NY State Senate Bill 2021-S6073

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to finance
Apr 05, 2021	referred to finance

2021-S6073 (ACTIVE) - Details

See Assembly Version of this Bill:: A3138
Current Committee:: Senate Finance
Law Section:: State Finance Law
Laws Affected:: Add §4-b, St Fin L; amd §301, Fin Serv L; amd §5, UDC Act
Versions Introduced in 2019-2020 Legislative Session:: A8686

2021-S6073 (ACTIVE) - Summary

Establishes the empire state inclusive value ledger establishment and administration act to create a master account and system of individual wallets to make and receive payments to state entities and residents of the state; authorizes the disbursement of a portion of unclaimed remittances to workers who have been furloughed or unable to work due to Coronavirus.

2021-S6073 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6073

SPONSOR: SALAZAR
 
TITLE OF BILL:

An act to amend the state finance law, the financial services law and
the New York state urban development corporation act, in relation to
establishing the empire state inclusive value ledger establishment and
administration act

 
PURPOSE OR GENERAL IDEA OF BILL:

The bill seeks to establish the Empire State Inclusive Value Ledger, or
Inclusive Value Ledger (IVL) for short, as a solution for providing a
publicly-run, not-for-profit means for value-creating activities to be
remunerated and for un- and underbanked New Yorkers to be included in
the broader state economy.

 
SUMMARY OF PROVISIONS:

Section 1 provides the short title and citation of the bill as the

"Empire State Inclusive Value Ledger Establishment and Administration
Act."

Section 2 is the legislative intent. In New York State, many residents
lack basic and non-extractive banking services that serve as a means for
the accumulation, storage, and transaction of value.  Consequently, far
too many individuals and households in the state are excluded from
participating in the formal economy. A workable definition for money and
currency, namely, as that "which counts in a system of value accounting,
storage, and payment" is also provided.  This definition enables one to
see the material consequences of shortages in aggregate. currency
supplies in states and local municipalities, in which the remuneration
of activities that add value to a community and the investment in public
goods is made more difficult.

The solution lies in establishing a publicly-run, not-for-profit system
of digital wallets, all of which are connected to a master account that
facilitates peer-to-peer transactions between the individual payment
accounts. In this manner, the fifty-five billion dollars in New York
State tax credits and social benefits can be rendered fungible for
disbursement to New Yorkers' accounts; conversely, payments from the
individual to the state (such as paying taxes) can be done easily
through such a payments infrastructure.  In the advent of the novel
Coronavirus pandemic and the proliferation of COVID-19 cases in the
State of New York, the state economy's vulnerabilities have been made
apparent. Thousands of individuals, particularly wage-laborers and
elderly people, are being hit with the worst of the economic fallout
from the pandemic. The compounding of the absence of individual savings,
the drastic rise in unemployment, lack of a sound social safety net, and
the sheer fall in aggregate demand and consumer spending has made it
apparent that a public payments and remuneration platform is needed. New
York State currently has sixteen billion dollars in unclaimed remit-
tances, up to five billion of which may be liquidated upon the Governor
issuing an executive emergency declaration of disaster.

Section 3 amends the state finance law with a new section 4-b. The terms
"master account," "individual wallet," "resident," "value ledger,"
"state entity," and "payment service provider" are defined.  The section
tasks the Department of Financial Services, the Department of Taxation
and Finance, the Office of the New York State Comptroller, the New York
State and Local Retirement System, the Department of Labor, and the
Department of Social Services with the establishment of the Inclusive
Value Ledger, and directs state entities to disburse funds to residents'
digital wallets.  At least five billion and three hundred thirty million
dollars of the State's sixteen billion in unclaimed remittances are to
be made immediately available to furloughed workers; any surplus remain-
ing is to be made available for remittance to small business in the
State and distributed according to a pro rata formula that the State
Comptroller is tasked with developing. The peer-to-peer mechanics are
outlined in this section. Commercial financial institutions that are
chartered to do business in New York State are also mandated to provide
interoperability between the individual wallets.

The Department of Taxation and Finance is tasked with the promotion of
use of the Inclusive Value Ledger, with the objective of banking the
unbanked population in New York, and maximizing inclusivity for the
state's most marginalized residents for the endeavors of value creation,
wealth accumulation, and commercial exchange. Lastly, the Department of
Financial Services is obligated to develop a smartphone app for the
Inclusive Value Ledger, ensuring compliance by private financial insti-
tutions, compliance with state and federal banking, privacy, and regula-
tory laws, and to prohibit the for-profit extractive activities by
private entities on the Inclusive Value Ledger.

