Assembly Bill A8598

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8598
 
                           I N  A S S E M B L Y
 
                             January 10, 2022
                                ___________
 
 Introduced  by M. of A. EPSTEIN -- read once and referred to the Commit-
   tee on Governmental Employees
 
 AN ACT to amend the retirement and social security law, in  relation  to
   prohibiting  the  investment  of  certain  public funds with companies
   conducting cryptocurrency business activities
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The retirement and social security law is amended by adding
 a new section 423-d to read as follows:
   § 423-D. PROHIBITION ON INVESTMENT OF CERTAIN PUBLIC FUNDS WITH COMPA-
 NIES CONDUCTING CRYPTOCURRENCY BUSINESS ACTIVITIES.  1. FOR THE PURPOSES
 OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "CRYPTOCURRENCY  BUSINESS ACTIVITIES" MEANS THE CONDUCT OF ANY OF
 THE FOLLOWING TYPES OF ACTIVITIES INVOLVING NEW YORK STATE OR A NEW YORK
 STATE RESIDENT:
   (I) RECEIVING CRYPTOCURRENCY FOR TRANSMISSION OR TRANSMITTING  CRYPTO-
 CURRENCY,  EXCEPT  WHERE THE TRANSACTION IS UNDERTAKEN FOR NON-FINANCIAL
 PURPOSES AND DOES NOT INVOLVE THE TRANSFER OF MORE THAN A NOMINAL AMOUNT
 OF CRYPTOCURRENCY;
   (II) STORING, HOLDING, OR MAINTAINING CUSTODY OR CONTROL OF CRYPTOCUR-
 RENCY ON BEHALF OF OTHERS;
   (III) BUYING AND SELLING CRYPTOCURRENCY AS A CUSTOMER BUSINESS;
   (IV) PERFORMING EXCHANGE SERVICES  OF  CRYPTOCURRENCY  AS  A  CUSTOMER
 BUSINESS; OR
   (V) CONTROLLING, ADMINISTERING, OR ISSUING A CRYPTOCURRENCY; AND
   (B)  "CRYPTOCURRENCY"  MEANS  A DIGITAL CURRENCY WHICH USES ENCRYPTION
 TECHNIQUES TO REGULATE THE GENERATION OF CURRENCY UNITS AND  VERIFY  THE
 TRANSFER OF FUNDS, OPERATING INDEPENDENTLY FROM A CENTRAL BANK.
   2.  ON  AND  AFTER  THE  EFFECTIVE  DATE OF THIS SECTION, NO MONIES OR
 ASSETS OF THE COMMON RETIREMENT FUND SHALL BE INVESTED  IN  THE  STOCKS,
 SECURITIES OR OTHER OBLIGATIONS OF ANY INSTITUTION OR COMPANY CONDUCTING
 CRYPTOCURRENCY  BUSINESS ACTIVITIES, OR ANY PARTLY-OWNED OR WHOLLY-OWNED
 SUBSIDIARY THEREOF,  OR  WITH  AGENCIES  OR  INSTRUMENTALITIES  THEREOF.
 NOTWITHSTANDING  ANY PROVISIONS OF LAW TO THE CONTRARY, NO ASSETS OF ANY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD17728-01-1
 A. 8598                             2
 
 PENSION OR ANNUITY FUND UNDER THE JURISDICTION OF THE COMPTROLLER  SHALL
 BE  INVESTED  IN  ANY  BANK  OR  FINANCIAL INSTITUTION WHICH DIRECTLY OR
 THROUGH A SUBSIDIARY CONDUCTS CRYPTOCURRENCY BUSINESS ACTIVITIES, AND NO
 SUCH  ASSETS  SHALL BE INVESTED IN THE STOCKS, SECURITIES OR OTHER OBLI-
 GATIONS OF ANY INSTITUTION  OR  COMPANY  WHICH  CONDUCTS  CRYPTOCURRENCY
 BUSINESS ACTIVITIES.
   3.  THE  COMPTROLLER  SHALL  TAKE  APPROPRIATE ACTION TO SELL, REDEEM,
 DIVEST OR WITHDRAW ANY INVESTMENT HELD IN VIOLATION OF THE PROVISIONS OF
 THIS SECTION. THIS SECTION SHALL NOT BE CONSTRUED TO REQUIRE THE  PREMA-
 TURE  OR  OTHERWISE IMPRUDENT SALE, REDEMPTION, DIVESTMENT OR WITHDRAWAL
 OF AN INVESTMENT, BUT SUCH SALE, REDEMPTION,  DIVESTMENT  OR  WITHDRAWAL
 SHALL  BE  COMPLETED  NOT LATER THAN THREE YEARS FOLLOWING THE EFFECTIVE
 DATE OF THIS SECTION.
   4. WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, THE  COMP-
 TROLLER SHALL FILE WITH THE LEGISLATURE A REPORT OF ALL INVESTMENTS HELD
 AS  OF  THE EFFECTIVE DATE OF THIS SECTION WHICH ARE IN VIOLATION OF THE
 PROVISIONS OF THIS SECTION. EVERY YEAR THEREAFTER, THE COMPTROLLER SHALL
 REPORT ON ALL INVESTMENTS  SOLD,  REDEEMED,  DIVESTED  OR  WITHDRAWN  IN
 COMPLIANCE WITH THIS SECTION. EVERY SUCH REPORT AFTER THE INITIAL REPORT
 SHALL  PROVIDE  A  DESCRIPTION OF THE PROGRESS WHICH THE COMPTROLLER HAS
 MADE SINCE THE PREVIOUS REPORT AND SINCE  THE  EFFECTIVE  DATE  OF  THIS
 SECTION.
   § 2. This act shall take effect immediately.