Im going to provide a summary of our report to supervisor fewer on options of community banking. At the moment though, the slides are not appearing. I wonder if i might get assistance. Do you have a printed copy . I do and actually here we go. We can do it the oldfashioned way. Here we go. Thank you. My apologies for the delay. This was the report that we issued in december to supervisor fewer. It was update to 2011 report we had prepared for supervisor avalos, it covered some of the same topics, but it is different that we tried to focus on specific steps needed to be taken to establish a public bank. What weve done is provided an outline of the steps. There is obviously many more questions that would be need to be resolved to pursue that. So ill just start briefly with options for the city. There are commercial banks, thats what were using now. Theyre for Profit Institutions and theyre organized to provide a return to their private investors. Thats their primarily goal to maximize their financial returns. Credit unions are largely not for profit cooperate i haves that are owned by the members and the board of directors. They are usually members of the credit union themselves and much more communityfocused than Large International commercial banks. Community Development Banks are Mission Driven private Financial Institutions and generally have as part of their mission serving underserved communities. Finally, the public bank option. That would be entity owned by the public, such as the city and county of San Francisco, but managed and operated independently. Because of that, it can have its own Business Strategy. The current citibanking polls and policies and arrangements, there are the state laws that dictate safety, liquidity and yield, which the treasurer and Tax Collector is always quick to point out. Thats theyre guiding principles, but they have social Investment Policies as well, but theyre subordinate to the core state requirements. Currently, the Previous Report also identified the demand deposit or the shortterm funds kept in bank accounts. This is the balance as of october 2017, the average daily balance of 137. 8 million and how its allocated by the three different banks. That was then the fees associated with those Services Provided by the banks are provided on the far right column of that table. And that is for fiscal year 1718. The portfolio has been mentioned over 9 billion. We had a report here from march 17 when it was 8. 3, so it has increased. And in december, it was over 9 billion. That money is not kept with a Custodian Bank, the Custodian Bank is citibank and their fees for this year is 187,000. Then finally there is Credit Unions and community Development Banks. Historically, theyve not been used much by the city and county in part because of the limited Insurance Protection and also because many of the smaller institutions cant meet the collateral requirement mentioned by the treasurer and Tax Collector office of having 110 of the deposits in securities. Also, just on that, were also aware of and include in our report the new program started in october by the treasurer and Tax Collector office that you were just discussing to invest up to 80 million in San Francisco based banks, Credit Unions and community Development Banks. Supervisor fewer, you mentioned earlier about the concentration of the industry. Heres is some of that information pertaining to banks in california and its pretty dramatic. This is between 2011 and 2016 and its broken out by the National Commercial banks. Those are the large kind of household institutions, wells fargo, citibank, theyve decreased in california 49 to 30. And the average asset size for the large banks is 8. 8 billion. That is an average that when we get into the large banks, the 10 large largest, the numbers jump into the trillions. They have assets in the trillions. Those are not national in scope. State chartered Credit Unions and federal Credit Unions. In all cases, the numbers have been decreasing and the asset size increasing per institution. But the most dramatic is with the commercial banksment you can see the increase in asset size by type of institution. The blue dotted line, which is jumping up the highest over time is the National Commercial banks. What that means for the city, were working now with much larger institutions. Their focus is certainly national, international really in all cases. While San Francisco is one of their markets, its certainly not the focal so back to the options and some of the limitations for each. The commercial banks that the city has been using have Service Capability and highly capitalized. Theres no question when the city makes deposits, they can cover the amounts consistent with state law. Limitations, largely this has been addressed i think, the mission of large bank and Business Practices are not consistent with social policy goals. Credit unions have missions that are more consistent and more Community Focused and social policy goals but smaller less capitalized, higher risk for the city funds. Community Development Banks, sort of the same pattern. Smaller institutions. Public banks offer something in that they can integrate a Business Plan and a mission thats consistent with city social policy goals and providing services to the underserved communities and that the primary goal of the city would not be maximizing profits although it would have to be profitable to continue to function, but the focus could be different. Risks or limitations associated with that, its heavy start up, there is no question and you already addressed that in the committee that this is not a minor thing to take on. And of course theres the risk of failure. But ill address some counterpoints to that a little later. And finally i want to point out, there are city funded Community Developments, i think supervisor stefani, you mentioned the county Clerk Program but there are other services in the city for Banking Services for first time home buyers, school teachers, Technical Assistance to small businesses, so there are services