S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7545
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 1, 2017
                                ___________
 
 Introduced  by  M.  of  A.  GALEF,  SKARTADOS, O'DONNELL, STECK, MOSLEY,
   ROSENTHAL, QUART -- Multi-Sponsored by -- M.  of  A.  BUCHWALD,  GOTT-
   FRIED, MAYER -- read once and referred to the Committee on Banks
 
 AN  ACT to establish a commission to study the feasibility of establish-
   ing a bank owned by the state of New York or  by  a  public  authority
   constituted  by the state of New York; 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 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.
   § 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 banking department, 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 repre-
 sent community banking, and no more than one member may be  a  represen-
 tative  of any financial services firm located within the state, includ-
 ing, 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.
              

                                                            LBD01404-01-7

 A. 7545                             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  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:
   (i)  examine  the technical, legal and financial feasibility of estab-
 lishing a state-owned bank, including but not limited to  a  state-owned
 bank for infrastructure investment purposes;
   (ii) seek participation in its deliberations from the president of the
 Federal Reserve Bank of New York or the president's designee;
   (iii) evaluate the experiences of other states 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;
   (iv)  evaluate the manner in which public funds are invested or depos-
 ited by the state and its political subdivisions including funds managed
 by the state comptroller including state and local pension funds;
   (v) examine the  infrastructure  investment  activities  conducted  by
 other states with state-owned banks;
   (vi)  examine  the  lending  practices,  including  lending to support
 infrastructure, of the existing public agencies in the commonwealth 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;
   (vii) investigate how a state bank can promote the agriculture, educa-
 tion, community development, economic development, commerce and industry
 within the state;
   (viii)  hold  at  least  three  public hearings in distinct geographic
 regions of the state; and
   (ix) publish its findings and recommendations, together with drafts of
 legislation, if any,  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.
   § 4. This act shall take effect immediately and shall  expire  and  be
 deemed repealed one year after such effective date.