Dickens, Reyes, Epstein, Hyndman, Kim, Simon, Burdick, DeStefano
MLTSPNSR
Add Art 17 §§254 - 277, St Fin L
Relates to establishing the empire state public bank to use the state's depository assets to generate additional benefit for the people and the economy of the state.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4448
SPONSOR: Steck TITLE OF BILL:
An act to amend the state finance law, in relation to establishing the
empire state public bank; and providing for the repeal of certain
provisions upon expiration thereof
PURPOSE:
To establish a public bank for the state of New York to provide New York
State taxpayers with more efficient utilization of their tax dollars in
the form of access to low-cost capital to build up our infrastructure,
sustain and build affordable housing, spur economic development, to
lower the total cost of education in the form of low-interest student
loans, and subsidize the state general fund in the form of bank divi-
dends and profits.
SUMMARY OF PROVISIONS:
Section 1. The state finance law is amended by adding a new article 17
to read as follows: ARTICLE 17 EMPIRE STATE PUBLIC BANK Sections:
254. Legislative intent
255. Definitions
256. Creation
257. Commission
258. Transition board
259. Deposit of public funds
260. Investment of state moneys
261. Infrastructure loans
262. Student loans
263. Business, Non-Profit and Individual Loans
264. Treasury and banking services
265. Management
sk 1 266. Advisory board
sk 1 267. Financial regulation
sk 1 268. Reporting requirements
sk 1 269. Ethical requirements
sk 1 270. Fees and taxes
sk 1 271. Trust records
sk 1 272. Capitalization
sk 1 273. Public depositary
sk 1 274. Application of this chapter to the president
sk 1 275. Cash and demand deposits available
sk 1 276. Permitted investments
sk 1 277. Severability
JUSTIFICATION:
Each year, the state of New York pays millions of taxpayer dollars to
the financial industry in the form of banking fees, bonding fees, inter-
est, commissions and other payments, simply for the privilege of utiliz-
ing their banking services. Additionally, the banks use our municipal
and state revenue deposits to earn money for themselves and their share-
holders by speculating in the market with these deposits. With the
repeal of Glass-Steagall, any state monies held in for-profit banks are
co-mingled with speculative commercial investment.The Great Recession of
2008 was a direct result of our insured personal and government deposits
that were co-mingled with poorly regulated commercial investment
products used to speculate in the market.This lost money for both indi-
viduals and governments, however, the banks still made money in the form
of commissions, fees, interest and other payments. Additionally, after
the banks creating this financial meltdown, they were then bailed out by
the federal government with taxpayer money.
With the federal administration's threatened dismantling of the Dodd-
Frank Wall Street Reform and Consumer Protection Act and the oversight
agencies it created
Financial Stability Oversight Council, the Office
of Financial Research, and the Bureau of Consumer Financial Protection
New York must find a safe banking alternative to invest its revenues and
protect them from the actions of the federal administration. Addi-
tionally, New York State has a fiduciary responsibility to its taxpayers
to ensure their tax dollars are used in the most efficient manner possi-
ble. There exists a banking alternative that would not allow private
business to profiteer off public funds; therefore, New York State
government is obligated to pursue that alternative.
The North Dakota Public Bank has been in existence for almost a century.
It makes affordable loans to small businesses, farmers, community
projects, local municipalities and students. Through their bonding, it
saves North Dakota taxpayers up to 50% on infrastructure projects such
as schools, roads and bridges, it eliminate millions in bank fees,
interest, bonding and money management fees for local municipalities and
the state, it supports and encourages a robust community banking sector
while also allowing for financial stability in volatile markets and in
recessions.In fact, because the North Dakota Public Bank utilizes the
community banks for their loans, their community banking sector is
significantly more robust than other states as well as expands their
lending capacity.When the great recession hit in 2008, the banks of
North Dakota had their public bank to turn to for collateral and credit;
this allowed them to lend while every other state saw bank lending come
to a halt.
A public bank for New York will ensure our tax revenues will stay in the
possession of the taxpaying public, allow for significantly more trans-
parency, utilize a higher percentage per dollar of these funds directly
for the benefit of the residents of New York State, as well as paying
the dividends/profits of those funds to the taxpayer via the general
fund instead of to a publicly-traded for-profit bank, its shareholders
and principal officers.
