This summary was last updated January 23, 2025.
This bill would create a 19 member task force to study and make recommendations regarding the establishment of a state public bank. The 19 members will be appointed by the President of the Senate (2 seats), the Speaker of the House of Representatives (2 seats) and the Governor (15 seats). The bill specifies details about the required experience of the appointees, and aims to create a task force that features socioeconomic, linguistic, geographic and experiential diversity.
The principles of the bank are that it must be publicly controlled and operated to the public benefit, serving to save public dollars and to spur economic activity in the state.
The task force is charged with exploring the potential benefits and harms of a state public bank to state and local jurisdictions, and private industry. Specifically, it will look into the public bank’s potential role as a secondary loan market and depository for credit unions and community banks. It will also examine potential impacts on affordable housing construction, student and agricultural loans, local government infrastructure projects, and cannabis businesses.
The task force will also look at the potential benefits and harms of a state public bank with respect to its functioning as a green bank to capture federal funds and leverage private capital.
The task force must also explore governing and corporate structures for the bank, and means for capitalizing the bank – including function as a depository for credit unions and community banks.
The task force will provide a report on its findings and recommendations to the Legislature, by Sept. 1, 2026.
The bill appropriates $431,562 from the General Fund for staff support to the Task Force. It also declares an emergency, asserting that it is necessary for immediate preservation of the public peace, health and safety.