Short title. This act shall be known and may be cited as the "New
York state urban development corporation act".
Statement of legislative findings and purposes. It is hereby
found and declared that there exists in urban areas of this state a
condition of substantial and persistent unemployment and underemployment
which causes hardship to many individuals and families, wastes vital
human resources, increases the public assistance burdens of the state
and municipalities, impairs the security of family life, contributes to
the growth of crime and delinquency, prevents many of our youth from
finishing their educations, impedes the economic and physical
development of municipalities and adversely affects the welfare and
prosperity of all the people of the state. Many existing industrial,
manufacturing and commercial facilities in such urban areas are obsolete
and inefficient, dilapidated, and without adequate mass transportation
facilities and public services. Many of such facilities are
underutilized or in the process of being vacated, creating additional
unemployment. Technological advances and the provision of modern,
efficient facilities in other states will speed the obsolescence and
abandonment of existing facilities causing serious injury to the economy
of the state. Many existing and planned industrial, manufacturing and
commercial facilities are, moreover, far from or not easily accessible
to the places of residence of substantial numbers of unemployed persons.
As a result, problems of chronic unemployment are not being alleviated
but are aggravated. New industrial, manufacturing and commercial
facilities are required to attract and house new industries and thereby
to reduce the hazards of unemployment. The unaided efforts of private
enterprise have not met and cannot meet the needs of providing such
facilities due to problems encountered in assembling suitable building
sites, lack of adequate public services, the unavailability of private
capital for development in such urban areas, and the inability of
private enterprise alone to plan, finance and coordinate industrial and
commercial development with residential developments for persons and
families of low income and with public services and mass transportation
facilities.
It is further found and declared that there exist in many
municipalities within this state residential, nonresidential,
commercial, industrial or vacant areas, and combinations thereof, which
are slum or blighted, or which are becoming slum or blighted areas
because of substandard, insanitary, deteriorated or deteriorating
conditions, including obsolete and dilapidated buildings and structures,
defective construction, outmoded design, lack of proper sanitary
facilities or adequate fire or safety protection, excessive land
coverage, insufficient light and ventilation, excessive population
density, illegal uses and conversions, inadequate maintenance, buildings
abandoned or not utilized in whole or substantial part, obsolete systems
of utilities, poorly or improperly designed street patterns and
intersections, inadequate access to areas, traffic congestion hazardous
to the public safety, lack of suitable off-street parking, inadequate
loading and unloading facilities, impractical street widths, sizes and
shapes, blocks and lots of irregular form, shape or insufficient size,
width or depth, unsuitable topography, subsoil or other physical
conditions, all of which hamper or impede proper and economic
development of such areas and which impair or arrest the sound growth of
the area, community or municipality, and the state as a whole.
It is further found and declared that there is a serious need
throughout the state for adequate educational, recreational, cultural
and other community facilities, the lack of which threatens and
adversely affects the health, safety, morals and welfare of the people
of the state.
It is further found and declared that there continues to exist
throughout the state a seriously inadequate supply of safe and sanitary
dwelling accommodations for persons and families of low income. This
condition is contrary to the public interest and threatens the health,
safety, welfare, comfort and security of the people of the state. The
ordinary operations of private enterprise cannot provide an adequate
supply of safe and sanitary dwelling accommodations at rentals which
persons and families of low income can afford.
It is hereby declared to be the policy of the state to promote a
vigorous and growing economy, to prevent economic stagnation and to
encourage the creation of new job opportunities in order to protect
against the hazards of unemployment, reduce the level of public
assistance to now indigent individuals and families, increase revenues
to the state and to its municipalities and to achieve stable and
diversified local economies. In furtherance of these goals, it is the
policy of the state to retain existing industries and to attract new
industries through the acquisition, construction, reconstruction and
rehabilitation of industrial and manufacturing plants and commercial
facilities, and to develop sites for new industrial and commercial
building. It is further declared to be the policy of the state to
promote the development of such plants and facilities, reasonably
accessible to residential facilities, in those areas where substantial
unemployment or underemployment exists, to the end that the industrial
and commercial development of our urban areas will proceed in sound
fashion and in coordination with development of housing, mass
transportation and public services, and that job opportunities will be
available in those areas where people lack jobs.
It is further declared to be the policy of the state to promote the
safety, health, morals and welfare of the people of the state and to
promote the sound growth and development of our municipalities through
the correction of such substandard, insanitary, blighted, deteriorated
or deteriorating conditions, factors and characteristics by the
clearance, replanning, reconstruction, redevelopment, rehabilitation,
restoration or conservation of such areas, and of areas reasonably
accessible thereto the undertaking of public and private improvement
programs related thereto, including the provision of educational,
recreational and cultural facilities, and the encouragement of
participation in these programs by private enterprise.
It is further declared to be the policy of the state to promote the
safety, health, morals and welfare of the people of the state through
the provision of adequate, safe and sanitary dwelling accommodations and
facilities incidental or appurtenant thereto for persons and families of
low income.
For these purposes, there should be created a corporate governmental
agency to be known as the "New York state urban development corporation"
which, through issuance of bonds and notes to the private, investing
public, by encouraging maximum participation by the private sector of
the economy, including the sale or lease of the corporation's interest
in projects at the earliest time deemed feasible, and through
participation in programs undertaken by the state, its agencies and
subdivisions, and by municipalities and the federal government, may
provide or obtain the capital resources necessary to acquire, construct,
reconstruct, rehabilitate or improve such industrial, manufacturing,
commercial, educational, recreational and cultural facilities, and
housing accommodations for persons and families of low income, and
facilities incidental or appurtenant thereto, and to carry out the
clearance, replanning, reconstruction and rehabilitation of such
substandard and insanitary areas.
It is further declared to be the policy of New York state to encourage
the development of research and development facilities and high
technology industrial incubator space at institutions of higher
education located in this state and authorized to confer degrees by law
or by the board of regents, or on lands in reasonable proximity to such
institutions provided that (i) in the case of research and development
facilities such facilities are for the cooperative use of one or more
such institutions and one or more business corporations, research
consortia or other industrial organizations involved in research,
development, demonstration, or other technologically oriented industrial
activities; and (ii) in the case of high technology industrial incubator
space, such space shall be for rental to business concerns which are in
their formative stages and which are involved in high technology
activities, including but not limited to business concerns initiated by
students, employees of such institution, including faculty members and
other persons or firms academically associated with such institution.
It is hereby declared that the acquisition, construction,
reconstruction, rehabilitation or improvement of such industrial,
manufacturing and commercial facilities, and of such cultural,
educational and recreational facilities including but not limited to
facilities identified as projects and called for to implement a state
designated heritage area management plan as provided in title G of the
parks, recreation and historic preservation law; the clearance,
replanning, reconstruction and rehabilitation of such substandard and
insanitary areas; and the provision of adequate, safe and sanitary
housing accommodations for persons and families of low income and such
facilities as may be incidental or appurtenant thereto are public uses
and public purposes for which public money may be loaned and private
property may be acquired and tax exemption granted, and that the powers
and duties of the New York state urban development corporation as
hereinafter prescribed are necessary and proper for the purpose of
achieving the ends here recited.
Definitions. As used in this act, the following words and terms
shall have the following meanings unless the context shall indicate
another or different meaning or intent:
(1) "Bonds" and "notes". The bonds and notes respectively issued by
the corporation pursuant to this act.
(2) "Comptroller". The comptroller of the state.
(3) "Corporation". The corporate governmental agency created by
section four of this act.
(4) "Housing Company". A company organized pursuant to the provisions
of either article two, four, five or eleven of the private housing
finance law.
(5) "Local Development Corporation". A corporation incorporated or
reincorporated pursuant to the provisions of article fourteen of the
not-for-profit corporation law.
(6) PROJECT: A specific work or improvement including lands,
buildings, improvements, real and personal properties or any interest
therein, acquired, owned, constructed, reconstructed, rehabilitated or
improved by the corporation or any subsidiary thereof, whether or not
still owned or financed by the corporation or any subsidiary thereof,
including a residential project, an industrial project, a land use
improvement project, a civic project, an industrial effectiveness
project, a small and medium-sized business assistance project, a fruit
growing, fruit processing, or winery business project, or an economic
development project, all as defined herein, or any combination thereof,
which combination shall hereinafter be called and known as a
"multi-purpose project". The term "project" as used herein shall include
projects, or any portion of a project.
(a) "Residential project". A project or that portion of a
multi-purpose project designed and intended for the purpose of providing
housing accommodations for persons or families of low income and such
facilities as may be incidental or appurtenant thereto.
(b) "Industrial project". A project or that portion of a multi-purpose
project designed and intended for the purpose of providing facilities
for manufacturing, warehousing, research, business or other industrial
or commercial purposes, including but not limited to machinery and
equipment deemed necessary for the operation thereof (excluding raw
material, work in process or stock in trade).
(c) "Land Use Improvement project". A plan or undertaking for the
clearance, replanning, reconstruction and rehabilitation or a
combination of these and other methods, of a substandard and insanitary
area, and for recreational or other facilities incidental or appurtenant
thereto, pursuant to and in accordance with article eighteen of the
constitution and this act. The terms "clearance, replanning,
reconstruction and rehabilitation" shall include renewal, redevelopment,
conservation, restoration or improvement or any combination thereof as
well as the testing and reporting of methods and techniques for the
arrest, prevention and elimination of slums and blight.
(d) "Civic project". A project or that portion of a multi-purpose
project designed and intended for the purpose of providing facilities
for educational, cultural, recreational, community, municipal, public
service or other civic purposes.
(e) "Industrial effectiveness project". A project or that portion of a
multi-purpose project designed and intended for the purpose of (i)
improving the productivity and competitiveness of an industrial firm or
group of industrial firms through such means as, but not limited to, the
redesign of production facilities, the introduction of new production
processes and management systems, the expansion or diversification of
product lines, the development of new markets, and labor and management
cooperative efforts to enhance productivity; (ii) implementing a
corporate restructuring or turnaround plan for an industrial firm; (iii)
effecting the transfer of the ownership and control of a viable
industrial firm to its employees, managers or other investors resident
in the state; or (iv) enhancing the opportunity for an industrial firm
to create or retain jobs, thereby promoting fuller employment and
economic development in the state.
(f) "Small and medium-sized business assistance project". A project
designed and intended for the purpose of providing assistance to
industrial firms that employ five hundred or fewer employees within the
state on a full-time basis.
(g) Economic development project. The acquisition, construction,
reconstruction, rehabilitation, or improvement of a project financed
pursuant to the empire state economic development fund which will
achieve the purposes of facilitating the creation or retention of jobs
or increasing business activity within a municipality or region of the
state.
(h) "fruit growing, fruit processing, or winery business project". A
project or that portion of a multi-purpose project designed and intended
for the purpose of establishing, maintaining, or expanding fruit growing
acreage or operations, or for providing facilities for the production,
manufacture, processing, warehousing, research, or distribution and sale
of fresh fruits or the processing of such fruits into juices, wines, or
other food products. As specified in paragraph (b-1) of subdivision 6 of
section 16-l of this act, such project costs may include, but not be
limited to, the cost of buildings, machinery, equipment, New York raw
fruits, New York unprocessed or partially processed fruits, root stock,
other personal property, materials, working capital, or stock in trade
required to establish such project.
* (6) "Project". A specific work or improvement including lands,
buildings, improvements, real and personal properties or any interest
therein, acquired, owned, constructed, reconstructed, rehabilitated or
improved by the corporation or any subsidiary thereof, whether or not
still owned or financed by the corporation or any subsidiary thereof,
including a residential project, an industrial project, a land use
improvement project, a civic project, an industrial effectiveness
project, a small and medium-sized business assistance project, or an
infrastructure project, all as defined herein, or any combination
thereof, which combination shall hereinafter be called and known as a
"multi-purpose project". The term "project" as used herein shall include
projects, or any portion of a project.
(a) "Residential project". A project or that portion of a
multi-purpose project designed and intended for the purpose of providing
housing accommodations for persons or families of low income and such
facilities as may be incidental or appurtenant thereto.
(b) "Industrial project". A project or that portion of a multi-purpose
project designed and intended for the purpose of providing facilities
for manufacturing, warehousing, research, business or other industrial
or commercial purposes, including but not limited to machinery and
equipment deemed necessary for the operation thereof (excluding raw
material, work in process or stock in trade).
(c) "Land Use Improvement project". A plan or undertaking for the
clearance, replanning, reconstruction and rehabilitation or a
combination of these and other methods, of a substandard and insanitary
area, and for recreational or other facilities incidental or appurtenant
thereto, pursuant to and in accordance with article eighteen of the
constitution and this act. The terms "clearance, replanning,
reconstruction and rehabilitation" shall include renewal, redevelopment,
conservation, restoration or improvement or any combination thereof as
well as the testing and reporting of methods and techniques for the
arrest, prevention and elimination of slums and blight.
(d) "Civic project". A project or that portion of a multi-purpose
project designed and intended for the purpose of providing facilities
for educational, cultural, recreational, community, municipal, public
service or other civic purposes.
