S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6308
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 3, 2025
                                ___________
 
 Introduced by M. of A. PEOPLES-STOKES, LEVENBERG, MEEKS -- 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  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;
   (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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01139-01-5
 A. 6308                             2
              

 
   (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;
   (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
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   (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.