What's happening
This bill requires the New York Green Bank to undergo an annual financial examination by the superintendent of financial services, with results reported to key state officials.
Why it matters
Increases oversight and accountability. By requiring annual examinations by the superintendent of financial services, the bill ensures the Green Bank’s financial activities and management practices are regularly scrutinized, promoting responsible stewardship of public funds.
Aligns Green Bank standards with financial institutions. Although the Green Bank isn’t classified as a banking organization, the bill mandates it be evaluated using the same rigorous standards applied to banks, which may lead to higher operational standards and more prudent lending/investment decisions.
Enhances transparency for policymakers. The annual examination reports, including findings and recommendations, must be shared with key state officials and legislative finance committees, enabling better-informed policy decisions and legislative oversight regarding the Green Bank’s performance and risks.
Potential implications for Green Bank operations. The requirement to pay for these examinations and adhere to stricter oversight could influence the Green Bank’s costs and administrative priorities, possibly affecting its approach to funding clean energy projects in New York.
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Who cares
Headline styles
Audit Green Bank Yearly
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.720
- Referred to energy and telecommunications
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7647
IN SENATE
February 2, 2018
Introduced by Sen. GRIFFO -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
AN ACT to amend the public authorities law, in relation to the examination of the Green Bank
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The public authorities law is amended by adding a new section 1859-a to read as follows:
§ 1859-a. Examination. At least once in each calendar year, the Green Bank, a division of the New York state energy research and development authority, shall be examined by the superintendent of financial services for the purposes of determining such entity's net worth, the soundness of its management and operating policies and the rate of return on its loans and investments, and any losses on such loans and investments. The Green Bank shall not be deemed to be a banking organization; provided, however, that the Green Bank shall be examined applying the same standards as applicable to loans and investments by financial institutions. The authority shall pay the cost of such examination. Copies of each examination report, including the findings, conclusions and recommendations of the examiners, shall be furnished to the New York state energy research and development authority and to the comptroller and the respective chairs of the senate finance committee and the assembly ways and means committee.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14304-01-8
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public authorities law, in relation to the examination of the Green Bank
Purpose
To require an annual examination of the Green Bank by the Superintendent of Financial Services using the same standards applicable to loans and investments by financial institutions.
Summary of provisions
Section 1 would add a new section 1859-a to the public authorities law to require that, at least once in each calendar year, the Green Bank, a division of NYSERDA, shall be examined by the Superintendent of Finan- cial Services for the purposes of determining the Green Bank's net worth, the soundness of its management and operating policies and the rate of return on its loans and investments, and any losses on such loans and investments. The Green Bank would not be deemed a banking organization , however, the same standards for examination of loans and investments by financial institutions would apply. NYSERDA would pay for the cost of such examinations and copies of each examination report would be furnished to NYSERDA, the comptroller and the respective Chairs of the Senate Finance Committee and the Assembly Ways and Means Commit- tee.
Section 2 provides that the bill would take effect immediately.
Existing law
The New York Green Bank is currently a division of the New York Research and Development Authority (NYSERDA), therefore, oversight is provided by NYSERDA and Green Bank personnel with very little outside project review and approval.
Justification
The New York Green Bank (NYGB) was created as a $1.0 billion investment fund to accelerate clean energy deployment in New York State. The $1.0 billion is provided to NYSERDA by ratepayers over a ten year period via several clean energy initiatives including the Clean Energy Fund. The NYGB's mission is to encourage private investment in renewable electric generation by using the NYGB funds as leverage. Because the NYGB is a division of NYSERDA, oversight of the NYGB is provided by NYSERDA and Green Bank personnel.
This bill would require the Green Bank, at least annually, to undergo a fiscal examination by the Superintendent of Financial Services at the same standard of examination that applies to loans and investments by financial institutions. Transparency is a vital component in the success of clean energy programs funded by ratepayer dollars. This legislation will facilitate transparency and will lend credence to the initiatives of NYSERDA and the Green Bank.
Legislative history
New bill.
Fiscal implications
None to the state.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.