(e) "Industrial effectiveness project". A project or that portion of a
multi-purpose project designed and intended for the purpose of (i)
improving the productivity and competitiveness of an industrial firm or
a group of industrial firms through such means as, but not limited to,
the redesign of production facilities, the introduction of new
production processes and management systems, the expansion or
diversification of product lines, the development of new markets, and
labor and management cooperative efforts to enhance productivity; (ii)
implementing a corporate restructuring or turnaround plan for an
industrial firm; (iii) effecting the transfer of the ownership and
control of a viable industrial firm to its employees, managers or other
investors resident in the state; or (iv) enhancing the opportunity for
an industrial firm to create or retain jobs, thereby promoting fuller
employment and economic development in the state.
(f) "Small and medium-sized business assistance project". A project
designed and intended for the purpose of providing assistance to
industrial firms that employ five hundred or fewer employees within the
state on a full-time basis.
(g) "Infrastructure project". Capital improvements to publicly-owned
real property under the jobs for the new, New York bond act pursuant to
article fifteen of the economic development law involving site clearance
or preparation or the demolition, construction or reconstruction of
basic utilities, systems or facilities, which, while not used directly
for the production of goods or services, are required as the foundation
for or to promote, stimulate or support economic activity resulting in
the retention or creation of permanent private-sector jobs.
* NB Not implemented due to defeat of the Jobs for the new, New York
bond act in November, 1992
(7) "Project cost". The sum total of all costs incurred by the
corporation in carrying out all works and undertakings which the
corporation deems reasonable and necessary for the development of a
project. These shall include but are not necessarily limited to the
costs of all necessary studies, surveys, plans and specifications,
architectural, engineering or other special services, acquisition of
land and any buildings thereon, site preparation and development,
construction, reconstruction, rehabilitation, improvement and the
acquisition of such machinery and equipment as may be deemed necessary
in connection therewith (other than raw materials, work in process or
stock in trade); the necessary expenses incurred in connection with the
initial occupancy of the project; an allocable portion of the
administrative and operating expenses of the corporation; the cost of
financing the project, including interest on bonds and notes issued by
the corporation to finance the project from the date thereof to the date
when the corporation shall determine that the project be deemed
substantially occupied; and the cost of such other items, including any
indemnity and surety bonds and premiums on insurance, legal fees, fees
and expenses of trustees, depositories and paying agents for the bonds
and notes issued by the corporation; and relocation costs, all as the
corporation shall deem necessary.
(8) "Real property". Lands, structures, franchises and interests in
land, including lands under water and riparian rights, space rights and
air rights and any and all other things and rights usually included
within said term. Real property shall also mean and include any and all
interests in such property less than full title, such as easements,
incorporeal hereditaments and every estate, interest or right, legal or
equitable, including terms for years and liens thereon by way of
judgments, mortgages or otherwise, and also all claims for damages for
such real estate.
(9) "State". The state of New York.
(10) "State agency". Any officer, department, board, commission,
bureau, division, public corporation, agency or instrumentality of the
state.
(11) "Subsidiary". A corporation created in accordance with section
twelve of this act.
(12) "Substandard or insanitary area". The term "substandard or
insanitary area" shall mean and be interchangeable with a slum,
blighted, deteriorated or deteriorating area, or an area which has a
blighting influence on the surrounding area, whether residential,
non-residential, commercial, industrial, vacant or land in highways,
waterways, railway and subway tracks and yards, bridge and tunnel
approaches and entrances, or other similar facilities, over which air
rights and easements or other rights of user necessary for the use and
development of such air rights, to be developed as air rights sites for
the elimination of the blighting influence, or any combination thereof
and may include land, buildings or improvements, or air rights and
concomitant easements or other rights of user necessary for the use and
development of such air rights not in themselves substandard or
insanitary.
(13) "Municipality." Any county, city, town or village.
(14) "Local governing body". The board of supervisors, county
legislature, board of aldermen, common council, commission, or other
elective governing board or body now or hereafter vested by state
statute, charter or other law with jurisdiction to initiate and adopt
local law whether or not such local laws or ordinances require the
approval of the elective chief executive officer or other official or
body to become effective, and except that with respect to a city having
a population of one million or more the term "local governing body"
shall mean the board of estimate.
(15) "Public corporation". A municipal corporation, district
corporation, or public benefit corporation, as all such terms are
defined in section three of the general corporation law, or any agency
or instrumentality of the foregoing.
(16) "New community." A plan or undertaking for the development of
housing together with such civic, industrial and commercial facilities
and other ancillary facilities as the corporation may determine
necessary, including the implementation thereof through one or more
projects of the corporation and through such participation by private
enterprise as may be necessary or desirable to carry out the development
of such new community.
(17) "Eligible business". For purposes of section sixteen-a of this
act, a business that is resident in this state, and employs one hundred
or less persons on a full-time basis.
(18) "Regional corporation". For purposes of section sixteen-a of this
act, a not-for-profit or public benefit corporation or consortium of
such entities that has formed a not-for-profit corporation, that has
jurisdiction within at least two entire contiguous counties.
(19) "Minority business enterprise". A business enterprise which is at
least fifty-one percent owned, or in the case of a publicly-owned
business at least fifty-one percent of the common stock or other voting
interests of which is owned, by one or more minority persons and such
ownership interest is real, substantial and continuing. The minority
ownership must have and exercise the authority to independently control
the day-to-day business decisions of the entity. Minority persons shall
mean persons who are:
(a) Black;
(b) Hispanic persons of Mexican, Puerto Rican, Dominican, Cuban,
Central or South American descent of either Indian or Hispanic origin,
regardless of race;
(c) Asian and Pacific Islander persons having origins in the Far East,
Southeast Asia, the Indian sub-continent or the Pacific Islands; or
(d) American Indian or Alaskan Native persons having origins in any of
the original peoples of North America and maintaining identifiable
tribal affiliations through membership and participation or community
identification.
(20) "Women business enterprise". A business enterprise which is at
least fifty-one percent owned, or in the case of a publicly-owned
business at least fifty-one percent of the common stock or other voting
interests of which is owned, by United States citizens or permanent
resident noncitizens who are women, regardless of race or ethnicity, and
such ownership interest is real, substantial and continuing and such
women have and exercise the authority to independently control the day
to day business decisions of the enterprises.
(21) "Industrial firm". A manufacturing firm involved with extracting,
smelting, recovering, developing, preparing, compounding, converting,
assembling or producing in any manner minerals, raw materials, products
or substances of any kind or nature, and shall include facilities
related thereto for storage, warehousing or distribution, for research
and development or for the discovery of new, and the refinement of
known, substances, processes and products.
(22) "Eligible reservist". A member of a reserve component of the
armed forces ordered to active duty during a period of military
conflict.
(23) "Owner, manager or key employee". A person who:
(a) has at least a twenty percent ownership interest in the small or
medium-sized business; or
(b) is a manager responsible for the day-to-day operations of such
small or medium-sized business concern; or
(c) is an employee of such small or medium-sized business concern with
a significant responsibility whose duties cannot be assumed by another
person without substantial impairment to the economic health of the
business, as determined by the corporation.
(24) "Period of military conflict". A period:
(a) of war declared by the Congress; or
(b) of national emergency declared by the Congress or by the
President; or
(c) in which a member of a reserve component of the armed forces is
ordered to active duty pursuant to section 673b of title 10 of the
United States Code.
(25) "Upstate Empire State Development Corporation" shall be defined
for purposes of sections sixteen-q and sixteen-s of this act, as a
subsidiary of the urban development corporation established under
section twelve of this act.
(26) "Upstate Chairman" shall be defined for purposes of sections
sixteen-q and sixteen-s of this act, as the chairman of the upstate
empire state development corporation, a subsidiary of the urban
development corporation established under section twelve of this act.
(27) "Downstate" shall be defined by the chairman subject to approval
by the board of directors of the urban development corporation.
(28) "Upstate" shall be defined by the chairman, in consultation with
the chairman of the upstate empire state development corporation,
subject to approval by the board of directors of the urban development
corporation.
(29) "Upstate Agricultural Economic Development Project." For purposes
of section sixteen-s of this act, a project or that portion of a
multi-purpose project shall be designed and intended for the purpose of
establishing, maintaining, or expanding agricultural acreage or
operations, or for providing facilities and/or markets for the
production, manufacturing, processing, warehousing, laboratory
diagnostics, research, or distribution and sale of crops, livestock and
livestock products as defined in subdivision 2 of section 301 of the
agriculture and markets law. Such project costs may include, but not be
limited to, the cost of land, buildings, machinery, equipment, processed
or partially processed agricultural commodities, root stock, livestock,
other personal property, materials, working capital, or stock in trade
required to establish such project.
(30) "Energy conservation and efficiency projects." A project or that
portion of a multi-purpose project designed and intended for the purpose
of reducing energy consumption and improving energy efficiency of
building envelopes, building systems or manufacturing or industrial
systems by retrofitting or modernizing manufacturing, industrial or
commercial facilities. Energy conservation and efficiency projects may
include, but not be limited to: (a) energy audits performed by an energy
auditor approved by the New York state energy research and development
authority as defined in section eighteen hundred fifty-one of the public
authorities law; (b) insulation of the building structure or systems
within the building; (c) windows or doors, caulking or weather
stripping, multi-glazed windows or doors, heat absorbing or heat
reflective glazed and coated window or door systems, additional glazing,
reductions in glass area or other window and door system modifications
that reduce energy consumption; (d) automated or computerized energy
control systems; (e) heating, ventilating or air conditioning system
modifications or replacements; (f) replacement or modification of
lighting fixtures to increase the energy efficiency of the lighting
system without increasing the overall illumination of a facility, unless
an increase in illumination is necessary to conform to the applicable
state or local building code or nationally accepted standards for the
lighting system after the proposed modifications are made; (g) energy
recovery systems; (h) solar energy generating or heating and cooling
systems or other renewable energy systems; (i) cogeneration or combined
heat and power systems that produce steam, chilled water or forms of
energy such as heat, as well as electricity, for use primarily within a
building or complex of buildings; (j) energy conservation measures that
provide long-term operating cost reductions; and (k) maintenance and
operation of mechanical systems that provide long-term operating cost
reductions.
New York state urban development corporation. (1) There is hereby
created the New York state urban development corporation. The
corporation shall be a corporate governmental agency of the state,
constituting a political subdivision and public benefit corporation. Its
membership shall consist of nine directors as follows: the
superintendent of financial services, the chairman of the New York state
science and technology foundation, and seven directors to be appointed
by the governor with the advice and consent of the senate. From the
seven directors appointed by him, the governor shall designate the
chairman of the corporation and two others who shall all serve at the
pleasure of the governor. Of the four remaining directors, one of such
directors first appointed by the governor after the effective date of
this subdivision as amended shall serve for a term ending January first
next succeeding his appointment, one of such directors shall serve for a
term ending one year from such date, one of such directors shall serve
for a term ending two years from such date, and one of such directors
shall serve for a term ending three years from such date. Their
successors shall serve for terms of four years each. Directors shall
continue in office until their successors have been appointed and
qualified. In the event of a vacancy occurring in the office of a
director by death, resignation or otherwise, the governor shall appoint
a successor with the advice and consent of the senate to serve for the
balance of the unexpired term. The governor shall appoint the president
of the corporation, with the advice and consent of the senate, who shall
be the chief executive officer of the corporation and who shall serve at
the pleasure of the governor. Such president may be one of the directors
appointed by the governor.
(1-a) The superintendent of financial services and the chairman of the
New York state science and technology foundation each may designate a
person from his department to represent him at all meetings of the
corporation from which such director may be absent. Any representative
so designated shall have the power to attend and to vote at any meeting
of the corporation from which the director so designating him is absent,
with the same force and effect as if the director designating him were
present and voting. Such designation shall be by written notice filed
with the chairman of the corporation by the director making the
designation. The designation of each such person shall continue until
revoked at any time by written notice to the chairman by the director
making the designation. Such designation shall not limit the power of
the director making the designation to attend and vote in person at any
meeting of the corporation.
(2) The directors, other than the chairman, shall serve without salary
or other compensation, but each director, including the chairman, shall
be entitled to reimbursement for actual and necessary expenses incurred
in the performance of his or her official duties. Anything to the
contrary contained herein notwithstanding, the president of the
corporation, whether or not he or she is a director, and the chairman if
he or she is not the president shall be entitled to receive such salary
as the directors may determine for their services as chief executive
officer and chairman respectively.
(3) Such directors other than the superintendent of financial
services, the chairman of the New York state science and technology
foundation, and any director who serves as president of the corporation
may engage in private employment, or in a profession or business. The
corporation, its directors, officers and employees shall be subject to
the provisions of sections seventy-three and seventy-four of the public
officers law.
(3-a) The state shall save harmless and indemnify any person who shall
have served as a director, officer or employee of the corporation
against financial loss or litigation expense arising in connection with
any claim, demand, suit or judgment, or the defense thereof, based on a
cause of action, whenever accrued, involving allegations that pecuniary
harm was sustained by any person as a result of any transaction of the
corporation taking place on or after the effective date of the New York
state project finance agency act. In the event any such claim, demand,
suit or judgment shall occur, a director, officer or employee of the
corporation shall be saved harmless and indemnified by the state under
this subdivision unless such individual is found by a final judicial
determination not to have acted in good faith, for a purpose which he
reasonably believed to be in the best interests of the corporation or
not to have had reasonable cause to believe that his conduct was lawful.
