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A06601 Summary:

BILL NOA06601
 
SAME ASSAME AS S00205
 
SPONSORReyes
 
COSPNSRAnderson, Rivera, Dinowitz, Gallagher, Cruz, Seawright, Zinerman, Forrest, Simon, Rosenthal L, Mitaynes, Lavine, Weprin, Raga, Ardila, Tapia
 
MLTSPNSR
 
Add 12, Bank L
 
Prohibits state chartered banking institutions from investing in and providing financing for private prisons.
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A06601 Actions:

BILL NOA06601
 
04/24/2023referred to banks
05/09/2023reported referred to codes
05/16/2023reported referred to rules
05/17/2023reported
05/17/2023rules report cal.170
05/17/2023ordered to third reading rules cal.170
01/03/2024ordered to third reading cal.190
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A06601 Memo:

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.
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A06601 Text:



 
                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
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