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.
STATE OF NEW YORK
________________________________________________________________________
7416
IN SENATE
May 14, 2014
___________
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:
1 Section 1. A temporary state commission, to be known as the New York
2 state commission on establishing a bank owned by New York state, herein-
3 after referred to as the commission, is hereby established to study the
4 feasibility of establishing a bank owned by the state of New York or by
5 a public authority constituted by the state of New York.
6 § 2. a. The commission shall consist of fifteen members, to be
7 appointed as follows:
8 (i) six members shall be appointed by the governor, one of whom shall
9 be a representative of the New York state banking department, one shall
10 be a representative from the New York state department of taxation and
11 finance, the remaining four governor's appointees shall not be employees
12 of the executive branch and at least one member shall represent the
13 banking and financial industries of the state including, but not limited
14 to, the New York Bankers Association, at least one member shall repre-
15 sent community banking, and no more than one member may be a represen-
16 tative of any financial services firm located within the state, includ-
17 ing, but not limited to, the New York state small business development
18 center;
19 (ii) one member shall be the New York state comptroller or the comp-
20 troller's designee;
21 (iii) three members shall be appointed by the temporary president of
22 the senate, one of whom shall be a member of the senate;
23 (iv) one member shall be appointed by the minority leader of the
24 senate;
25 (v) three members shall be appointed by the speaker of the assembly,
26 one of whom shall be a member of the assembly; and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04857-01-3
S. 7416 2
1 (vi) one member shall be appointed by the minority leader of the
2 assembly.
3 b. The governor shall designate one of his or her appointees as the
4 chair of the commission.
5 c. The members of the commission shall be appointed no later than
6 ninety days after the effective date of this act.
7 § 3. The commission shall:
8 (i) examine the technical, legal and financial feasibility of estab-
9 lishing a state-owned bank, including but not limited to a state-owned
10 bank for infrastructure investment purposes;
11 (ii) seek participation in its deliberations from the president of the
12 Federal Reserve Bank of New York or the president's designee;
13 (iii) evaluate the experiences of other states with state-owned banks,
14 identifying the financial performance of such banks and evaluating the
15 lending practices of such banks to show whether such banks successfully
16 fill lending gaps not filled by the private sector;
17 (iv) evaluate the manner in which public funds are invested or depos-
18 ited by the state and its political subdivisions including funds managed
19 by the state comptroller including state and local pension funds;
20 (v) examine the infrastructure investment activities conducted by
21 other states with state-owned banks;
22 (vi) examine the lending practices, including lending to support
23 infrastructure, of the existing public agencies in the commonwealth that
24 perform lending services. Any other public authority in the state that
25 lends money shall cooperate fully with the commission and shall supply
26 information reasonably required by the commission to carry out its
27 charge;
28 (vii) investigate how a state bank can promote the agriculture, educa-
29 tion, community development, economic development, commerce and industry
30 within the state;
31 (viii) hold at least three public hearings in distinct geographic
32 regions of the state; and
33 (ix) publish its findings and recommendations, together with drafts of
34 legislation, if any, necessary to carry those recommendations into
35 effect, in a written report not later than one year after the effective
36 date of this act. The report shall be published on the official website
37 of the state, and shall be contemporaneously filed with the senate
38 finance committee and the assembly ways and means committee.
39 § 4. This act shall take effect immediately and shall expire and be
40 deemed repealed one year after such effective date.
