NY State Senate Bill S8449B

Archive: Last Bill Status - Passed Senate

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (10)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 02, 2022	referred to banks ordered to third reading cal.1901 committee discharged and committed to rules
Jun 03, 2022	delivered to assembly passed senate
May 31, 2022	print number 8449b
May 31, 2022	amend (t) and recommit to finance
May 20, 2022	print number 8449a
May 20, 2022	amend (t) and recommit to finance
Mar 02, 2022	referred to finance

Votes

Bill Amendments

Original

B (Active)

Original

B (Active)

S8449 - Details

See Assembly Version of this Bill:: A9711
Current Committee:: Assembly Banks
Law Section:: Banks
Versions Introduced in 2023-2024 Legislative Session:: A2720

S8449 - Summary

Establishes a temporary state commission to conduct a feasibility study to evaluate and make recommendations concerning the formation and control of a state public bank; provides if such study finds that the state bank is feasible, the legislature shall consider legislation to create a state public bank for New York.

S8449 - Sponsor Memo

 
BILL NUMBER: S8449

SPONSOR: SANDERS
 
TITLE OF BILL:

An act authorizing the department of financial services to conduct a
feasibility study to evaluate and make recommendations concerning the
formation and control of a state public bank for New York; making an
appropriation therefor; and providing for the repeal of such provisions
upon expiration thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would authorize the department of financial services to
conduct a feasibility study to evaluate and make recommendations
concerning the formation and control of a state public bank for New
York.

 
SUMMARY OF PROVISIONS:

The superintendent of the department of financial services is directed
to hire a reputable consultant that has the capacity, capability, and

experience to nduct a feasibility study to evaluate and make recommenda-
tions concerning the formation and control of a state public bank.
Consultants that have conducted a previous feasibility study of a public
bank at the request of a government entity in the United States will be
given preference. Should such study find that a state bank in New York
is feasible, the Legislature shall pass legislation to create a state
public bank for New York.

 
JUSTIFICATION:

A public bank is a financial institution created by the state for a
"public benefit" of the community. The Bank of North Dakota, founded in
1919, is currently the only public bank that exists in the United
States. Since 2010, 28 States in the United States have passed legis-
lation to establish a public banking taskforce or to create a public
bank in their state. The State of California enacted a law in 2019
allowing municipalities to form a public bank.

Who benefits from a Public Bank? Taxpayers will benefit from both: (a)
the profits the bank makes that return to the general fund of the state
to hold the line on taxes; and (b) the provide banking services to
economic disadvantaged communities. The state will benefit by financing
public projects at a reduced cost. Public banks help local businesses
and MWBEs by providing them access to credit lines, loans, and other
forms of financing to help them grow and succeed. The community benefits
because the public bank could provide affordable loans for students to
attend college. Homebuyers seeking reasonable mortgage loans with
reasonable terms and rates also would benefit.  This bill would allow
the State of New York to establish public banks for the purpose of
achieving cost savings, strengthening local economies, supporting commu-
nity economic development, and addressing infrastructure and housing
needs for localities.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

$500,000 appropriation

 
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed one year after such effective date.

S8449 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8449
 
                             I N  S E N A T E
 
                               March 2, 2022
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT authorizing the department of financial  services  to  conduct  a
   feasibility  study to evaluate and make recommendations concerning the
   formation and control of a state public bank for New York;  making  an
   appropriation   therefor;   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. The superintendent of the department of financial services
 is directed to hire a reputable consultant that has the capacity,  capa-
 bility,  and  experience  to conduct a feasibility study to evaluate and
 make recommendations concerning the formation and  control  of  a  state
 public  bank.  Consultants  that  have  conducted a previous feasibility
 study of a public bank at the request of  a  government  entity  in  the
 United  States  will  be given preference. Should such study find that a
 state bank in New York is feasible, the Legislature  shall  pass  legis-
 lation to create a state public bank for New York.
   §  2.  The scope of such study shall include, but shall not be limited
 to:
   (a) the purposes of such public bank;
   (b) an analysis of cost savings,  impacts  on  the  state's  finances,
 economic development and infrastructure, housing and additional needs of
 the state, including but not limited to:
   (i) appropriate governance structures;
   (ii) minimum capitalization requirements;
   (iii) appropriate insurance and risk management tools;
   (iv) charter requirements;
   (v) financial and operations framework;
   (vi) deposits;
   (vii) permitted activities;
   (viii) benefits;
   (ix) potential challenges that such public banks may encounter;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11521-04-2

