HB 572 — State Infrastructure Bank Study
Status: Reported Favorably as Committee Substitute
Introduced: (per file) November 12, 2024
Purpose / Intent
HB 572 establishes a joint legislative study commission to evaluate the feasibility, structure, and potential benefits/risks of creating a State Infrastructure Bank (SIB). The commission’s work is intended to determine whether an SIB could increase access to capital for infrastructure, leverage state, federal, and private resources, and support economic and community development across the State.
Key Provisions
- Creates the “Commission to Study the Feasibility of Establishing a State Infrastructure Bank.”
- Membership (17 members total), including:
- 3 State Senators (appointed by President Pro Tempore)
- 3 State Representatives (appointed by Speaker)
- 3 Governor appointees (must include: a nationally recognized public finance expert with experience in state-owned banking institutions; one with an environmental infrastructure background)
- State Treasurer (or designee) and State Controller (or designee)
- A representative from the Office of State Budget and Management (designated by the State Budget Director)
- Secretary of Transportation (or designee)
- 1 private banking representative and 1 energy infrastructure representative (appointed by Senate Pro Tempore)
- 1 member with public health experience and 1 with workforce development experience (appointed by Speaker)
- Organizational rules:
- Co-chaired by a senator and a representative designated by appointing authorities.
- Quorum: nine members.
- Legislative Services to provide professional staff; clerical staff provided and paid for by the Commission.
- Members receive subsistence and travel expenses per applicable statutes.
- Commission may contract for professional, clerical, or consultant services.
- Must hold at least five public meetings in geographically distinct regions.
Study Scope / Topics to Examine
At minimum, the commission must examine:
- How an SIB could increase access to capital and support economic development.
- Financing needs across housing, public works, education, student loans, transportation, environmental, energy, and telecommunications infrastructure.
- Assessment of existing public/private financing resources and gaps.
- Organizational and operational options (governance, boards, sources of deposits, oversight/audit, guarantees).
- Options for integrating an SIB into existing state financial networks vs. creating a separate entity.
- Revenue/earnings models (including whether the SIB can generate surplus earnings to supplement capital).
- Regulation, safety, soundness, conflict-of-interest protections, and the degree to which an SIB might compete with private banking.
- Oversight mechanisms and transition actions needed to establish an SIB.
Reporting, Timeline, and Termination
- The commission may file an interim report (text references an interim report to the 2023 General Assembly / 2024 Regular Session).
- The commission must submit a final report, including legislative recommendations, by the end of the 2024 Regular Session (per bill language).
- Edition 2 adds a termination clause: the Commission terminates on December 31, 2024, or upon filing its final report, whichever comes first.
- Effective date: the act is effective when it becomes law (per bill).
Who Would Be Affected
- State executive and legislative agencies involved in budget, transportation, and finance.
- Local governments and infrastructure project sponsors seeking capital.
- Private banking and financial institutions (potentially affected by competition or partnership opportunities).
- Taxpayers and ratepayers indirectly, depending on any future policy decisions to capitalize or back an SIB.
Potential Fiscal / Practical Impacts
- Direct study costs: staff support, consultant contracts, travel and meeting expenses — provided for in the bill and borne by the Commission.
- No immediate creation of a bank or appropriation of seed capital; fiscal impacts would arise only if the Commission recommends and the General Assembly enacts follow-up legislation to create and fund an SIB.
- Longer-term impacts (if adopted) could include increased financing capacity for infrastructure, differing effects on private lenders, and potential revenue generation or liability exposures depending on the SIB’s structure.
Note: This summary reflects the bill’s provisions as reported in the committee substitute. Check the enacted or latest legislative version for any amendments to membership, reporting deadlines, or termination dates.
