A04448 Summary:

COSPNSRDickens, Reyes, Epstein, Hyndman, Kim, Simon, Burdick, DeStefano
Add Art 17 §§254 - 277, St Fin L
Relates to establishing the empire state public bank to use the state's depository assets to generate additional benefit for the people and the economy of the state.
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A04448 Actions:

02/14/2023referred to banks
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A04448 Committee Votes:

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A04448 Floor Votes:

There are no votes for this bill in this legislative session.
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A04448 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  TITLE OF BILL: An act to amend the state finance law, in relation to establishing the empire state public bank; and providing for the repeal of certain provisions upon expiration thereof   PURPOSE: To establish a public bank for the state of New York to provide New York State taxpayers with more efficient utilization of their tax dollars in the form of access to low-cost capital to build up our infrastructure, sustain and build affordable housing, spur economic development, to lower the total cost of education in the form of low-interest student loans, and subsidize the state general fund in the form of bank divi- dends and profits.   SUMMARY OF PROVISIONS: Section 1. The state finance law is amended by adding a new article 17 to read as follows: ARTICLE 17 EMPIRE STATE PUBLIC BANK Sections: 254. Legislative intent 255. Definitions 256. Creation 257. Commission 258. Transition board 259. Deposit of public funds 260. Investment of state moneys 261. Infrastructure loans 262. Student loans 263. Business, Non-Profit and Individual Loans 264. Treasury and banking services 265. Management sk 1 266. Advisory board sk 1 267. Financial regulation sk 1 268. Reporting requirements sk 1 269. Ethical requirements sk 1 270. Fees and taxes sk 1 271. Trust records sk 1 272. Capitalization sk 1 273. Public depositary sk 1 274. Application of this chapter to the president sk 1 275. Cash and demand deposits available sk 1 276. Permitted investments sk 1 277. Severability   JUSTIFICATION: Each year, the state of New York pays millions of taxpayer dollars to the financial industry in the form of banking fees, bonding fees, inter- est, commissions and other payments, simply for the privilege of utiliz- ing their banking services. Additionally, the banks use our municipal and state revenue deposits to earn money for themselves and their share- holders by speculating in the market with these deposits. With the repeal of Glass-Steagall, any state monies held in for-profit banks are co-mingled with speculative commercial investment.The Great Recession of 2008 was a direct result of our insured personal and government deposits that were co-mingled with poorly regulated commercial investment products used to speculate in the market.This lost money for both indi- viduals and governments, however, the banks still made money in the form of commissions, fees, interest and other payments. Additionally, after the banks creating this financial meltdown, they were then bailed out by the federal government with taxpayer money. With the federal administration's threatened dismantling of the Dodd- Frank Wall Street Reform and Consumer Protection Act and the oversight agencies it created   Financial Stability Oversight Council, the Office of Financial Research, and the Bureau of Consumer Financial Protection New York must find a safe banking alternative to invest its revenues and protect them from the actions of the federal administration. Addi- tionally, New York State has a fiduciary responsibility to its taxpayers to ensure their tax dollars are used in the most efficient manner possi- ble. There exists a banking alternative that would not allow private business to profiteer off public funds; therefore, New York State government is obligated to pursue that alternative. The North Dakota Public Bank has been in existence for almost a century. It makes affordable loans to small businesses, farmers, community projects, local municipalities and students. Through their bonding, it saves North Dakota taxpayers up to 50% on infrastructure projects such as schools, roads and bridges, it eliminate millions in bank fees, interest, bonding and money management fees for local municipalities and the state, it supports and encourages a robust community banking sector while also allowing for financial stability in volatile markets and in recessions.In fact, because the North Dakota Public Bank utilizes the community banks for their loans, their community banking sector is significantly more robust than other states as well as expands their lending capacity.When the great recession hit in 2008, the banks of North Dakota had their public bank to turn to for collateral and credit; this allowed them to lend while every other state saw bank lending come to a halt. A public bank for New York will ensure our tax revenues will stay in the possession of the taxpaying public, allow for significantly more trans- parency, utilize a higher percentage per dollar of these funds directly for the benefit of the residents of New York State, as well as paying the dividends/profits of those funds to the taxpayer via the general fund instead of to a publicly-traded for-profit bank, its shareholders and principal officers. New York taxpayer funds should be put to use for sole benefit of the taxpayers for New York State in the form of economic development, infrastructure, affordable housing and education - and the dividends of these deposits and any earnings on them should be paid to the taxpayers of the state of New York.   PRIOR LEGISLATIVE HISTORY: 2021/22: A3309 referred to banks 2019/20: A437 referred to banks   FISCAL IMPLICATIONS: There will be a significant financial benefit for taxpayers and resi- dents of New York State.   EFFECTIVE DATE: This act shall take effect immediately; provided, however, that section 258 of the state finance law, as added by section one of this act shall be deemed repealed on April 1, 2022; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regu- lation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.
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A04448 Text:

