S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2676
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2023
                                ___________
 
 Introduced  by M. of A. VANEL -- read once and referred to the Committee
   on Economic Development
 
 AN ACT to establish a task force to study the potential  designation  of
   economic  empowerment  zones for the mining of cryptocurrencies in the
   state of New York
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  a. A task force is hereby established to study the poten-
 tial designation of economic empowerment zones for the mining of crypto-
 currencies in the state of New York.
   b. For purposes of this act:
   (i) "cryptocurrency" shall mean a digital currency in which encryption
 techniques are used to regulate the generation of units and currency and
 verify the transfer of funds, operating  independently  from  a  central
 bank;
   (ii)  "mining"  shall  mean  the process of spending computer power to
 process transactions and add such transactions  to  a  cryptocurrencies'
 blockchain;
   (iii)  "blockchain"  shall mean a digital ledger in which transactions
 made in cryptocurrencies are recorded chronologically and publicly; and
   (iv) "economic empowerment zone" shall mean an area within  the  state
 that  has  been  designated by such term pursuant to section 1391 of the
 federal Internal Revenue Code (26 Unites States Code § 1391).
   c. The task force shall study:
   (i) the eligibility requirements and the process  for  a  locality  to
 receive an economic empowerment zone designation;
   (ii)  how such eligibility requirements and processes would apply to a
 locality attempting to receive an economic empowerment zone  designation
 for the mining of cryptocurrencies;
   (iii)  the  potential impact of such a designation on the workforce of
 such locality;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06194-01-3
              

 A. 2676                             2

   (iv) any cyber security threats that may result  from  such  a  desig-
 nation;
   (v) the infrastructure and economic environment of localities, states,
 and countries that tend to attract the mining of cryptocurrencies;
   (vi)  whether utility companies can play a role in the mining of cryp-
 tocurrencies; and
   (vii) any other subject that is relevant to the intent of this act  as
 determined by the chairperson.
   d.  No  later  than one year after the effective date of this act, the
 task force shall report its findings to the governor  and  the  legisla-
 ture, as described under subdivision c of this section.
   § 2. a. The task force shall be comprised of:
   (i) two members appointed by the governor;
   (ii) two members appointed by the temporary president of the senate;
   (iii) two members appointed by the speaker of the assembly;
   (iv)  two members appointed by the superintendent of the department of
 financial services; and
   (v) one member appointed by the director of the office of  information
 technology services.
   b.  One of the appointments by the governor shall serve as chairperson
 of the task force.
   c. The members of the task force shall  receive  no  compensation  for
 their services, but shall be allowed their actual and necessary expenses
 incurred in the performance of their services.
   d.  All  departments,  divisions,  bureaus,  commissions, districts or
 agencies of the state or any political subdivisions  thereof  shall,  at
 the request of the chairperson, provide the task force with such facili-
 ties, assistance and data as will enable the task force to carry out its
 powers and duties.
   § 3. This act shall take effect immediately.