Bill Summary: A03352 - New York Public Banking Act

• Authorizes cities, towns, villages, and counties (with combined population of at least 100,000) to form and own public banks as not-for-profit corporations, limited liability companies, or stock corporations.

• Public banks may raise capital through public deposits, sponsor equity contributions, passive investor equity, and corporate debt sales, with minimum initial capitalization of at least 10% of projected first-year lending.

• Establishes governance structure with 9-11 member boards appointed by executive and legislative branches, with requirements for independent directors, community banking experience, and board diversity reflecting the sponsor's population composition.

• Public banks must prioritize lending to worker cooperatives, affordable housing, renewable energy, small businesses, minority and women-owned enterprises, and underserved communities while exempting public banks from state and local taxes.

• Public banks are exempt from standard banking regulations regarding market analysis, competitive impact review, and deposit insurance requirements for governmental deposits; owners are not considered bank holding companies.