                STATE OF NEW YORK
                               2023-2024 Regular Sessions
                   IN ASSEMBLY
                                    February 14, 2023
        Introduced  by  M.  of  A. STECK, DICKENS, REYES, EPSTEIN, HYNDMAN, KIM,
          SIMON, BURDICK, DeSTEFANO -- read once and referred to  the  Committee
          on Banks
        AN  ACT  to amend the state finance law, in relation to establishing the
          empire state public bank; and providing  for  the  repeal  of  certain
          provisions upon expiration thereof

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The state finance law is amended by adding a new article 17
     2  to read as follows:
     3                                 ARTICLE 17
     4                          EMPIRE STATE PUBLIC BANK
     5  Section 254. Legislative intent.
     6          255. Definitions.
     7          256. Creation.
     8          257. Commission.
     9          258. Transition board.
    10          259. Deposit of public funds.
    11          260. Investment of state moneys.
    12          261. Infrastructure loans.
    13          262. Student loans.
    14          263. Business, non-profit and individual loans.
    15          264. Treasury and banking services.
    16          265. Management.
    17          266. Advisory board.
    18          267. Financial regulation.
    19          268. Reporting requirements.
    20          269. Ethical requirements.
    21          270. Fees and taxes.
    22          271. Bank records.
    23          272. Capitalization.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 4448                             2
     1          273. Public depositary.
     2          274. Application of this chapter to the president.
     3          275. Cash and demand deposits available.
     4          276. Permitted investments.
     5          277. Severability.
     6    §  254.  Legislative  intent.  1. The legislature finds that there are
     7  significant public infrastructure, higher education and business  devel-
     8  opment  needs of the state that are unmet. The legislature further finds
     9  that there are opportunities to use the  state's  depository  assets  to
    10  generate additional benefit for the people and the economy of the state.
    11  Therefore,  the  legislature  intends  to create the empire state public
    12  bank as a legacy institution that amasses sufficient capital reserves to
    13  address opportunities now and in the future.
    14    2. The legislature intends that the public bank may:
    15    (a) Facilitate investment in, and financing of, public  infrastructure
    16  systems  that  will increase public health, safety, and quality of life,
    17  improve environmental conditions, and  promote  community  vitality  and
    18  economic growth;
    19    (b)  Assist  students  who  are in need of additional low-cost student
    20  loans in order to finance the cost of higher education;
    21    (c) Provide businesses, communities and low income areas of our  state
    22  access to low-interest capital; and
    23    (d)  Leverage  New York's financial capital and resources, and work in
    24  partnership with financial institutions, community-based  organizations,
    25  economic development organizations, guaranty agencies, and other similar
    26  organizations.
    27    3.  The  mission of the bank is to use New York's depository assets in
    28  ways that afford most efficient use  of  taxpayer  revenues  and  public
    29  resources  for  the  benefit of the people and economy of the state. The
    30  legislature intends for the bank to apply business strategies to  manage
    31  taxpayer  revenues while concurrently meeting identified needs and stra-
    32  tegic opportunities across  the  state.  In  achieving  its  purpose  of
    33  improving  public  infrastructure and increasing access to higher educa-
    34  tion, the legislature intends for the bank to adhere  to  the  following
    35  priorities:
    36    (a) Institutional safety and soundness;
    37    (b) Long-term viability;
    38    (c) Social return and monetary return on investments;
    39    (d) Prudent and best banking and business practices;
    40    (e) Highest ethical, accountability, and transparency standards; and
    41    (f) Insulation from political influence.
    42    §  255.  Definitions. The definitions in this section apply throughout
    43  this article unless the context clearly requires otherwise.
    44    1. "Board" means the advisory board of the empire state public bank.
    45    2. "Commission" means the empire state public bank commission.
    46    3. "Department" means the department of financial services.
    47    4. "Director" means  the  director  of  the  department  of  financial
    48  services.
    49    5."Superintendent"  means  the  superintendent  of  the  department of
    50  financial services.
    51    6. "Public infrastructure system" means a system of a local government
    52  or political subdivision, a special purpose district,  a  public  school
    53  district,  an  institution  of  higher education, a federally recognized
    54  Indian tribe, or the state,  including  but  not  limited  to  a  system
    55  involving:    Wastewater  treatment; storm water management; solid waste
    56  disposal; drinking water treatment; flood control levees;  energy  effi-

