New York S 3901: Makes internal audit functions optional by school districts unless an audit by the comptroller reveals deficiencies

Bill Text

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S03901 Summary:

BILL NOS03901 

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SAME ASSAME AS A02106

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SPONSORPARKER

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COSPNSR

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MLTSPNSR

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Relates to alternative finance investment bonds.

Go to top S03901 Actions:

BILL NOS03901 

&nbsp

01/30/2025REFERRED TO BANKS

01/07/2026REFERRED TO BANKS

Go to topS03901 Committee&nbspVotes:

Go to topS03901 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS03901 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 3901

 2025-2026 Regular Sessions

 IN SENATE

 January 30, 2025
 ___________

 Introduced by Sen. PARKER -- read twice and ordered printed, and when
 printed to be committed to the Committee on Banks

 AN ACT in relation to alternative finance investment bonds

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

 1 Section 1. Legislative findings and intent. 1. New York's historical
 2 prosperity has derived from the freedom and innovative nature of the
 3 state's capital markets and New York's roles as a center of foreign
 4 trade and investment, which has helped build the industries and create
 5 the jobs that earned the state the nickname of the Empire State.
 6 2. The legislature finds that in order to bring more jobs to New York
 7 in a global economy, and to increase the state's competitiveness, the
 8 state must find new sources of capital investment to create opportu-
 9 nities throughout the state. An innovative way to accomplish this goal
 10 would be to create alternate investment instruments that would attract
 11 capital from investors who for personal, moral or religious reasons are
 12 unable to use conventional debt instruments such as bonds due to their
 13 inability to purchase securities that generate interest.
 14 3. New York has the proud heritage of being a model for the rest of
 15 the nation in the areas of ethnic, national, racial, and religious
 16 tolerance and diversity. However, over time large numbers of New Yorkers
 17 have been unable to participate in investment opportunities offered by
 18 the state, or in public-private partnerships due to the lack of diverse
 19 means of long term capital investments. Broadening the state's portfolio
 20 of investment instruments would not only enfranchise large groups of New
 21 Yorkers and lower the costs of state and local borrowing, but would also
 22 aid in community renewal and revitalization. Creating more inclusive
 23 forms of state financial opportunities would also broaden the streams of
 24 capital available to the state, lowering the cost of financing and once
 25 again involving the world's investors in the development of our state's
 26 economy.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05703-01-5

 S. 3901 2

 1 4. The legislature therefore declares that expanding New York's tools
 2 for economic development by creating new forms of alternative invest-
 3 ments would enable it to participate in the multi-billion dollar market
 4 for alternative investment vehicles akin to conventional bonds, thus
 5 freeing up new capital for business and job creation. The creation of
 6 these innovative financial instruments will furthermore permit individ-
 7 uals and institutions of all faiths to invest in and issue such instru-
 8 ments, redressing historic wrongs and low participation rates in our
 9 economy.
 10 § 2. 1. Definitions. (a) "Alternative finance investment bond" shall
 11 mean a certificate of equal value representing undivided shares of
 12 ownership of tangible assets, usufructs and services or (in the owner-
 13 ship of) the assets of particular projects or special investment activ-
 14 ity.
 15 (b) "Alternative finance investment bond agreement" shall mean an
 16 agreement where:
 17 (i) the agreement provides for a person ("the bond holder") to pay a
 18 sum of money ("the capital") to another ("the bond issuer"),
 19 (ii) the agreement identifies assets, or a class of assets, which the
 20 bond issuer will acquire for the purpose of generating income or gains
 21 directly or indirectly ("bond assets"),
 22 (iii) the agreement specifies a period at the end of which they cease
 23 to have effect ("the bond term"),
 24 (iv) the