Trailblazer New Jersey Governor Phil Murphy wastes no time. Directly following his swearing in last week, State Senators Nia Gill and Richard Codey introduced the State Bank of New Jersey Act at the beginning of the legislative session.
According to Politico:
"Under the Codey-Gill proposal, all public entities in New Jersey would be able to use the state-run bank. It would provide transportation project loans, student loans, small business loans and be able to purchase mortgages from commercial banks. The bank would also be able to purchase, lease and construct buildings, and would even have the power of eminent domain. And it would be able to buy and sell federal funds."
The bill sets up a 13-member board of directors to govern the bank. The board would appoint a president and determine his or her salary. Six of the directors would be appointed by the governor, including four with respective experience in banking administration, credit union administration, consumer financial advocacy and public administration. Two picks would be recommended by the Senate president, two by the Assembly speaker, and one each by the Assembly and Senate minority leaders. The state treasurer would serve as the 13th member.
The state auditor would be required to hire an independent financial firm to examine the bank once a year and to prepare a report.
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