New York taxpayer funds should be put to use for sole benefit of the
taxpayers for New York State in the form of economic development,
infrastructure, affordable housing and education - and the dividends of
these deposits and any earnings on them should be paid to the taxpayers
of the state of New York.
PRIOR LEGISLATIVE HISTORY:
2021/22: A3309 referred to banks
2019/20: A437 referred to banks
FISCAL IMPLICATIONS:
There will be a significant financial benefit for taxpayers and resi-
dents of New York State.
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that section
258 of the state finance law, as added by section one of this act shall
be deemed repealed on April 1, 2022; provided, however, that effective
immediately, the addition, amendment and/or repeal of any rule or regu-
lation necessary for the implementation of this act on its effective
date are authorized and directed to be made and completed on or before
such effective date.
STATE OF NEW YORK
________________________________________________________________________
4448
2023-2024 Regular Sessions
IN ASSEMBLY
February 14, 2023
___________
Introduced by M. of A. STECK, DICKENS, REYES, EPSTEIN, HYNDMAN, KIM,
SIMON, BURDICK, DeSTEFANO -- read once and referred to the Committee
on Banks
AN ACT to amend the state finance law, in relation to establishing the
empire state public bank; and providing for the repeal of certain
provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The state finance law is amended by adding a new article 17
2 to read as follows:
3 ARTICLE 17
4 EMPIRE STATE PUBLIC BANK
5 Section 254. Legislative intent.
6 255. Definitions.
7 256. Creation.
8 257. Commission.
9 258. Transition board.
10 259. Deposit of public funds.
11 260. Investment of state moneys.
12 261. Infrastructure loans.
13 262. Student loans.
14 263. Business, non-profit and individual loans.
15 264. Treasury and banking services.
16 265. Management.
17 266. Advisory board.
18 267. Financial regulation.
19 268. Reporting requirements.
20 269. Ethical requirements.
21 270. Fees and taxes.
22 271. Bank records.
23 272. Capitalization.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05917-01-3
A. 4448 2
1 273. Public depositary.
2 274. Application of this chapter to the president.
3 275. Cash and demand deposits available.
4 276. Permitted investments.
5 277. Severability.
6 § 254. Legislative intent. 1. The legislature finds that there are
7 significant public infrastructure, higher education and business devel-
8 opment needs of the state that are unmet. The legislature further finds
9 that there are opportunities to use the state's depository assets to
10 generate additional benefit for the people and the economy of the state.
11 Therefore, the legislature intends to create the empire state public
12 bank as a legacy institution that amasses sufficient capital reserves to
13 address opportunities now and in the future.
14 2. The legislature intends that the public bank may:
15 (a) Facilitate investment in, and financing of, public infrastructure
16 systems that will increase public health, safety, and quality of life,
17 improve environmental conditions, and promote community vitality and
18 economic growth;
19 (b) Assist students who are in need of additional low-cost student
20 loans in order to finance the cost of higher education;
21 (c) Provide businesses, communities and low income areas of our state
22 access to low-interest capital; and
23 (d) Leverage New York's financial capital and resources, and work in
24 partnership with financial institutions, community-based organizations,
25 economic development organizations, guaranty agencies, and other similar
26 organizations.
27 3. The mission of the bank is to use New York's depository assets in
28 ways that afford most efficient use of taxpayer revenues and public
29 resources for the benefit of the people and economy of the state. The
30 legislature intends for the bank to apply business strategies to manage
31 taxpayer revenues while concurrently meeting identified needs and stra-
32 tegic opportunities across the state. In achieving its purpose of
33 improving public infrastructure and increasing access to higher educa-
34 tion, the legislature intends for the bank to adhere to the following
35 priorities:
36 (a) Institutional safety and soundness;
37 (b) Long-term viability;
38 (c) Social return and monetary return on investments;
39 (d) Prudent and best banking and business practices;
40 (e) Highest ethical, accountability, and transparency standards; and
41 (f) Insulation from political influence.
42 § 255. Definitions. The definitions in this section apply throughout
43 this article unless the context clearly requires otherwise.
44 1. "Board" means the advisory board of the empire state public bank.
45 2. "Commission" means the empire state public bank commission.
46 3. "Department" means the department of financial services.
47 4. "Director" means the director of the department of financial
48 services.
49 5."Superintendent" means the superintendent of the department of
50 financial services.
