New York Senate Bill S00114

New York 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• Engrossed: 5/21/25
• Refer: 5/22/25
• Refer: 1/7/26
• Engrossed: 4/20/26
• Refer: 4/20/26

Caption

Prohibits state chartered banking institutions from investing in and providing financing for private prisons.

Summary

S00114 would amend New York’s banking law to prohibit state-chartered banking institutions from financing or investing in entities that own or operate private correctional facilities, to the extent those facilities would be barred under New York’s correction law if they were located in the state. In practical terms, the bill targets banks, credit providers, and other state-chartered financial institutions, preventing them from holding stocks, securities, or other obligations tied to private prison operators. The bill takes effect immediately and applies to contracts entered into, renewed, modified, or amended on or after the effective date. It does not directly ban private prisons themselves; rather, it uses the state’s banking regulatory authority to cut off financial support from state-chartered institutions. The measure is framed as an extension of New York’s existing policy against certain private correctional facilities into the financial sector.

Impact

The bill would add a new section to the Banking Law and create a new restriction on the investment and lending activities of state-chartered banking institutions. It would also incorporate by reference section 121 of the Correction Law, tying the banking restriction to facilities that would be prohibited under New York law if located in the state. As a result, affected banks would need to review and potentially divest or avoid financing relationships with private prison companies and related obligations.

Sentiment

The available voting history suggests the bill has support but not unanimity, passing the Senate Banks Committee and the Senate floor by clear but divided margins. That pattern indicates generally favorable sentiment among supporters who likely view the bill as consistent with criminal justice reform and ethical banking policy, while a substantial minority opposed it. No committee transcript is available, so the record shows legislative support without detailed public debate in the provided materials.

Contention

The main point of contention is likely whether the state should use banking regulation to restrict financial relationships with private prison operators. Supporters appear to favor limiting public-sector complicity in private incarceration and aligning bank practices with New York’s correctional policy, while opponents may object to the reach of the restriction, its impact on banking autonomy, or the indirect pressure it places on private correctional businesses and their financing arrangements. The split votes in committee and on the floor show that the issue is politically contested, even though it advanced.