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REFERENCE TITLE: state-owned bank task force; appropriation |
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State of Arizona House of Representatives Fifty-fourth Legislature First Regular Session 2019
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HB 2407 |
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Introduced by Representatives Powers Hannley: Andrade, Blanc, Gabaldón, Peten, Rodriguez, Salman, Teller, Terán, Senator Gonzales
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AN ACT
establishing a state‑owned bank task force; appropriating monies.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. State‑owned bank task force; members; duties; report; delayed repeal
A. The state‑owned bank task force is established within the Arizona commerce authority, consisting of the following members who are appointed by the chief executive officer of the Arizona commerce authority:
1. The superintendent of financial institutions or the superintendent's designee.
2. A representative from the Arizona commerce authority.
3. A representative from the department of administration.
4. A representative from the corporation commission.
5. A representative from the state treasurer's office.
6. A representative from the department of revenue.
7. A representative from the Arizona department of agriculture.
8. A representative from a bank that has a permit that is issued pursuant to title 6, chapter 2, Arizona Revised Statutes.
9. A representative from a public bank advocacy organization.
10. A representative from the economic research department of each university under the jurisdiction of the Arizona board of regents.
B. The superintendent of financial institutions or the superintendent's designee shall serve as the chairperson of the task force.
C. Task force members serve without compensation but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2, Arizona Revised Statutes.
D. The task force shall explore and evaluate the feasibility of establishing a state-owned bank. The task force shall review and evaluate the following:
1. The bank of North Dakota, including its enabling statutes, governing structure and programs.
2. The findings from studies conducted by the state of Massachusetts relating to establishing a state-owned bank, including the report of the commission to study the feasibility of establishing a bank owned by the commonwealth.
3. Models used in other states and by financial institutions.
4. The effectiveness and usefulness of an existing state‑owned bank, specifically the economic impact of having a state-owned bank.
5. Any effects a state-owned bank will have on existing banks and financial institutions in this state.
6. The long-term broad economic impact and long-term job creation and state revenue effects of having a state-owned bank.
7. The capital requirements of a state-owned bank.
8. Initial capitalization options for a state-owned bank.
9. The cash management and banking needs of this state.
10. An estimate of the short-term operating costs and projected revenues of a state-owned bank.
11. The laws, statutes and rules applicable to establishing a state‑owned bank, including the possibility of amending the Constitution of Arizona to make a state‑owned bank in this state viable.
E. The task force shall also consider other programs or options that could serve the same purposes or achieve the same goals as a state‑owned bank, including:
1. Boston Community Capital's SUN (Stabilizing Urban Neighborhoods) initiative or the programs of other similar community development financial institutions if the task force reviews Boston Community Capital as a model of a nonprofit community development financial institution that both:
(a) Buys distressed mortgage loans of owner-occupied residential property.
(b) Provides new mortgages to the homeowners.
2. Loans and financial assistance offered by the United States small business administration if the task force considers whether any barriers or restrictions exist for small businesses in Arizona seeking financial assistance.
3. Any agricultural loan program or loan guaranty program at the federal and state levels if the task force considers whether any barriers or restrictions exist for small businesses in Arizona seeking loans for agricultural businesses.
4. Any investment authority that uses existing staff from several state agencies to promote, develop and invest in clean energy and energy efficiency projects if the task force both:
(a) Reviews whether an investment fund can leverage its capital to provide low‑cost financing to clean energy and energy efficiency projects in which a commercial bank would be less likely to invest.
(b) Investigates how such an investment authority would be funded.
F. For the purposes of subsection E of this section, the task force may:
1. Establish investigative subgroups.
2. Invite experts in relevant fields, including banking, finance, economics and community development to provide information and assistance to the task force.
G. The task force shall submit a report of its findings and recommendations to the governor, the president of the senate and the speaker of the house of representatives on or before December 1, 2019 and shall provide a copy of this report to the secretary of state.
H. This section is repealed from and after September 30, 2020.
Sec. 2. Appropriation; Arizona commerce authority
A. The sum of $30,000 is appropriated from the state general fund in fiscal year 2019-2020 to the Arizona commerce authority to assist the state-owned bank task force in its duties as prescribed in this act.