        A. 4448                             3
     1  ciency enhancements; roads, streets, and bridges; transportation infras-
     2  tructure,  including  freight  and  passenger  rail  and public transit;
     3  broadband and telecommunications infrastructure; outdoor recreation  and
     4  habitat  protection  facilities;  community,  social  service, or public
     5  safety facilities; schools and educational  facilities;  and  affordable
     6  housing.
     7    7.  "State-chartered  bank"  means any corporation organized under the
     8  laws of this state that is engaged in banking, other than a trust compa-
     9  ny, savings association, or a mutual savings bank. It does  not  include
    10  the empire state public bank.
    11    8.  "State  moneys"  means  all moneys or funds belonging to or in the
    12  custody of the state under the control of the state comptroller shall be
    13  considered as state moneys or funds.
    14    9. "Comptroller" means the comptroller of the state of New York.
    15    10. "Bank" means the empire state public bank.
    16    § 256. Creation. The empire state public bank is created.
    17    § 257. Commission. 1. The  empire  state  public  bank  commission  is
    18  created  as  the primary governing authority of the bank. The commission
    19  shall consist of the governor, the lieutenant governor, the chair of the
    20  assembly banking committee, the chair of senate banking  committee,  and
    21  the state comptroller.
    22    2. The commission shall adopt rules regarding the:
    23    (a) Safety and soundness standards of the bank;
    24    (b) Criteria for evaluating, approving, and monitoring loans;
    25    (c) Eligibility requirements and limits for borrowing;
    26    (d) Transparency requirements for bank operations;
    27    (e)  Ethics  and conflict of interest requirements for the commission,
    28  the board, and officers and employees of the bank,  including  rules  to
    29  ensure  that  they perform their functions in compliance with the public
    30  officers law; and
    31    (f) Other topics as needed for efficient administration of the bank.
    32    3. The commission shall commence bank operations by April  first,  two
    33  thousand twenty-two.
    34    4.  The  commission may delegate to the bank president such duties and
    35  powers as deemed necessary to carry on the  business  of  the  bank  and
    36  enforce this article efficiently and effectively. The commission may not
    37  delegate its rule-making or policy-making authority.
    38    5.  The  commission  shall  adopt  policies and procedures for its own
    39  governance.
    40    6. The commission  may  establish  technical  advisory  committees  or
    41  consult  with  public  and  private  sector experts in substantive areas
    42  related to the bank's mission, objectives, and duties.
    43    § 258. Transition board. 1. (a) The bank transition  board  is  estab-
    44  lished, with members as provided in this section.
    45    (i)  The  temporary  president  of the senate shall appoint one member
    46  from each of the two largest caucuses of the senate.
    47    (ii) The speaker of the assembly shall appoint one member from each of
    48  the two largest caucuses of the assembly.
    49    (iii) The temporary president of the senate and  the  speaker  of  the
    50  assembly  jointly shall appoint seven citizen members with a substantial
    51  background in banking or financial issues.
    52    (b) The temporary president of the  senate  and  the  speaker  of  the
    53  assembly  jointly  shall select the chair from among the citizen member-
    54  ship. The chair shall convene the initial meeting of the bank transition
    55  board within forty-five days after the effective date of this section.

