S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2720
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2023
                                ___________
 
 Introduced  by  M. of A. PEOPLES-STOKES -- read once and referred to the
   Committee on Banks
 
 AN ACT establishing 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 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  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 department
 of financial services, 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 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) 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.
                                                            LBD02072-01-3
 A. 2720                             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 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 feasability of establish-
 ing  a  state  bank  in  New  York and may recommend legislation for the
 legislature to consider in order to 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
 A. 2720                             3
 
 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
   (j) a review of AB-857 (2019 Cal. Stats. Ch. 442).
   § 4. 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.
   § 5. This act shall take effect immediately and shall  expire  and  be
 deemed repealed one year after such effective date.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2720--B
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2023
                                ___________
 
 Introduced by M. of A. PEOPLES-STOKES, LEVENBERG, MEEKS -- read once and
   referred  to  the  Committee  on  Banks  -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee -- recommitted to the Committee on Banks in accordance with Assem-
   bly  Rule  3,  sec.  2  -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT establishing 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 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  eleven  members,  to  be
 appointed  as  follows:(i) five 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 three
 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 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;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02072-07-4
 A. 2720--B                          2
              

 
   (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.
   (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;
 A. 2720--B                          3
 
   (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
   (j) a review of AB-857 (2019 Cal. Stats. Ch. 442).
   §  4.  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.
   §  5.  This  act shall take effect immediately and shall expire and be
 deemed repealed one year after such effective date.