BILL NUMBER: S114
SPONSOR: CLEARE
 
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:
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 pris-
ons.
 
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.
 
LEGISLATIVE HISTORY:
Passed Senate 2020-24.
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
Immediate.