 S. 8449                             2
 
   (x)  how  the lack of accessible financial services contributes to the
 cycle of poverty;
   (xi) barriers to small business formation and growth;
   (xii)  impacts  of  such  public  banks on small businesses, including
 minority- and women-owned business enterprises; and
   (xiii) impacts of such public banks on the unbanked,  the  underbanked
 and banking deserts.
   (c) a fiscal analysis of costs associated with formation;
   (d) an analysis that considers the effects of an economic recession on
 the financial results of such public banks;
   (e)  a  legal analysis of whether the proposed structure and operation
 of such public bank complies with the New York state constitution;
   (f) an analysis of how  the  proposed  governance  structure  of  such
 public  bank would protect such public bank from unlawful insider trans-
 actions and apparent conflicts of interest;
   (g) a fiscal analysis of the benefits associated with the creation  of
 such  public  bank,  including,  but  not limited to, cost savings, jobs
 created, jobs retained, economic activity generated and private  capital
 leveraged;
   (h)  a  qualitative assessment of social and environmental benefits of
 such public bank;
   (i) a review of feasibility studies on public banking,  including  the
 city  of  Philadelphia public bank feasibility study and the city of San
 Francisco public bank feasibility study; and
   (j) a review of AB-857 (2019 Cal. Stats. Ch. 442).
   § 3. No earlier than six months and no later than seven  months  after
 the  effective date of this act, the superintendent of the department of
 financial services shall submit a report to the governor, the  temporary
 president  of  the senate, the speaker of the assembly, the chair of the
 senate banks committee and the chair of the assembly banks committee  on
 the findings and conclusions of the study conducted pursuant to sections
 one and two of this act and shall submit any legislative recommendations
 deemed  to  be  necessary.    Such  report  shall  be  contemporaneously
 published on  the  official  website  of  the  department  of  financial
 services.
   §  4.  The sum of five hundred thousand dollars ($500,000), or so much
 thereof as may be available, is hereby appropriated to the department of
 financial services from any moneys in the state treasury in the  general
 fund  to  the credit of the state purposes account, not otherwise appro-
 priated, and made immediately available, for the purpose of carrying out
 the provisions of this act. Such moneys shall be payable  on  the  audit
 and  warrant of the comptroller on vouchers certified or approved by the
 commissioner of education in the manner prescribed by law.
   § 5. This act shall take effect immediately and shall  expire  and  be
 deemed repealed one year after such effective date.

S8449A - Details

See Assembly Version of this Bill:: A9711
Current Committee:: Assembly Banks
Law Section:: Banks
Versions Introduced in 2023-2024 Legislative Session:: A2720

S8449A - Summary

S8449A - Sponsor Memo

 
BILL NUMBER: S8449A

SPONSOR: SANDERS
 
TITLE OF BILL:

An act establishing 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;
making an appropriation therefor; and providing for the repeal of such
provisions upon expiration thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would establish a temporary commission to determine what bene-
fits 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.

 
SUMMARY OF PROVISIONS:

-Establish 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
hire a consultant 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 for the public interest.

-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 department of financial
services, one shall be a representative from the New York state depart-
ment 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 represent community banking, and no more than one
member may be a representative of any financial services firm located
within the state, including, 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;

* (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.

* The majority of the members of the entire commission shall designate
one of the commissioners to serve as the chair of the commission.
* The members of the commission shall be appointed no later than ninety
days after the effective date of this act.

* The commission is directed to hire a reputable consultant that has the
capacity, capability, and experience to conduct a feasibility study to
evaluate and make recommendations concerning the formation and control
of a state public bank. Consultants that have conducted a previous
feasibility study of a public bank at the request of a government entity
in the United States will be given preference. Such study shall make
recommendations, with the advice of the department of financial
services, including but not limited to, on the feasability of establish-
ing a state bank in New York and may recommend legislation for the
legislature to consider in order to to create a state public bank for
New York.

 
JUSTIFICATION:

A public bank is a financial institution created by the state for a
"public benefit" of the community. The Bank of North Dakota, founded in
1919, is currently the only public bank that exists in the United
States. Since 2010, 28 States in the United States have passed legis-
lation to establish a public banking taskforce or to create a public
bank in their state. The State of California enacted a law in 2019
allowing municipalities to form a public bank.