in place, its not a lot of money compared to what a bank could do. We have some of the details in here and the programs are laid out in the report. Theres 86 million in outstanding loans as of fiscal year 17 through the programs and funding of a little over 4 million for the different Services Provided. For some of the concerns of the industry and supervisor fewer, you mentioned the report we prepared last year, just a couple of slides on that. This is the 13 of the large banks, ones with assets going into the trial trillions and industries they have invested in between 2010 and 2017. You can see that firearms, tobacco, Nuclear Power companies, the Dakota Access pipeline and private Prison Industries have been invested in by one or more or all of the banks. You can see the count of how many banks for how Many Industries for each bank. And then you also mentioned supervisor fewer, the social responsibility measures and this is just a summary of that report and those measures we looked at composition of board of directors, percentage of loans to small businesses, home loans made to low income borrowers in low income neighborhoods and percentage of loan for Community Development purposes. Some of the banks were above the benchmarks we used. Largely we never got above half of them being above any of the benchmarks. So in general, the performance was not steller for the banks on these measures. Because they are so large, these banks do put money into affordable housing, its a lot of money, they have a lot to give but when you look at the scale of the operation, its often a small percentage of assets. Public bank efforts in the u. S. And yes, supervisor cohen, you mentioned this is uncharted ground, yes, that is true, there is one, the bank of north dakota, created in 1919. Its been successful, profitable for the last 13 years, they have assets of 7. 3 billion. Its a small largely rural state but they have a Good Business model, they do partner with local and regional banks and so they get the benefit of the skills and facilities provided by those banks to be credited out to some of the smaller communities that arent as well served without them. Their net income last year was 136. 01 thing i think is very interesting, their ceo was paid 300,000 last year. If you compare to some of the Large National banks, you know this is a completely different league. Many cities, states and other public jurisdictions have been considering public banks. Mostly its been being studied by legislatures in some of the jurisdictions listed here. I know oakland is in process of conducting their feesability study, partnering for a multi jurisdiction approach. Its still in process and should be released in the next couple of months. In our 2011 report, we stated that state law put was a major impetmeant because there is provision in state lawry stricting counties from providing aid to persons or corporations with county money but since then, the City Attorney has investigated it further and has concluded that that state law does not apply, would not prevent creation of a public bank in San Francisco and they have an opinion piece on that and these are the key points about it. One is that the public bank would serve a public service, the third point there and supported by case law. And importantly, it would be a separate legal entity. I want to really emphasize that point. I think sometimes theres confusion about who would run a public bank, a new city agency and absolutely the answer is no, it would not be. It would have to be a separate legal entity. Ill discuss that in a minute a little bit more. Some specific steps and this is where we try to be as concrete as possible, it starts with the goals and policies and hiring staff and consultants. There will have to be some investment made in terms of resources to actually do the work its like launching a startup and the city would be the investor in it. And appointing an independent board of directors would be extremely important. It would not be the board of supervisors, it would be a separate group that would operate as a separate entity but implementing what the board, the mayor, the treasurer, Tax Collector would establish as the founding principles and goals of the institution and they would need to run with it, get chartered, the regulation of banks as you probably know is extremely complicated and they would have to work with a federal agency or state agency or both to get a charter to actually operate. And then this group would need to develop a multi year Business Plan, this is really getting into the nitty gritty then of the money, how would the bank be capitalized. Would it be city funds and there would need to be definitely city funds invested in the majority of the initial funding from the city to make sure the city is the owner. Private investors could be invited to participate. Other public agencies could be invited to participate. Theres many options to look at. The city would need to at least own half of the shares so its a public bank and the Business Strategy and goals and objectives remain true to what the city has established in the first place. Method for obtaining profitability would need to be part of the plan. Theres a lot of worthy causes, it would have to be a business minded organization that could take more risk than your average large Commercial National Bank wants to but would have to earn a return and keep going as a viable business. Theres certainly room there between the highest risk kind of loans and investments and things that the big banks wont touch and we know theres a lot of underserved communities with the current system. Finally, you know, theres got to be staffing and facilities that will have to be a Computer System and lawyers, all the things that banks need to have to operate. They again, i mentioned they can apply and get a charter from the federal or state government. Theres pros and cons to each. Mostly i think you wouldnt bother with the federal government unless youre planning to be a National Bank from what i hear the interest in