In any suit described in the first sentence of this subdivision, any
director, officer or employee made a party defendant to such suit shall
be entitled to be represented by private counsel of his choice;
provided, however, that the attorney general is authorized, as a
condition to indemnification of the fees and expenses of such
representation, to require that appropriate groups of such individuals
be represented by the same counsel; and provided further, that with the
approval of the attorney general or of a court (obtained by application
substantially as provided in section seven hundred twenty-five of the
business corporation law), indemnification for such fees and expenses
shall be paid from time to time during the pendency of such suit. The
provisions of this subdivision shall be in addition to and shall not
supplant any indemnification or other benefits heretofore or hereafter
conferred upon directors, officers and employees of the corporation by
section seventeen of the public officers law, by action of the
corporation, or otherwise. The provisions of this subdivision shall
inure only to directors, officers and employees of the corporation,
shall not enlarge or diminish the rights of any other party, and shall
not impair, limit or modify the rights and obligations of any insurer
under any policy of insurance.
(4) The directors of the corporation shall serve ex officio as
directors of the corporation for urban development and research of New
York, created by the New York state urban development and research
corporation act, and of the urban development guarantee fund of New
York, created by the urban development guarantee fund of New York act.
The chairman of the corporation shall serve as chairman of the
corporation for urban development and research of New York and of the
urban development guarantee fund of New York.
(5) Notwithstanding any inconsistent provisions of law, general,
special or local, no officer or employee of the state or of any civil
division thereof, shall be deemed to have forfeited or shall forfeit his
office or employment by reason of his acceptance of membership on the
corporation created by this section; provided, however, a director who
holds such other public office or employment shall receive no additional
compensation or allowance for services rendered pursuant to this act,
but shall be entitled to reimbursement for his actual and necessary
expenses incurred in the performance of such services.
(6) The governor shall appoint a business advisory council for urban
development, to advise and make recommendations to the corporation with
respect to development policies and programs and to encourage maximum
participation in projects of the corporation by the private sector of
the economy, including members of the council and firms and corporations
with which they are affliated. Such council shall consist of not more
than twenty-five members, who shall serve at the pleasure of the
governor, and who shall be broadly representative of commerce and
industry, the financial community and the construction and housing
industries. Such members shall serve without salary, but shall be
entitled to reimbursement for their actual and necessary expenses
incurred in the performance of their duties.
(7) The corporation shall establish one or more community advisory
committees to consider and advise the corporation upon matters submitted
to them by the corporation concerning the development of any area or any
project, and may establish rules and regulations with respect to such
committees. The corporation or its successor shall publish and maintain
a list of all community advisory committee members, and community
advisory committee meeting agendas, materials, and minutes on its
website. Meeting agendas and materials shall be posted on such website
at least one business day in advance of community advisory committee
meetings. All upcoming meeting times and locations shall be posted on
such website at least one week in advance. Community advisory committee
meetings shall be accessible for the public to view and attend live. The
members of such community advisory committees shall serve, at the
pleasure of the corporation, without salary, but shall be entitled to
reimbursement for their actual and necessary expenses incurred in the
performance of their duties. Notwithstanding any inconsistent provision
of law, general, special or local, no officer or employee of the state
or of any civil division thereof, shall be deemed to have forfeited or
shall forfeit his or her office or employment by reason of his or her
acceptance of membership on such community advisory committee.
(8) The governor may remove any director appointed by him or her for
inefficiency, neglect of duty or misconduct in office after giving him
or her a copy of the charges against him or her, and an opportunity to
be heard, in person or by counsel, in his or her defense, upon not less
than ten days' notice. If any such director shall be removed, the
governor shall file in the office of the department of state a complete
statement of charges made against such director and his or her findings
thereon, together with a complete record of the proceeding. The
foregoing provisions shall not apply in the case of the chairperson and
any other director who serves at the pleasure of the governor.
(9) The corporation and its corporate existence shall continue until
terminated by law, provided, however, that no such law shall take effect
so long as the corporation shall have bonds, notes and other obligations
outstanding, unless adequate provision has been made for the payment
thereof in the documents securing the same. Upon termination of the
existence of the corporation, all its rights and properties shall pass
to and be vested in the state.
(10) A majority of the directors of the corporation then in office
shall constitute a quorum for the transaction of any business or the
exercise of any power or function of the corporation, except as
otherwise provided in section sixteen, subdivision two, hereof. The
corporation may delegate to one or more of its directors, or its
officers, agents and employees, such powers and duties as it may deem
proper.
(11) The corporation shall take affirmative action in working with
construction firms, contractors and subcontractors, labor unions and
manufacturing and industrial firms, to the end that residents of areas
in which projects are to be located shall be afforded participation in
the construction work on projects of the corporation, and in the
business operations of tenants and occupants of industrial projects
undertaken by the corporation.
Powers of the corporation. Except as otherwise limited by this
act, the corporation shall have power:
(1) To sue and be sued;
(2) To have a seal and alter the same at pleasure;
(3) To make and execute contracts and all other instruments necessary
or convenient for the exercise of its powers and functions under this
act;
(4) To make and alter by-laws for its organization and internal
management and, subject to agreements with noteholders or bondholders,
to make rules and regulations with respect to its projects, operations,
properties and facilities, which rules and regulations shall be filed
with the department of state in the manner provided by section one
hundred two of the executive law;
(5) To acquire, hold and dispose of personal property for its
corporate purposes;
(6) To appoint officers, agents and employees, prescribe their duties
and qualifications and fix their compensation;
(7) To acquire or contract to acquire from any person, firm,
corporation, municipality, federal or state agency, by grant, purchase,
condemnation or otherwise, leaseholds, real, personal or mixed property
or any interest therein; to own, hold, clear, improve and rehabilitate,
and to sell, assign, exchange, transfer, convey, lease, mortgage, or
otherwise dispose of or encumber the same;
(8) To create subsidiaries, as provided in section twelve of this act.
(9) To acquire, construct, reconstruct, rehabilitate, improve, alter
or repair or provide for the construction, reconstruction, improvement,
alteration or repair of any project.
(10) To arrange or contract with a municipality for the planning,
replanning, opening, grading or closing of streets, roads, roadways,
alleys or other places, or for the furnishing of facilities or for the
acquisition by a municipality of property or property rights or for the
furnishing of property or services in connection with a project.
(11) To sell, lease, assign, transfer, convey, exchange, mortgage, or
otherwise dispose of or encumber any project, and in the case of the
sale of any project, to accept a purchase money mortgage in connection
therewith; and to lease, repurchase or otherwise acquire and hold any
project which the corporation has theretofore sold, leased or otherwise
conveyed, transferred or disposed of.
(12) To grant options to purchase any project or to renew any leases
entered into by it in connection with any of its projects, on such terms
and conditions as it may deem advisable.
(13) To prepare or cause to be prepared plans, specifications, designs
and estimates of cost for the construction, reconstruction,
rehabilitation, improvement, alteration or repair of any project, and
from time to time to modify such plans, specifications, designs or
estimates.
(14) To manage any project, whether then owned or leased by the
corporation, and to enter into agreements with the state or any
municipality or any agency or instrumentality thereof, or with any
person, firm, partnership or corporation, either public or private, for
the purpose of causing any project to be managed.
(15) To provide advisory, consultative, training and educational
services, technical assistance and advice to any person, firm,
partnership or corporation, either public or private, in order to carry
out the purposes of this act.
(16) To lend or donate monies, whether secured or unsecured, to any
subsidiary corporation, and to purchase, sell or pledge the shares,
bonds or other obligations or securities thereof, on such terms and
conditions as the corporation may deem advisable.
(17) To make mortgage loans, secured by a first mortgage lien,
including temporary loans or advances, to any subsidiary corporation
which is a housing company, and to undertake commitments therefor. Any
such commitment, mortgage or bonds or notes secured thereby may contain
such terms and conditions not inconsistent with the provisions of this
act as the corporation may deem necessary or desirable to secure
repayment of its loan, the interest, if any, thereon and other charges
in connection therewith.
(18) Subject to the provisions of any contract with noteholders or
bondholders to consent to the modification, with respect to rate of
interest, time of payments of any installment of principal or interest,
security, or any other term, of any mortgage, mortgage loan, mortgage
loan commitment, contract or agreement of any kind to which the
corporation is a party.
(19) In connection with any property on which it has made a mortgage
loan, to foreclose on any such property or commence any action to
protect or enforce any right conferred upon it by any law, mortgage,
contract or other agreement, and to bid for and purchase such property
at any foreclosure or at any other sale, or acquire or take possession
of any such property; and in such event the corporation may complete,
administer, pay the principal of and interest on any obligations
incurred in connection with such property, dispose of, and otherwise
deal with such property, in such manner as may be necessary or desirable
to protect the interests of the corporation therein.
(20) To borrow money and to issue its negotiable bonds and notes and
to provide for the rights of the holders thereof.
(21) As security for the payment of the principal of and interest on
any bonds so issued and any agreements made in connection therewith, to
mortgage and pledge any or all of its projects, whether then owned or
thereafter acquired, and to pledge the revenues and receipts therefrom
or from any thereof, and to assign or pledge the lease or leases on any
portion or all of said projects and to assign or pledge the income
received by virtue of said lease or leases.
(22) To invest any funds of the corporation including funds held in
reserve or sinking funds, or any monies (including proceeds from the
sale of any bonds or notes of the corporation) not required for
immediate use or disbursement, at the discretion of the corporation, in
(a) obligations of the state or of the United States government, (b)
obligations the principal and interest of which are guaranteed by the
state or the United States government, (c) obligations of agencies and
instrumentalities of the state or of the United States, or (d)
certificates of deposit of banks or trust companies in this state,
secured by obligations described in clauses (a), (b) or (c) of this
subdivision.
(23) To procure insurance against any loss in connection with its
property and other assets and operations in such amounts and from such
insurers as it deems desirable.
(24) To engage the services of consultants on a contract basis for
rendering professional and technical assistance and advice.
(25) To contract for and to accept any gifts or grants or loans of
funds or property or financial or other aid in any form from the federal
government or any agency or instrumentality thereof, or from the state
or any agency or instrumentality thereof, or from any other source and
to comply, subject to the provisions of this act, with the terms and
conditions thereof.
* (26) To make loans, whether secured or unsecured, in connection with
the corporation's participation in a project (as defined in this act),
to any person or entity, whether public or private, and to issue
commitments for such loans, provided that such loans and commitments are
made or issued in compliance with guidelines established by the board of
directors of the corporation; to provide for the repayment of such loans
on terms and conditions that the directors of the corporation deem
advisable and to receive and hold real property or personal property as
security for the repayment of such loans.
* NB Repealed July 1, 2027
(27) To use a portion of appropriated funds generally designated as
high risk targeted investment funds to establish a loan fund to be used
to make loans to business enterprises located within empire zones
designated pursuant to article eighteen-B of the general municipal law.
(28) To do any and all things necessary or convenient to carry out its
purposes and exercise the powers given and granted in this act.
(29) Subject to any agreement with noteholders or bondholders, to
enter into agreements to pay annual sums in lieu of taxes to any
municipality or political subdivision of the state, in respect of any
real property which is owned by the corporation or any subsidiary
thereof and is located in such municipality or political subdivision.
(30) To provide priority assistance to projects involving industry
clusters. The term "industry cluster" shall mean a geographic
concentration of competitive firms or establishments in the same
industry that either have close buy-sell relationships with other
industries in the region, use common technologies, or share a
specialized labor pool that provides firms with a competitive advantage
over the same industry in other places.
Sale or lease of land use improvement projects. (1) The
corporation may sell or lease for a term not exceeding ninety-nine years
all or any portion of the real or personal property constituting a land
use improvement project to any person, firm, partnership or corporation,
either public or private, upon such terms and conditions as may be
approved by the corporation, whenever the corporation shall find that
such sale or lease is in conformity with a plan or undertaking for the
clearance, replanning, reconstruction or rehabilitation of sub-standard
and insanitary areas in the municipality in which the project is
located. Such sale or lease may be made:
(a) to any housing company, without public bidding, public sale or
public notice;
(b) to any local development corporation, without public bidding,
public sale or public notice;
(c) to any other person, firm, partnership or corporation, without
public bidding or public sale, provided there is published in at least
one newspaper of general circulation in the municipality in which the
project is located a notice which shall include a statement of the
identity of the proposed purchaser or lessee and of his proposed use or
reuse of the land use improvement project area or applicable portion
thereof, the price or rental to be paid by such purchaser or lessee, all
other essential conditions of such sale or lease, and a statement that a
public hearing upon such sale or lease will be held before the
corporation at a specified time and place on a date not less than ten
days after such publication, and provided further that such public
hearing is held in accordance with such notice.
