NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6601
SPONSOR: Reyes TITLE OF BILL:
An act to amend the banking law, in relation to prohibiting state char-
tered banking institutions from investing in and providing financing for
private prisons
PURPOSE OR GENERAL IDEA OF BILL::
This bill prohibits New York state-chartered banks from financing
private prisons.
SUMMARY OF PROVISIONS::
This bill adds a new section 12 to the State Banking Law to prohibit New
York State chartered banking institutions from financing private
prisonsl
EXISTING LAW::
New York State has prohibited private prisons since 2007, but state law
does not yet prohibit their financing.
JUSTIFICATION::
Private prisons are already prohibited in New York state. New York
passed this law because it was widely recognized that it was neither a
human practice nor in the public interest. And yet the indirect profi-
teering from the same activity is still permitted because banks and
other investors can still earn income from that activity. Incarceration
is a necessary public function that serves the public, and it be driven
by motives of public service, public safety and rehabilitation, not
profiteering.
PRIOR LEGISLATIVE HISTORY::
2021-22: A7112-A/S.8C73
2019-20: A7580-B/S.8722
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS::
TBD
EFFECTIVE DATE::
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
6601
2023-2024 Regular Sessions
IN ASSEMBLY
April 24, 2023
___________
Introduced by M. of A. REYES, ANDERSON, RIVERA, DINOWITZ, GALLAGHER,
CRUZ, SEAWRIGHT, ZINERMAN, FORREST, SIMON, L. ROSENTHAL, MITAYNES,
LAVINE -- read once and referred to the Committee on Banks
AN ACT to amend the banking law, in relation to prohibiting state char-
tered banking institutions from investing in and providing financing
for private prisons
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The banking law is amended by adding a new section 12 to
2 read as follows:
3 § 12. Investments in private prisons by state chartered banking insti-
4 tutions. 1. No state chartered banking institution shall provide financ-
5 ing for or invest in the stocks, securities, or other obligations of any
6 entity that owns or operates a private correctional facility for housing
7 inmates that would be prohibited under section one hundred twenty-one of
8 the correction law if such facility were located in this state.
9 2. For purposes of this section "banking institution" shall have the
10 same meaning as defined in paragraph (b) of subdivision three of section
11 nine-f of this chapter.
12 § 2. This act shall take effect immediately and shall apply to all
13 contracts entered into, renewed, modified or amended on or after such
14 effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01198-01-3