51 6. "Public infrastructure system" means a system of a local government
52 or political subdivision, a special purpose district, a public school
53 district, an institution of higher education, a federally recognized
54 Indian tribe, or the state, including but not limited to a system
55 involving: Wastewater treatment; storm water management; solid waste
56 disposal; drinking water treatment; flood control levees; energy effi-
A. 4448 3
1 ciency enhancements; roads, streets, and bridges; transportation infras-
2 tructure, including freight and passenger rail and public transit;
3 broadband and telecommunications infrastructure; outdoor recreation and
4 habitat protection facilities; community, social service, or public
5 safety facilities; schools and educational facilities; and affordable
6 housing.
7 7. "State-chartered bank" means any corporation organized under the
8 laws of this state that is engaged in banking, other than a trust compa-
9 ny, savings association, or a mutual savings bank. It does not include
10 the empire state public bank.
11 8. "State moneys" means all moneys or funds belonging to or in the
12 custody of the state under the control of the state comptroller shall be
13 considered as state moneys or funds.
14 9. "Comptroller" means the comptroller of the state of New York.
15 10. "Bank" means the empire state public bank.
16 § 256. Creation. The empire state public bank is created.
17 § 257. Commission. 1. The empire state public bank commission is
18 created as the primary governing authority of the bank. The commission
19 shall consist of the governor, the lieutenant governor, the chair of the
20 assembly banking committee, the chair of senate banking committee, and
21 the state comptroller.
22 2. The commission shall adopt rules regarding the:
23 (a) Safety and soundness standards of the bank;
24 (b) Criteria for evaluating, approving, and monitoring loans;
25 (c) Eligibility requirements and limits for borrowing;
26 (d) Transparency requirements for bank operations;
27 (e) Ethics and conflict of interest requirements for the commission,
28 the board, and officers and employees of the bank, including rules to
29 ensure that they perform their functions in compliance with the public
30 officers law; and
31 (f) Other topics as needed for efficient administration of the bank.
32 3. The commission shall commence bank operations by April first, two
33 thousand twenty-two.
34 4. The commission may delegate to the bank president such duties and
35 powers as deemed necessary to carry on the business of the bank and
36 enforce this article efficiently and effectively. The commission may not
37 delegate its rule-making or policy-making authority.
38 5. The commission shall adopt policies and procedures for its own
39 governance.
40 6. The commission may establish technical advisory committees or
41 consult with public and private sector experts in substantive areas
42 related to the bank's mission, objectives, and duties.
43 § 258. Transition board. 1. (a) The bank transition board is estab-
44 lished, with members as provided in this section.
45 (i) The temporary president of the senate shall appoint one member
46 from each of the two largest caucuses of the senate.
47 (ii) The speaker of the assembly shall appoint one member from each of
48 the two largest caucuses of the assembly.
49 (iii) The temporary president of the senate and the speaker of the
50 assembly jointly shall appoint seven citizen members with a substantial
51 background in banking or financial issues.
52 (b) The temporary president of the senate and the speaker of the
53 assembly jointly shall select the chair from among the citizen member-
54 ship. The chair shall convene the initial meeting of the bank transition
55 board within forty-five days after the effective date of this section.
A. 4448 4
1 2. The bank transition board shall develop and recommend the following
2 to the commission within the timeline established by the commission:
3 (a) A start-up business plan for the bank that includes plans and
4 timelines for functions that are new and functions transitioning to the
5 bank that were previously performed by another entity;
6 (b) Initial capital requirements of the bank;
7 (c) Options for capitalizing the bank; and
8 (d) Other items requested by the commission in order to commence bank
9 operations by April first, two thousand twenty-four.
10 3. Legislative members of the bank transition board must be reimbursed
11 for travel expenses in accordance with the rules of their respective
12 houses. Non-legislative members are entitled to be reimbursed for
13 expenses incurred in the discharge of their duties under this article.
14 4. The bank transition board may appoint an interim president and
15 other necessary staff who are exempt from the provisions of this chap-
16 ter, and who serve at the board's pleasure on such terms and conditions
17 as the board determines. The department must provide technical assist-
18 ance to the bank transition board. The board may also contract with
19 additional persons who have specific technical expertise if the exper-
20 tise is necessary to carry out the requirements of this section.
21 § 259. Deposit of public funds. 1. (a) The bank shall serve as the
22 depository for state moneys once the bank has built sufficient capacity
23 to accept and manage state moneys, as determined by the commission. The
24 commission shall establish a process and time frame for the deposit of
25 state moneys into the bank.