Who benefits from a Public Bank? Taxpayers will benefit from both: (a)
the profits the bank makes that return to the general fund of the state
to hold the line on taxes; and (b) the provide banking services to
economic disadvantaged communities. The state will benefit by financing
public projects at a reduced cost. Public banks help local businesses
and MWBEs by providing them access to credit lines, loans, and other
forms of financing to help them grow and succeed. The community benefits
because the public bank could provide affordable loans for students to
attend college. Homebuyers seeking reasonable mortgage loans with
reasonable terms and rates also would benefit. This bill would establish
a commission to hire a consultant to conduct a study of ,a public bank
for the State of New York for the purpose of achieving cost savings,
strengthening local economies, supporting community economic develop-
ment, environmental protection, student debt, and addressing infrastruc-
ture and housing needs.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Up to $500,000 in available appropriation

 
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed one year after such effective date.

S8449A - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8449--A
 
                             I N  S E N A T E
 
                               March 2, 2022
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to  the  Committee  on  Finance  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  establishing  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;
   making an appropriation therefor; 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 hire a
 consultant 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 for the public interest.
   § 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 department
 of financial services, 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 represent community  banking, and no more
 than one member may be a representative of any financial  services  firm
 located  within  the state,  including, 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.
                                                            LBD11521-07-2

 S. 8449--A                          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 majority of the members of the entire commission  shall desig-
 nate one of the commissioners to serve 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.
   (d) The commission is directed to hire a reputable consultant that has
 the capacity, capability, and experience to conduct a feasibility  study
 to  evaluate  and  make  recommendations  concerning  the  formation and
 control of a state public bank. Consultants that have conducted a previ-
 ous feasibility study of a public bank at the request  of  a  government
 entity  in  the United States will be given preference. Such study shall
 make recommendations, with the advice of  the  department  of  financial
 services, including but not limited to, on the feasability of establish-
 ing  a  state  bank  in  New  York and may recommend legislation for the
 legislature to consider in order to to create a state  public  bank  for
 New York.
   §  3.  The scope of such study shall include, but shall not be limited
 to:
   (a) the purposes of such public bank in the public interest;
   (b) an analysis of cost savings,  impacts  on  the  state's  finances,
 economic development and infrastructure, housing and additional needs of
 the state, including but not limited to:
   (i) appropriate governance structures;
   (ii) minimum capitalization requirements;
   (iii) appropriate insurance and risk management tools;
   (iv) charter requirements;
   (v) financial and operations framework;
   (vi) deposits;
   (vii) permitted activities;
   (viii) benefits;
   (ix) potential challenges that such public banks may encounter;
   (x)  how  the lack of accessible financial services contributes to the
 cycle of poverty;
   (xi) barriers to small business formation and growth;
   (xii) impacts of such public  banks  on  small  businesses,  including
 minority- and women-owned business enterprises;
   (xiii)  impacts  of such public banks on the unbanked, the underbanked
 and banking deserts; and
   (xiv) how a state public bank may  provide  banking  to  the  cannabis
 industry.
   (c) a fiscal analysis of costs associated with formation;
   (d) an analysis that considers the effects of an economic recession on
 the financial results of such public banks;
   (e)  a  legal analysis of whether the proposed structure and operation
 of such public bank complies with the New York state constitution;
   (f) an analysis of how  the  proposed  governance  structure  of  such
 public  bank would protect such public bank from unlawful insider trans-
 actions and apparent conflicts of interest;
   (g) a fiscal analysis of the benefits associated with the creation  of
 such  public  bank,  including,  but  not limited to, cost savings, jobs
 S. 8449--A                          3
 