        A. 4448                             4
     1    2. The bank transition board shall develop and recommend the following
     2  to the commission within the timeline established by the commission:
     3    (a)  A  start-up  business  plan  for the bank that includes plans and
     4  timelines for functions that are new and functions transitioning to  the
     5  bank that were previously performed by another entity;
     6    (b) Initial capital requirements of the bank;
     7    (c) Options for capitalizing the bank; and
     8    (d)  Other items requested by the commission in order to commence bank
     9  operations by April first, two thousand twenty-four.
    10    3. Legislative members of the bank transition board must be reimbursed
    11  for travel expenses in accordance with the  rules  of  their  respective
    12  houses.    Non-legislative  members  are  entitled  to be reimbursed for
    13  expenses incurred in the discharge of their duties under this article.
    14    4. The bank transition board may  appoint  an  interim  president  and
    15  other  necessary  staff who are exempt from the provisions of this chap-
    16  ter, and who serve at the board's pleasure on such terms and  conditions
    17  as  the  board determines. The department must provide technical assist-
    18  ance to the bank transition board. The  board  may  also  contract  with
    19  additional  persons  who have specific technical expertise if the exper-
    20  tise is necessary to carry out the requirements of this section.
    21    § 259. Deposit of public funds. 1. (a) The bank  shall  serve  as  the
    22  depository  for state moneys once the bank has built sufficient capacity
    23  to accept and manage state moneys, as determined by the commission.  The
    24  commission  shall  establish a process and time frame for the deposit of
    25  state moneys into the bank.
    26    (b) The comptroller shall deposit state moneys in the bank in  accord-
    27  ance  with  the  time  frame and guidelines determined by the commission
    28  under this section.
    29    2. All deposits in the bank are guaranteed by the state.
    30    3. All income earned by the bank on state moneys that are deposited in
    31  or invested with the bank must be credited to and become a part  of  the
    32  revenues and income of the bank.
    33    4.  The  bank  may accept deposits of public funds, but is exempt from
    34  the requirements of section one hundred five of this chapter.
    35    5. The bank may accept funds from any source, including federal  funds
    36  or other public funds.
    37    6.  The  commission  shall  review  state accounts that contain public
    38  funds that are not state moneys, such as the state insurance  fund,  and
    39  make  recommendations  to the governor and the appropriate committees of
    40  the legislature as to which accounts should be deposited in the bank.
    41    7. The bank shall make disbursements to the state funds  as  necessary
    42  for the function of state government.
    43    §  260.  Investment  of state moneys. The bank may invest state moneys
    44  deposited in the bank that are not reasonably expected to  be  necessary
    45  to meet the short or intermediate-term liquidity needs of the state. The
    46  state  comptroller  retains authority to manage and invest the amount of
    47  funds necessary to meet the operational needs of state government.
    48    § 261. Infrastructure loans. The  bank  is  authorized  to  facilitate
    49  investment  in, and financing of, construction, rehabilitation, replace-
    50  ment, and improvement of new and existing public infrastructure systems.
    51  Before initiating operations, the commission must present an implementa-
    52  tion plan and any necessary legislation to the governor and  appropriate
    53  legislative committees, that:
    54    1. Identifies the public infrastructure systems that the bank plans to
    55  target initially;