26 (b) The comptroller shall deposit state moneys in the bank in accord-
27 ance with the time frame and guidelines determined by the commission
28 under this section.
29 2. All deposits in the bank are guaranteed by the state.
30 3. All income earned by the bank on state moneys that are deposited in
31 or invested with the bank must be credited to and become a part of the
32 revenues and income of the bank.
33 4. The bank may accept deposits of public funds, but is exempt from
34 the requirements of section one hundred five of this chapter.
35 5. The bank may accept funds from any source, including federal funds
36 or other public funds.
37 6. The commission shall review state accounts that contain public
38 funds that are not state moneys, such as the state insurance fund, and
39 make recommendations to the governor and the appropriate committees of
40 the legislature as to which accounts should be deposited in the bank.
41 7. The bank shall make disbursements to the state funds as necessary
42 for the function of state government.
43 § 260. Investment of state moneys. The bank may invest state moneys
44 deposited in the bank that are not reasonably expected to be necessary
45 to meet the short or intermediate-term liquidity needs of the state. The
46 state comptroller retains authority to manage and invest the amount of
47 funds necessary to meet the operational needs of state government.
48 § 261. Infrastructure loans. The bank is authorized to facilitate
49 investment in, and financing of, construction, rehabilitation, replace-
50 ment, and improvement of new and existing public infrastructure systems.
51 Before initiating operations, the commission must present an implementa-
52 tion plan and any necessary legislation to the governor and appropriate
53 legislative committees, that:
54 1. Identifies the public infrastructure systems that the bank plans to
55 target initially;
A. 4448 5
1 2. Identifies any existing state programs that the bank recommends be
2 transferred under its umbrella, and the steps and timelines for the
3 transitions;
4 3. Describes additional financing products and services the bank plans
5 to offer, the target markets, anticipated rates, terms, and conditions;
6 4. Demonstrates how bank products and services will increase access to
7 capital for public infrastructure systems and complement those of exist-
8 ing public and private sources; and
9 5. Demonstrates how the bank plans to maximize revenues and public
10 benefit.
11 § 262. Student loans. The bank is authorized to administer a state
12 guarantee loan program to assist students in need of low-cost student
13 loans and related loan benefits to address educational needs as neces-
14 sary to support student success. The commission shall develop an imple-
15 mentation plan that:
16 1. Identifies the needs and benefits to selected students that the
17 program will target initially;
18 2. Demonstrates how the bank plans to maximize revenues and public
19 benefit while minimizing public risk;
20 3. Demonstrates how the bank will coordinate with the office of
21 student financial assistance; and
22 4. Identifies the ways that the program will address the following
23 issues related to loans:
24 (a) Qualification criteria for students;
25 (b) Obligations and options for loan repayment;
26 (c) Requirements for loan guarantees and reserves;
27 (d) Fee and interest rate structure;
28 (e) Maximum loan amounts; and
29 (f) Ensuring student awareness of grants, federal loans, and other
30 financial aid programs.
31 § 263. Business, non-profit and individual loans. The bank is author-
32 ized to leverage its financial capital and resources to provide access
33 to low-cost capital to businesses, entrepreneurs, non-profit community-
34 based organizations, start-up businesses and below average income areas
35 and individuals of this state to further economic growth, create jobs
36 and build and sustain affordable housing for the residents of this state
37 as provided for by this section. The bank is also authorized to leverage
38 its financial capital and resources to provide access to low-cost capi-
39 tal to bring fiscally sound and financially successful businesses into
40 this state as provided for by this section. The bank is also authorized
41 to leverage its financial capital and resources to provide access to
42 low-cost capital to established businesses in this state for the purpose
43 of providing financial stability for the bank as provided for by this
44 section.
45 1. Purchase, guarantee or hold loans made by private banks, credit
46 unions or other financial institutions doing business in this state.
47 2. Make loans in the form of participation loans with community banks
48 in this state to qualified individuals and businesses residing or doing
49 business in this state when the originator of the loan is a private
50 bank, credit union or other financial institution.
51 3. Serve as a banker's bank for chartered banks in this state by
52 providing correspondent banking services and other related services in
53 keeping with its mission.
54 4. Accept deposits related to such transactions from banks and other
55 financial institutions.