Section 4 amends section 301 of the financial services law with the
addition of a new subsection (d) that directs the superintendent of
financial services of the state to coordinate with corresponding agen-
cies in other states and territories of the United States to resolve any
extant regulatory concerns.

Section 5 amends section 5 of section 1 of chapter 174 of the laws of
1968, colloquially known as the New York State Urban Development Corpo-
ration Act, by adding three new subdivisions that mandate the Empire
State Development Corporation, in conjunction with the aforementioned
agencies, to clarify the privacy regime of the Inclusive Value Ledger
infrastructure. Specifically, activities and data on the Inclusive Value
Ledger is not to be sold to nongovernmental entities, with such informa-
tion being cryptographically anonymized whenever possible.  Moreover,
personal data is to be shared with law enforcement only on the strict
condition of compliance with the Fourth Amendment of the Constitution of
the United States of America. The Corporation is also responsible for
the exploration of the creation of potential value ledgers in other
states, as well as a pilot program of a nationwide value ledger in
consultation with the Federal Reserve Bank of New York, the Federal
Reserve Board of the United States, and the Department of Treasury of
the United States.

Section 6 provides the conditions for severability. Section 7 provides
the effective date.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):

This bill reflects amendments made since it was originally introduced in
2019. Two primary differences exist:


1. The legislative findings that reflect the economic realities of the
novel Coronavirus pandemic in New York State, as well as the new policy
outlined in Section 3 that directs the immediate availability of the
sixteen billion in unclaimed remittances to New Yorkers.

2. New policy to prescribe regulations that ensure the security and
fidelity of the Inclusive Value Ledger's privacy regime.

 
JUSTIFICATION:

The Empire State Inclusive Value Ledger is a transformational new
savings and payments platform that will massively accelerate value
creation and commerce in the State of New York by steadily growing the
health and wealth of New York State citizens, businesses, and communi-
ties. The digital technology that undergirds it enables New Yorkers to
generate, capture, and exchange value that has gone untapped for liter-
ally centuries. Presently we, our state, and our communities leave
untold wealth, health, and value potential "on the table," by denying
ourselves the means of being rewarded in spendable form for much of the
value we add in our day-to-day lives. This is especially true of
so-called "soft work" - educating and mentoring of our youth, environ-
mental cleanup and preservation, community service and infrastructure-
provision, care of the ailing and elderly, etc.  that now goes monetari-
ly uncompensated, especially when done by women, young people, retirees,
and other concerned citizens.  The Inclusive Value Ledger will capture
and monetize the work of a stay-at-home, parent taking care of the fami-
ly, a mentor looking after a distressed youth, a volunteer cleaning up
public parks, etc., and transform it into spendable form by crediting
those who do such work with "care points" on a secure, smartphone-acces-
sible digital ledger. These points then can then be liquidated for other
credits, services, or needed products on the same platform; or can be
"cashed in" for end-of-year tax and other state remittance credits. The
new technology underlying this "Public Venmo" is a universally trusted
digital debit-credit ledger system through which citizens can accumulate
and trade tax and other state remittance credits with businesses and one
another for the products and services that make up the day-to-day busi-
ness of life. This will amount to a "complementary currency" system that
fills all the gaps left by dollar-scarcity in presently overlooked
regions and sectors of New York and its economy. And this will in turn
massively boost commerce, productive activity, and wealth-generation,
throughout our state.

Tax Credits and Benefits Estimate
Tax Credit or Benefit                     Approximate Value of
Disbursement/Cost of Service
Office of Temporary and Disabled Assistance (OTDA); Including public
assistance, NYS SSI/SSP, SNAP             $1,404,346,000

Earned Income Tax Credits (NYS+NYC)       $2,069,164,000

Noncustodial Earned Income Tax

Credits NYS+NYC)                          $2,467,000

Real Property Tax Credit                  $20,539,000

School Tax Relief Program (STAR)          $2,175,995,000

Child and Dependent Care Tax Credits      $155,127,000

Student Grant and Award Programs          $1,184,945,000

Medicaid                                  $47,551,153,000

AIDS Institute                            $103,495,000

Essential Plan                            $431,367,000

Children's Health Insurance               $482,087,000

Elderly Pharmaceutical Insurance Coverage $132,580,000

Total Sum: $55,713,265,000 (approx. $55.7 billion) Like fertile soil
that has long gone unwatered, New York's "care economy," "community
economies," and broader economy will bloom into abundance abundance that
just isn't possible when pervasive community-work, care-work, and
so-called "women's work" goes uncompensated and non-transferrable. By
enabling all forms of value to be stored, saved and transferred in
spendable form, the Inclusive Value Ledger will boost commerce and care,
enabling all New Yorkers and their communities not only to grow, but to
flourish.

