Creates the office of financial freedom to assist in the monetization, purchasing, and cancellation of personal debt, including student loan debt; medical debt, home loan debt, auto loan debt, credit card debt, small business loan debt and other consumer debt; permits debt to be purchased and written-down through eminent domain.
STATE OF NEW YORK
________________________________________________________________________
3641--B
2019-2020 Regular Sessions
IN ASSEMBLY
January 30, 2019
___________
Introduced by M. of A. KIM, HEVESI, NIOU, SIMON, EPSTEIN, THIELE -- read
once and referred to the Committee on Judiciary -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- again reported from said committee with amend-
ments, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the eminent domain procedure law, in relation to permit-
ting personal debt to be purchased and written-down; and to amend the
economic development law, in relation to establishing the office of
financial freedom
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The eminent domain procedure law is amended by adding a new
2 section 708-a to read as follows:
3 § 708-a. Acquisition of debt. The condemnor shall be authorized to
4 acquire for public use, any condemnee's personal debt holdings includ-
5 ing, but not limited to, student loan debt, medical debt, home loan
6 debt, auto loan debt, credit card debt, small business loan debt and
7 other consumer debt, in the same manner and procedure prescribed for the
8 acquisition of real property under this chapter. The condemnor shall be
9 authorized to write-down such acquired debt.
10 § 2. The economic development law is amended by adding a new article
11 23 to read as follows:
12 ARTICLE 23
13 OFFICE OF FINANCIAL FREEDOM
14 Section 450. Office of financial freedom.
15 § 450. Office of financial freedom. 1. There is hereby established
16 within the department the office of financial freedom. The superinten-
17 dent shall appoint the chief financial freedom officer and chief finan-
18 cial freedom economist who shall appoint staff and perform such other
19 functions to ensure the efficient operation of the office within the
20 amounts made available therefor by appropriation.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04052-03-9
A. 3641--B 2
1 2. The office of financial freedom shall have the power and responsi-
2 bility to:
3 (a) handle the monetization and cancelation of personal debt;
4 (b) create programs and initiatives to assist local communities in:
5 (i) utilizing section seven hundred eight-a of the eminent domain
6 procedure law or any other applicable financial mechanism to purchase
7 and cancel personal debt;
8 (ii) the construction or purchasing of debt;
9 (iii) implementing strategies that will help communities connect unmet
10 needs with resources;
11 (iv) implementing strategies that will aid state and local authorities
12 in the acquisition and write-down of debt; and
13 (v) coordinating efforts to turn personal debt into functioning
14 currencies, including local currencies; and
15 (c) conduct workshops on financial topics and offer financial assist-
16 ance and guidance to local communities interested in relieving personal
17 debt.
18 3. For purposes of this section the term "personal debt" shall mean
19 any debt that is owed by an individual and shall include, but shall not
20 be limited to, student loan debt and consumer debt.
21 § 3. This act shall take effect immediately.