        A. 4448                             5
     1    2.  Identifies any existing state programs that the bank recommends be
     2  transferred under its umbrella, and the  steps  and  timelines  for  the
     3  transitions;
     4    3. Describes additional financing products and services the bank plans
     5  to offer, the target markets, anticipated rates, terms, and conditions;
     6    4. Demonstrates how bank products and services will increase access to
     7  capital for public infrastructure systems and complement those of exist-
     8  ing public and private sources; and
     9    5.  Demonstrates  how  the  bank plans to maximize revenues and public
    10  benefit.
    11    § 262. Student loans. The bank is authorized  to  administer  a  state
    12  guarantee  loan  program  to assist students in need of low-cost student
    13  loans and related loan benefits to address educational needs  as  neces-
    14  sary to support student success.  The commission shall develop an imple-
    15  mentation plan that:
    16    1.  Identifies  the  needs  and benefits to selected students that the
    17  program will target initially;
    18    2. Demonstrates how the bank plans to  maximize  revenues  and  public
    19  benefit while minimizing public risk;
    20    3.  Demonstrates  how  the  bank  will  coordinate  with the office of
    21  student financial assistance; and
    22    4. Identifies the ways that the program  will  address  the  following
    23  issues related to loans:
    24    (a) Qualification criteria for students;
    25    (b) Obligations and options for loan repayment;
    26    (c) Requirements for loan guarantees and reserves;
    27    (d) Fee and interest rate structure;
    28    (e) Maximum loan amounts; and
    29    (f)  Ensuring  student  awareness  of grants, federal loans, and other
    30  financial aid programs.
    31    § 263. Business, non-profit and individual loans. The bank is  author-
    32  ized  to  leverage its financial capital and resources to provide access
    33  to low-cost capital to businesses, entrepreneurs, non-profit  community-
    34  based  organizations, start-up businesses and below average income areas
    35  and individuals of this state to further economic  growth,  create  jobs
    36  and build and sustain affordable housing for the residents of this state
    37  as provided for by this section. The bank is also authorized to leverage
    38  its  financial capital and resources to provide access to low-cost capi-
    39  tal to bring fiscally sound and financially successful  businesses  into
    40  this state as provided for by this section.  The bank is also authorized
    41  to  leverage  its  financial  capital and resources to provide access to
    42  low-cost capital to established businesses in this state for the purpose
    43  of providing financial stability for the bank as provided  for  by  this
    44  section.
    45    1.  Purchase,  guarantee  or  hold loans made by private banks, credit
    46  unions or other financial institutions doing business in this state.
    47    2. Make loans in the form of participation loans with community  banks
    48  in  this state to qualified individuals and businesses residing or doing
    49  business in this state when the originator of  the  loan  is  a  private
    50  bank, credit union or other financial institution.
    51    3.  Serve  as  a  banker's  bank  for chartered banks in this state by
    52  providing correspondent banking services and other related  services  in
    53  keeping with its mission.
    54    4.  Accept  deposits related to such transactions from banks and other
    55  financial institutions.
    56    5. Be authorized to issue bank stock loans to state-charted banks.