 
PRIOR LEGISLATIVE HISTORY:

Senate: Previous version - 2019 S 6792 referred to Rules, 2020 referred
to Finance Assembly 2019 A 8686 referred to banks, 2020 referred to
banks

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
Immediately upon passage.

2021-S6073 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6073
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               April 5, 2021
                                ___________
 
 Introduced  by  Sen. SALAZAR -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the state finance law, the financial  services  law  and
   the  New  York state urban development corporation act, in relation to
   establishing the empire state inclusive value ledger establishment and
   administration act
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act  shall be known and may be cited as the "empire
 state inclusive value ledger establishment and administration act".
   § 2. Legislative intent. Many New  Yorkers,  be  they  individuals  or
 small businesses, lack access to retail banking services that can enable
 them  to  accumulate,  store,  and  transfer value in simple commercial,
 financial, testamentary and gift transactions on non-exploitative terms.
 Many New Yorkers also lack access to basic retail payment services  that
 can  enable  them to exchange value for value in retail and other trans-
 actions on non-exploitative terms. The aforementioned failures of access
 operate not only to marginalize and exclude large numbers of New Yorkers
 from ordinary interactions of the kind that underwrite  full  membership
 in society, but also to impede or obstruct multiple commercial and other
 transactions  that  determine  the size and scope of the state's economy
 and the prosperity of its residents. Since a money or currency  is  what
 'counts'  in  a  system  of  value accounting, storage, and payment, the
 aforementioned failures of access also operate to limit  the  state  and
 its  localities' aggregate currency supplies, which in turn prevents the
 remuneration of many value-adding  activities,  including  care  of  the
 needy,  maintenance  of  local  infrastructures,  and provision of other
 public goods. As a result, the failures of access discourage such  valu-
 able activities from being undertaken at all.
   A  system of individual digital wallets or payment accounts, linked to
 a single master account that enables payments to move between such indi-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD05967-01-1

 S. 6073                             2
 
 vidual wallets or payment accounts, is now easy to construct and  admin-
 ister  with the use of secure digital payment technologies. The state of
 New York annually disburses more than fifty-five billion dollars in  the
 form  of  tax  credits, procurement payments, pension payouts, and other
 program disbursals, all of which can readily be disbursed via  a  system
 of individual wallets or accounts linked to a master account.  The state
 of  New York also receives more than fifty-five billion dollars annually
 in the form of service payments, tax monies, licensing fees, civil fines
 and other remittances, all of which can be readily paid  into  a  master
 account from individual wallets or accounts of the kind just described.
   A system of individual digital wallets or payment accounts linked to a
 master account could accordingly function as a state-provided and admin-
 istered  payment  infrastructure,  in  and  through which value could be
 accumulated, stored, grown and exchanged in 'real-time,'  with  no  need
 for fees or other forms of exploitative value extraction, thereby assur-
 ing  that  all New Yorkers are (a) 'banked,' (b) able to create, receive
 and grow wealth, and (c) empowered to participate  fully  in  a  growing
 state economy suffering no shortage of currency or forgoing of commerce.
   The  state of New York now has the highest number of COVID-19 cases in
 the nation, while the novel Coronavirus outbreak that is spreading  this
 grave  illness  has  just been designated a global pandemic by the World
 Health Organization. New York's elderly  and  wage-laboring  communities
 are  already  being especially hard-hit by the Coronavirus outbreak, and
 will be much harder-hit in the weeks to come, as the elderly  are  espe-
 cially vulnerable to COVID-19 and wage-laborers have few options to work
 from  home,  few  healthcare options in the event that working in public
 exposes them to Coronavirus, and virtually  no  accumulated  savings  to
 fall  back  upon  in the event that they either have to leave work to be
 hospitalized or are furloughed from work as New  York's,  the  nation's,
 and  the  world's  economies contract in response to diminished consumer
 spending while the Coronavirus outbreak continues.
   New York's local economies  are  especially  vulnerable  both  to  the
 aforementioned  contraction  itself  and to the further contraction that
 will occur if wage-laborers  become  ill  or  are  furloughed  in  large
 numbers,  meaning that measures that buttress or boost consumer spending
 will be especially important to New York's economy in the  days,  weeks,
 and months just ahead. New York currently has sixteen billion dollars in
 unclaimed  remittances  according  to the New York State comptroller, of
 which one-third, or just over  five  billion  dollars,  can  legally  be
 liquidated at once in the event that the governor should issue an execu-
 tive emergency declaration of disaster.
   §  3.  The state finance law is amended by adding a new section 4-b to
 read as follows:
   § 4-B. EMPIRE STATE INCLUSIVE VALUE LEDGER ESTABLISHMENT AND  ADMINIS-
 TRATION.  1.  DEFINITIONS.  AS USED IN THIS SECTION, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   A. "MASTER ACCOUNT" MEANS A DIGITAL ACCOUNT WHICH ENABLES PAYMENTS  TO
 BE TRANSFERRED BETWEEN INDIVIDUAL WALLETS.
   B. "INDIVIDUAL WALLET" MEANS A DIGITAL ACCOUNT WHICH: (I) IS LINKED TO
 A  MASTER ACCOUNT; (II) ENABLES A RESIDENT TO SEND OR RECEIVE PAYMENT TO
 ANY ENTITY OF THE STATE OR TO ANOTHER RESIDENT; (III) ALLOWS VALUE TO BE
 ACCUMULATED, STORED, GROWN AND EXCHANGED; AND
   (IV) IS NOT SUBJECT TO FEES OR OTHER VALUE EXTRACTION FOR USE  OF  THE
 INDIVIDUAL WALLET.
   C. "RESIDENT" MEANS AN INDIVIDUAL OR A DOMESTIC CORPORATION OR FOREIGN
 CORPORATION AUTHORIZED TO DO BUSINESS IN THE STATE.

