Bill > H975

This bill establishes a Massachusetts public bank that is wholly owned by the commonwealth. The key provisions are: The bank will hold a portion of the commonwealth's funds as deposits and invest them within the state to further the bank's goals, which include promoting economic development, assisting businesses and municipalities in recovering from external shocks, addressing affordable housing needs, supporting sustainable agriculture, and mitigating climate change. The bank will be supervised by the commissioner of banks for safety and soundness. The bank will have a board of directors with 9 members, including the state treasurer, and an advisory board of 18 members representing various stakeholder groups. The boards will oversee the bank's operations and a 4-year business plan. The commonwealth will provide an initial $200 million equity investment in the bank over 4 years, and the state treasurer will deposit at least $1.4 billion in public funds with the bank. The bank's deposits and liabilities will be guaranteed by the full faith and credit of the commonwealth. The bank is authorized to provide various types of affordable financing, including loans, credit enhancements, and equity investments, to eligible recipients such as municipalities, nonprofits, cooperatives, small businesses, and rural enterprises, with a focus on supporting underserved communities and addressing economic inequities.

Business and Industry

https://malegislature.gov/Bills/193/H975