        A. 4448                             6
     1    § 264. Treasury and banking services. 1.  For  financial  institutions
     2  that  make the bank a reserve depository, the bank may serve as a clear-
     3  inghouse, including all facilities for providing  domestic  and  foreign
     4  exchange, and may rediscount paper, on terms the commission provides.
     5    2. The bank may provide corporate trust services for the state and its
     6  political  subdivisions  including  trustee, escrow agent, paying agent,
     7  bond registrar, and transfer agent.
     8    3. The bank may buy and sell federal funds; issue  letters  of  credit
     9  for public deposits; and provide a safekeeping service for United States
    10  treasury  securities,  federal  agency securities, corporate bonds, tax-
    11  free bonds, money market investments, and mortgage-backed securities.
    12    4. The bank may perform  services  currently  contracted  out  by  the
    13  office  of  temporary  disability services regarding electronic benefits
    14  transfer cards.
    15    § 265. Management. 1. The commission shall appoint  a  bank  president
    16  with  demonstrated  and substantial experience in banking. The president
    17  shall serve at the commission's pleasure, on such terms  and  conditions
    18  as the commission determines.
    19    2. The president shall provide support to the commission and the advi-
    20  sory  board,  carry  out  bank policies and programs, and exercise addi-
    21  tional authority as may be delegated by the commission.
    22    3. Subject to available funding and consistent with commission  direc-
    23  tion, the bank president:
    24    (a)  May  employ  such  additional  personnel  as are necessary to the
    25  bank's operations.   This employment shall be  in  accordance  with  the
    26  state civil service law; and
    27    (b)  May contract with persons who have the technical expertise needed
    28  to carry out a specific, time-limited project.
    29    § 266. Advisory board. 1. (a) A public bank advisory board  consisting
    30  of  eleven  members  is created to review the bank's operations and make
    31  recommendations relating to the bank's management,  services,  policies,
    32  and procedures.
    33    (b)  The governor shall appoint members of the advisory board, subject
    34  to confirmation by the senate. The members of the advisory board must be
    35  knowledgeable in banking or finance and must represent  a  diversity  of
    36  experience  relevant  to  activities  of  the  bank.  Six or more of the
    37  members must have expertise in banking or finance.  Two members must  be
    38  from  a consumer advocacy or social justice organization or have a back-
    39  ground in the area of consumer advocacy or  social  justice.    Advisory
    40  board members serve at the pleasure of the governor.
    41    (c) The board shall choose its chair from among its membership.
    42    2.  The  term of the members is three years. Five of the initial board
    43  members must be appointed to serve an initial term of three years, three
    44  must be appointed to serve an initial term of two years, and  the  three
    45  remaining  members  must  be  appointed  to serve an initial term of one
    46  year. All subsequent terms are three years. To ensure that the board can
    47  continue to act, a member whose term expires  shall  continue  to  serve
    48  until his or her replacement is appointed. In the case of any vacancy on
    49  the  board  for  any  reason, the governor shall appoint a new member to
    50  serve out the term of the person whose position  has  become  vacant.  A
    51  board member may be removed for misconduct inconsistent with the mission
    52  of the bank by the governor.
    53    3.  Members  of  the  advisory board are entitled to reimbursement for
    54  expenses incurred in the discharge of their duties under this article.

        A. 4448                             7
     1    § 267. Financial regulation. 1. The bank must maintain capital adequa-
     2  cy and other standard indicators of safety and soundness as is appropri-
     3  ate for a publicly owned financial institution.
     4    2.  The  superintendent  may  examine the bank in the same manner as a
     5  state-chartered financial institution.  The  superintendent  shall  take
     6  into  consideration  the unique circumstances of a publicly owned finan-
     7  cial institution when examining the bank. The bank shall pay the  direc-
     8  tor for the reasonable costs of examinations.
     9    3.  The  bank  must  undergo  independent  audits on the same basis as
    10  state-chartered banks.
    11    § 268. Reporting requirements. 1.  The  bank  shall  submit  quarterly
    12  reports to the commission in a manner and form prescribed by the commis-
    13  sion.    Late reports are not permissible and shall be cause for removal
    14  of the person or persons responsible.
    15    2. The commission shall make  a  report  to  the  legislature  on  the
    16  affairs of the bank by December first of each year.
    17    § 269. Ethical requirements. The bank may not make a loan to any advi-
    18  sory  board  member,  the president, public officers or employees of the
    19  bank. Advisory board members, the president, and employees of  the  bank
    20  must  follow any applicable ethical requirements in rules, policies, and
    21  procedures adopted by the commission.
    22    § 270. Fees and taxes. The bank is exempt from payment of all fees and
    23  taxes levied by the state or any of its subdivisions.
    24    § 271. Bank records. 1. Certain bank business records and  records  of
    25  the department relating to the bank are exempt from public disclosure as
    26  authorized by the department of financial services.
    27    2.  Financial  and  commercial  information  and  records submitted to
    28  either the department or the commission for the purpose of administering
    29  this article may be shared between the department and  the  comptroller.
    30  These  records  may  also  be used in any suit or administrative hearing
    31  involving any provision of this chapter.
    32    3. This section does not prohibit:
    33    (a) The issuance of general statements based on the reports of persons
    34  subject to this article as long as the statements do  not  identify  the
    35  information furnished by any person; or
    36    (b)  The  publication by the director or the commission of the name of
    37  any person violating this article and a statement of the manner  of  the
    38  violation by that person.
    39    § 272. Capitalization. The commission must make recommendations to the
    40  appropriate fiscal committees of the legislature on options for capital-
    41  ization  of the bank. Any recommendations must include draft legislation
    42  for consideration by the legislature.
    43    § 273. Public depositary. The empire  state  public  bank  created  in
    44  section  two  hundred  fifty-six  of this article may accept deposits of
    45  public funds, but is not a public depositary.
    46    § 274. Application of this chapter to the president. The provisions of
    47  this chapter outside this article do  not  apply  to  the  president  as
    48  defined in section two hundred sixty-five of this article.
    49    § 275. Cash and demand deposits available. The state comptroller shall
    50  maintain  at  all  times  cash,  or  demand deposits in the empire state
    51  public bank or qualified public depositaries in an amount needed to meet
    52  the operational needs of state government. The state  comptroller  shall
    53  not  be  considered to be in violation of unlawful issuance of checks or
    54  drafts if he or she maintains demand accounts in public depositaries  in
    55  an amount less than all treasury warrants issued and outstanding.

