S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1996
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 14, 2025
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT establishing a New York state public bank commission to study the
   benefits of 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;  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 public bank commission, hereinafter 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  thirteen  members,  to  be
 appointed  as follows:  (i) six members shall be appointed by the gover-
 nor, one of whom shall be a representative of the New York state depart-
 ment of financial services, one shall be a representative from  the  New
 York state department of taxation and finance, the remaining four gover-
 nor'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  associ-
 ation,  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) three members shall be appointed by the  temporary  president  of
 the senate, one of whom shall be a member of the senate;
   (iii) three members shall be appointed by the speaker of the assembly,
 one of whom shall be a member of the assembly; and
   (iv) the state comptroller or a proxy.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05646-02-5
              

 S. 1996                             2
 
   (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 feasibility of establish-
 ing  a  state  bank  in  New  York and may recommend legislation for the
 legislature to consider in order 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;
   (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
 S. 1996                             3
 
   (j) a review of AB-857 (2019 Cal. Stats. Ch. 442).
   §  4.  The sum of five hundred thousand dollars ($500,000), or so much
 thereof as may be necessary, 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 appropri-
 ated  for the purposes of carrying out the provisions of this act.  Such
 sum shall be payable on the audit and warrant of the  state  comptroller
 on  vouchers  certified  or  approved by the superintendent of financial
 services, or such superintendent's duly designated representative in the
 manner provided by law.
   § 5. 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.
   § 6. This act shall take effect on the thirtieth day  after  it  shall
 have become a law and shall expire and be deemed repealed one year after
 such effective date.