for this, it would be local or state. Probably the state department of business oversight who charters banks in california would be the likely place to go. They have a pretty arduous process. While theres a risk in starting an entity like this because of the oversight and regulation the banks get, they wont be allowed they couldnt open the door unless they have passed with the oversight agencies and they have to have a strong Business Plan and show how theyre going to function for multiple years and have office and directors with Banking Experience and have the credibility and knowledge to operate this kind of institution. And just to go into a few more of the details of the requirements and criteria that the department of oversight uses, i circled the points about the officers, stock holders and directors. When the group is assembled they have to show character, financial responsibility, Banking Experience, business experience, all those things have to be filtered through the entire organization and the individuals that would be comprising the staff and oversight board. And then the banking facilities as mentioned would need to be adequate, the plan for maintaining profitability. In short, all the things where a bank could go wrong, the oversight agencies are going to look for that before they can even open and beyond that, they keep coming back. All banks are checked on every two years by regulatory agencies. Theres a lot of protection in that, thats the purpose of the regulation, so consumers and business deposits in banks are not at risk. That could really work in favor of a Municipal Bank as well. The cannibis industry, one of the questions asked for this report too was the potential for serving the cannibis industry. This has been an interesting topic, its been changing since we completed our work on this in the fall. Theres been a lot of dramatic changes up through this week. So where we ended and what we put in our report is that there were problems with this because of the inconsistency between federal and state law. But the department of justice had issued an opinion in 2013 that allowed banks to serve the cannibis industry if they could guarantee that the businesses that they were serving werent doing anything illegal such as selling marijuana to minors. There was a lot of burden put on the banks to monitor the activities of the dispensaries or producers or whatever cannibis businesses they were serving, so most banks chose not to serve them. They had to report regularly to the u. S. Treasury department on the activities or anything suspicious they detected with their customers. So another hurdle that had occurred by the time we produced our report was Federal Reserve bank impetmeants. There was a credit union in colorado trying to open and would be serving entirely the cannibis industry. That was their primary business objective. The Federal Reserve bank denied them a master account, which is what banks used to transfer money back and forth between different institutions. It is almost impossible to function as a bank or credit union without a master account. That was a severe blow for that organization how did they respond from the blow . They sued and there was a ruling that gave them some leeway, but still provided some risks and i dont know if they have in fact managed to open and operate that business or not. Which state is that in . Colorado. But on the brighter side, theres a Different Organization and they are serving the cannibis industry and they have a very sharp ceo who has designed a whole system of screening the businesses that so far has passed muster with the regulators and with the developments in january where the u. S. Department of justice rescinded the call memo, they are still serving the industry. Theres at least one institution and i think others come and go and then run into problems and challenges from the regulator and decide they cant serve those businesses anymore. One more thing maybe i missed it. Senate bill 930. Just getting to that. Okay. My last two points is what is going on at the state now. Senate bill 930, a proposal as we understand it to create a state bank to serve the cannibis industry and then the state treasurer and attorney general who have made announcements to that effect this week also. The treasurer has been studying it for some time. He had a working group on that for at least the last year if not more. Those are, you know, very new dwom developments in the field but things that are of interest for San Francisco and the potential for serving the cannibis industry here. But so i think there are more challenges now in incorporating in the Municipal Bank but this seems to be a moving target and there are other options for what is going on in the state. We did include policy options, the first was to enhance the program such as the treasury Tax Collector has recently started, to put more funding into local banks, Credit Unions and community Development Banks. That comes with the backing of the Federal Home Loan Bank which is extremely important for meeting that need and could be an extremely important piece for creating a Municipal Bank. Thats an important component to consider in planning for the institution is getting that kind of support that really opens up the bank and allows it to grow. Finally three other things, supporting additional funding for expansion of the city programs that i mentioned, a way for providing banking related services to underserved communities. Taking steps to establish a San Francisco public bank, many of which are laid out in the report and on the cannibis industry, we said last november to work with the City Attorney to address some of the risks and legal issues about serving the cannibis industry, we have added this update because its new and to learn more of whats going on at the state level and coordination with those initiatives. So those thats the summary of our report. Christina and carl from our office and i are here and can respond to any questions you have. I was wondering if you could estimate the fee burden