 S. 6073                             3
 
   D. "VALUE LEDGER" MEANS THE EMPIRE STATE INCLUSIVE VALUE LEDGER ESTAB-
 LISHED PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
   E.  "STATE  ENTITY"  MEANS  ANY  DEPARTMENT,  BOARD, BUREAU, DIVISION,
 COMMISSION, COMMITTEE, COUNCIL, OFFICE OF THE STATE,  OR  OTHER  GOVERN-
 MENTAL ENTITY WITH STATEWIDE JURISDICTION.
   F.  "PAYMENT  SERVICE  PROVIDER" MEANS AN ENTITY WHICH PROVIDES ONLINE
 SERVICES FOR ACCEPTING ELECTRONIC PAYMENTS  BY  A  VARIETY  OF  METHODS,
 INCLUDING,  BUT  NOT  LIMITED TO, BY CREDIT CARD, DIRECT DEBIT, AND BANK
 TRANSFER.
   2. THE DEPARTMENT OF  FINANCIAL  SERVICES,  IN  COOPERATION  WITH  THE
 DEPARTMENT  OF  TAXATION  AND  FINANCE, THE OFFICE OF THE NEW YORK STATE
 COMPTROLLER, THE NEW YORK STATE AND LOCAL RETIREMENT SYSTEM, THE DEPART-
 MENT OF LABOR, AND THE DEPARTMENT  OF  SOCIAL  SERVICES  SHALL  DEVELOP,
 ESTABLISH, AND MAINTAIN A VALUE STORAGE AND PAYMENT PLATFORM TO BE KNOWN
 AS  THE  EMPIRE STATE INCLUSIVE VALUE LEDGER. THE EMPIRE STATE INCLUSIVE
 VALUE LEDGER SHALL CONSIST OF A DIGITAL MASTER ACCOUNT AND COORDINATE  A
 SYSTEM  OF INDIVIDUAL WALLETS WHICH SHALL BE MAINTAINED AND ADMINISTERED
 BY THE URBAN DEVELOPMENT CORPORATION AS DESCRIBED HEREIN.
   3. ALL FUNDS DISBURSED TO RESIDENTS BY A STATE  ENTITY  OR  ANY  OTHER
 STATE  INSTRUMENTALITY  SHALL BE MADE OUT OF THE MASTER ACCOUNT TO INDI-
 VIDUAL WALLETS LINKED TO THE MASTER ACCOUNT VIA THE VALUE LEDGER AND ANY
 REMITTANCE MADE TO A STATE ENTITY OR OTHER STATE  INSTRUMENTALITY  BY  A
 RESIDENT  SHALL  BE  PERMITTED TO BE MADE, AT THE OPTION OF THE RESIDENT
 MAKING THE REMITTANCE, FROM THE RESIDENT'S INDIVIDUAL WALLET.
   4.  ONE-THIRD OF THE SIXTEEN BILLION DOLLARS IN UNCLAIMED  REMITTANCES
 TO  THE  STATE,  OR  AT  LEAST FIVE BILLION THREE HUNDRED THIRTY MILLION
 DOLLARS, SHALL BE MADE IMMEDIATELY AVAILABLE FOR REMITTANCE TO NEW YORK-
