New York A 6268: Establishes the "New York public banking act"

Bill Text

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A06268 Summary:

BILL NOA06268 

&nbsp

SAME ASSAME AS S01992

&nbsp

SPONSORVanel

&nbsp

COSPNSRRosenthal, Otis, Shrestha, Moreno

&nbsp

MLTSPNSR

&nbsp

Amd §2, add Art 3-C §§156 - 156-i, Bank L; amd §98, St Fin L; amd §10, Gen Muni L

&nbsp

Establishes the "New York public banking act"; authorizes municipal and other local governments to form and control public banks through the ownership of capital stock or other ownership interests, and to loan or grant public funds or lend public credit to such public banks for the public purposes of achieving cost savings, strengthening local economies, supporting community economic development, and addressing infrastructure and housing needs for localities.

Go to top A06268 Actions:

BILL NOA06268 

&nbsp

03/03/2025referred to banks

01/07/2026referred to banks

Go to topA06268 Committee&nbspVotes:

Go to topA06268 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA06268 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 6268

 2025-2026 Regular Sessions

 IN ASSEMBLY

 March 3, 2025
 ___________

 Introduced by M. of A. VANEL -- read once and referred to the Committee
 on Banks

 AN ACT to amend the banking law, the state finance law and the general
 municipal law, in relation to establishing the "New York public bank-
 ing act"

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Short title. This act shall be known and may be cited as
 2 the "New York public banking act".
 3 § 2. It is the intent of the legislature that this act (i) authorizes
 4 municipal and other local governments to form and control public banks
 5 through the ownership of capital stock or other ownership interests, and
 6 to loan or grant public funds or lend public credit to such public banks
 7 for the public purposes of achieving cost savings, strengthening local
 8 economies, supporting community economic development, and addressing
 9 infrastructure and housing needs for localities; and (ii) codifies the
 10 common law interpretation of the New York state constitution that
 11 cities, counties, and other municipalities may own stock or other owner-
 12 ship interests in, and lend or grant money to, public and private corpo-
 13 rations, limited liability companies or not-for-profit corporations, so
 14 long as such actions are pursuant to public purposes.
 15 § 3. Subdivisions 1 and 11 of section 2 of the banking law, subdivi-
 16 sion 1 as amended by chapter 684 of the laws of 1938 and subdivision 11
 17 as amended by chapter 154 of the laws of 2007, are amended to read as
 18 follows:
 19 1. Bank. The term, "bank," when used in this chapter, unless a differ-
 20 ent meaning appears from the context, means any corporation, other than
 21 a trust company, organized under or subject to the provisions of article
 22 three or three-C of this chapter.
 23 11. Banking organizations. The term, "banking organizations," when
 24 used in this chapter, means and includes all banks, trust companies,

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01287-01-5

 A. 6268 2

 1 private bankers, savings banks, safe deposit companies, savings and loan
 2 associations, credit unions, public banks organized under article
 3 three-C of this chapter, and investment companies.
 4 § 4. The banking law is amended by adding a new article 3-C to read as
 5 follows:
 6 ARTICLE 3-C
 7 PUBLIC BANKS
 8 Section 156. Definitions.
 9 156-a. Sponsors and corporate structure.
 10 156-b. Governance.
 11 156-c. Public bank charter requirements.
 12 156-d. Financial and operations framework.
 13 156-e. Insurance.
 14 156-f. Deposits.
 15 156-g. Permitted activities of the public bank.
 16 156-h. Inconsistency with other laws.
 17 156-i. Owners not to be considered bank holding companies.
 18 § 156. Definitions. For the purposes of this article:
 19 1. "Advisory board" means a board established pursuant to section one
 20 hundred fifty-six-b of this article.
 21 2. "Affiliate" means:
 22 (a) in the case of a person (other than an individual), another person
 23 that directly, or indirectly through one of more intermediaries,
 24 controls, or