 created, jobs retained, economic activity generated and private  capital
 leveraged;
   (h)  a  qualitative assessment of social and environmental benefits of
 such public bank;
   (i) a review of feasibility studies on public banking,  including  the
 city  of  Philadelphia public bank feasibility study and the city of San
 Francisco public bank feasibility study; and
   (j) a review of AB-857 (2019 Cal. Stats. Ch. 442).
   § 4. No earlier than six months and no later than seven  months  after
 the  effective date of this act, the commission shall submit a report to
 the governor, the temporary president of the senate, the speaker of  the
 assembly,  the  chair of the senate banks committee and the chair of the
 assembly banks committee on the findings and conclusions  of  the  study
 conducted  pursuant  to  sections  two  and  three of this act and shall
 submit any legislative recommendations deemed to  be  necessary.    Such
 report  shall  be contemporaneously published on the official website of
 the department of financial services.
   § 5. The sum of five hundred thousand dollars ($500,000), or  so  much
 thereof as may be available, is hereby appropriated to the department of
 financial  services,  or  from  any  moneys in the state treasury in the
 general fund to the credit of the state purposes account, not  otherwise
 appropriated,  and made immediately available, for the purpose of carry-
 ing out the provisions of this act. Such moneys shall be payable on  the
 audit  and  warrant of the comptroller on vouchers certified or approved
 by the commissioner of education in the manner prescribed by law.
   § 6. This act shall take effect immediately and shall  expire  and  be
 deemed repealed one year after such effective date.

S8449B (ACTIVE) - Details

See Assembly Version of this Bill:: A9711
Current Committee:: Assembly Banks
Law Section:: Banks
Versions Introduced in 2023-2024 Legislative Session:: A2720

S8449B (ACTIVE) - Summary

S8449B (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S8449B

SPONSOR: SANDERS
 
TITLE OF BILL:

An act establishing 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

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would establish a temporary commission to determine what bene-
fits 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.

 
SUMMARY OF PROVISIONS:

-Establish 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

hire a consultant 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 for the public interest.

-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 department of financial
services, one shall be a representative from the New York state depart-
ment 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 represent community banking, and no more than one
member may be a representative of any financial services firm located
within the state, including, 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;

*(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 assem-
bly.

*The majority of the members of the entire commission shall designate
one of the commissioners to serve as the chair of the commission.

*The members of the commission shall be appointed no later than ninety
days after the effective date of this act.

*The commission is directed to hire a reputable consultant that has the
capacity, capability, and experience to conduct a feasibility study to
evaluate and make recommendations concerning the formation and control
of a state public bank. Consultants that have conducted a previous
feasibility study of a public bank at the request of a government entity
in the United States will be given preference. Such study shall make
recommendations, with the advice of the department of financial
services, including but not limited to, on the feasability of establish-
ing a state bank in New York and may recommend legislation for the
legislature to consider in order to to create a state public bank for
New York.

 
JUSTIFICATION:

A public bank is a financial institution created by the state for a
"public benefit" of the community. The Bank of North Dakota, founded in
1919, is currently the only public bank that exists in the United
States. Since 2010, 28 States in the United States have passed legis-
lation to establish a public banking taskforce or to create a public
bank in their state. The State of California enacted a law in 2019
allowing municipalities to form a public bank.

Who benefits from a Public Bank? Taxpayers will benefit from both: (a)
the profits the bank makes that return to the general fund of the state
to hold the line on taxes; and (b) the provide banking services to
economic disadvantaged communities. The state will benefit by financing
public projects at a reduced cost. Public banks help local businesses
and MWBEs by providing them access to credit lines, loans, and other
forms of financing to help them grow and succeed. The community benefits
because the public bank could provide affordable loans for students to
attend college. Homebuyers seeking reasonable mortgage loans with
reasonable terms and rates also would benefit.  This bill would estab-
lish a commission to hire a consultant to conduct a study of ,a public
bank for the State of New York for the purpose of achieving cost
savings, strengthening local economies, supporting community economic
development, environmental protection, student debt, and addressing
infrastructure and housing needs.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

TBD

 
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed one year after such effective date.

S8449B (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8449--B
 
                             I N  S E N A T E
 
                               March 2, 2022
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to  the  Committee  on  Finance  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee  --  committee  discharged,  bill amended, ordered
   reprinted as amended and recommitted to said committee

 AN ACT establishing 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 hire a
 consultant 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 for the public interest.
   § 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 department
 of financial services, 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 represent community  banking, and no more
 than one member may be a representative of any financial  services  firm
 located  within  the state,  including, 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.
                                                            LBD11521-09-2