 ERS WHO HAVE BEEN FURLOUGHED OR OTHERWISE UNABLE  TO  WORK  DUE  TO  THE
 CORONAVIRUS  OUTBREAK  OF  TWO  THOUSAND  TWENTY-ONE.   ANY EXCESS FUNDS
 REMAINING AFTER DISBURSEMENTS TO SUCH FURLOUGHED AND OTHERWISE UNABLE TO
 WORK NEW YORKERS SHALL BE MADE AVAILABLE FOR REMITTANCE TO  SMALL  LOCAL
 BUSINESSES  PURSUANT  TO A PRO RATA FORMULA TO BE DEVELOPED BY THE STATE
 COMPTROLLER.  ADDITIONAL ONE-THIRD INCREMENTS OF  THE  UNCLAIMED  REMIT-
 TANCES  SHALL  BE  MADE  AS  PERMITTED  BY  LAWS, RULES, AND REGULATIONS
 GOVERNING THE USES OF SUCH FUNDS AS AND IF NECESSARY.
   5.  ALL RESIDENTS SHALL HAVE THE ABILITY  TO  MAKE  PAYMENTS  TO,  AND
 RECEIVE  PAYMENTS  FROM,  OTHER RESIDENTS THROUGH LINKS AMONG INDIVIDUAL
 WALLETS ON THE VALUE LEDGER. EACH PAYMENT SHALL BE EFFECTED BY A  SIMUL-
 TANEOUS CREDITING OF THE PAYEE'S INDIVIDUAL WALLET AND AN EQUAL DEBITING
 OF  THE  PAYER'S  INDIVIDUAL  WALLET.  SUCH PAYMENTS SHALL BE ABLE TO BE
 DIRECTED BY THE MEANS OF  PAYMENT  CARDS,  WIRE  SERVICES,  SMART-DEVICE
 APPS, OR OTHER ELECTRONIC FUNDS TRANSFER.
   6.  ANY  RESIDENT  MAKING  PAYMENT  TO, OR RECEIVING PAYMENT FROM, ANY
 OTHER RESIDENT MAY REQUIRE THAT  THE  PAYEE  OR  PAYER  ACCEPT  OR  MAKE
 PAYMENT  VIA  THE  SYSTEM  OF  INDIVIDUAL  WALLETS  ON THE VALUE LEDGER;
 PROVIDED, HOWEVER, THAT RESIDENTS  WHO  MAKE  PAYMENTS  TO,  OR  RECEIVE
 PAYMENTS  FROM,  OTHER  RESIDENTS SHALL NOT BE REQUIRED TO TRANSACT WITH
 EACH OTHER ON THE VALUE LEDGER IN THE EVENT THAT NO PARTY TO THE  TRANS-
 ACTION  OPTS  TO  DO SO AND FURTHER PROVIDED THAT NO TRANSACTING PARTY'S
 OPTING NOT TO DO SO IS COERCED BY ANY OTHER TRANSACTING PARTY OR ASSOCI-
 ATES OF SUCH TRANSACTING PARTY.
   7. ANY  COMMERCIAL  BANK,  OTHER  FINANCIAL  INSTITUTION,  OR  PAYMENT
 SERVICE PROVIDER DOING BUSINESS IN THE STATE SHALL BE REQUIRED TO:
   A. PROVIDE FOR FULL INTEROPERABILITY BETWEEN INDIVIDUAL WALLETS ON THE
 VALUE LEDGER AND ANY DEMAND DEPOSIT OR TRANSACTION ACCOUNT MAINTAINED BY