* § 6-a. Sale or lease of infrastructure projects. (1) Notwithstanding
the provisions of any general, special or local law, subject to any
agreement with noteholders or bondholders, the corporation may sell or
lease any infrastructure project, without public bidding or public sale,
for such price or rental and upon such terms as may be agreed upon
between the corporation and such purchaser or lessee, either prior to,
at the date of, or subsequent to the completion of the project by the
corporation, provided, however, that in the case of a lease, the term
thereof shall not exceed ninety-nine years. Where such contract for sale
or lease is entered into after the commencement of construction and
prior to the physical completion of the improvement to be conveyed or
leased, the corporation may complete the construction and development of
such improvement prior to the actual conveyance or lease.
(2) Except with respect to projects sold or leased to the state or any
agency or instrumentality thereof, to any municipality or agency or
instrumentality thereof, or to any public corporation, before any sale
or lease of all or a substantial part of a project as authorized by
subdivision one of this section is consummated, there shall be published
in at least one newspaper of general circulation in the municipality in
which the project is located a notice which shall include a statement of
the identity of the proposed purchaser or lessee, the price or rental to
be paid, all other essential conditions of such sale or lease, and a
statement that a public hearing upon such sale or lease will be held
before the corporation at a specified time and place on a date not less
than ten days after such publication, and such hearing shall be held in
accordance with such notice.
(3) The responsibilities of the corporation in connection with the
implementation of this section may include requesting and receiving
title to real property from the commissioner of general services
pursuant to section thirteen-a of this act. Such transfers shall be on
such terms as the commissioner of general services and the chairman of
the corporation shall determine, and shall, subject to any agreement
with noteholders and bondholders, include a reversionary interest to the
state and the terms on which the property may subsequently be
transferred.
* NB Not implemented due to defeat of the Jobs for the new, New York
bond act in November, 1992
Sale or lease of residential projects. (1) The corporation may
sell or lease for a term not exceeding ninety-nine years a residential
project only to a housing company or to a municipality or housing
authority. It may enter into a contract for such sale or lease either
prior to, at the date of, or subsequent to the completion of the project
by the corporation. Where such contract for sale or lease is entered
into after the commencement of construction and prior to the physical
completion of the improvement to be conveyed or leased, the corporation
may complete the construction and development of such improvement prior
to the actual conveyance or lease.
(2) Any such sale or lease pursuant to subdivision one of this section
may be made without public bidding, public sale or public notice,
pursuant to such negotiated contract, agreement or lease and containing
such provisions, limitations, requirements, terms and conditions, as the
corporation, within its discretion, may determine to be necessary or
desirable.
Sale or lease of industrial projects. (1) Notwithstanding the
provisions of any general, special or local law, subject to any
agreement with noteholders or bondholders, the corporation may sell or
lease any industrial project, without public bidding or public sale, for
such price or rental and upon such terms as may be agreed upon between
the corporation and such purchaser or lessee, either prior to, at the
date of, or subsequent to the completion of the project by the
corporation, provided, however, that in the case of a lease, the term
thereof shall not exceed ninety-nine years. Where such contract for sale
or lease is entered into after the commencement of construction and
prior to the physical completion of the improvement to be conveyed or
leased, the corporation may complete the construction and development of
such improvement prior to the actual conveyance or lease.
(2) Before any sale or lease of all or a substantial part of a project
as authorized by subdivision one of this section is consummated, there
shall be published in at least one newspaper of general circulation in
the municipality in which the project is located a notice which shall
include a statement of the identity of the proposed purchaser or lessee,
the price or rental to be paid, all other essential conditions of such
sale or lease, and a statement that a public hearing upon such sale or
lease will be held before the corporation at a specified time and place
on a date not less than ten days after such publication, and such
hearing shall be held in accordance with such notice; provided, however,
that if the corporation determines that trade secrets or other
confidential information about the prospective purchaser's or lessee's
business operations, products, processes or designs would otherwise be
revealed by such public notice and public hearing, the requirements of
this subdivision may be waived by unanimous vote of the directors of the
corporation.
Sale or lease of civic projects. (1) Subject to any agreement
with noteholders or bondholders, the corporation may sell or lease for a
term not exceeding ninety-nine years any civic project to the state or
any agency or instrumentality thereof, to any municipality or agency or
instrumentality thereof, to any public corporation, or to any other
entity which is carrying out a community, municipal, public service or
other civic purpose.
(2) Any such sale or lease pursuant to subdivision one of this section
may be made without public bidding, public sale or public notice, upon
such terms and conditions as the corporation, within its discretion, may
determine to be necessary or desirable. The corporation may enter into a
contract for a sale or lease as authorized by subdivision one of this
section either prior to, at the date of, or subsequent to the completion
of the project by the corporation. Where such contract for sale or lease
is entered into after the commencement of construction and prior to the
physical completion of the improvement to be sold or leased, the
corporation may complete the construction and development of such
improvement prior to the actual conveyance or lease.
Financial assistance for small and medium-sized business
assistance projects. The corporation may provide loans for small and
medium-sized business assistance projects for costs associated with:
(1) The renovation or rehabilitation of industrial plants that are
economically inefficient due to the need for changes in design,
construction, technology or production processes; the renovation or
rehabilitation of existing facilities for reuse as an industrial
facility; the acquisition of real property and related improvements; new
construction; working capital; and the acquisition of modern production
technology, including machinery, equipment and computerized design and
control systems, required to improve production processes, expand
existing or enter new markets, or to otherwise remain competitive. The
corporation shall determine the terms and interest rates of such loans,
except that no loan shall exceed fifty percent of project costs, or
seven hundred fifty thousand dollars, whichever is less, no loan shall
have an interest rate lower than three percent, and no loan shall have a
term that exceeds the estimated useful life of the asset;
(2) Site acquisition, construction, renovation or acquisition of
permanently installed equipment necessary to establish or expand a child
day care facility located on the work site of the industrial firm
sponsoring the child day care facility or at a proximate site where a
consortia of industrial firms are sponsoring the child day care
facility. Such loans shall be made upon a determination by the
corporation that such facility is necessary to improve or maintain the
productivity of the company or companies. Such loans shall only be made
for child day care facilities: (a) that will be used primarily by the
children of employees of the company or companies sponsoring the
facility; (b) that will not be operated for profit; (c) that demonstrate
an ability to obtain, from the appropriate governmental agencies, all
necessary approvals and licenses required to operate the facility; and
(d) that demonstrate an ability to prevent access by children to any
equipment in facilities which could be injurious to their health or
safety. The corporation shall determine the terms and interest rates of
such loans, except that no loan shall exceed sixty percent of project
costs, or two hundred fifty thousand dollars, whichever is less, no loan
shall have an interest rate lower than three percent, and no loan shall
have a term longer than ten years.
For any positions opened as a result of assistance provided
pursuant to section nine-a of this act, industrial firms so assisted
shall first consider persons eligible to participate in federal job
training partnership act (P.L. 97-300) programs who shall be referred to
the industrial firm by administrative entities of service delivery areas
created pursuant to such act or by the job service division of the
department of labor.
Rules and regulations. The corporation shall, assisted by the
commissioner of economic development and in consultation with the
department of economic development, promulgate rules and regulations in
accordance with the state administrative procedure act. Such rules and
regulations shall be consistent with the program plan required by
subdivision nineteen of section one hundred of the economic development
law.
Reports and evaluation. (1) Reporting. The corporation shall,
on or before October 1, 1988 and on or before each October first
thereafter, submit a report to the governor and the legislature on the
operations and accomplishments of the small and medium-sized business
assistance program. The report to be submitted on October 1, 2005 and on
or before each October first thereafter shall be consolidated with the
annual program report of the corporation required under the provisions
of subdivision (b) of section thirty of this act, as amended.
(2) Evaluation. (a) The corporation shall submit to the director of
the budget, the chairperson of the senate finance committee and the
chairperson of the assembly ways and means committee an evaluation of
the small and medium-sized business assistance program prepared by an
entity independent of the corporation. Such an evaluation shall be
submitted by September 1, 2005 and by September first every four years
thereafter.
(b) Between evaluation due dates, the corporation shall maintain the
necessary records and data required to satisfy such evaluation
requirements and to satisfy information requests received from the
director of the budget, the chairperson of the senate finance committee
and the chairperson of the assembly ways and means committee between
such evaluation due dates.
Creating a Puerto Rican and Latino business development center.
The corporation shall provide, with the assistance of the commissioner
of economic development and in consultation with such commissioner, a
Puerto Rican and Latino business development center for the purposes of
rendering technical assistance and market information to not-for-profit
service providers and the private businesses servicing Puerto Rican and
Latino communities.
Special assistance for small and medium-sized businesses which
are adversely affected by the absence of eligible reservists ordered to
active duty with the armed forces. (1) In addition to loans for small
and medium-sized business assistance projects authorized by this act,
the corporation is hereby authorized to make loans to assist a small or
medium-sized business concern which is likely to suffer economic injury
as the result of the owner, manager or key employee of such small or
medium-sized business concern who is an eligible reservist being ordered
to active military duty during a period of military conflict. The
corporation shall determine the term and interest rate of such loans
except that no loan shall exceed one hundred fifty thousand dollars, no
loan shall have an interest rate greater than five percent and no loan
shall have a term that exceeds a number of years which in the opinion of
the corporation is necessary for the small or medium-sized business
concern to recover financially from the absence of such eligible
reservist. Any such loan shall be secured by a security agreement
chattel paper, loan agreement or such other instruments or documents
deemed necessary or convenient by the corporation to secure the loan. In
determining the economic need for a loan authorized by this section, the
corporation shall consider the decline in income or gross receipts of
the business during the period of active military duty of the eligible
reservist. Such loans shall be made in an expeditious manner to enable
the small or medium-sized business concern to recover forthwith from
such absence. Loans made pursuant to this section shall be used for
working capital by the small or medium-sized business concern. The
corporation shall render such other assistance and services as it deems
advisable and proper in connection with such loans and the purpose
therefor.
(2)(a) With respect to any loan granted to a small or medium-sized
business concern pursuant to this act, the corporation may temporarily
suspend the repayment obligation of any small or medium-sized business
concern if any person liable thereon is or if any owner, manager or key
employee is an eligible reservist called to active duty in the military
service subsequent to the disbursement of the proceeds of such loan and
such business concern has suffered or is likely to suffer economic
injury as a result of such order. The suspension, if approved, shall be
effective on the date the corporation is notified that the eligible
reservist has commenced active duty status or, at the election of the
corporation it shall be made effective at any time subsequent to the
date such eligible reservist entered active duty status, and shall
continue for ninety days after such person is discharged or released
from active duty.
(b) Within thirty days after the return to non-active duty status of
any person to whom this subdivision may apply, the corporation shall
arrange a meeting with the affected small or medium-sized business to
arrange repayment of the loan. The corporation is authorized to extend
the terms of any loan or to set a repayment schedule for such loans made
for a period of up to one year for each sixty days of active duty, but
not to exceed five years.
(c) If the corporation determines that such small or medium-sized
business concern meets the criteria of this subdivision, it may, in its
discretion, reduce or eliminate the assistance provided herein if it
determines such business has the financial ability to meet the terms and
conditions of the obligation without substantially disrupting business
operations. Any such determination shall be made only after affording
the applicant the opportunity to present information in person or
through others in support of the request for assistance.
(3) Nothing in this section shall preclude a small or medium-sized
business concern which is ineligible for assistance pursuant to the
provisions of this section from qualifying for any other assistance
pursuant to article 13 of the military law or the Federal Soldiers' and
Sailors' Civil Relief Act of 1940, as amended.
(4) The corporation is directed to liberally construe the provisions
of this section to benefit eligible small and medium-sized business
concerns in recovering from any demonstrated economic loss caused by the
active military service of the eligible reservist.
Findings of the corporation. Notwithstanding any other provision
of this act, the corporation shall not be empowered to undertake the
acquisition, construction, reconstruction, rehabilitation or improvement
of a project unless the corporation finds:
(a) in the case of a residential project:
(1) That there exists, in the area in which the project is to be
located, or in an area reasonably accessible to such area, a need for
safe and sanitary housing accommodations for persons or families of low
income, which the operations of private enterprise cannot provide;
(2) That the project has been approved as a project of a housing
company pursuant to the provisions of the private housing finance law.
(b) in the case of an industrial project:
(1) That the area in which the project is to be located is a
substandard or insanitary area, or is in danger of becoming a
substandard or insanitary area, wherein there exists a condition of
substantial and persistent unemployment or underemployment;
(2) That the acquisition or construction and operation of such project
will prevent, eliminate or reduce unemployment or underemployment in
such area;
(3) That such project shall consist of a building or buildings which
are suitable for manufacturing, warehousing or research or other
industrial, business or commercial purposes.
(4) That adequate provision has been, or will be made for the payment
of the cost of the acquisition, construction, operation, maintenance and
upkeep of such project.
(5) That the acquisition and construction, proposed leasing, operation
and use of such project will aid in the development, growth and
prosperity of the state and the area in which such project is located;
(6) That the plans and specifications assure adequate light, air,
sanitation and fire protection.
(c) in the case of a land use improvement project:
(1) That the area in which the project is to be located is a
substandard or insanitary area, or is in danger of becoming a
substandard or insanitary area and tends to impair or arrest the sound
growth and development of the municipality;
(2) That the project consists of a plan or undertaking for the
clearance, replanning, reconstruction and rehabilitation of such area
and for recreational and other facilities incidental or appurtenant
thereto;
(3) That the plan or undertaking affords maximum opportunity for
participation by private enterprise, consistent with the sound needs of
the municipality as a whole.
