S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9711
 
                           I N  A S S E M B L Y
 
                              March 28, 2022
                                ___________
 
 Introduced  by  M. of A. PEOPLES-STOKES -- read once and referred to the
   Committee on Banks
 
 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
              

 A. 9711                             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.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9711--A
 
                           I N  A S S E M B L Y
 
                              March 28, 2022
                                ___________
 
 Introduced  by  M. of A. PEOPLES-STOKES -- read once and referred to the
   Committee on Banks --  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;
   (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.
              

                                                            LBD11521-08-2
 A. 9711--A                          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 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
 created,  jobs retained, economic activity generated and private capital
 leveraged;
 A. 9711--A                          3
 
   (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.