S114

The New York State Senate passed legislation Tuesday that would prohibit state-chartered banks from investing in or financing private correctional facilities, extending the state's existing ban on private prisons. Senate Bill 114 passed 37-22 on a roll call vote. Sponsor Sen. Cleare argued the bill is a logical extension of New York's prohibition on private prisons and cited safety concerns at private facilities, including high staff turnover rates of 43 percent, increased violence, and poor accountability. "New York banks should not be allowed to profit from institutions that the state itself deems impermissible to even exist," Cleare said. Sen. Borrello opposed the measure, arguing it unfairly targets state-chartered community banks and sets a dangerous precedent by dictating investment decisions. He also contended that New York State, facing its own prison crisis with rising inmate violence and low morale, should not lecture other states on prison operations. Sen. Krueger supported the bill, noting that federal regulation of bank investments is not unprecedented and that research shows disturbing outcomes at many private prisons nationwide.