56 5. Be authorized to issue bank stock loans to state-charted banks.
A. 4448 6
1 § 264. Treasury and banking services. 1. For financial institutions
2 that make the bank a reserve depository, the bank may serve as a clear-
3 inghouse, including all facilities for providing domestic and foreign
4 exchange, and may rediscount paper, on terms the commission provides.
5 2. The bank may provide corporate trust services for the state and its
6 political subdivisions including trustee, escrow agent, paying agent,
7 bond registrar, and transfer agent.
8 3. The bank may buy and sell federal funds; issue letters of credit
9 for public deposits; and provide a safekeeping service for United States
10 treasury securities, federal agency securities, corporate bonds, tax-
11 free bonds, money market investments, and mortgage-backed securities.
12 4. The bank may perform services currently contracted out by the
13 office of temporary disability services regarding electronic benefits
14 transfer cards.
15 § 265. Management. 1. The commission shall appoint a bank president
16 with demonstrated and substantial experience in banking. The president
17 shall serve at the commission's pleasure, on such terms and conditions
18 as the commission determines.
19 2. The president shall provide support to the commission and the advi-
20 sory board, carry out bank policies and programs, and exercise addi-
21 tional authority as may be delegated by the commission.
22 3. Subject to available funding and consistent with commission direc-
23 tion, the bank president:
24 (a) May employ such additional personnel as are necessary to the
25 bank's operations. This employment shall be in accordance with the
26 state civil service law; and
27 (b) May contract with persons who have the technical expertise needed
28 to carry out a specific, time-limited project.
29 § 266. Advisory board. 1. (a) A public bank advisory board consisting
30 of eleven members is created to review the bank's operations and make
31 recommendations relating to the bank's management, services, policies,
32 and procedures.
33 (b) The governor shall appoint members of the advisory board, subject
34 to confirmation by the senate. The members of the advisory board must be
35 knowledgeable in banking or finance and must represent a diversity of
36 experience relevant to activities of the bank. Six or more of the
37 members must have expertise in banking or finance. Two members must be
38 from a consumer advocacy or social justice organization or have a back-
39 ground in the area of consumer advocacy or social justice. Advisory
40 board members serve at the pleasure of the governor.
41 (c) The board shall choose its chair from among its membership.
42 2. The term of the members is three years. Five of the initial board
43 members must be appointed to serve an initial term of three years, three
44 must be appointed to serve an initial term of two years, and the three
45 remaining members must be appointed to serve an initial term of one
46 year. All subsequent terms are three years. To ensure that the board can
47 continue to act, a member whose term expires shall continue to serve
48 until his or her replacement is appointed. In the case of any vacancy on
49 the board for any reason, the governor shall appoint a new member to
50 serve out the term of the person whose position has become vacant. A
51 board member may be removed for misconduct inconsistent with the mission
52 of the bank by the governor.
53 3. Members of the advisory board are entitled to reimbursement for
54 expenses incurred in the discharge of their duties under this article.
A. 4448 7
1 § 267. Financial regulation. 1. The bank must maintain capital adequa-
2 cy and other standard indicators of safety and soundness as is appropri-
3 ate for a publicly owned financial institution.
4 2. The superintendent may examine the bank in the same manner as a
5 state-chartered financial institution. The superintendent shall take
6 into consideration the unique circumstances of a publicly owned finan-
7 cial institution when examining the bank. The bank shall pay the direc-
8 tor for the reasonable costs of examinations.
9 3. The bank must undergo independent audits on the same basis as
10 state-chartered banks.
11 § 268. Reporting requirements. 1. The bank shall submit quarterly
12 reports to the commission in a manner and form prescribed by the commis-
13 sion. Late reports are not permissible and shall be cause for removal
14 of the person or persons responsible.
15 2. The commission shall make a report to the legislature on the
16 affairs of the bank by December first of each year.
17 § 269. Ethical requirements. The bank may not make a loan to any advi-
18 sory board member, the president, public officers or employees of the
19 bank. Advisory board members, the president, and employees of the bank
20 must follow any applicable ethical requirements in rules, policies, and
21 procedures adopted by the commission.
22 § 270. Fees and taxes. The bank is exempt from payment of all fees and
23 taxes levied by the state or any of its subdivisions.
24 § 271. Bank records. 1. Certain bank business records and records of
25 the department relating to the bank are exempt from public disclosure as
26 authorized by the department of financial services.
