NY State Senate Bill 2017-S3172

Senate Bill S3172

2017-2018 Legislative Session

Establishes a commission to study the feasibility of establishing a bank owned by the state of New York and report thereon within 2 years

download bill text pdf

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 06, 2018	referred to banks delivered to assembly passed senate ordered to third reading cal.1544
Jun 05, 2018	committee discharged and committed to rules
Jan 03, 2018	referred to banks
Jun 07, 2017	reported and committed to rules
Jan 20, 2017	referred to banks

Votes

- Jun 6, 2018 - Floor Vote
  S3172
  
  50
  
  Aye
  
  11
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 6, 2018
      
      aye (50)
      
      Addabbo Jr.
      
      Alcantara
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Hamilton
      
      Hannon
      
      Hoylman-Sigal
      
      Kaminsky
      
      Kavanagh
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Little
      
      Marcellino
      
      Marchione
      
      Mayer
      
      Montgomery
      
      O'Mara
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serrano
      
      Seward
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      nay (11)
      
      Akshar
      
      DeFrancisco
      
      Griffo
      
      Helming
      
      Jacobs
      
      Lanza
      
      Larkin
      
      Murphy
      
      Ortt
      
      Ranzenhofer
      
      Serino
      
      excused (2)
      
      Amedore
      
      Croci
  Jun 5, 2018 - Rules Committee Vote
  S3172
  
  20
  
  Aye
  
  1
  
  Nay
  
  4
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 5, 2018
      
      aye (20)
      
      Breslin
      
      Dilan
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hannon
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Larkin
      
      Marcellino
      
      Montgomery
      
      Parker
      
      Rivera
      
      Robach
      
      Savino
      
      Seward
      
      Stewart-Cousins
      
      Valesky
      
      nay (1)
      
      Lanza
      
      aye wr (4)
      
      Bonacic
      
      DeFrancisco
      
      Little
      
      Ranzenhofer
  Jun 7, 2017 - Banks Committee Vote
  S3172
  
  12
  
  Aye
  
  3
  
  Nay
  
  4
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Banks Committee Vote: Jun 7, 2017
      
      aye (12)
      
      Breslin
      
      Diaz
      
      Hamilton
      
      Helming
      
      Kennedy
      
      Latimer
      
      Marcellino
      
      Marchione
      
      Parker
      
      Peralta
      
      Sanders Jr.
      
      Savino
      
      nay (3)
      
      Amedore
      
      Murphy
      
      O'Mara
      
      aye wr (4)
      
      Akshar
      
      Bonacic
      
      Jacobs
      
      Tedisco

2017-S3172 (ACTIVE) - Details

See Assembly Version of this Bill:: A7545
Current Committee:: Assembly Banks
Law Section:: Banks
Versions Introduced in Other Legislative Sessions:: 2011-2012: A6737
2013-2014: S7416, A1696
2015-2016: S3260, A6110
2019-2020: S2115, A6522
2021-2022: A6808

2017-S3172 (ACTIVE) - Summary

Establishes a commission to study the feasibility of establishing a bank owned by the state of New York or an authority constituted by the state of New York and report thereon.

2017-S3172 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3172

 TITLE OF BILL :

An act to establish a commission 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; and providing for the
repeal of such provisions upon expiration thereof

 PURPOSE :

The purpose of this legislation is to establish a commission to study
the feasibility of establishing a bank owned by the state of New York
or designated agency.

 SUMMARY OF PROVISIONS :

Section 1. A temporary state commission, to be known as the New York
State Commission on Establishing a Bank Owned by New York State, is
established to study the feasibility of a bank owned by New York State
or by a public authority constituted by the State of New York.

Section 2. a. The Commission shall consist of fifteen members. 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 90 days after the effective date of this act.

Section 3. The Commission shall: (i) examine the technical, legal and
financial feasibility of establishing a state-owned bank; (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; (iv) evaluate
the manner in which public funds are invested or deposited by the
state and its political subdivisions; (v) examine the infrastructure
investment activities conducted by other states with state-owned
banks; (vi) examine the lending practices, including lending to
support infrastructure, or the existing public agencies in the
commonwealth that perform lending services; (vii) investigate how a
state bank can promote agriculture, education, community development,
economic development,commerce and industry within the State; (viii)
hold at least three public hearings in district 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.

Section 4. Establishes the effective date.

 EXISTING LAW :

n/a

 JUSTIFICATION :

This legislation is modeled upon 2010 legislation introduced in the
Connecticut State Legislature that created a Task Force to examine the
technical, legal, and financial feasibility of establishing a state-
owned bank for infrastructure purposes. The interest in exploring the
feasibility of state owned banks has grown because of the recent
national fiscal crisis including the bank bailouts and ongoing
recession, all of which has had detrimental impact on every state,
particularly New York. North Dakota is the exception; it is debt-free
and on strong fiscal footing. Many attribute North Dakota's sound
economy to its state-owned bank.

The Bank of North Dakota (BANK) was created in 1919 with the mission
of promoting agriculture, commerce and industry in North Dakota. The
State of North Dakota places all public revenues into the BANK, which
are governed by strict regulations. The BANK was not established to
compete with commercial or community banks so it partners with 100
other financial institutions to help the North Dakota citizenry. The
BANK is an economic development bank, helping large, small and medium
sized businesses within the State. It also provides student loans and
special assistance to start-ups.

The BANK has emerged as a model for other states because it did not
engage in the risky financial strategies that contributed to
catastrophic bank failures throughout the country. Many candidates for
public office, from both political panics in states such as Oregon,
Illinois, California, Florida, Idaho, Vermont and Washington have
proposed the establishment of state-owned banks citing numerous
advantages. For example, state banks are depositories of public funds
operating more conservatively than for-profit banks, eschewing the
riskier moneymaking schemes. State-owned banks have a primary mission
to develop the state and local economy, investing in infrastructure
and providing loans to businesses, not to generate profits for
shareholders.

This legislation creates a commission with a broad mandate. It will
examine all aspects of a state-owned bank, including how it can
promote the agriculture, education, economic development, commerce and
industry in New York State.

 LEGISLATIVE HISTORY :

A. 1696 of 2013/2014 and;
A. 6737 of 2011/2012

 FISCAL IMPLICATIONS :

The fiscal implications associated with the passage of this
legislation at unknown at this time.

 LOCAL FISCAL IMPLICATIONS :

n/a

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

2017-S3172 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3172
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2017
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed 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

 S. 3172                             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.

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