HOUSE CONCURRENT RESOLUTION 39

(By Delegates Iaquinta, Diserio, Cowles, Hornbuckle, Cooper, Eldridge, Ambler, Romine, R., Williams and Canestraro)

[Introduced March 2, 2017]

Requesting the Joint Committee on Government and Finance authorize a study on whether to establish a bank operated by the state.

Whereas, The Legislature is committed to serving the public by encouraging and promoting agriculture, commerce and industry.  The state does not currently engage in the business of banking or own, control, or operate a bank; and

Whereas, The state of North Dakota currently engages in the business of banking through ownership, control and operation of a bank known as the Bank of North Dakota.  The Bank of North Dakota was established pursuant to North Dakota Century Code 6-09-01 for the purpose of encouraging and promoting agriculture, commerce and industry.  The Bank of North Dakota is not a member of the Federal Deposit Insurance Corporation but pursuant to North Dakota Century Code 6-09-10, all deposits in the Bank of North Dakota are guaranteed by the state.  The deposit base of the Bank of North Dakota is unique in that its primary depositor is the State of North Dakota and all state funds and funds of state institutions are deposited with the Bank of North Dakota, as required by law.  It accepts other deposits from any source, including private citizens, businesses, and the United States government and is overseen by the North Dakota Industrial Commission and advised by a seven-member Advisory Board appointed by the Governor that reviews the bank's operations and makes recommendations to the Industrial Commission relating to the bank's management, services, policies and procedures.  The Bank of North Dakota administers several lending programs that promote agriculture, commerce and industry as well as providing government-guaranteed loans for lenders and community, rural and regional development loan funds; and

Whereas, Legislators in other states, including Arizona, Massachusetts, California, Vermont, Massachusetts and the Commonwealth of Virginia have studied the creation of a state-owned bank comparable to the Bank of North Dakota; and

Whereas, The State of West Virginia is expected to have a budget shortfall in 2017 and the State of North Dakota continues to have revenue that exceeds expenses; and

Whereas, The state would benefit from loaning funds to develop agriculture, commerce, and industry.  By opening accounts in a bank owned, controlled and operated by the State, West Virginians would be able to invest in the growth of agriculture, commerce and industry in the state.  West Virginians with accounts in a bank owned, controlled and operated by the state would benefit from a return on their investment in the form of loan interest and other revenues earned by the bank's investments in agriculture, commerce and industry in the state; and

Whereas, The purpose of a bank owned, controlled and operated by the state would be to invest in agriculture, commerce and industry within the state and a need exists to determine if the state would benefit from the creation and operation of such a financial institution; therefore, be it

Resolved by the Legislature of West Virginia:

That the Joint Committee on Government and Finance is hereby requested to study whether to establish a bank operated by the state in order to encourage and promote agriculture, commerce and industry, to determine the appropriate staffing needs and program costs to establish a bank operated by the state, and to prepare a report on the benefits and costs of such a bank; and, be it

Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2018, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it

Further Resolved, That the expenses necessary to conduct this study and to prepare and draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.