NY A05978

Establishes the New York State Banking Authority with five trustees appointed by the legislature, governor, comptroller, and attorney general to charter and oversee the New York State Bank.

Creates the New York State Bank with an eleven-member board to provide banking services to low-income individuals and cannabis-related businesses that lack access to traditional banking, including savings accounts, checking accounts, and low-interest loans.

Capitalizes the bank using a portion of tax revenue from legal adult-use cannabis product sales and deposits from low-income account holders, with all deposits guaranteed by the state rather than federal deposit insurance.

Requires the bank to comply with federal anti-money laundering and bank secrecy act requirements, including customer due diligence and suspicious activity reporting to FinCEN, with operations to commence by September 1, 2024.

Exempts the bank from state and local taxes and fees, requires quarterly reporting to the comptroller and superintendent, and mandates dissolution if private banking institutions adequately serve cannabis businesses and underserved communities.