27 2. Financial and commercial information and records submitted to
28 either the department or the commission for the purpose of administering
29 this article may be shared between the department and the comptroller.
30 These records may also be used in any suit or administrative hearing
31 involving any provision of this chapter.
32 3. This section does not prohibit:
33 (a) The issuance of general statements based on the reports of persons
34 subject to this article as long as the statements do not identify the
35 information furnished by any person; or
36 (b) The publication by the director or the commission of the name of
37 any person violating this article and a statement of the manner of the
38 violation by that person.
39 § 272. Capitalization. The commission must make recommendations to the
40 appropriate fiscal committees of the legislature on options for capital-
41 ization of the bank. Any recommendations must include draft legislation
42 for consideration by the legislature.
43 § 273. Public depositary. The empire state public bank created in
44 section two hundred fifty-six of this article may accept deposits of
45 public funds, but is not a public depositary.
46 § 274. Application of this chapter to the president. The provisions of
47 this chapter outside this article do not apply to the president as
48 defined in section two hundred sixty-five of this article.
49 § 275. Cash and demand deposits available. The state comptroller shall
50 maintain at all times cash, or demand deposits in the empire state
51 public bank or qualified public depositaries in an amount needed to meet
52 the operational needs of state government. The state comptroller shall
53 not be considered to be in violation of unlawful issuance of checks or
54 drafts if he or she maintains demand accounts in public depositaries in
55 an amount less than all treasury warrants issued and outstanding.
A. 4448 8
1 § 276. Permitted investments. Subject to the limitations in section
2 two hundred sixty of this article, wherever there is in any fund or in
3 cash balances in the state treasury more than sufficient to meet the
4 current expenditures properly payable therefrom, the bank may invest or
5 reinvest such portion of such funds or balances as the bank deems expe-
6 dient in the following defined securities or classes of investments:
7 1. Certificates, notes, or bonds of the United States, or other obli-
8 gations of the United States or its agencies, or of any corporation
9 wholly owned by the government of the United States;
10 2. In state, county, municipal, or school district bonds, or in
11 warrants of taxing districts of the state. Such bonds and warrants shall
12 be only those found to be within the limit of indebtedness prescribed by
13 law for the taxing district issuing them and to be general obligations.
14 The state comptroller may purchase such bonds or warrants directly from
15 the taxing district or in the open market at such prices and upon such
16 terms as it may determine, and may sell them at such times as it deems
17 advisable;
18 3. In motor vehicle fund warrants when authorized by agreement between
19 the state comptroller and the department of transportation requiring
20 repayment of invested funds from any moneys in the motor vehicle fund
21 available for state highway construction;
22 4. In federal home loan bank notes and bonds, federal land bank bonds
23 and federal national mortgage association notes, debentures and guaran-
24 teed certificates of participation, or the obligations of any other
25 government sponsored corporation whose obligations are or may become
26 eligible as collateral for advances to member banks as determined by the
27 board of governors of the federal reserve system;
28 5. Bankers' acceptances purchased on the secondary market;
29 6. Negotiable certificates of deposit of any national or state commer-
30 cial or mutual savings bank or savings and loan association doing busi-
31 ness in the United States, provided, the comptroller shall follow the
32 investment policies and procedures advised by the investment advisory
33 committee pursuant to subdivision b of section four hundred twenty-three
34 of the retirement and social security law;
35 7. Commercial paper, provided that the comptroller shall follow the
36 investment policies and procedures advised by the investment advisory
37 committee pursuant to subdivision b of section four hundred twenty-three
38 of the retirement and social security law.
39 § 277. Severability. If any clause, sentence, paragraph, subdivision,
40 section or part of this article shall be adjudged by a court of compe-
41 tent jurisdiction to be invalid, such judgment shall not affect, impair
42 or invalidate the remainder thereof, but shall be confined in its opera-
43 tion to the clause, sentence, paragraph, subdivision, section or part of
44 this article directly involved in the controversy in which such judgment
45 shall have been rendered.
46 § 2. This act shall take effect immediately; provided, however, that
47 section 258 of the state finance law, as added by section one of this
48 act shall be deemed repealed April 1, 2024. Effective immediately, the
49 addition, amendment and/or repeal of any rule or regulation necessary
50 for the implementation of this act on its effective date are authorized
51 to be made and completed on or before such effective date.
