S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1502
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 15, 2019
                                ___________
 
 Introduced  by  M.  of  A.  VANEL, BLAKE, SEAWRIGHT, RAIA, MOSLEY, RA --
   Multi-Sponsored by -- M. of A. COOK -- 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:
 
   Section 1. a. A task force is hereby established to study  the  poten-
 tial designation of economic empowerment zones for the mining of crypto-
 currencies in the state of New York.
   b. For purposes of this act:
   (i) "cryptocurrency" shall mean a digital currency in which encryption
 techniques are used to regulate the generation of units and currency and
 verify  the  transfer  of  funds, operating independently from a central
 bank;
   (ii) "mining" shall mean the process of  spending  computer  power  to
 process  transactions  and  add such transactions to a cryptocurrencies'
 blockchain;
   (iii) "blockchain" shall mean a digital ledger in  which  transactions
 made in cryptocurrencies are recorded chronologically and publicly; and
   (iv)  "economic  empowerment zone" shall mean an area within the state
 that has been designated by such term pursuant to section  1391  of  the
 federal Internal Revenue Code (26 Unites States Code § 1391).
   c. The task force shall study:
   (i)  the  eligibility  requirements  and the process for a locality to
 receive an economic empowerment zone designation;
   (ii) how such eligibility requirements and processes would apply to  a
 locality  attempting to receive an economic empowerment zone designation
 for the mining of cryptocurrencies;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01292-01-9
              

 A. 1502                             2

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