(d) in the case of a civic project:
(1) That there exists in the area in which the project is to be
located, a need for the educational, cultural, recreational, community,
municipal, public service or other civic facility to be included in the
project;
(2) That the project shall consist of a building or buildings or other
facilities which are suitable for educational, cultural, recreational,
community, municipal, public service or other civic purposes;
(3) That such project will be leased to or owned by the state or an
agency or instrumentality thereof, a municipality or an agency or
instrumentality thereof, a public corporation, or any other entity which
is carrying out a community, municipal, public service or other civic
purpose, and that adequate provision has been, or will be, made for the
payment of the cost of acquisition, construction, operation, maintenance
and upkeep of the project;
(4) That the plans and specifications assure or will assure adequate
light, air, sanitation and fire protection.
(e) in the case of an industrial effectiveness project:
(1) That a feasibility study or productivity assessment exists
demonstrating the potential for future profitability of the firm
requesting financial assistance and such study or assessment has been
reviewed and approved by the commissioner of economic development;
(2) That for loans to implement a corporate restructuring or
turnaround plan, the management of the industrial firm requesting
assistance is capable and the firm has a sound business development plan
that includes measures to ensure labor and management cooperation and to
effect changes required to continue as a successful business;
(3) That the requested financial assistance is not available from
other public or private financing sources; and
(4) That the area in which the project is to be located is a
substandard or insanitary area, or is in danger of becoming a
substandard or insanitary area, wherein there exists a condition of
substantial and persistent unemployment or underemployment.
(f) in the case of a small and medium-sized business assistance
project:
(1) That the area in which the project will be located is a
substandard or insanitary area, or is in danger of becoming a
substandard or insanitary area, wherein there exists a condition of
substantial and persistent unemployment or underemployment;
(2) That the project demonstrates market, management and financial
feasibility and has a clear likelihood of success;
(3) That the industrial firm provides at least a ten percent equity
contribution and such contribution is not derived from other
governmental sources;
(4) That the requested financial assistance is not available from
other public or private financing sources on terms compatible with the
successful completion of the project;
(5) That the project will not result in the relocation of any
industrial firm from one municipality within the state to another
municipality, except under one of the following conditions: (i) when an
industrial firm is relocating within a municipality with a population of
at least one million where the governing body of such municipality
approves such relocation; or (ii) the corporation notifies each
municipality from which such industrial firm will be relocated and each
municipality agrees to such relocation; and
(6) That the project is not for the purpose of refinancing any portion
of the total project cost or other existing loans or debts of the
project sponsor or owner.
(g) in the case of all projects, that there is a feasible method for
the relocation of families and individuals displaced from the project
area into decent, safe and sanitary dwellings, which are or will be
provided in the project area or in other areas not generally less
desirable in regard to public utilities and public and commercial
facilities, at rents or prices within the financial means of such
families or individuals, and reasonably accessible to their places of
employment. Insofar as is feasible, the corporation shall offer housing
accommodations to such families and individuals in residential projects
of the corporation. The corporation may render to business and
commercial tenants and to families or other persons displaced from the
project area, such assistance as it may deem necessary to enable them to
relocate.
(h) in the case of all projects, the corporation shall state the basis
for its findings.
Construction contracts. (1) Construction contracts let by the
corporation shall be in conformity with the applicable provisions of
section one hundred thirty-five of the state finance law, provided,
however, that construction contracts let by subsidiaries of the
corporation which are housing companies shall be governed by the
applicable provisions of the private housing finance law; provided
further, however, that in the case of industrial projects, whenever the
corporation determines that trade secrets or other confidential
information about the prospective project occupant's business
operations, products, processes or designs would be revealed by public
bidding, the requirements of section one hundred thirty-five of the
state finance law with respect to public bidding may be waived. In such
event, separate specifications shall be prepared for, and separate and
independent contracts shall be entered into, for the following three
subdivisions of work to be performed: (a) plumbing and gas fitting; (b)
steam heating, hot water heating, ventilating and air conditioning
apparatus; and (c) electric wiring and standard illuminating fixtures.
(2) The corporation may, in its discretion, assign contracts for
supervision and coordination to the successful bidder for any
subdivision of work for which the corporation receives bids. Any
construction contract awarded by the corporation shall contain such
other terms and conditions as the corporation may deem desirable. The
corporation shall not award any construction contract except to the
lowest bidder who, in its opinion, is qualified to perform the work
required and who is responsible and reliable. The corporation may,
however, reject any or all bids or waive any informality in a bid if it
believes that the public interest will be promoted thereby. The
corporation may reject any bid if, in its judgment, the business and
technical organization, plant, resources, financial standing, or
experience of the bidder justifies such rejection in view of the work to
be performed.
Subsidiaries: how created. (1) The corporation shall have the
right to exercise and perform its powers and functions through one or
more subsidiary corporations. The corporation by resolution may direct
any of its directors, officers or employees to organize a subsidiary
corporation pursuant to either the business corporation law, the
not-for-profit corporation law or articles two, four or eleven of the
private housing finance law. Such resolution shall prescribe the
purposes for which such subsidiary corporation is to be formed.
Such corporation shall be deemed a subsidiary corporation whenever and
so long as (i) more than half of any voting shares of such subsidiary
are owned or held by the corporation, or (ii) a majority of the
directors, trustees or members of such subsidiary are designees of the
corporation.
(2) The corporation may transfer to any subsidiary corporation any
moneys, real or personal or mixed property or any project in order to
carry out the purposes of this act. Each such subsidiary corporation
shall have all the privileges, immunities, tax exemptions and other
exemptions of the corporation to the extent the same are not
inconsistent with the statute or statutes pursuant to which such
subsidiary was incorporated.
(3) Notwithstanding any provision of this act to the contrary, the
superintendent of financial services and the chairman of the New York
state science and technology foundation shall not serve as a director,
trustee or member of any such subsidiary corporation.
(4) No officer or director of the corporation shall receive any
additional compensation, either direct or indirect, other than
reimbursement for actual and necessary expenses incurred in the
performance of his duties, by reason of his serving as a member,
director, or trustee of any subsidiary corporation.
Acquisition of real property. The corporation, upon making a
finding that it is necessary or convenient to acquire any real property
for its immediate or future use, may acquire such property in any lawful
manner, pursuant to the provisions of the eminent domain procedure law,
notwithstanding that such property may already be devoted to a public
use, nor shall such property thereafter be taken for any other public
use without the consent of the corporation.
Prior to the commencement of condemnation proceedings, the corporation
shall cause a survey and map to be made of the property to be condemned
and file the same in its office. There shall be annexed thereto a
certificate, executed by such officer or employee as the corporation may
designate, stating that the property described in such survey and map is
necessary for corporate purposes.
Conveyance of state lands. The commissioner of general
services shall have power, in his discretion, from time to time to grant
and convey to the corporation, upon such terms and conditions including
consideration as the commissioner of general services may fix and
determine, unappropriated state lands, lands under water, abandoned
canal lands and salt springs lands which the corporation shall certify
to be necessary or convenient for its corporate purposes. Certification
shall be evidenced by a formal request from the President of the
corporation.
Acquisition of real property from a municipality or an urban
renewal agency. (1) Notwithstanding anything to the contrary contained
in article fifteen or article fifteen-A of the general municipal law or
in any general, special or local law applicable to the sale of real
property by a municipality or an urban renewal agency, a municipality or
an urban renewal agency may, in addition to employing any other lawful
method of utilizing or disposing of any real property and appurtenances
thereto or any interest therein owned by such municipality or urban
renewal agency or acquired by such municipality or urban renewal agency
pursuant to article fifteen of article fifteen-A of the general
municipal law, sell, lease for a term not exceeding ninety-nine years,
or otherwise dispose of any such real property and appurtenances thereto
or any interest therein to the corporation for the effectuation of any
of the purposes of an urban renewal program, without public auction, or
sealed bids or public notice.
(2) Notwithstanding the provisions of any general, special or local
law or charter, any municipality, by resolution of its local governing
body, is hereby empowered without referendum, public auction, sealed
bids or public notice, to sell, lease for a term not exceeding
ninety-nine years, grant or convey to the corporation any real property
owned by it which the corporation shall certify to be necessary or
convenient for its corporate purposes. Any such sale, lease, grant or
conveyance shall be made with or without consideration and upon such
terms and conditions as may be agreed upon by such municipality and the
corporation. Certification shall be evidenced by a formal request from
the president of the corporation. Before any such sale, lease, grant or
conveyance may be made to the corporation, a public hearing shall be
held by the local governing body to consider the same. Notice of such
hearing shall be published at least ten days before the date set for the
hearing in such publication and in such manner as may be designated by
the local governing body.
Special provisions relating to residential projects. (1)
Notwithstanding any provision of law to the contrary, whenever a
residential project is owned by or leased to a subsidiary which is a
limited profit housing company, or is sold or leased to a limited profit
housing company, such project shall be deemed to be a state-aided
project, as defined in section two of the private housing finance law,
unless such project is aided by a municipal mortgage loan, in which
event such project shall be deemed to be a municipally-aided project.
(2) Notwithstanding any provision of law to the contrary, but subject
to any agreement with noteholders or bondholders, any city, town or
village and any housing authority is hereby authorized to purchase or
lease for a term not exceeding ninety-nine years a residential project.
(3) Notwithstanding any other provision of this act, projects of a
subsidiary organized pursuant to articles two, four or eleven of the
private housing finance law shall be exempt from real property taxes to
the extent and in the manner provided by applicable law.
(4) In order to increase the availability of housing accommodations
for persons and families of low income, the corporation shall undertake
to utilize the state capital grant low rent assistance program, pursuant
to section forty-four-a of the private housing finance law, in
residential projects of the corporation.
(5) Notwithstanding any inconsistent provision of this act or of any
general or special law, no plan for a proposed residential project in a
town or incorporated village which has not been affirmed by the
corporation prior to May first, nineteen hundred seventy-three, shall be
affirmed if, within thirty days after the public hearing held pursuant
to subdivision two of section sixteen of this act or within thirty days
after June first, nineteen hundred seventy-three, whichever date is
later, the local governing body of such town or village submits in
writing to the corporation formal objections to the proposed residential
project, unless and until such objections are withdrawn and subject to
the following conditions and limitations:
(a) The foregoing shall not apply to residential projects initiated
after June first, nineteen hundred seventy-three, if such local
governing body has, prior to submission, either approved such plan or
executed any agreement with the corporation relating to such plan upon
which the corporation has relied in authorizing expenditures of funds or
contracts, unless such town or village reimburses the corporation for
all of its expenditures and indemnifies the corporation for liabilities
ensuing from cancellation of any contract, net of the proceeds of any
resale of property acquired by the corporation for such project.
(b) The corporation may affirm, in any event, plans for residential
projects in the new community known as Audubon, in the town of Amherst,
county of Erie or in the new community known as Lysander New Community,
in the town of Lysander, county of Onondaga, and the provisions of this
first paragraph of this subdivision shall not be applicable to any of
such projects.
Cooperation with municipalities. (1) In effectuating the
purposes of this act, the corporation and community advisory committees
created pursuant to section four of this act shall work closely, consult
and cooperate with local elected officials and community leaders at the
earliest practicable time. The corporation shall give primary
consideration to local needs and desires and shall foster local
initiative and participation in connection with the planning and
development of its projects. Wherever possible, activities of the
corporation shall be coordinated with local urban renewal and other
community projects, and the corporation shall assist localities in
carrying out such projects. Consideration shall also be given to local
and regional goals and policies as expressed in urban renewal, community
renewal and local comprehensive land use plans and regional plans.
(2) Except with respect to a project consisting in whole or in part of
real property acquired by the corporation pursuant to section fourteen
of this act, before commencing the acquisition, construction,
reconstruction, rehabilitation, alteration or improvement of any
project: (a) upon adoption of the general project plan, the corporation
shall file a copy of such plan, including the findings required pursuant
to section ten of this act, in its corporate offices and in the office
of the clerk of any municipality in which the project is to be located.
Upon request, any other person shall be furnished with a digest of such
plan; (b) pursuant to authorization from the chief executive officer of
the corporation, which authorization may be given prior to the adoption
of such plan by the corporation, the corporation shall: (i) publish in
one newspaper of general circulation within the municipality, (ii)
provide to the chief executive officer of the municipality within which
the project is located, and (iii) in any city having a population of one
million or more, provide to any community board in which the project
will be located, a notice that such plan will be filed upon its adoption
by the corporation and that digests thereof will be available, which
notice shall also state that a public hearing will be held to consider
the plan at a specified time and place on a date not less than ten days
after such publication; (c) the corporation shall conduct a public
hearing pursuant to such notice, provided that such public hearing shall
not take place before the adoption or the filing of such plan by the
corporation; (d) upon a written finding of the chief executive officer
of the corporation that no substantive negative testimony or comment has
been received at such public hearing, such plan shall be effective at
the conclusion of such hearing; provided, however, that if any
substantive negative testimony or comment is received at such public
hearing, the corporation may, after due consideration of such testimony
and comment, affirm, modify or withdraw the plan in the manner provided
for the initial filing of such plan in paragraph (a) of this
subdivision.
