S T A T E O F N E W Y O R K
________________________________________________________________________
2115--B
Cal. No. 337
2019-2020 Regular Sessions
I N S E N A T E
January 22, 2019
___________
Introduced by Sens. SANDERS, KRUEGER, SALAZAR -- read twice and ordered
printed, and when printed to be committed to the Committee on Finance
-- committee discharged and said bill committed to the Committee on
Rules -- ordered to a third reading, amended and ordered reprinted,
retaining its place in the order of third reading -- again amended and
ordered reprinted, retaining its place in the order of third reading
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;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00222-08-9
S. 2115--B 2
(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;
(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
S. 2115--B 3
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.
§ 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.
