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NY A05782
Bill
Status
2/25/2021
Primary Sponsor
Victor Pichardo
Click for details
AI Summary
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Authorizes municipalities (cities, towns, villages, counties) with a combined population of at least 100,000 residents to establish and control public banks as corporations, limited liability companies, or not-for-profit entities.
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Public banks must be governed by 9-11 member boards with majority independent directors; requires community banking experience and diversity requirements for board composition.
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Public banks are exempt from state, county, and municipal taxes and may raise capital through public deposits, equity contributions, and debt sales; must prioritize lending to worker cooperatives, affordable housing, renewable energy, small businesses, minority-owned enterprises, and underserved communities.
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Permits state and local governments to deposit public funds, invest in public bank securities, and lend credit to public banks; public bank owners are not considered bank holding companies.
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Charter applications require demonstration of adequate capitalization (minimum 10% of projected first-year lending), qualified management, internal controls, and compliance with community reinvestment and fair lending requirements.
Legislative Description
Establishes the "New York public banking act"; authorizes municipal and other local government to form and control public banks through the ownership of capital stock or other ownership interests, and to loan or grant public funds or lend public credit to such public banks for the public purposes of achieving cost savings, strengthening local economies, supporting community economic development, and addressing infrastructure and housing needs for localities.
Last Action
enacting clause stricken
9/15/2021