(3) After consultation with local officials, as provided in
subdivision one of this section, the corporation and any subsidiary
thereof shall, in constructing, reconstructing, rehabilitating, altering
or improving any project, comply with the requirements of local laws,
ordinances, codes, charters or regulations applicable to such
construction, reconstruction, rehabilitation, alteration or improvement,
provided however, that when, in the discretion of the corporation, such
compliance is not feasible or practicable, the corporation and any
subsidiary thereof shall comply with the requirements of the state
building construction code, formulated by the state building code
council pursuant to article eighteen of the executive law, applicable to
such construction, reconstruction, rehabilitation, alteration or
improvement. In those circumstances where, in the discretion of the
corporation, such compliance with local laws, ordinances, codes,
charters or regulations is not feasible or practicable, and in the case
of any project where the corporation intends to acquire real property
pursuant to section thirteen of this act, the requirements of
subdivision two of this section shall be complied with; provided,
however, that (a) the corporation shall provide a copy of the plan to
the chief executive officer of any municipality within which the project
is to be located, the chairman of the planning board or commission of
any such municipality, or if there is no planning board or commission,
to the presiding officer of the local governing body and in any city
having a population of one million or more, to any community board in
which the project is located, and the public hearing to consider the
plan required pursuant thereto shall be held on thirty days notice
following adoption of the plan by the corporation; (b) any person shall
have the opportunity to present written comments on the plan within
thirty days after the public hearing; (c) any municipality within which
the project is to be located, by majority vote of its planning board or
commission, or in the event there is no planning board or commission, by
majority vote of its local governing body, may recommend approval,
disapproval or modification of the plan, which recommendation shall be
submitted in writing to the corporation within thirty days after such
hearing; and (d) after due consideration of such testimony and comments
and municipal recommendations, if any, the corporation may affirm,
modify or withdraw the plan in the manner provided for the initial
filing of such plan in paragraph (a) of subdivision two of this section,
provided, however that in the event any such municipality has
recommended disapproval or modification of the plan, as provided herein,
the corporation may affirm the plan only by a vote of two-thirds of the
directors thereof then in office. No municipality shall have power to
modify or change the drawings, plans or specifications for the
construction, reconstruction, rehabilitation, alteration or improvement
of any project of the corporation or of any subsidiary thereof, or the
construction, plumbing, heating, lighting or other mechanical branch of
work necessary to complete the work in question, nor to require that any
person, firm or corporation employed on any such work shall perform any
such work in any other or different manner than that provided by such
plans and specifications, nor to require that any such person, firm or
corporation obtain any other or additional authority, approval, permit
or certificate from such municipality in relation to the work being
done, and the doing of any such work by any person, firm or corporation
in accordance with the terms of such drawings, plans, specifications or
contracts shall not subject said person, firm or corporation to any
liability or penalty, civil or criminal, other than as may be stated in
such contracts or incidental to the proper enforcement thereof; nor
shall any municipality have power to require the corporation or any
subsidiary thereof, or lessee therefrom or successor in interest
thereto, to obtain any other or additional authority, approval, permit,
certificate or certificate of occupancy from such municipality as a
condition of owning, using, maintaining, operating or occupying any
project acquired, constructed, reconstructed, rehabilitated, altered or
improved by the corporation or by any subsidiary thereof. The foregoing
provisions shall not preclude any municipality from exercising the right
of inspection for the purpose of requiring compliance by any such
project with local requirements for operation and maintenance, affecting
the health, safety and welfare of the occupants thereof, provided,
however, that such compliance does not require changes, modifications or
additions to the original construction of such project.
(4) Each municipality or political subdivision, including but not
limited to a county, city, town, village or district, in which any
project of the corporation or of any subsidiary thereof is located,
shall provide for such project, whether then owned by the corporation,
any subsidiary thereof or any successor in interest thereto, police,
fire, sanitation, health protection and other municipal services of the
same character and to the same extent as those provided for other
residents of such municipality or political subdivision.
(5) Notwithstanding the provisions of any general, special or local
law or charter, any municipality or any public corporation is hereby
empowered to purchase or lease for a term not exceeding ninety-nine
years a civic project, upon such terms and conditions as may be agreed
upon by such municipality or such public corporation and the
corporation. No agreement for such purchase or lease shall be deemed to
be a contract for public work or purchase within the meaning of the
general municipal law. Nothing contained in this subdivision shall be
deemed to amend or supersede any other provision of law requiring a vote
of the qualified voters of any school district upon a proposed
expenditure of funds or incurring of indebtedness by such school
district.
(6) In carrying out any project, the corporation and its subsidiaries
shall be empowered to enter into contractual agreements with
municipalities and public corporations with respect to the furnishing of
any community, municipal or public facilities or services necessary or
desirable for such project, and any municipality or public corporation
is hereby authorized and empowered, notwithstanding any other law, to
enter into such contractual agreements with the corporation and its
subsidiaries and to do all things necessary to carry out its obligations
under the same.
Regional revolving loan program. (1) The corporation shall
establish a fund to be known as the "regional revolving loan trust fund"
and shall pay into such fund any monies made available to the
corporation for such fund from any source. The monies held in or
credited to the fund shall be expended solely for the purposes set forth
in this section. The corporation shall not commingle the monies of such
fund with any other monies of the corporation or any monies held in
trust by the corporation.
(2) The corporation shall allocate any monies made available for such
fund for the purpose of making grants to regional corporations. The
grants shall be allocated as follows:
(a) fifty percent divided equally among the regions;
(b) fifty percent according to a formula weighted in favor of those
regions with the greatest levels of economic distress as determined by
poverty rates, number of persons receiving public assistance,
unemployment rates, rate of employment decline and such other indicators
of economic distress as the corporation deems appropriate; and
(c) in the event a regional corporation advises the corporation that
it does not require all or a portion of the funds to be distributed
pursuant to this subdivision, such funds shall be re-distributed by the
corporation equally among the other regional corporations.
(3) In accordance with the rules and regulations of the corporation,
each regional corporation shall establish two special accounts for
monies received by the regional corporation pursuant to the provisions
of this section. The grant monies received from the corporation,
earnings on such monies, and any principal repayments shall be deposited
in a loan fund account; any interest earned by the regional corporation
on loans will be deposited in a separate interest repayment account. A
regional corporation shall be authorized to provide financing assistance
to eligible projects. Any interest earned from its loans may be used by
a regional corporation for the cost of administering the programs
authorized by this section.
(3-a) Notwithstanding subdivision three of this section, where
applicable, the corporation is authorized to enter into agreements as
may be necessary for the administration and reporting of funds repaid,
received, expended or collected in a manner consistent with the
provisions in section sixteen-t of this act. The use of such funds by
the corporation shall be consistent with the terms, conditions and
restrictions set forth in subdivision four of this section, to provide
financial assistance to eligible regional corporations as defined in
subdivision eighteen of section three of this act. Outstanding expenses,
loans and other obligations executed prior to the effective date of this
subdivision shall be subject to the terms and conditions of the original
contract or contracts.
(4) Regional corporations shall be selected by the corporation from
among eligible applicants to administer a regional revolving loan
program. An eligible applicant shall:
(a) represent at least two entire contiguous counties;
(b) have available to it staff with sufficient expertise to analyze
applications for financial assistance, to regularly monitor financial
assistance to clients, and have made arrangements to provide management
or technical assistance to clients;
(c) have an effective plan to market its services to small businesses
through such entities as chambers of commerce, industry trade
associations, banks, local development corporations, community based
organizations and industrial development agencies; and
(d) have established a loan committee composed of five or more persons
experienced in commercial lending or in the operation of a for-profit
business and a staff person of the regional office of the department of
economic development. Such loan committee shall review every application
to the regional corporation for financial assistance pursuant to this
section, shall determine the feasibility of the transaction proposed in
the application and shall recommend to the board of directors or other
governing body of the regional corporation such action as the committee
deems appropriate.
(5) Applications to the corporation for certification or
recertification as a regional corporation shall:
(a) describe the applicant corporation, including its organization,
membership, loan committee, staff, and sources of other funds, if any;
(b) identify the geographic region to be served;
(c) explain the methods and criteria to be used in determining firms
eligible for financial assistance from the regional revolving loan
program;
(d) describe the means for coordinating financial assistance available
from the regional revolving loan program with financial assistance
available from other public funding sources within the region and how
such program will be used to leverage private financing for projects;
(e) at any time, the corporation may consider proposals to reconfigure
geographic areas served by regional corporations; and
(f) contain such other information as the corporation deems
appropriate.
(6) The corporation shall select, from among eligible applicants,
regional corporations to administer revolving loan programs, on the
basis of:
(a) the ability of the regional corporation to administer the
financial assistance programs authorized under this section;
(b) the extent of coordination with other publicly supported financial
assistance programs available within the region represented by the
regional corporation;
(c) the degree of public and private support within the region for the
applicant regional corporation; and
(d) the ability of the regional corporation to provide financial and
other assistance to businesses located in distressed areas within the
region.
(6-a) The corporation shall, every five years, recertify that each
regional corporation has complied with the terms and conditions of this
section. In the event a regional corporation is not recertified, or its
certification is withdrawn pursuant to subdivision nineteen of this
section, then the corporation shall give written notice to such regional
corporation which shall thereafter neither make new loans nor undertake
new obligations except upon written approval of the corporation. The
corporation may thereafter certify another regional corporation in the
manner provided in this section for the selection of regional
corporations. Upon the certification of a successor regional
corporation, all remaining loan funds, records and accounts of the
regional corporation not recertified shall be transferred to the
corporation and the regional corporation not recertified shall cease to
function pursuant to this section. The corporation shall transfer
returned funds to a successor regional corporation, or in the event no
successor regional corporation is formed, equally to other existing
regional corporations.
(7) A regional corporation certified by the corporation shall use the
funds received from the corporation, subject to the terms, conditions
and restrictions set forth in this section, to provide financial
assistance to eligible businesses as defined in subdivision seventeen of
section three of this act, for projects that demonstrate a substantial
likelihood of providing increases in net new permanent jobs or retaining
jobs in businesses that need such financial assistance to remain viable.
(8) The decision to approve or reject an application for financial
assistance pursuant to the provisions of this section shall be made by a
majority of the directors of the regional corporation, and such decision
shall be final. No member of the board or other governing body of a
regional corporation shall participate in a decision on a project
application when such member is a party to or has a financial interest
in such project. Any member who cannot participate in a decision on a
project application for such reason shall not be counted as a member of
the board or other governing body for purposes of determining the number
of members required for a majority vote on such application.
(9) No employee or officer of any regional corporation shall be a
party to or have any financial interest in any project that receives
financial assistance pursuant to this section.
(10) A regional corporation, in approving applications for financial
assistance, shall give priority to projects:
(a) that will provide increases in net new permanent jobs;
(b) located in economically distressed areas as defined by the
corporation or employing persons who live in such areas;
(c) of minority or women-owned enterprises or enterprises owned by
dislocated workers, such workers as defined in the Workforce Investment
Act (P.L. 105-220); and
(d) of businesses in the early stages of development that have been
denied access to credit.
(11) The funds allocated to each regional corporation pursuant to this
section may be used to guarantee the repayment of a working capital loan
provided by a banking organization to finance an eligible project.
Guarantees may be provided for up to ninety percent of the required
total project financing, provided that no more than one hundred thousand
dollars may be guaranteed for any project. Guarantees may be made for
the following types of financing: short and medium term loans for
working capital, revolving lines of credit, and seasonal inventory and
accounts receivable loans. Guarantees may be made for up to ninety
percent of the required total financing up to a maximum of one hundred
fifty thousand dollars for interim financing where another lender or
guarantor will provide permanent financing within one hundred eighty
days. In no event may a loan guarantee be for a term longer than five
years. Any loan made by a banking organization that is guaranteed
pursuant to this subdivision shall be secured by a security agreement,
chattel paper, loan agreement, or such other instruments or documents
deemed necessary or convenient by the regional corporation to secure the
loan. Any guarantee made pursuant to this subdivision shall be backed by
a minimum reserve within the account established by each regional
corporation of at least twenty-five percent of the amount guaranteed
that is outstanding.
(11-a) A regional corporation, in addition to receiving funds as
provided in this section, may also apply for and accept funds from any
other source for the purpose of furthering its goals and objectives.
Such funds may be used in the same manner as funds received from the
corporation to carry out the purposes of this section.
(12) The funds of each regional corporation derived pursuant to this
section may be used to provide loans for working capital for eligible
projects; provided that the amount of the loan does not exceed ninety
percent of the total project cost, or one hundred thousand dollars,
whichever is less. The interest rate and the terms on such loans shall
be determined by the regional corporation, but in no event shall the
interest rate be less than five percent. The term of any loan shall not
exceed five years. All loans shall be secured by lien positions on
collateral at the highest level of priority that can accommodate the
borrower's ability to raise sufficient debt and equity capital for the
project.
