Bill > S693

This bill establishes a public bank of Massachusetts to support economic development. The key provisions are: 1. The Bank of Massachusetts will be a state-chartered financial institution that can make loans and float bond issues to protect and expand the quality of life and economic prosperity of all Massachusetts residents. It will focus on providing capital access to underbanked populations, industries, small businesses, public-private partnerships, and local governments for infrastructure and business development. 2. The Bank will be led by a Chief Executive Officer and Chief Operating Officer appointed by the Governor, State Treasurer, and Secretary of the Commonwealth. It will be governed by a 10-member Board of Directors, one of whom will be the State Treasurer. 3. The Bank can provide various financial products like loans, equity investments, loan guarantees, and bond issuances. It can also accept deposits from state public institutions and raise funds through stock offerings and debt issuances. 4. The Bank is prohibited from engaging in commercial or investment banking activities like accepting customer deposits or underwriting securities. It is also prohibited from merging with privately owned enterprises or financing projects with borrowers that have histories of human rights abuse or other malfeasance. 5. The Bank will be subject to annual audits by the state auditor and regular examinations by the Commissioner of Banks to ensure its safe and sound operation. It will also be required to adopt a written benefit policy that includes sustainability factors in its investment decisions and report on its financial condition and performance.

Business and Industry

https://malegislature.gov/Bills/193/S693