S. 9044 Summary

• Creates the State of New York Public Bank as an independent financial institution governed by a commission with at least seven members appointed by state officials, with operations to commence by April 1, 2022.

• Authorizes the bank to serve as depository for state moneys, provide infrastructure loans for public projects, offer low-cost student loans, and provide credit to small businesses, minority-owned enterprises, farmers, and underserved communities.

• Allows the bank to leverage up to 30 percent of public deposits as capital to provide low-cost loans and credit while maintaining capital adequacy standards and undergoing examinations by the Department of Financial Services.

• Exempts the bank from state and local fees and taxes, requires quarterly reporting to the commission and annual reports to the legislature, and prohibits loans to advisory board members, bank president, and bank employees.

• Authorizes the bank to invest state funds in U.S. securities, municipal bonds, federal agency obligations, and other approved investments while the State Comptroller retains authority to manage funds needed for state government operations.