(13) A regional corporation shall not provide any financial assistance
authorized by this section unless the following conditions are met:
(a) the applicant has demonstrated that there is little prospect of
obtaining the project financing requested from other public sources of
funding within the region, including local revolving loan funds, and
that there is little prospect of obtaining adequate project financing
from private sources of capital, or in the case of a loan guarantee,
that there is little prospect of obtaining project financing without the
guarantee; except that in the case of local revolving loan funds,
financial assistance from the regional revolving loan fund account may
be provided for a project in conjunction with financial assistance from
a local revolving loan fund, provided that assistance from the regional
revolving loan fund is no greater than that provided by the local
revolving loan fund, and that a project qualifying for financial
assistance available from a local revolving loan fund is not denied such
assistance;
(b) the applicant has a minimum equity interest of at least ten
percent in the business or project;
(c) there is a reasonable prospect of repayment;
(d) the project is located in the region represented by the regional
corporation;
(e) the project will comply with any applicable environmental rules or
regulations;
(f) the applicant has certified that it will not discriminate against
any employee or any applicant for employment because of race, religion,
color, national origin, sex, or age;
(g) a staff member or a representative of the regional corporation
acting in an official capacity has personally visited the project site
and/or the applicant's place of business; and
(h) financial commitments for the project have been obtained from
other public and private sources.
(14) Grants made by the corporation pursuant to this section shall not
be made available for:
(a) projects that would result in the relocation of any business
operation from one municipality within the state to another, except
under one of the following conditions: (i) when a business is relocating
within a municipality with a population of at least one million where
the governing body of such municipality approves such relocation; or
(ii) the regional corporation notifies each municipality from which such
business operation will be relocated and each municipality agrees to
such relocation;
(b) projects of newspapers, broadcasting or other news media; medical
facilities, libraries, community or civic centers; or public
infrastructure improvements;
(c) refinancing any portion of the total project cost or other
existing loans or debts of an applicant, except for the purpose of
transferring to the employees or to other local interests ownership of a
company that would otherwise depart from or cease or substantially
reduce operations in the state;
(d) providing funds, directly or indirectly, for payment,
distribution, or as a loan, to owners, partners or shareholders of the
applicant enterprise, except as ordinary income for services rendered;
and
(e) retail projects, except where the regional corporation finds there
will be an increase in net new permanent jobs.
(15) A regional corporation may charge application, commitment and
loan guarantee fees pursuant to a schedule of fees adopted by the
regional corporation and approved by the corporation.
(16) The regional corporations shall submit annual reports for the
previous fiscal year to the corporation describing the financial
assistance provided pursuant to this section, including: the number of
projects assisted; the amount and type of assistance provided; a
description of the projects; the number of jobs created or retained; the
status of outstanding loans, guarantees, earnings and account balances;
and such other information as the corporation may require.
(17) The corporation shall, assisted by the commissioner of economic
development and in consultation with the department of economic
development, promulgate rules and regulations in accordance with the
state administrative procedure act setting forth procedures to be
followed by, and the responsibilities and obligations of, regional
corporations and the corporation. Such rules and regulations shall be
consistent with the program plan required by subdivision nineteen of
section one hundred of the economic development law.
(18) For any positions opened as a result of assistance provided in
this section, businesses so assisted shall first consider unemployed or
low income individuals eligible to participate in programs funded
through the Workforce Investment Act (P.L. 105-220) who shall be
referred to the business by local workforce investment boards created
pursuant to such act or by the job service division of the department of
labor.
(19) The corporation shall annually conduct an audit of each regional
corporation to ensure conformity of all aspects of program
administration and of financial assistance transactions with the
substantive and procedural provisions of this section. In the event that
the corporation finds instances of substantive noncompliance by a
regional corporation with any of the provisions of this section and such
instances were, or should have been, known to be in noncompliance, the
regional corporation shall return, within thirty days, upon demand by
the corporation, all uncommitted grant funds on hand and provide an
accounting of the loans currently outstanding.
The corporation may withdraw a regional corporation's certification:
(a) when a member of a board of directors or other governing body, an
officer or an employee of said regional corporation is party to or has
financial interests in loan projects;
(b) when said regional corporation fails to comply with the
requirements for project loans pursuant to this section; or
(c) when a regional corporation makes no loans within the previous
fiscal year and there is more than one hundred thousand dollars
remaining in its loan fund account.
The corporation shall transfer funds returned from a decertified
regional corporation to a successor regional corporation, or, if there
be none, distribute such funds equally among other existing regional
corporations. Outstanding loans and other obligations payable to such a
decertified regional corporation shall be assigned to its successor
regional corporation, or to the corporation or an agent designated by
the corporation upon such terms and conditions as the corporation shall
determine.
(20) Reporting. (a) The lending organization shall submit to the
corporation annual reports stating: the number of program loans made;
the amount of program funding used for loans; the use of loan proceeds
by the borrower; the number of jobs created or retained; the status of
each outstanding program loan, including fund balance; and such other
information as the corporation may require.
(b) The corporation shall, on or before October 1, 1988 and on or
before each October first thereafter, submit a report to the governor
and the legislature on the operations and accomplishments of the
regional revolving loan program. Such report shall include a summary of
the information contained in the reports submitted pursuant to
subdivision sixteen of this section and of the results of the audits
performed by the corporation pursuant to subdivision nineteen of this
section, and shall set forth the status of the regional revolving loan
program for the previous fiscal year, including grants to the regional
corporations, earnings and account balances as reported to the
corporation. The report to be submitted on October 1, 2005 and on or
before each October first thereafter shall be consolidated with the
annual program report of the corporation required under the provisions
of subdivision (b) of section thirty of this act, as amended.
(c) Beginning April 1, 2019, the corporation shall publish on its
website the information contained in the annual reports required under
paragraphs (a) and (b) of this subdivision in aggregate form omitting
borrower identifiable information.
(21) Evaluation. (a) The corporation shall submit to the director of
the division of the budget, the chairperson of the senate finance
committee, and the chairperson of the assembly ways and means committee
an evaluation of this program prepared by an entity independent of the
corporation. Such evaluation shall be submitted by September 1, 2005 and
by September first every four years thereafter.
(b) Between evaluation due dates, the corporation shall maintain the
necessary records and data required to satisfy such evaluation
requirements and to satisfy information requests received from the
director of the budget, the chairperson of the senate finance committee
and the chairperson of the assembly ways and means committee between
such evaluation due dates.
(22) The corporation shall recertify existing regional corporations
or, in the event a regional corporation's certification has been
withdrawn, seek successor corporations among eligible applicants after
April first, two thousand two.
Job retention and defense industry working capital loan
program. (1) Program established. The corporation shall establish the
job retention and defense industry working capital loan program for the
purpose of establishing an economic development working capital
revolving loan fund to be administered by the corporation. Such fund
shall be used to provide financial assistance in the form of working
capital loans or loan guarantees to companies at imminent risk of
reducing employment including, but not limited to, companies in the
defense sector or in the form of grants for the benefit of communities
whose employment is or could be impacted by a planned or potential major
military base closing and/or downsizing or for the benefit of
communities whose employment is impacted by the downsizing of a
community's major employer or employers including, but not limited to,
communities impacted by cutbacks in defense contracts.
(2) Application criteria. In addition to such other criteria as the
corporation may adopt in rules and regulations for the consideration of
applications for loans or loan guarantees pursuant to subdivision one of
this section, the corporation shall:
(a) determine that the company is unable to obtain sufficient funding
on reasonable terms from other public or private sources to permit the
company's planned investment to proceed without the required assistance;
(b) give priority to those applications for assistance from companies
located in highly distressed areas as defined pursuant to subdivision
(a) of section nine hundred fifty-eight of article eighteen-b of the
general municipal law;
(c) consider whether the loan or loan guarantee will result in a
reasonable likelihood of success in meeting the purposes for which it
was sought by the applicant company;
(d) assess the demonstrated need for such assistance, established by a
showing of a short-term lack of liquidity of an existing solvent
business;
(e) request from a company a commitment to a business plan to turn
around the financial condition of the business;
(f) expect the existence of a completed company evaluation, or
commitment to undertake such an evaluation, by the industrial
effectiveness program, or its equivalent thereof; and
(g) require companies receiving assistance pursuant to this section to
first consider for any new position opened as a result of assistance,
persons eligible to participate in federal job training partnership act
programs (P.L. 97-3400) (29 U.S.C.A. SS 801 seq.) who shall be referred
to the company by administrative entities of service delivery areas
created pursuant to such act by the job service division of the
department of labor.
(3) Funds. The fund shall consist of such amounts as may be
appropriated, any repayment of the principal amount of any loan made
from the fund, and any interest earned by the corporation from the
investment of moneys of the fund.
(4) Nonapplication of certain provisions. The provisions of section
ten and subdivision two of section sixteen of this act shall not apply
to assistance provided under this program.
(5) Reports. The chairman of the corporation shall submit to the
director of the budget, the speaker of the assembly and the temporary
president of the senate an evaluation of the effectiveness of the
program prepared by an entity independent of the corporation. The
corporation shall select the program evaluator through a request for
proposal process. Such evaluation shall determine whether the assistance
provided has enhanced the economic conditions of assisted companies or
communities, and shall make recommendations for improvements which would
make the program more effective. Such evaluation shall be submitted by
September first, nineteen hundred ninety-five and September first every
two years thereafter.
Minority- and women-owned business development and lending
program.
(1) Minority- and women-owned business development and lending
program. (a) There is hereby created a minority- and women-owned
business development and lending program for the purpose of providing
financial and technical assistance to minority and women-entrepreneurs.
(b) For the purposes of this section the following words or terms
shall mean as follows:
(i) "minority-owned business enterprise" or "minority-owned business"
shall mean the same as "minority business enterprise" as defined in
subdivision three of section two hundred ten of the economic development
law.
(ii) "women-owned business enterprise" or "women-owned business" shall
mean the same as "women-owned business enterprise" as defined in
subdivision five of section two hundred ten of the economic development
law.
(iii) "incubator" shall mean a facility providing low-cost space,
technical assistance and support services, including, but not limited
to, central services shared by tenants of the facility, to minority- and
women-owned business enterprises.
(c) Assistance shall not be provided under this section for:
(i) the purchase or rehabilitation of real property for speculative
purposes;
(ii) payment of any tax or employee benefit arrearage;
(iii) residential construction, renovation or development
construction, except for assistance to minority and women contractors
under subdivision four of this section;
(iv) educational institutions and proprietary education firms, except
licensed child care facilities;
(v) hospitals or residential health care facilities;
(vi) overnight lodging facilities;
(vii) refinancing of commercial or business related debt or equity
invested in a commercial or business related enterprise or commercial or
business related project, unless the corporation finds the terms of the
original debt to be unreasonable as provided in subparagraph (ix) of
paragraph (d) of this subdivision.
(d) The corporation is authorized to:
(i) establish programs in conjunction with locally, and community
based entities to decentralize lending for small loans and loans to
start up minority- and women-owned businesses;
(ii) establish a comprehensive program for minority and women
contractors, which may include assistance through loans, bonding
assistance and technical assistance;
(iii) establish a program to provide loans to established minority-
and women-owned businesses and for minority- and women-owned businesses,
including loans to such businesses seeking to acquire or expand a
franchise;
(iv) provide loan guarantees to financial institutions and make linked
deposits into federally and state chartered credit unions for the
purpose of encouraging private financial institutions to make loans to
minority- and women-owned businesses;
(v) establish a program to create incubators to assist small and high
risk minority- and women-owned businesses to grow and prosper;
(vi) promote equity investment in minority- and women-owned
businesses;
(vii) establish a comprehensive technical assistance program in
cooperation with the department of economic development to assist
minority- and women-owned businesses and potential minority and
women-entrepreneurs;
(viii) notwithstanding any provision of law to the contrary, establish
a minority- and women-owned business investment fund to provide critical
financial support to foster the development of new and emerging ideas
and products of minority- and women-owned business enterprises as well
as to promote the long-term financial performance and success of early
stage enterprises that are minority- and women-owned start-ups. The
selection of an eligible applicant and beneficiary companies for the
minority- and women-owned business investment fund shall be selected by
the process established pursuant to subdivisions two through four of
section sixteen-u of this act. Minority- or women-owned business
enterprises who participate in such minority- and women-owned business
investment fund under this subdivision shall not be precluded from
qualifying for any other assistance, grant or loan made available from
the state; and
(ix) provide for the refinancing of commercial or business related
debt or equity invested in an enterprise or project, provided that the
corporation determines the terms of the original debt to be
unreasonable. The applicant must submit a written justification to the
corporation for each loan explaining why the current loan is not on
reasonable terms. Unreasonable terms of debt may include but are not
limited to:
(1) a demand or balloon maturity feature in the existing note;
(2) the current maturity is not appropriate for the original purpose
of the loan;
(3) the existing debt being refinanced is on a revolving line or a
credit card;
(4) the interest rate is deemed unreasonable by the corporation; or
(5) the loan is over-collateralized.
(2) Minority and women revolving loan trust fund. For the purpose of
establishing programs in conjunction with locally and community based
entities to decentralize lending for small loans and loans to start up
minority- and women-owned businesses, the corporation shall establish
minority and women revolving loan trust fund accounts and related
administrative expenses trust fund accounts.