were currently paying, u. S. Bank, bank of america or any of the other banks we used to run our payroll, our short term investment. I have the total fees supervisor that were paying but i dont have a breakdown of the supervisor cohen ill take the total fee. Its 7 80,000 to bank of america, 48,000 to u. S. Bank and 36,000 to union bank, thats proportional to the amount of deposits they receive. Thats a total of 864,000. Supervisor cohen thank you. Supervisor fewer, youre next. Supervisor fewer thank you very much. Our final presenter, Michelle Jacob who is working closely with supervisor cohens office. Chair cohen, anything you want to add . Supervisor cohen not but i have questions when youre done. Good afternoon. Thank you for having me supervisors and members of the budget and finance committee. I work at the Lawyers Committee for civil rights of the San Francisco bay area. Lawyers community is supportive of Municipal Banking. We serve such a bank as an anchor institution to promote low income, under banked and minority communities and economic development. In 2017 our organization worked with the officer of supervisor cohen discussing Bank Regulatory considerations related to establishing a public bank in california. Im going to refer to memo as the davis pope memo. When i discuss public bank in this presentation, im speaking specifically about the legal entity, the city would used to form its own Municipal Bank. The choices before us are commercial bank charter, Credit Union Charter or a yet to exist public bank charter. And another background point is that our memo, the davis pope memo assumes what is referenced in the budget and analyst report, we assume them to be true, theres no prohibition in the government code or state institution to the city of San Francisco establishing a public bank and creating a bank that would be for the legitimate municipal purpose of providing access to underbanked populations to over come constitutional concerns raised. The memo we commissioned has two very different Business Models with extremely different results. The first is a traditional public bank. Thats what the bank of north dakota is. The second is a public bank that also services the cannibis industry. That is the type of bank that state treasurer john changs working group has recommended a Feasibility Study on and we understand thats largely for a state level entity. What were discussing today is a municipal level entity. Under california law, a state bank is required to have a charter and the charter is granted by the department of business oversight. We had the opportunity to speak with commissioner from business and oversight who is largely supportive of the effort and recommended that the city seek submit a request for opinion from the Department Prior to filing an application with the department. So what would the application be for . The member discussed three types of charters, the first two currently exist, the third does not exist. A commercial bank charter is for a Traditional Institution such as commercial bank, savings and loan or industrial bank. The banks are required by state law for federal deposit insurance. Under this option, the city of San Francisco would be a share holder in the bank. A Credit Union Charter is for a state credit union in which members share a common bond. San francisco would be a member of a credit union with other municipalities. An Important Note here is that Credit Unions are not required by state law to get federal deposit insurance, they can get federal share insurance. The trouble is that the entities are like putting a square peg in a round hole. They would force the city to retro fit into a regulatory system designed for private Share Holders or credit union members. Therefore the memo ultimately recommends a public bank charter and this would require special Statutory Authority meaning we would need to pass a state law authorizing a state or municipal level bank. The new bank charter would fix many of the current limitations of state law. And federal law infringes on efforts in two ways, First Federal insurance, theres a difference between the bank of north dakota and bank on cannibis, it will likely not get federal deposit insurance, ruling out the commercial bank charter but leave open the possibility of a credit union or new public bank charter that does not require federal insurance. Second is the Federal Reserve payment system, this is referred to as the master account number. A traditional public bank should be able to get a master account number from the Federal Reserve but a bank with cannibis likely not. This was the result in the colorado case mentioned, it was charted by the state of colorado but denied the master. That lawsuit is still pending but the bank of north dakota is the alternative example. It does not have federal insurance because it is backed by the state of north dakota and has received a master account number from the Federal Reserve system. I can speak more about the bank of north dakota, some of your earlier questions highlighted their practices. Recommendations are for the strongest possible public bank option, the memo recommends passing a state law to entable a public bank charter to be developed as a state level bank similar to what chang is talking about. In the absence of passing this law, the memo recommends requesting a with written opinion from the department of business oversight of the likelihood of approval of application for credit business charter from the city of San Francisco. I lookcussing these recommendations on the task force. Thank you very much, colleagues . Yes, thank you mr. Patel for your dedication on the project and want to thank you for working so closely with my office. So colleagues, the authors of this legal memo, along with myself and mr. Patel presented these findings to jan lynn owens with the state department of business and oversight. My take away from that meeting was the d. B. O. Was open to discussion on either credit union but wanted more information before giving detailed advice. Mr. Patel, can