Bill > S01992

This bill establishes the "New York Public Banking Act," which authorizes municipal and local governments to form and control public banks with several key provisions. The legislation allows cities, counties, and other local governments to create public banks as not-for-profit corporations, limited liability companies, or business corporations, with the primary goals of achieving cost savings, strengthening local economies, supporting community economic development, and addressing infrastructure and housing needs. The public banks would be governed by a diverse nine or eleven-member board, with representatives from local government, community banking, and various stakeholder groups, and must prioritize lending to worker cooperatives, community land trusts, low-income housing, renewable energy, small businesses, minority-owned enterprises, and other initiatives benefiting underserved communities. The bill includes specific requirements for bank governance, including board composition, ethical standards, and mission alignment, and provides tax exemptions and special provisions for these public banks. Importantly, the legislation allows local governments to invest in and lend credit to these public banks, and establishes a framework for their creation, operation, and regulatory oversight, with the aim of providing more community-focused banking services and economic development opportunities.