What's happening
This bill requires the New York Green Bank to undergo an annual examination by the superintendent of financial services, with reports submitted to relevant state authorities.
Why it matters
Mandates independent oversight of the Green Bank’s financial health and management practices by requiring annual examinations using standards similar to those applied to private financial institutions. This could increase public confidence in how the Green Bank operates and manages state funds.
Introduces a new layer of transparency and accountability, as examination reports must be shared not only with the Green Bank’s parent authority but also with state financial oversight bodies and key legislative committees. This may lead to more rigorous legislative and public scrutiny of the Green Bank’s performance.
Clarifies that while the Green Bank is not classified as a banking organization, it will still be held to comparable standards for its loans and investments. This aims to ensure the Bank’s practices remain sound and that taxpayer-backed investments are managed prudently.
Requires the Green Bank’s parent authority to cover the cost of these examinations, which could impact its operating budget but also incentivizes efficient and compliant management to avoid negative findings.
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Who cares
Headline styles
Annual Green Bank Audit Required
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to energy and telecommunications
- Referred to energy and telecommunications
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5077
2019-2020 Regular Sessions
IN SENATE
April 8, 2019
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 and ranking minority members 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.
LBD09587-02-9
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 and Rankers of the Senate Finance Committee and the Assembly Ways and Means Committee.
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
2018 - S. 7647 - Rules Committee.
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.