S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6522--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 11, 2019
                                ___________
 
 Introduced  by  M.  of A. GALEF, O'DONNELL, STECK, MOSLEY, L. ROSENTHAL,
   QUART, BARNWELL -- Multi-Sponsored by -- M. of A. BUCHWALD,  GOTTFRIED
   --  read  once  and  referred  to  the Committee on Banks -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee

 AN ACT to establish 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 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 could provide for the New York state government, local  govern-
 ments,  communities,  private businesses, community banks, credit unions
 and people.
   § 2. a. The commission shall  consist  of  seventeen  members,  to  be
 appointed as follows:
   (i)  eight  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  six  governor's  appointees
 shall  not  be employees of the executive branch and at least one member
 shall represent the banking and financial industries;
   (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.
              

                                                            LBD00222-09-9

 A. 6522--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  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:
   a.  determine  what  the existing laws and regulatory structures would
 need to be amended to create a public bank in New York state;
   b. evaluate the experiences of other states and countries 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;
   c.  identify  changes to the current financial system that would maxi-
 mize the state's independence and free up capital for public priorities,
 including but not limited to:
   (i) a public bank model in which the state creates a  public  bank  to
 serve  its  own banking needs as currently provided by commercial banks;
 and
   (ii) a public bank model in which the state creates a public  bank  to
 serve  its  own  banking needs as currently provided by commercial banks
 and engages  in  supplemental  activities,  including  accepting  public
 deposits, accepting deposits from the general public, and issuing loans.
   d.  identify  steps  that can be taken immediately to further the ends
 identified in subdivision c of this section and to create a gradual plan
 under which the state could comply with both models listed in paragraphs
 (i) and (ii) of subdivision c of this section;
   e.   examine the  lending  practices,  including  lending  to  support
 infrastructure,  of  the  existing  public  agencies  in  the state 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;
   f. determine the benefits with respect to the availability of afforda-
 ble  credit; job and wealth creation; the diminishment of racial, gender
 and other social disparities in economic outcomes; and any other benefit
 that the commission deems appropriate that a state-owned public bank  or
 network  of  locally-controlled  public banks could provide to: New York
 state government; industry,  including  agriculture;  small  businesses;
 local  governments;  communities; credit unions and community banks; and
 people; and
   g. examine the political, economic, and social climate of public banks
 world-wide, and recommend safeguards to insulate a New York public  bank
 from such conditions.
   § 4. The commission shall:
   a.  hold at least three public hearings in distinct geographic regions
 of the state; and
   b. publish its findings and recommendations, together with  the  draft
 of  legislation 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

 A. 6522--A                          3
 
 state, and shall be contemporaneously  filed  with  the  senate  finance
 committee and the assembly ways and means committee.
   §  5.  The members of the commission shall receive no compensation for
 their services, but shall be allowed their actual and necessary expenses
 incurred in the performance of their duties pursuant to this act.    The
 department of financial services shall provide staff and other resources
 to the commission.
   §  6.  This  act shall take effect immediately and shall expire and be
 deemed repealed one year after such effective date.