 S. 6073                             4
 
 THE  COMMERCIAL  BANK,  OTHER  FINANCIAL INSTITUTION, OR PAYMENT SERVICE
 PROVIDER FOR THE HOLDERS OF SUCH INDIVIDUAL WALLETS; AND
   B.  PERMIT ALL HOLDERS OF INDIVIDUAL WALLETS TO MAKE DEPOSITS INTO AND
 WITHDRAWALS  FROM  SUCH  INDIVIDUAL  WALLET  VIA  ANY  AUTOMATED  TELLER
 MACHINE,  TELLER  WINDOW,  OR  OTHER  DEPOSIT OR WITHDRAWAL FACILITY THE
 BANK, FINANCIAL INSTITUTION,  OR  PAYMENT  SERVICE  PROVIDER  OFFERS  TO
 CUSTOMERS.  THERE  SHALL  BE  NO  PECUNIARY OR OTHER CHARGE ASSESSED FOR
 ACCESS TO INDIVIDUAL WALLETS; ANY COSTS ASSOCIATED WITH  ACCESS  TO  AND
 USE  OF  INDIVIDUAL  WALLETS  SHALL  BE  CONSIDERED  AN INCIDENT OF SUCH
 COMMERCIAL BANK, OTHER FINANCIAL INSTITUTION, OR PAYMENT SERVICE PROVID-
 ER'S STATUS AS A PUBLICLY LICENSED FINANCIAL UTILITY.
   8. THE DEPARTMENT OF FINANCIAL SERVICES SHALL ALSO  DEVELOP  AND  MAKE
 AVAILABLE AT NO COST A DOWNLOADABLE SMART-DEVICE APPLICATION TO BE KNOWN
 AS  THE  EMPIRE STATE INCLUSIVE VALUE LEDGER APP THROUGH WHICH RESIDENTS
 CAN ACCESS AND RECEIVE AND MAKE PAYMENTS  INTO  AND  OUT  OF  INDIVIDUAL
 WALLETS.  ALL  ENTITIES  OPERATING IN THE STATE THAT ACCEPT PAYMENTS VIA
 SMART-DEVICE APPLICATIONS OF  ANY  KIND  SHALL  BE  REQUIRED  TO  ACCEPT
 PAYMENTS  VIA  THE  VALUE  LEDGER APPLICATION AT THE OPTION OF ANY PAYER
 WISHING TO PAY VIA SUCH VALUE LEDGER APPLICATION.
   9. THE DEPARTMENT OF TAXATION AND FINANCE,  THE  NEW  YORK  STATE  AND
 LOCAL  RETIREMENT  SYSTEM, AND THE DEPARTMENT OF SOCIAL SERVICES, AS THE
 STATE'S PRINCIPAL DISBURSERS AND RECEIVERS OF FUNDS, CREDITS, AND REMIT-
 TANCES, SHALL EXERCISE SPECIAL CARE IN ASSISTING WITH AND PROMOTING  THE
 ESTABLISHMENT AND WIDE USE OF THE VALUE LEDGER PAYMENTS SYSTEM, IN ORDER
 TO HASTEN BOTH:
   A.  THE FULL 'BANKING' OF THE STATE'S 'UNBANKED' INDIVIDUALS AND SMALL
 BUSINESSES; AND
   B. INCLUSION OF THE STATE'S CURRENTLY MARGINALIZED  RESIDENTS  IN  THE
 PROCESS OF VALUE CREATION, WEALTH ACCUMULATION, AND COMMERCIAL EXCHANGE.
   10. THE DEPARTMENT OF FINANCIAL SERVICES SHALL:
   A.  ENSURE  COMPLIANCE BY ALL BANKS, OTHER FINANCIAL INSTITUTIONS, AND
 PAYMENT SERVICE PROVIDERS WITH THE REQUIREMENTS OF THIS SECTION;
   B. PROHIBIT AND PREVENT ANY OTHER PERSON OR COMPANY IN  THE  FINANCIAL
 SERVICES  OR  PAYMENTS  INDUSTRIES  FROM  EXPLOITING VALUE LEDGER WALLET
 HOLDERS OR OTHERWISE SUBVERTING THE VALUE-CREATING AND  COMMERCE-PROMOT-
 ING  PURPOSES  OF THIS SECTION, INCLUDING BY OFFERING ADVANCES ON ANTIC-
 IPATED STATE REMITTANCES FOR FEES; AND
   C. ENSURE COMPLIANCE WITH STATE BANKING, REGULATORY, AND  DIGITAL  AND
 FINANCIAL  PRIVACY LAWS BY ALL ENTITIES THAT OVERSEE OR TRANSACT VIA THE
 VALUE LEDGER. THE DEPARTMENT, IN COORDINATION WITH THE URBAN DEVELOPMENT
 CORPORATION, SHALL ALSO COORDINATE WITH ANY RELEVANT  REGULATORY  AGENCY
 OF  THE UNITED STATES TO ENSURE COMPLIANCE WITH FEDERAL BANKING, REGULA-
 TORY, EMPLOYEE BENEFIT AND ANY OTHER APPLICABLE FEDERAL LAWS.
   11. THE DEPARTMENT OF FINANCIAL SERVICES SHALL BE AUTHORIZED TO  COOR-
 DINATE  WITH ITS COUNTERPART AGENCIES IN OTHER STATES AND TERRITORIES OF
 THE UNITED STATES IN CONNECTION WITH ANY COMMON REGULATORY NEEDS  IMPLI-
 CATED OR CHALLENGES RAISED BY STATE VALUE LEDGERS.
   §  4. Section 301 of the financial services law is amended by adding a
 new subsection (d) to read as follows:
   (D) THE SUPERINTENDENT SHALL HAVE THE POWER TO DIRECT  THE  DEPARTMENT
 TO  DEVELOP,  ESTABLISH,  AND  MAINTAIN THE EMPIRE STATE INCLUSIVE VALUE
 LEDGER ESTABLISHED PURSUANT TO SECTION FOUR-B OF THE STATE FINANCE  LAW.
 THE SUPERINTENDENT SHALL ALSO HAVE THE POWER TO DIRECT THE DEPARTMENT TO
 COORDINATE  WITH  AGENCIES IN OTHER STATES AND TERRITORIES OF THE UNITED
 STATES THE REGULATORY NEEDS OR CHALLENGES RAISED BY STATE VALUE LEDGERS.

