT NEEDED TO MEET
 THE  OPERATIONAL  NEEDS OF STATE GOVERNMENT. THE STATE COMPTROLLER SHALL
 NOT BE CONSIDERED TO BE IN VIOLATION OF UNLAWFUL ISSUANCE OF  CHECKS  OR
 DRAFTS  IF HE OR SHE MAINTAINS DEMAND ACCOUNTS IN PUBLIC DEPOSITARIES IN
 AN AMOUNT LESS THAN ALL TREASURY WARRANTS ISSUED AND OUTSTANDING.
   § 276. PERMITTED INVESTMENTS. SUBJECT TO THE  LIMITATIONS  IN  SECTION
 TWO  HUNDRED  SIXTY OF THIS ARTICLE, WHEREVER THERE IS IN ANY FUND OR IN
 CASH BALANCES IN THE STATE TREASURY MORE THAN  SUFFICIENT  TO  MEET  THE
 CURRENT  EXPENDITURES PROPERLY PAYABLE THEREFROM, THE BANK MAY INVEST OR
 REINVEST SUCH PORTION OF SUCH FUNDS OR BALANCES AS THE BANK DEEMS  EXPE-
 DIENT IN THE FOLLOWING DEFINED SECURITIES OR CLASSES OF INVESTMENTS:
   1.  CERTIFICATES, NOTES, OR BONDS OF THE UNITED STATES, OR OTHER OBLI-
 GATIONS OF THE UNITED STATES OR ITS  AGENCIES,  OR  OF  ANY  CORPORATION
 WHOLLY OWNED BY THE GOVERNMENT OF THE UNITED STATES;
   2.  IN  STATE,  COUNTY,  MUNICIPAL,  OR  SCHOOL  DISTRICT BONDS, OR IN
 WARRANTS OF TAXING DISTRICTS OF THE STATE. SUCH BONDS AND WARRANTS SHALL
 BE ONLY THOSE FOUND TO BE WITHIN THE LIMIT OF INDEBTEDNESS PRESCRIBED BY
 LAW FOR THE TAXING DISTRICT ISSUING THEM AND TO BE GENERAL  OBLIGATIONS.
 THE  STATE COMPTROLLER MAY PURCHASE SUCH BONDS OR WARRANTS DIRECTLY FROM
 THE TAXING DISTRICT OR IN THE OPEN MARKET AT SUCH PRICES AND  UPON  SUCH
 TERMS  AS  IT MAY DETERMINE, AND MAY SELL THEM AT SUCH TIMES AS IT DEEMS
 ADVISABLE;
   3. IN MOTOR VEHICLE FUND WARRANTS WHEN AUTHORIZED BY AGREEMENT BETWEEN
 THE STATE COMPTROLLER AND THE  DEPARTMENT  OF  TRANSPORTATION  REQUIRING
 REPAYMENT  OF  INVESTED  FUNDS FROM ANY MONEYS IN THE MOTOR VEHICLE FUND
 AVAILABLE FOR STATE HIGHWAY CONSTRUCTION;
   4. IN FEDERAL HOME LOAN BANK NOTES AND BONDS, FEDERAL LAND BANK  BONDS
 AND  FEDERAL NATIONAL MORTGAGE ASSOCIATION NOTES, DEBENTURES AND GUARAN-
 TEED CERTIFICATES OF PARTICIPATION, OR  THE  OBLIGATIONS  OF  ANY  OTHER
 GOVERNMENT  SPONSORED  CORPORATION  WHOSE  OBLIGATIONS ARE OR MAY BECOME
 ELIGIBLE AS COLLATERAL FOR ADVANCES TO MEMBER BANKS AS DETERMINED BY THE
 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM;
   5. NEGOTIABLE CERTIFICATES OF DEPOSIT OF ANY NATIONAL OR STATE COMMER-
 CIAL OR MUTUAL SAVINGS BANK OR SAVINGS AND LOAN ASSOCIATION DOING  BUSI-
 NESS  IN  THE  UNITED STATES, PROVIDED, THE COMPTROLLER SHALL FOLLOW THE
 INVESTMENT POLICIES AND PROCEDURES ADVISED BY  THE  INVESTMENT  ADVISORY
 COMMITTEE PURSUANT TO SUBDIVISION B OF SECTION FOUR HUNDRED TWENTY-THREE
 OF THE RETIREMENT AND SOCIAL SECURITY LAW;
   6.  COMMERCIAL  PAPER,  PROVIDED THAT THE COMPTROLLER SHALL FOLLOW THE
 INVESTMENT POLICIES AND PROCEDURES ADVISED BY  THE  INVESTMENT  ADVISORY
 A. 8857                            10
 
 COMMITTEE PURSUANT TO SUBDIVISION B OF SECTION FOUR HUNDRED TWENTY-THREE
 OF THE RETIREMENT AND SOCIAL SECURITY LAW.
   §  277. SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH, SUBDIVISION,
 SECTION OR PART OF THIS ARTICLE SHALL BE ADJUDGED BY A COURT  OF  COMPE-
 TENT  JURISDICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT AFFECT, IMPAIR
 OR INVALIDATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN ITS OPERA-
 TION TO THE CLAUSE, SENTENCE, PARAGRAPH, SUBDIVISION, SECTION OR PART OF
 THIS ARTICLE DIRECTLY INVOLVED IN THE CONTROVERSY IN WHICH SUCH JUDGMENT
 SHALL HAVE BEEN RENDERED.
   § 2. This act shall take effect immediately; provided,  however,  that
 section  258  of  the state finance law, as added by section one of this
 act shall be deemed repealed on April 1, 2022.   Effective  immediately,
 the  addition,  amendment and/or repeal of any rule or regulation neces-
 sary for the implementation of  this  act  on  its  effective  date  are
 authorized to be made and completed on or before such effective date.