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A09862 Summary:

COSPNSRSepulveda, Blake, Seawright, Raia, Mosley, Ra
Establishes a task force to study the potential designation of economic empowerment zones for the mining of cryptocurrencies in the state of New York.
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A09862 Actions:

02/14/2018referred to economic development
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A09862 Text:

                STATE OF NEW YORK
                   IN ASSEMBLY
                                    February 14, 2018
        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;
    25    (iv) any cyber security threats that may result  from  such  a  desig-
    26  nation;
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 9862                             2
     1    (v) the infrastructure and economic environment of localities, states,
     2  and countries that tend to attract the mining of cryptocurrencies;
     3    (vi)  whether utility companies can play a role in the mining of cryp-
     4  tocurrencies; and
     5    (vii) any other subject that is relevant to the intent of this act  as
     6  determined by the chairperson.
     7    d.  No  later  than one year after the effective date of this act, the
     8  task force shall report its findings to the governor  and  the  legisla-
     9  ture, as described under subdivision c of this section.
    10    § 2. a. The task force shall be comprised of:
    11    (i) two members appointed by the governor;
    12    (ii) two members appointed by the temporary president of the senate;
    13    (iii) two members appointed by the speaker of the assembly;
    14    (iv)  two members appointed by the superintendent of the department of
    15  financial services; and
    16    (v) one member appointed by the director of the office of  information
    17  technology services.
    18    b.  One of the appointments by the governor shall serve as chairperson
    19  of the task force.
    20    c. The members of the task force shall  receive  no  compensation  for
    21  their services, but shall be allowed their actual and necessary expenses
    22  incurred in the performance of their services.
    23    d.  All  departments,  divisions,  bureaus,  commissions, districts or
    24  agencies of the state or any political subdivisions  thereof  shall,  at
    25  the request of the chairperson, provide the task force with such facili-
    26  ties, assistance and data as will enable the task force to carry out its
    27  powers and duties.
    28    § 3. This act shall take effect immediately.
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