Bill Text: NY A03641 | 2019-2020 | General Assembly | Amended

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Bill Title: Creates the office of financial freedom to assist in the monetization, purchasing, and cancellation of personal debt, including student loan debt; medical debt, home loan debt, auto loan debt, credit card debt, small business loan debt and other consumer debt; permits debt to be purchased and written-down through eminent domain.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2020-01-08 - referred to judiciary [A03641 Detail]

Download: New_York-2019-A03641-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         3641--B

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                    January 30, 2019
                                       ___________

        Introduced by M. of A. KIM, HEVESI, NIOU, SIMON, EPSTEIN, THIELE -- read
          once   and  referred  to  the  Committee  on  Judiciary  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee -- again reported from said  committee  with  amend-
          ments, ordered reprinted as amended and recommitted to said committee

        AN ACT to amend the eminent domain procedure law, in relation to permit-
          ting  personal debt to be purchased and written-down; and to amend the
          economic development law, in relation to establishing  the  office  of
          financial freedom

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The eminent domain procedure law is amended by adding a new
     2  section 708-a to read as follows:
     3    § 708-a. Acquisition of debt. The condemnor  shall  be  authorized  to
     4  acquire  for  public use, any condemnee's personal debt holdings includ-
     5  ing, but not limited to, student loan  debt,  medical  debt,  home  loan
     6  debt,  auto  loan  debt,  credit card debt, small business loan debt and
     7  other consumer debt, in the same manner and procedure prescribed for the
     8  acquisition of real property under this chapter. The condemnor shall  be
     9  authorized to write-down such acquired debt.
    10    §  2.  The economic development law is amended by adding a new article
    11  23 to read as follows:
    12                                  ARTICLE 23
    13                         OFFICE OF FINANCIAL FREEDOM
    14  Section 450. Office of financial freedom.
    15    § 450. Office of financial freedom. 1.  There  is  hereby  established
    16  within  the  department the office of financial freedom. The superinten-
    17  dent shall appoint the chief financial freedom officer and chief  finan-
    18  cial  freedom  economist  who shall appoint staff and perform such other
    19  functions to ensure the efficient operation of  the  office  within  the
    20  amounts made available therefor by appropriation.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04052-03-9
        A. 3641--B                          2

     1    2.  The office of financial freedom shall have the power and responsi-
     2  bility to:
     3    (a) handle the monetization and cancelation of personal debt;
     4    (b) create programs and initiatives to assist local communities in:
     5    (i)  utilizing  section  seven  hundred  eight-a of the eminent domain
     6  procedure law or any other applicable financial  mechanism  to  purchase
     7  and cancel personal debt;
     8    (ii) the construction or purchasing of debt;
     9    (iii) implementing strategies that will help communities connect unmet
    10  needs with resources;
    11    (iv) implementing strategies that will aid state and local authorities
    12  in the acquisition and write-down of debt; and
    13    (v)  coordinating  efforts  to  turn  personal  debt  into functioning
    14  currencies, including local currencies; and
    15    (c) conduct workshops on financial topics and offer financial  assist-
    16  ance  and guidance to local communities interested in relieving personal
    17  debt.
    18    3. For purposes of this section the term "personal  debt"  shall  mean
    19  any  debt that is owed by an individual and shall include, but shall not
    20  be limited to, student loan debt and consumer debt.
    21    § 3. This act shall take effect immediately.