What is it?

Prop B would authorize SF to create a City-owned Municipal Finance Corporation (MFC) now, and a Public Bank later. It provides no money for either one. The MFC would only be created if the Treasurer-Tax Collector determines there is enough funding and the City secures the capital it requires. The Public Bank would only be created after the MFC has been running for at least three years and obtains state and federal regulatory approval.

The MFC would be able to lend money to the City, nonprofits, and private businesses for affordable housing, homeownership, small business, and environmental projects. The Public Bank would do the same, but could also hold deposits.

Both bodies are not allowed to invest in "predatory lending, fossil fuels, tobacco, weapons, prisons, and businesses that break labor law." It does not define any of these terms, so the commissions would decide what counts.

Governance

Each institution gets a public oversight commission and a corporate board, and the corporate boards, not the City, will run daily operations. The Board of Supervisors appoints four of the nine commission seats, more than any other branch or elected official. The Mayor appoints two, and the Treasurer-Tax Collector, Controller, and City Attorney one each. Current and recent politicians are not eligible.

Read the full annotated legal text →