 S. 6073                             5
 
   § 5. Section 5 of section 1 of  chapter  174  of  the  laws  of  1968,
 constituting  the  New  York state urban development corporation act, is
 amended by adding three new subdivisions  31,  32  and  33  to  read  as
 follows:
   (31)  TO  MAINTAIN AND ADMINISTER, IN CONSULTATION WITH THE DEPARTMENT
 OF FINANCIAL SERVICES, THE DEPARTMENT OF LABOR, AND  THE  DEPARTMENT  OF
 SOCIAL  SERVICES,  THE  EMPIRE  STATE INCLUSIVE VALUE LEDGER ESTABLISHED
 PURSUANT TO SECTION FOUR-B OF THE STATE FINANCE  LAW,  WITH  A  VIEW  TO
 ENCOURAGING  THE  EXPANSION OF COMMERCE AND THE BROAD GROWTH AND ACCUMU-
 LATION OF WEALTH IN THE STATE.   THE CORPORATION,  IN  CONSULTATION  AND
 COORDINATION  WITH  THE DEPARTMENT OF FINANCIAL SERVICES, THE DEPARTMENT
 OF LABOR, THE DEPARTMENT OF SOCIAL SERVICES, THE DEPARTMENT OF  TAXATION
 AND  FINANCE  AND  THE NEW YORK STATE AND LOCAL RETIREMENT SYSTEM, SHALL
 OBSERVE AND BUILD INTO THE EMPIRE STATE INCLUSIVE  VALUE  LEDGER  STRICT
 COMPLIANCE  WITH  THE HIGHEST STANDARDS OF COMMERCIAL AND FINANCIAL DATA
 PRIVACY.  SUCH STANDARDS SHALL ESTABLISH, AT A  MINIMUM,  THAT:  (A)  NO
 WEALTH  ACCUMULATION  OR SPENDING ACTIVITY OF ANY SORT THAT MAKES USE OF
 THE EMPIRE STATE INCLUSIVE VALUE LEDGER SHALL BE SHARED WITH,  INTIMATED
 TO, OR SOLD TO ANY NON-GOVERNMENTAL PERSON OR ENTITY; (B) ANY SHARING OF
 INFORMATION  WITH  GOVERNMENTAL ENTITIES SHALL BE SOLELY FOR PURPOSES OF
 OPTIMIZING ADMINISTRATION OF THE EMPIRE STATE INCLUSIVE VALUE LEDGER  OR
 FOR  LAW  ENFORCEMENT  PURPOSES; (C) ANY PERSONAL DATA THAT IS NOT BEING
 USED SOLELY TO ASSIST THE PERSON WHOSE DATA IS BEING ACCESSED  AND  THAT
 IS  BEING  USED  FOR  ADMINISTRATIVE PURPOSES SHALL BE CRYPTOGRAPHICALLY
 ANONYMIZED; (D) ANY PERSONAL DATA SHARED WITH LAW  ENFORCEMENT  AUTHORI-
 TIES  SHALL BE SHARED SOLELY IN STRICT COMPLIANCE WITH THE FOURTH AMEND-
 MENT TO THE UNITED STATES CONSTITUTION AND  ANY  AND  ALL  OTHER  STATE,
 FEDERAL AND LOCAL LEGAL CONSTRAINTS THAT PROTECT THE RIGHTS OF SUSPECTED
 OR ACCUSED PERSONS AND THE EMPIRE STATE INCLUSIVE VALUE LEDGER SHALL NOT
 LESSEN  THE  DEGREE  OF LEGALLY ASSURED DATA PRIVACY OF NEW YORKERS; AND
 (E) ANY AND ALL PRACTICABLE MEASURES POSSIBLE SHALL BE TAKEN TO  PREVENT
 ACCIDENTAL  DATA  PRIVACY  BREACHES STEMMING FROM OUTSIDE OR INADVERTENT
 DISCLOSURE.
   (32) TO EXPLORE AND NEGOTIATE POSSIBLE  INTERSTATE  COMPACTS  ENABLING