you speak about what you took away from the call, legally speaking in order to establish a public banking charter. Yeah, i very much agree with you that commissioner owen was highly supportive of our efforts. We had asked her about if she would support legislation at the state level and she seemed open to that. She also was open to the idea of using an existing Credit Union Charter or commercial charter but she would not commit to anything. She said we would need to request a written opinion before submitting our application. Okay. So, high level. What type of questions do you believe the task force should be focusing on finding answers to . I think the task force should focus on whether we want to start a bank right away using the existing entity choice options i analyzed or whether we want to push for changing state law. Short of changing creating a specific public bank charter, there are elements of state law we could change. For example, the requirement that commercial banks could only use federal deposit insurance. If we could change that and use private share insurance. Okay, thank you. Supervisor fewer, i dont have any other questions. Yeah, so one of my questions is, so we heard that the main goal of commercial banks is really to have maximized financial returns. So is that, and we know a public quite frankly, that wouldnt be the first goal we have with our public bank. So if we go the commercial bank route, would it be required on our application actually to show in our Business Plan how we would maximize financial returns . Thats a good question. I have to pull up you were correct saying we cant maximize financial returns as the purpose of the bank, the primary purpose is to serve a purpose. One reason to submit this written request to the department, if this proposed bank has a primary purpose of a municipal purpose rather than maximizing shareholder returns would it qualify in california. Right, i guess the question is, we have two options now currently they offer. Commercial bank or a credit union. And then it seems from what you are telling me and the previous presenter, to align everything we want to do, it seems as though a public bank charter would be necessary quite frankly. It would cover everything that we would want to do, including the use that Marijuana Industries could also bank with. But it also includes that we could actually set our own values around how it serves the municipality. Instead of the commercial bank that actually, the main goal is to make money for their stakeholders, is that correct . I think the best option would be passing a state law authorizing, a level of constitutional authorization so cities can create their own public banks. But short of passing that law, i think its possible to create, to use the commercial bank or Credit Union Bank structure, i wouldnt give up on those options because i think if we could describe individual plans to the department of business oversight we could potentially get it chartered. So i dont think its impossible, is what im saying. Im just thinking, supervisor cohen, for this task force, maybe part of the conversation should be where we really want to go with this. If we are looking long term about public banking and we are looking at our other partners within the region, berkeley, oakland, richmond, going to a public bank agenda such as ours, does it make sense for us to first try to expedite it. I mean, what are the pros and cons i think for our longrange planning . So if we have some immediate needs but then i think as our economy goes, as we look at this Marijuana Industry growing, as we look at the need to invest in our own communities, i think that some of the conversation should be about, do we want to do this very quickly, or to meet our long term goals should we work simultaneously around a public bank but while working on a state level to actually promote a public bank charter . Does that make sense . Yes, it makes sense. Its one of the stated goals and intentions of the task force, is to try to figure out what the direction we would go in. So it is formalizing conversations we have had for the last year with different stakeholders, with each other, facebook messages, tweets, you name it, many people have different types of opinions. So the task force is charged with the duty of kind of synthesizing and helping us figure out what is the best direction for the city and county to go in. With that said, im going to need to keep moving. Thank you for your presentation. To ladies and gentlemen in the public, i am going to go to Public Comment. But first i need to take up an item that relates to item 8. So madam clerk, i need to make a motion to rescind item 8. Can i take that without objection . Thank you, without objection, the motion to rescind passes unanimously. And what i would like to do is send item 8 to the full board, as amended, with a positive recommendation. And we could take that again without objection. Thank you. Okay, thank you, the members of the public for allowing me an opportunity. Supervisor stephanie has to leave to get to rules committee which starts at 2 00, and i wanted her to be on the record for item 8 since she sat through hearing about item 8. Now we will be opening up for Public Comment, if you are here for Public Comment come up and get in line. I have a few cards here and as a courtesy to those who filled out cards we will call them first. I have john something, i cant read it, xavier maybe . We will have to work on that penmanship. Then susan harman, patrik laine, mari eliza and mark rhoades. Did you fill out a card . I thought the cards were for people who couldnt stay. No. Nope. What we will do again, as i said, you are welcome to go next after the folks who have spoken. I filed mine with the aid. Okay. John, youre up. Good afternoon, supervisors. Im here today with the San Francisco chapter of the democratic socialists of america who recently just this week voted overwhelmingly to support public banking in San Francisco as a major part of our legislative goals. And i know a lot of