Bill > S665

This bill establishes a Massachusetts public bank that is wholly owned by the commonwealth. The key provisions of the bill are: 1. The Massachusetts public bank will be created to provide a safe depository for public funds and support the economic well-being of the commonwealth, its cities and towns, residents, businesses, and institutions. The bank will have an accountable and responsive governance structure that ensures community input. 2. The bank will have various objectives, including assisting businesses and municipalities in recovering from the COVID-19 pandemic, expanding affordable and sustainable financing, enabling the commonwealth to share in the benefits extended by the Federal Reserve, ensuring public revenues function as deposits to finance in-state economic activity, strengthening state-chartered banks, supporting state-based public and non-profit agencies, addressing unmet affordable financing needs of cities and towns, supporting small and medium-sized enterprises, assisting workers and communities in creating jobs, increasing affordable housing options, promoting sustainable agriculture and rural business concerns, addressing historic and current economic inequities experienced by communities of color and women-owned enterprises, and supporting measures to mitigate climate change. 3. The bank will be governed by a board of directors appointed by the state treasurer, with representation reflecting the geographical, racial, and gender diversity of the commonwealth. The board will appoint a chief executive officer and approve the bank's business plan, which will be informed by a board of advisors representing various stakeholder groups. 4. The commonwealth will provide an initial equity investment of $200 million for the bank over 4 fiscal years, and the state treasurer will deposit state funds in the bank to maintain a minimum average annual balance. 5. The bank will extend "affordable financing" to eligible recipients, including public/quasi-public entities, non-profits, land trusts, cooperatives, community development organizations, small businesses, farms, and others, with a priority on supporting historically underserved communities, addressing climate change, and complementing the work of other public and non-profit agencies.

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https://malegislature.gov/Bills/192/S665