NY S08686

Creates the State of New York Public Bank as an independent financial institution governed by an eight-member commission appointed by legislative and executive leaders to commence operations by April 1, 2021.

Authorizes the bank to serve as depository for state moneys, provide infrastructure loans, administer student loan programs, and offer low-cost capital to small businesses, minority- and women-owned enterprises, and farmers.

Requires fifty percent of public deposits to prioritize lending in unbanked or underserved communities with incomes below eighty percent of median county income, and allocates twenty percent of public deposits for small business and economic development.

Establishes an eleven-member advisory board appointed by the governor and subject to senate confirmation, with requirements that six or more members have banking or finance expertise and two represent consumer advocacy or social justice organizations.

Exempts the bank from state and local fees and taxes, requires quarterly reporting to the commission and annual reports to the legislature, and subjects the bank to examination by the superintendent of financial services using standards appropriate for publicly owned financial institutions.