other people are going to argue about what the advantages of a public bank would be. But i wanted to just quickly kind of address what the main sort of, i think, argument against would be. And thats that a private bank is the only entity that is large enough and sophisticated enough to safeguard public funds. And i think in 2008 we learned what safety means, it means safety for banks and bankers, not for their clients. The entire Banking System almost melted down. Billions were lost. And it was only public funds that saved the banks. And in some cases the reason that happened the private banks had an option to maximize profits and they couldnt do that without going into risky areas such as shadow banking and risky derivatives. A public bank is different. A public bank serves the community that it is built to serve as its main objective. And that is always going to be safer than a bank that has to choose between profits and community because such a bank, a private bank will choose profits every time. Thank you. Next speaker. Good afternoon. Im susan harman, im representing the friends of the public bank of oakland. You have mentioned us several times. Im really just here to support this effort, although ive chauvinistic about oakland and i want us to be first, any progress, anywhere, helps progress everywhere. So we are totally in support of the public bank of San Francisco. You havent mentioned Student Loans as one of the things the bank could help with. The bank of north dakota has been very constructive with student, offering refinancing and lower interest on Student Loans and bank of San Francisco could certainly do that. I want to caution you about making it an Infrastructure Bank because that is really a Revolving Loan fund and thats not what we want to do. You already mentioned collateralization, that solves that problem. There will always be attention between mission and profitability of a business. We know that and we just have to construct a board that is aware of that and takes that into account. In oakland we are working hard on a governance plan and as soon as thats finished, we will share that with you, with the task force. I think thats all i wanted to say, except we are available ive been working on public banking for six years now. I used to work with Public Banking Institute. Im in touch with people around the country. And im here to offer any help. Thank you. Jason lane . Followed by patrick mele. Thank you, madam chair, members of the committee, im jason lane with the california bankers association. Just a couple points i wanted to make to followup on the previous presenters, i think its vastly more complex, with all due respect to the previous presenters, than what has been presented to you, relative to cannabis banking. I think a couple things were mentioned starting a public bank with a new charter seems to be at least what ive heard today, one of the presenters gravitated towards that. I would just say, no matter what the charter is, or the public bank, be it a commercial bank or credit union, if that institution is formed, it will need insurance. And if it is insured by the federal government, it will not be able to engage in cannabis banking operations. If it wants to access the payroll systems, if it wants to wire money, make ach transactions, have a routing number, has to access the Federal Reserve system, therefore, until marijuana is no longer a schedule 1 drug, it wont be able to do that. So irrespective of what you do with the state charter, or with state legislation to create a new public entity, those things have to be satisfied. And i would also point out a little bit attention has been made to north dakota and i wish to remind the Committee North dakota has been around since the 1919, it routes through local community banks, it doesnt compete directly with banks. Thank you for your time. Thank you. Next speaker, patrick . Hi, my name is patrick mele, and im here to give a voice of support for creation of a public bank, i think this is a good idea and something i studied in grad school. I will echo a lot of what has been said already but being able to use the 9. 6 billion in funds for things we need in a community into a commercial bank looking for what the shareholders need, moves money out of the community, which as mentioned earlier, as executive compensation of 22 million or more, 800,000 in fees that were being charged to use our own money, and a public bank could get us out of the trap of using bonds and loans for every type of funding that we need. So a lot of things i was going to say have already been said, i want to talk about safety. Paramount importance, the county keeping our money safe and i dont think right now keeping money in commercial banks is safe. We saw after 2008 with b. Of a. Citigroup and u. S. Bank all needing to be bailed out. Bank of north dakota, not bailed out. And what we are starting to see now, in europe, obviously, with portugal and greece, we are seeing instead of bail outs, we are seeing bailins where the deposits are being taken to recapitalize the baixgs. Banks. We are seeing similar movements in puerto rico and places like flint. For safety we need to get our money out of commercial banks and into public banks and ill leave it at that. Thank you, next speaker, mali alisa. Mary eliza here, thank you, supervisors. A lot of what i was going to say has been said. I actually got involved with studying public banking with browns group before there was a group, so ive been looking at this for a very long time, the Public Banking Institute is a very good source for information. This is an international situation. Theres a lot of banks that are civil banks in other countries. So dont limit yourself to the u. S. To look into how they are operating and how they work. So the gentleman before me is correct. Our current banking situation is not very secure anyway. So its a good idea to continue to study this. Im probably one of the bigger supporters for public banks. I just want to mention, avoiding such risky policy decisions and investing in