1Establishing the Commonwealth Bank of Pennsylvania Study
2Commission to review and evaluate the establishment of a
3Commonwealth Bank of Pennsylvania; and providing for the
4powers and duties of the commission.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Commonwealth Bank of Pennsylvania Study Commission.

8(a) Establishment.--The Commonwealth Bank of Pennsylvania
9Study Commission is established.

10(b) Membership.--The commission shall consist of the
11following members:

12(1) A chair, appointed by the Governor.

13(2) One member of the Judiciary Committee of the Senate,
14appointed by the President of the Senate.

15(3) One member of the Finance Committee of the House of
16Representatives, appointed by the Speaker of the House of
17Representatives.

18(4) The State Treasurer or the State Treasurer's
19designee.

1(5) The Secretary of Community and Economic Development
2or the secretary's designee.

3(6) The Secretary of the Budget or the secretary's
4designee.

5(7) The Secretary of Revenue or the secretary's
6designee.

7(8) A representative of the County Commissioners
8Association of Pennsylvania.

9(9) A representative of the Pennsylvania League of
10Cities and Municipalities.

11(10) A representative of the Pennsylvania Chamber of
12Business and Industry.

13(11) A representative of the labor community.

14(12) Three members of the public, knowledgeable about
15the Commonwealth's banking sector and economy, appointed by
16the Governor, of which at least one is a member of the
17banking community and one is a member of the consumer
18advocacy community.

19(c) Staffing.--The Department of Labor and Industry shall
20provide staff support to the commission.

21(d) Compensation prohibited.--A member of the commission:

22(1) May not receive compensation as a member of the
23commission.

24(2) Shall be reimbursed for expenses under the same
25provisions applicable to employees under the jurisdiction of
26the Executive Board.

27(e) Powers and duties.--

28(1) The commission shall review and evaluate the
29establishment of a Commonwealth Bank of Pennsylvania.

30(2) The commission shall, at a minimum, undertake a

1review and evaluation of a Commonwealth Bank of Pennsylvania
2that would:

3(i) Purchase, guarantee or hold loans made by
4private banks, credit unions or other financial
5institutions doing business in this Commonwealth.

6(ii) Make loans in the form of participation loans
7with community banks in this Commonwealth to qualified
8individuals and businesses residing or doing business in
9this Commonwealth when the originator of the loan is a
10private bank, credit union or other financial
11institution.

12(iii) Serve as a banker's bank for chartered banks
13in this Commonwealth by providing correspondent banking
14services and other related services in keeping with its
15mission.

16(iv) Accept deposits related to such transactions
17from banks and other financial institutions.

18(v) Be authorized to issue bank stock loans to
19State-chartered banks.

20(3) The commission shall review and evaluate the
21establishment of a Commonwealth Bank of Pennsylvania, the
22mission of which would be:

23(i) To support the economic development of this
24Commonwealth by increasing access to capital for
25businesses and farms within this Commonwealth in
26partnership with local financial institutions.

27(ii) To provide stability to the local financial
28sector without entering into competition with community
29banks, credit unions or other financial institutions.

30(iii) To reduce the costs paid by the Commonwealth

1for basic banking services.

2(iv) To return profits, beyond those necessary to
3accomplish the mission and sound operations of the bank,
4to the General Fund.

5(4) In undertaking the duties imposed by subsection (e),
6the commission shall:

7(i) Study the Bank of North Dakota.

8(ii) Determine whether other states have state banks
9or are currently considering the establishment of a state
10bank.

11(iii) Evaluate the effectiveness and usefulness of
12existing state banks, specifically examining the economic
13impact of having a state bank.

14(iv) Determine the costs and revenues associated
15with the Bank of North Dakota and any other existing
16state banks.

17(v) Estimate the short-term operating costs and
18projected revenues of a Commonwealth Bank of
19Pennsylvania.

20(vi) Examine the long-term broad economic impact and
21long-term job creation and State revenue impacts of a
22Commonwealth Bank of Pennsylvania.

23(5) On or before October 1, 2015, the commission shall
24report its findings and recommendations to the Governor and
25to the General Assembly.

26Section 2. Effective date.

27This act shall take effect immediately.