What's happening
This bill creates the Office of Financial Resilience to support local economies through community currencies, blockchain, and cooperative financial models.
Why it matters
Promotes local economic self-sufficiency. By supporting community currencies, blockchain solutions, and cooperative models, the bill aims to help neighborhoods and towns reduce dependence on traditional financial systems and large institutions, potentially making them more resilient during economic downturns.
Focuses on financial innovation and inclusion. The Office will not just regulate but actively help communities experiment with new financial tools—like peer-to-peer economies and converting student debt into local currencies—potentially opening up economic participation for groups often left out of mainstream finance.
Provides education and direct support. Through workshops and advisory services, local groups will receive guidance on starting and sustaining cooperative or blockchain-based ventures, lowering barriers for grassroots economic development.
Strengthens support for emerging industries. By formally advocating for blockchain startups and local-focused companies, the Office may accelerate the growth of innovative, community-rooted businesses, possibly making New York a leader in alternative finance.
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Who cares
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Create Financial Resilience Office
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to banks
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Create Financial Resilience Office
In Assembly Committee · Banks · Sponsor Ron Kim
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5060
2019-2020 Regular Sessions
IN SENATE
April 5, 2019
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to establishing the office of financial resilience
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The banking law is amended by adding a new section 46 to read as follows:
§ 46. Office of financial resilience. 1. There is hereby established within the department the office of financial resilience. The superintendent shall appoint the chief financial resilience officer and chief cooperative economist who shall appoint staff and perform such other functions to ensure the efficient operation of the office within the amounts made available therefor by appropriation.
2. The office of financial resilience shall have the power and responsibility to:
(a) develop and implement new programs and initiatives for the purpose of supporting local economies and promoting resilient financial models. Such programs and initiatives shall assist local communities in:
(i) creating community currencies;
(ii) building blockchain-backed solutions to support local growth;
(iii) learning how to implement cooperative and peer-to-peer economies;
(iv) implementing strategies that will help communities connect unmet needs with resources; and
(v) coordinating efforts to turn student debt into functioning currencies;
(b) conduct workshops on financial topics and offer financial assistance and guidance to local communities interested in building cooperative and peer-to-peer systems; and
(c) advocate on behalf of blockchain startups and companies focused on building and supporting local economies.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03975-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the banking law, in relation to estab- lishing the office of financial resilience
Purpose or general idea of the bill
Create a new Section 46, under Article 2 of the Banking Law, to direct the Department of Financial Services to establish a "Chief Financial Resilience Officer" and "Chief Cooperative Economist", who will create and develop new programs at the Department of Financial Services that help communities build resilient local economies based on cooperative and peer-to-peer economic models.
Summary of specific provisions
Section 1: will set forth the creation of the "Chief Financial Resili- ence Officer" and "Chief Cooperative Economist" roles at the Department of Financial Services.
Section 2: of the bill will outline the Chief Financial Resilience Offi- cer and Chief Cooperative Economist's roles and responsibilities, including overseeing programs and initiatives that: foster financial resilience among local communities; assist local economies with struc- turing blockchainbacked solutions to support small businesses; help local merchants and citizens setup community currencies designed to incentivize people to shop locally.
Section 2-b: states that this office will conduct workshops, offer assistance and guidance, and advocate on behalf of constituents with regulators.
Section 3: of the bill states that this act shall take effect immediate- ly
Justification
As the financial capital of the world, New York must take the lead in creating a more resilient financial system that supports local economic growth. As the nation's first government office dedicated to this mission, the Office of Financial Resilience will be a full time team, led by the Chief Financial Resilience Officer and Chief Cooperative Economist, focuses on implementing blockchain-backed technologies designed to build cooperative and peer-to-peer local economies.
Every day, based on a debt-driven growth model, our financial system sustains an outdated paradigm of uncontrolled competition and profit at all costs, fueling a society that widens the gap between the wealthy and the poor.
Consequently, more Americans are living pay check to pay check than ever before while countless companies profit from a national fiat currency system, one that has even begun to monetize things such as college education, natural catastrophes, and our criminal justice system.
For example, our current interest and loan-based competitive financial models have led to a student-debt crisis of over one trillions dollars in cumulative debt, turning our young people into "wage slaves": https://www.cnbc.com/id/44958852. Instead of aiding all of these students and new workers, Congress has passed legislation to expand banks' abilities to collect debt from them.
As it cripples the aspirations and dreams of future generations with a lifetime of debt, our current economic paradigm has enriched and empowered multinational corporations that extract resources from local communities at an unprecedented rate. Prime examples such as Facebook, Amazon, Uber, and big chain stores mine revenue, data, and personal information from people and their neighborhoods every day while giving back little in return. The Office of Financial Resilience will be tasked with reversing this trend and advancing a bottom-up economic system that adds intrinsic value to local neighborhoods.
Prior legislative history
2017-18: S.9156 - REFERRED TO RULES
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.