Bill Text: NY S02115 | 2019-2020 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Establishes the New York state commission on establishing a bank owned by New York state for purposes of determining 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 governments, communities, private businesses, community banks, credit unions and people; requires publication of the commission's findings and recommendations.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Engrossed - Dead) 2020-02-21 - RECOMMIT, ENACTING CLAUSE STRICKEN [S02115 Detail]

Download: New_York-2019-S02115-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         2115--A
            Cal. No. 337
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 22, 2019
                                       ___________
        Introduced  by Sens. SANDERS, 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, retain-
          ing its place in the order of third reading
        AN ACT to establish a commission to study what a public  bank  owned  by
          the  state  of  New  York  or by a public authority constituted by the
          state of New York can  do;  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 what
     4  a  public  bank  owned by the state of New York or by a public authority
     5  constituted by the state of New York can do.
     6    § 2. a. The  commission  shall  consist  of  fifteen  members,  to  be
     7  appointed as follows:
     8    (i)  one  member  shall be the New York state comptroller or the comp-
     9  troller's designee;
    10    (ii) five members shall be appointed by the temporary president of the
    11  senate, one of whom shall be a member of the senate;
    12    (iii) two members shall be appointed by the  minority  leader  of  the
    13  senate;
    14    (iv)  five  members shall be appointed by the speaker of the assembly,
    15  one of whom shall be a member of the assembly; and
    16    (v) two members shall be appointed  by  the  minority  leader  of  the
    17  assembly.
    18    b.  The  comptroller,  the  temporary president of the senate, and the
    19  speaker of the assembly shall designate one of  the  appointees  as  the
    20  chair of the commission.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00222-07-9
        S. 2115--A                          2
     1    c.  The  members  of  the  commission shall be appointed no later than
     2  ninety days after the effective date of this act.
     3    § 3. The commission shall:
     4    a.  examine the current laws and regulatory structures that need to be
     5  amended to create a public bank in New York state;
     6    b. evaluate the experiences of other states and countries with  state-
     7  owned  banks,  identifying  the  financial performance of such banks and
     8  evaluating the lending practices of such  banks  to  show  whether  such
     9  banks successfully fill lending gaps not filled by the private sector;
    10    c.  identify  changes to the current financial system that would maxi-
    11  mize the state's independence and free up capital for public priorities,
    12  including but not limited to:
    13    (i) a public bank model in which the state creates a  public  bank  to
    14  serve  its  own banking needs as currently provided by commercial banks;
    15  and
    16    (ii) a public bank model in which the state creates a public  bank  to
    17  serve  its  own  banking needs as currently provided by commercial banks
    18  and engages  in  supplemental  activities,  including  accepting  public
    19  deposits, accepting deposits from the general public, and issuing loans.
    20    d.  identify  steps  that can be taken immediately to further the ends
    21  identified in subdivision c of this section and to create a gradual plan
    22  under which the state could comply with both models listed in paragraphs
    23  (i) and (ii) of subdivision c of this section;
    24    e. seek participation in its deliberations from the president  of  the
    25  Federal Reserve bank of New York or such president's designee;
    26    f. examine the lending practices, including lending to support infras-
    27  tructure,  of  the  existing  public  agencies in the state that perform
    28  lending services. Any other public authority in  the  state  that  lends
    29  money  shall cooperate fully with the commission and shall supply infor-
    30  mation reasonably required by the commission to carry  out  its  charge;
    31  and
    32    g. examine the political, economic, and social climate of public banks
    33  world-wide,  and recommend safeguards to insulate a New York public bank
    34  from such conditions.
    35    § 4. The commission shall:
    36    a. hold at least three public hearings in distinct geographic  regions
    37  of the state; and
    38    b.  publish  its findings and recommendations, together with the draft
    39  of legislation necessary to carry those recommendations into effect,  in
    40  a  written  report  not  later than one year after the effective date of
    41  this act. The report shall be published on the official website  of  the
    42  state,  and  shall  be  contemporaneously  filed with the senate finance
    43  committee and the assembly ways and means committee.
    44    § 5. The members of the commission shall receive no  compensation  for
    45  their services, but shall be allowed their actual and necessary expenses
    46  incurred in the performance of their duties pursuant to this act.
    47    §  6.  This  act shall take effect immediately and shall expire and be
    48  deemed repealed one year after such effective date.