        A. 4448                             8
     1    §  276.  Permitted  investments. Subject to the limitations in section
     2  two hundred sixty of this article, wherever there is in any fund  or  in
     3  cash  balances  in  the  state treasury more than sufficient to meet the
     4  current expenditures properly payable therefrom, the bank may invest  or
     5  reinvest  such portion of such funds or balances as the bank deems expe-
     6  dient in the following defined securities or classes of investments:
     7    1. Certificates, notes, or bonds of the United States, or other  obli-
     8  gations  of  the  United  States  or its agencies, or of any corporation
     9  wholly owned by the government of the United States;
    10    2. In state, county,  municipal,  or  school  district  bonds,  or  in
    11  warrants of taxing districts of the state. Such bonds and warrants shall
    12  be only those found to be within the limit of indebtedness prescribed by
    13  law  for the taxing district issuing them and to be general obligations.
    14  The state comptroller may purchase such bonds or warrants directly  from
    15  the  taxing  district or in the open market at such prices and upon such
    16  terms as it may determine, and may sell them at such times as  it  deems
    17  advisable;
    18    3. In motor vehicle fund warrants when authorized by agreement between
    19  the  state  comptroller  and  the department of transportation requiring
    20  repayment of invested funds from any moneys in the  motor  vehicle  fund
    21  available for state highway construction;
    22    4.  In federal home loan bank notes and bonds, federal land bank bonds
    23  and federal national mortgage association notes, debentures and  guaran-
    24  teed  certificates  of  participation,  or  the obligations of any other
    25  government sponsored corporation whose obligations  are  or  may  become
    26  eligible as collateral for advances to member banks as determined by the
    27  board of governors of the federal reserve system;
    28    5. Bankers' acceptances purchased on the secondary market;
    29    6. Negotiable certificates of deposit of any national or state commer-
    30  cial  or mutual savings bank or savings and loan association doing busi-
    31  ness in the United States, provided, the comptroller  shall  follow  the
    32  investment  policies  and  procedures advised by the investment advisory
    33  committee pursuant to subdivision b of section four hundred twenty-three
    34  of the retirement and social security law;
    35    7. Commercial paper, provided that the comptroller  shall  follow  the
    36  investment  policies  and  procedures advised by the investment advisory
    37  committee pursuant to subdivision b of section four hundred twenty-three
    38  of the retirement and social security law.
    39    § 277. Severability. If any clause, sentence, paragraph,  subdivision,
    40  section  or  part of this article shall be adjudged by a court of compe-
    41  tent jurisdiction to be invalid, such judgment shall not affect,  impair
    42  or invalidate the remainder thereof, but shall be confined in its opera-
    43  tion to the clause, sentence, paragraph, subdivision, section or part of
    44  this article directly involved in the controversy in which such judgment
    45  shall have been rendered.
    46    §  2.  This act shall take effect immediately; provided, however, that
    47  section 258 of the state finance law, as added by section  one  of  this
    48  act  shall be deemed repealed April 1, 2024.  Effective immediately, the
    49  addition, amendment and/or repeal of any rule  or  regulation  necessary
    50  for  the implementation of this act on its effective date are authorized
    51  to be made and completed on or before such effective date.
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A04448 LFIN:

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A04448 Chamber Video/Transcript:

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