Bill > A04144

This bill prohibits state-chartered banking institutions from investing in or providing financing for private prisons that would be considered illegal if located in New York State. Specifically, the bill adds a new section to the state banking law that prevents these financial institutions from purchasing stocks, securities, or other financial obligations of any entity that owns or operates a private correctional facility for housing incarcerated individuals. The bill defines "banking institution" by referencing an existing definition in the state banking law. The legislation will take effect immediately and will apply to all financial contracts that are entered into, renewed, modified, or amended on or after its effective date. By implementing these restrictions, the bill aims to discourage state-chartered banks from financially supporting private prison operations, which are viewed by some as problematic due to potential conflicts of interest and concerns about the treatment of incarcerated individuals.

Business and Industry, Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A4144