them, as was done with the taxi medallions that practically are putting the Credit Unions that finance them for the m. T. A. s purposes out of business and theres currently lawsuits over that. So we need to be really careful with risky investments and with risky projects and the insurance, of course, is going to determine an awful lot about how you move forward. Thank you. Your opportunities for insurance outside the Federal Reserve situation. Thank you, next speaker, please. Hello. Im mark roost with serie battery inc and volunteer with 350 and friends of the public bank of oakland. Use of deposited funds from renewable energy, battery and electric Vehicle Industries are entering explosive growth. Uses of those funds, incubator and startup formations for each sector of the economy. One example is a system of shops that convert gas or diesel vehicles to batteryelectric and i know a company that is capable of creating a system for that that could be a National International system with efficiency. Housing that could reduce costs and increase long term quality of each building. Design and implementation of integrative service and recovery system based on the mormon system of Salt Lake City utah, i knew a pharmacist who recovered from a break down in such a system and told me all about it. Its something really worth looking into. The 110 collateralization issue could be an obstacle for formative start ups in most economic sectors ending in environmental economic and social sustainable and funded or underwritten by deposits by the disruption of the industry that will support extremely rapid growth by them and strong profitability for them. I would rather see fractional reserve lending authorities so they could compete headtohead with large private banks. But i do support Small Community banks and community Development Banks as well as Credit Unions. Thank you, next speaker, please. Thank you. Honorable supervisors, my brothers and sisters, i just want to adjust a few points to the vision part of this. While we have been very carefully looking at the mission nuts and bolts, im not hearing, for example, impact investing. Im hearing about social responsible investing which is what we dont want to invest in. And impact, how could we make a positive impact with our money . Which is a topic thats been very much seeded in San Francisco, which is why i think a public bank of San Francisco would be very apt. Im referring to the past ten years where theres been an annual social capital conference at fort mason. Internationally attended. We also have in the east bay, the Community Capital conference every year. This may we are having the regenerative economic sup mitt. We are very much thought leaders in new ways of doing economy and i just want to make a few more points about that and im done. I havent heard anything about investing in our indigenous people. And we have the cultural conservancy here in San Francisco, which can route money to indigenous investments. Im not clear whether we will be able to have investments by citizens, venture capitalists, etc. , but i think that would be we have a wonderful opportunity because of our healthy economy. Last, but not least, here is my takeaway. Its sort of a game changer. Normally we think of economics as existing within the ecosphere. Its the other way around. Your time is up. You only had two minutes. You can finish your sentence. Isnt a subset of our economies, its the other way around. The health of our economies is the subset of the health of the San Francisco bay bio region. Thank you very much. Youre welcome. Thank you. Next speaker, please. Good afternoon, supervisors my name is christine johnson. I have held a number of roles but i also have 14 years of municipal financial and social impact finance experience. And ive also been an evangelist for public banking for years and im very excited we are having this conversation today. We talked about a lot of reasons why we want to have a social bank, a public bank, a lot of people talk about that behind me. But i want to focus on a few things. The city is experiencing unprecedented challenges that will require massive amounts of patient longterm capital that shouldnt be subject to political process of our budget or city ballot measures. We also have a population of people that are locked out of our current Financial System to debilitating effect, even with the programs we currently have. And a public bank can really solve all of that. We have an entire industry growing around us in cannabis that is locked out of the existing Banking System and theres a gentleman here who spoke about why it might be challenging to serve that industry but be have another industry that we have been locked out as a city, financial tech. Services such as paypal, square, other crowd sourcing, have worked into the National Banking system because we dont have a public option and we should be a part of that success as well. And then public efforts such as Property Assessed Clean Energy bonds have been stymied by the limitations that commercial banks have. So federal tax reform is going to get rid of the Community Investment act. And there goes tax credits and nonprofits and Banking Services for low income communities. A public bank could solve some of those issues for us. Im excited we are here today. I look forward to seeing the task force and their findings and im hoping we move forward. Thank you. Thank you. Next speaker. Hello, supervisors my name is claire [inaudible] im cochair of San Francisco [inaudible] i want to express frustration with the board process, having been here for four hours, this very important item heard at the end of the agenda and Public Comment at the end, it doesnt allow for much democratic input. Most people dont have the luxury to sit in these chambers for four hours i would normally be teaching in a classroom of first and second graders. That being said, the San FranciscoBernie Kraatz has been meeting with a coalition of groups about the issue of public banking and at the creation of San Francisco public bank. Part of