 THE GROWTH OF A VALUE LEDGER SYSTEM ACROSS MULTIPLE STATES, REGIONS, AND
 TERRITORIES  OF  THE  UNITED  STATES.  THE CORPORATION, AS THE PRINCIPAL
 ADMINISTRATOR OF THE EMPIRE STATE INCLUSIVE VALUE  LEDGER,  SHALL  REACH
 OUT  TO  AND  CONSULT  WITH COUNTERPART AGENCIES IN OTHER STATES, WITH A
 VIEW TO ASSISTING WITH THE DEVELOPMENT  OF  SIMILAR  VALUE  STORAGE  AND
 PAYMENT  PLATFORMS  IN  SUCH  STATES  AND  WITH THE GOAL OF THE POSSIBLE
 INTEROPERABILITY OF SUCH PLATFORMS WITH THE EMPIRE STATE INCLUSIVE VALUE
 LEDGER.
   (33) TO EXPLORE AND NEGOTIATE POSSIBLE  PILOT  PROGRAMS  ENABLING  THE
 GROWTH  AND  SPREAD  OF  A VALUE LEDGER SYSTEM ACROSS THE BROADER UNITED
 STATES.  AS THE PRINCIPAL ADMINISTRATOR OF THE  EMPIRE  STATE  INCLUSIVE
 VALUE LEDGER ESTABLISHED PURSUANT TO SECTION FOUR-B OF THE STATE FINANCE
 LAW,  THE  CORPORATION  SHALL  BE AUTHORIZED TO REACH OUT TO AND CONSULT
 WITH THE FEDERAL RESERVE BANK OF NEW YORK, THE FEDERAL RESERVE BOARD  OF
 THE  UNITED STATES, AND THE DEPARTMENT OF TREASURY OF THE UNITED STATES,
 WITH A VIEW TO POSSIBLY ASSISTING SUCH ENTITIES WITH THE DEVELOPMENT  OF
 A  NATIONAL  VALUE  STORAGE  AND  PAYMENT PLATFORM SIMILAR TO THE EMPIRE
 STATE INCLUSIVE VALUE LEDGER.
   § 6. Severability. If any provision of this act, or any application of
 any provision of this act, is held to be invalid, that shall not  affect
 the  validity or effectiveness of any other provision of this act, or of
 any other application of any provision of this act, which can  be  given

 S. 6073                             6
 
 effect  without  that  provision  or  application;  and to that end, the
 provisions and applications of this act are severable.
   § 7. This act shall take effect immediately.

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Senate Bill S6073

Sponsored By

Archive: Last Bill Status - In Senate Committee Finance Committee

2021-S6073 (ACTIVE) - Details

2021-S6073 (ACTIVE) - Summary

2021-S6073 (ACTIVE) - Sponsor Memo

2021-S6073 (ACTIVE) - Bill Text download pdf

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Senate Bill S6073

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Sponsored By

Julia Salazar

Archive: Last Bill Status - In Senate Committee Finance Committee

2021-S6073 (ACTIVE) - Details

2021-S6073 (ACTIVE) - Summary

2021-S6073 (ACTIVE) - Sponsor Memo

2021-S6073 (ACTIVE) - Bill Text download pdf

Comments