Bill Text: NY A02676 | 2023-2024 | General Assembly | Introduced

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Bill Title: Establishes a task force to study the potential designation of economic empowerment zones for the mining of cryptocurrencies in the state of New York.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - referred to economic development [A02676 Detail]

Download: New_York-2023-A02676-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2676

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    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:

     1    Section  1.  a. A task force is hereby established to study the poten-
     2  tial designation of economic empowerment zones for the mining of crypto-
     3  currencies in the state of New York.
     4    b. For purposes of this act:
     5    (i) "cryptocurrency" shall mean a digital currency in which encryption
     6  techniques are used to regulate the generation of units and currency and
     7  verify the transfer of funds, operating  independently  from  a  central
     8  bank;
     9    (ii)  "mining"  shall  mean  the process of spending computer power to
    10  process transactions and add such transactions  to  a  cryptocurrencies'
    11  blockchain;
    12    (iii)  "blockchain"  shall mean a digital ledger in which transactions
    13  made in cryptocurrencies are recorded chronologically and publicly; and
    14    (iv) "economic empowerment zone" shall mean an area within  the  state
    15  that  has  been  designated by such term pursuant to section 1391 of the
    16  federal Internal Revenue Code (26 Unites States Code § 1391).
    17    c. The task force shall study:
    18    (i) the eligibility requirements and the process  for  a  locality  to
    19  receive an economic empowerment zone designation;
    20    (ii)  how such eligibility requirements and processes would apply to a
    21  locality attempting to receive an economic empowerment zone  designation
    22  for the mining of cryptocurrencies;
    23    (iii)  the  potential impact of such a designation on the workforce of
    24  such locality;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06194-01-3
        A. 2676                             2

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