NY A03309

Creates the Empire State Public Bank as a state-chartered financial institution governed by a commission consisting of the governor, lieutenant governor, state comptroller, and chairs of the senate and assembly banking committees, with operations to commence by April 1, 2022.

Authorizes the bank to serve as depository for state moneys, facilitate infrastructure financing for public systems (water, transportation, broadband, housing, etc.), administer low-cost student loan programs, and provide capital access to businesses, non-profits, and underserved communities.

Establishes a transition board composed of legislative appointees and seven citizen members with banking expertise to develop a startup business plan, determine capital requirements, and recommend options for capitalizing the bank.

Creates an 11-member advisory board appointed by the governor to review bank operations and provide recommendations on management, services, and procedures; requires members to have banking or finance expertise, with at least two from consumer advocacy or social justice organizations.

Exempts the bank from state and local taxes and fees, requires quarterly reporting to the commission and annual reports to the legislature, mandates independent audits and superintendent examinations, and prohibits loans to board members, bank officers, and employees.