 S. 8449--B                          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 majority of the members of the entire commission  shall desig-
 nate one of the commissioners to serve 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.
   (d) The commission is directed to hire a reputable consultant that has
 the capacity, capability, and experience to conduct a feasibility  study
 to  evaluate  and  make  recommendations  concerning  the  formation and
 control of a state public bank. Consultants that have conducted a previ-
 ous feasibility study of a public bank at the request  of  a  government
 entity  in  the United States will be given preference. Such study shall
 make recommendations, with the advice of  the  department  of  financial
 services, including but not limited to, on the feasability of establish-
 ing  a  state  bank  in  New  York and may recommend legislation for the
 legislature to consider in order to to create a state  public  bank  for
 New York.
   §  3.  The scope of such study shall include, but shall not be limited
 to:
   (a) the purposes of such public bank in the public interest;
   (b) an analysis of cost savings,  impacts  on  the  state's  finances,
 economic development and infrastructure, housing and additional needs of
 the state, including but not limited to:
   (i) appropriate governance structures;
   (ii) minimum capitalization requirements;
   (iii) appropriate insurance and risk management tools;
   (iv) charter requirements;
   (v) financial and operations framework;
   (vi) deposits;
   (vii) permitted activities;
   (viii) benefits;
   (ix) potential challenges that such public banks may encounter;
   (x)  how  the lack of accessible financial services contributes to the
 cycle of poverty;
   (xi) barriers to small business formation and growth;
   (xii) impacts of such public  banks  on  small  businesses,  including
 minority- and women-owned business enterprises;
   (xiii)  impacts  of such public banks on the unbanked, the underbanked
 and banking deserts; and
   (xiv) how a state public bank may  provide  banking  to  the  cannabis
 industry.
   (c) a fiscal analysis of costs associated with formation;
   (d) an analysis that considers the effects of an economic recession on
 the financial results of such public banks;
   (e)  a  legal analysis of whether the proposed structure and operation
 of such public bank complies with the New York state constitution;
   (f) an analysis of how  the  proposed  governance  structure  of  such
 public  bank would protect such public bank from unlawful insider trans-
 actions and apparent conflicts of interest;
   (g) a fiscal analysis of the benefits associated with the creation  of
 such  public  bank,  including,  but  not limited to, cost savings, jobs
 S. 8449--B                          3
 
 created, jobs retained, economic activity generated and private  capital
 leveraged;
   (h)  a  qualitative assessment of social and environmental benefits of
 such public bank;
   (i) a review of feasibility studies on public banking,  including  the
 city  of  Philadelphia public bank feasibility study and the city of San
 Francisco public bank feasibility study; and
   (j) a review of AB-857 (2019 Cal. Stats. Ch. 442).
   § 4. No earlier than six months and no later than seven  months  after
 the  effective date of this act, the commission shall submit a report to
 the governor, the temporary president of the senate, the speaker of  the
 assembly,  the  chair of the senate banks committee and the chair of the
 assembly banks committee on the findings and conclusions  of  the  study
 conducted  pursuant  to  sections  two  and  three of this act and shall
 submit any legislative recommendations deemed to  be  necessary.    Such
 report  shall  be contemporaneously published on the official website of
 the department of financial services.
   § 5. This act shall take effect immediately and shall  expire  and  be
 deemed repealed one year after such effective date.

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The New York State Senate

senate Bill S8449B

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Archive: Last Bill Status - Passed Senate

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Jun 3, 2022 - floor Vote

Floor Vote: Jun 3, 2022

Jun 2, 2022 - Rules committee Vote

Rules Committee Vote: Jun 2, 2022

Bill Amendments

S8449 - Details

S8449 - Summary

S8449 - Sponsor Memo

S8449 - Bill Text download pdf

S8449A - Details

S8449A - Summary

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S8449A - Bill Text download pdf

S8449B (ACTIVE) - Details

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senate Bill S8449B

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Sponsored By

James Sanders Jr.

Archive: Last Bill Status - Passed Senate

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Actions

Votes

Jun 3, 2022 - floor Vote

Floor Vote: Jun 3, 2022

Jun 2, 2022 - Rules committee Vote

Rules Committee Vote: Jun 2, 2022

Bill Amendments

S8449 - Details

S8449 - Summary

S8449 - Sponsor Memo

S8449 - Bill Text download pdf

S8449A - Details

S8449A - Summary

S8449A - Sponsor Memo

S8449A - Bill Text download pdf

S8449B (ACTIVE) - Details

S8449B (ACTIVE) - Summary

S8449B (ACTIVE) - Sponsor Memo

S8449B (ACTIVE) - Bill Text download pdf

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