S205

The New York State Senate passed Senate Print 205, sponsored by Sen. Martinez, an act to amend the Penal Law, on a roll call vote of 59-0. The bill, which was Calendar Number 363, proceeded directly to a vote without floor debate. The measure takes effect immediately upon passage.

The New York State Senate passed Senate Print 205, sponsored by Sen. Martinez, a bill to amend the Penal Law. The measure received 51 affirmative votes and was approved without debate. The bill takes effect immediately upon passage.

The New York State Senate passed legislation Tuesday prohibiting state-chartered banks from investing in private correctional facilities, extending the state's existing ban on private prisons to the financial sector. Senate Print 205, sponsored by Sen. Cleare, passed 43-16 on a roll call vote. The bill would prevent New York state-chartered banking institutions from providing financing or investing in stocks, securities or other obligations of entities that own or operate private prisons. Sen. Cleare argued the measure is a logical extension of New York's ban on private prisons, citing constituent experiences with family members detained in private facilities out of state and describing conditions as unsafe with poor accountability and untrained staff. She noted over 115,000 people are currently incarcerated in private prisons nationwide. Sen. Borrello opposed the bill, arguing that advocacy efforts have proven more effective than legislation and that the restriction unfairly targets state-chartered banks while leaving federally chartered banks unrestricted. He contended such mandates drive state-chartered banks out of New York, harming community banking and local credit decisions. The bill, which has been introduced multiple times since 2020 without Assembly passage, was restored to the noncontroversial calendar before the vote.

Senate Bill 205, sponsored by Sen. Cleare and relating to amendments to the Banking Law, was laid aside without debate or vote during floor consideration.

The New York State Senate passed legislation Tuesday prohibiting state-chartered banks from investing in or financing private correctional facilities, extending the state's existing ban on private prisons to financial institutions. Senate Print 205, sponsored by Sen. Leroy Comrie Jr. (D-Brooklyn), passed 40-21 on a roll call vote. The bill would prevent state-chartered banking institutions from providing financing or investing in stocks, securities or other obligations of entities that own or operate private prisons. Sen. Cleare argued the measure logically extends New York's moral and policy position against private prisons, noting that over 115,000 people are detained in for-profit facilities nationally and that private prisons are plagued by poor conditions, lack of accountability, and corruption. Sen. Rivera characterized support as a justified moral stand against profiting from incarceration of predominantly poor people of color. However, Sen. Borrello opposed the bill, arguing it sets a dangerous precedent of imposing political views on businesses and disproportionately harms community banks by incentivizing conversion to federal charters. Borrello noted the bill only affects state-chartered banks, now a minority in New York, and argued voluntary advocacy—which Cleare herself had successfully pursued with major national banks—is a stronger approach. The bill takes effect immediately upon signing.