(a) Each minority and women revolving loan trust fund account shall be
administered by one or more of the following types of entities that
provide services to community businesses and have as one of their
primary purposes the provision of services and assistance to minority-
and women-owned businesses:
(i) empire zone capital corporations established pursuant to section
nine hundred sixty-four of the general municipal law;
(ii) community-based local development corporations or industrial
development agencies that serve a municipality in which an empire zone
has been established pursuant to article eighteen-B of the general
municipal law and have as their primary purpose assistance to minority-
and women-owned businesses located or to be located in such empire zone;
or
(iii) local and community development corporations, industrial
development agencies, or other not-for-profit entities, representative
of the community.
(b) To be eligible to administer a minority and women revolving loan
trust fund account, the entity must also: (i) have staff with sufficient
expertise to analyze applications for financial assistance, to regularly
monitor financial assistance to clients, and to provide management or
technical assistance to clients; and (ii) have established a loan
committee composed of six or more persons experienced in business
management, commercial lending or in the operation of a for-profit
business, at least one-half of whom shall be experienced in commercial
lending, at least one-third of whom shall be minority persons and at
least one-third of whom shall be women. Such loan committee shall review
every application, determine the feasibility of the proposed project and
the likelihood of repayment of the requested financing and shall
recommend to the governing body of the entity such action on the
application as the loan committee deems appropriate. The corporation
shall identify entities eligible to administer minority and women
revolving loan trust fund accounts through a competitive statewide
request for proposal process.
(c) Any entity selected to administer a minority and women revolving
loan trust fund account shall be eligible to draw funds from the account
as needed to provide the following types of financial assistance to
minority- and women-owned businesses upon certification to and
acceptance by the corporation that such assistance complies with rules
and regulations promulgated by the corporation: (i) working capital
loans, provided that the amount of the loan does not exceed thirty-five
thousand dollars and the term of the loan does not exceed five years;
and (ii) loans for the acquisition and/or improvement of real property
and for the acquisition of machinery and equipment provided that the
amount of the loan does not exceed fifty thousand dollars and the term
of the loan does not exceed the useful life of the equipment or
property.
(d) (i) Notwithstanding any provision of law to the contrary, the
corporation may establish an administrative expenses trust fund account
for the benefit of each entity selected to administer a minority and
women revolving loan trust fund account. The initial deposit of funds to
an administrative expenses trust fund account shall be an amount
determined by the corporation but shall not exceed twenty-five thousand
dollars.
(ii) An entity selected to administer a minority and women revolving
loan trust fund account may use the funds in the administrative expenses
trust fund account for costs incurred by it in the start up and
administration of the financial assistance program authorized pursuant
to this subdivision.
(iii) The corporation shall deposit into each administrative expenses
trust fund account:
(A) all income earned from the moneys on deposit in the corresponding
minority and women revolving loan trust fund account during the first
year of the entity's administration of said account; and
(B) beginning with its second year in administering a minority and
women revolving loan trust fund account, said amounts may be used for
costs incurred by the entity in administering the minority and women
revolving loan trust fund account; and
(C) repayments of interest on loans made from the corresponding
minority and women revolving loan trust fund account.
(iv) Funds from the administrative expenses trust fund account may be
used for costs incurred at any time by an administering entity in its
administration of a minority and women revolving loan trust fund account
pursuant to this section.
(v) Funds deposited in an administrative expenses trust fund account
shall be disbursed by the corporation to the entity that administers the
corresponding minority and women revolving loan trust fund account on a
periodic basis and shall be expended by the entity in accordance with an
annual budget and any updates of same, approved by the corporation.
(e) Any entity selected to administer a minority and women revolving
loan trust fund account shall pay to the corporation for deposit any
repayments received in connection with financial assistance provided
from its account. Payments consisting of the repayment of the principal
amount of a loan shall be deposited by the corporation into the minority
and women revolving loan trust fund account from which the loan was
made. The interest earned by the corporation from the investment of
moneys in each minority and women revolving loan trust fund account
during and after the second year of a selected entity's administration
of said account shall be deposited by the corporation into the
corresponding minority and women revolving loan trust fund account and
used to provide the financial assistance to minority- and women-owned
businesses as authorized pursuant to this section.
(f) The provisions of subdivisions eight, nine, and fourteen through
nineteen of section sixteen-a of this act pertaining to the regional
revolving loan trust fund shall also be applicable to the minority and
women revolving loan trust fund, provided that: where the term "regional
corporation" appears therein it shall be interpreted to mean an entity
selected to administer a minority and women revolving loan trust fund
account, and "regional revolving loans trust fund" shall mean a minority
and women revolving loan trust fund, and where the term "this section"
appears therein it shall mean this section sixteen-c.
(g) The corporation may provide funds from an appropriation for the
minority- and women-owned business development and lending program to
any entity selected to administer a minority and women revolving loan
trust fund for the purposes of recapitalizing such account and the
entity's corresponding administrative expenses trust fund account
following an evaluation by the corporation of the entity's
administration and use of such accounts.
(h) Notwithstanding any provision of law to the contrary, the
corporation shall establish a minority and women revolving loan trust
fund to pay into such fund any moneys made available to the corporation
for such fund from any source, including moneys appropriated by the
state and any income earned by, or increment to, the account due to the
investment thereof, or any repayment of moneys advanced from the fund.
The corporation shall not commingle the moneys of such fund with any
moneys held in trust by the corporation, except for investment purposes.
(i) Notwithstanding any other provisions of this subdivision, where
applicable, the corporation is authorized to enter into agreements as
may be necessary for the administration and reporting of funds repaid,
received, expended or collected in a manner consistent with the
provisions in section sixteen-t of this act. The use of such funds by
the corporation shall be consistent with the terms, conditions and
restrictions set forth under this subdivision, to provide financial
assistance to eligible businesses as defined in subdivisions three and
five of section two hundred ten of the economic development law.
Outstanding expenses, loans and other obligations executed prior to the
effective date of this paragraph shall be subject to the terms and
conditions of the original contract or contracts.
(i) The lending organization shall submit to the corporation annual
reports stating: the number of program loans made; the amount of program
funding used for loans; the use of loan proceeds by the borrower; the
number of jobs created or retained; the status of each outstanding
program loan, including fund balance; and such other information as the
corporation may require.
(ii) Beginning April 1, 2019, the corporation shall publish on its
website the information contained in the annual reports required under
subparagraph (i) of this paragraph in aggregate form omitting borrower
identifiable information.
(3) Micro-loan program. (a) For the purposes of this subdivision
"micro-loan" shall mean a loan of under seven thousand five hundred
dollars.
(b) The corporation shall, pursuant to requests for proposals, enter
into agreements for other types of locally, community or regionally
administered loan programs than those set forth in subdivision two of
this section, including micro-loan programs to be administered by local
development corporations, local industrial development organizations,
municipalities and not-for-profit organizations, to provide micro-loans
to small and high risk minority- and women-owned businesses located
within their respective service areas, provided that loan review
committees are established by such administering entity, including women
and minority persons experienced in business management, business
development, commercial lending, entrepreneurship, or in the operation
of a for-profit business.
(c) Agreements entered into pursuant to paragraph (b) of this
subdivision shall be governed by paragraphs (d) through (h) of
subdivision two of this section, and minority and women revolving loan
trust fund accounts and administrative expenses trust fund accounts
shall be established in a similar fashion for entities selected to
administer micro-loan funds pursuant to this subdivision.
(d) Notwithstanding any other provisions of this subdivision, where
applicable, the corporation is authorized to enter into agreements as
may be necessary for the administration and reporting of funds repaid,
received, expended or collected in a manner consistent with the
provisions in section sixteen-t of this act. The use of such funds by
the corporation shall be consistent with the terms, conditions and
restrictions set forth under this subdivision, to provide financial
assistance to eligible businesses as defined in subdivisions three and
five of section two hundred ten of the economic development law.
Outstanding expenses, loans and other obligations executed prior to the
effective date of this paragraph shall be subject to the terms and
conditions of the original contract or contracts.
(e)(i) The lending organization shall submit to the corporation annual
reports stating: the number of program loans made; the amount of program
funding used for loans; the use of loan proceeds by the borrower; the
number of jobs created or retained; the status of each outstanding
program loan, including fund balance; and such other information as the
corporation may require.
(ii) Beginning April 1, 2019, the corporation shall publish on its
website the information contained in the annual reports required under
subparagraph (i) of this paragraph in aggregate form omitting borrower
identifiable information.
(4) Minority and women contracting program. For the purpose of
establishing a comprehensive program to assist minority and women
contractors, the corporation may provide loans, loan guarantees,
technical assistance and bonding assistance, the corporation may enter
into cooperative agreements with cities, counties, municipalities,
authorities, agencies, federally and state chartered credit unions in
New York state and federally insured banking organizations and financial
institutions for such purposes.
(a) To be eligible for a contractor loan, the borrower must have
either (i) a construction contract with, or a contract to provide goods
or services to, a governmental entity or authority, (ii) a subcontract
on a government-sponsored construction contract, (iii) a contract or
subcontract on a government sponsored residential project, or (iv) a
contract or subcontract on a construction project previously approved by
the corporation pursuant to section ten of this act.
(b) The corporation shall provide technical assistance specifically
oriented to minority and women-owned government contractors as part of
its comprehensive technical assistance program.
(c) The corporation is authorized to provide assistance through the
creation of, or assistance to, a minority and women bonding guarantee
program to enable minority and women contractors and subcontractors to
meet payment or performance bonding requirements.
(i) Through such program, assistance in the form of working capital
loans and loan guarantees pursuant to subdivision six of this section
may also be provided to minority and women contractors and
subcontractors who have secured contracts by participating in the
program.
(ii) The corporation shall either establish criteria for the bonding
guarantee program and for any required escrow funds which shall include
detailed provisions for eligibility; or if the corporation is providing
assistance to a program other than one established by the corporation,
review and approve the criteria established for such other program.
(5) Direct financial assistance for minority- and women-owned
businesses. For the purpose of establishing a program to provide direct
financial assistance to minority- and women-owned businesses, the
corporation is authorized to provide assistance in the form of:
(a) Business development loans and loan guarantees pursuant to
subdivision six of this section to eligible enterprises for the
acquisition or improvement of real property, machinery, equipment or
working capital, provided that to be eligible for a business development
loan, the borrowers must have been in business for at least three years
and provided that the loans must be in an amount equal to or in excess
of fifty thousand dollars;
(b) Franchise loans to eligible enterprises seeking to acquire or
expand franchises of nationally recognized corporations, provided that
disbursements by the corporation of such loans shall be conditioned on
obtaining such franchises;
(c) Equity assistance for eligible minority and women-owned
enterprises to match equity contributions to such enterprises by
financial institutions and community development equity capital funds,
provided, however, that such assistance shall be targeted to start-up
and early stage enterprises in the manufacturing, retail and service
sectors located in economically distressed areas.
(6) Deposits and loan guarantees. For the purpose of encouraging
private financial institutions to make loans to eligible enterprises
pursuant to this section for any of the eligible projects pursuant to
subdivisions four and five of this section, the corporation is
authorized to:
(a) Make linked deposits of funds into federally and state chartered
credit unions in New York state, in order to encourage such
organizations to make small loans to minority and women-owned
businesses; and
(b) Provide loan guarantees to private financial institutions for
loans made to eligible minority- and women-owned businesses pursuant to
this subdivision for eligible projects, provided that the guarantee
shall be at least fifty percent backed by funds of the corporation. Any
such loan guaranteed by the corporation shall be made to borrowers that
are approved by the corporation and substantially meet the underwriting
criteria the credit union or financial institution customarily applies
to similar borrowers for similar loans supported by similar guarantees,
and no guaranteed loan funds shall be disbursed until the corporation
has received, reviewed and concurred, in writing, with the
recommendation of the credit union or banking or financial institution
to make a loan.
(7) Minority and women small business incubator program. (a) The
corporation shall establish a minority and women small business
incubator program for the purpose of providing financial support for the
creation of incubators to nurture minority and women-owned business
enterprises with growth potential.
(b) Under this subdivision the corporation is authorized to provide
low-interest loans and grants for construction financing and permanent
financing of up to seventy-five percent of project costs up to a maximum
of six hundred fifty thousand dollars per project, provided that the
total amount of grant assistance provided pursuant to this paragraph
shall not exceed twenty percent of an appropriation provided for the
purposes of this section.
(c) Incubator projects eligible for such assistance shall involve the
renovation or reconstruction of existing facilities or the acquisition
of equipment, except that construction shall be allowable in cases in
which an applicant can demonstrate to the satisfaction of the
corporation that an existing facility is unavailable in the area to be
served by the new incubator facility.
(d) Incubator projects are not eligible to receive loans for the
purpose of covering operating costs or supplying incubator support
services, except that incubators in their first eighteen months of
operation may receive one-time grants not to exceed forty thousand
dollars, which costs may include administrative costs of employing a
resident administrator/advisor to the incubator, provided that the
corporation shall not expend a sum greater than two hundred fifty
thousand dollars in any one state fiscal year, or so much as may be
specifically appropriated for this purpose.
(e) Eligible incubator projects shall be required to demonstrate to
the corporation's satisfaction:
(i) public or private support and involvement sufficient to complete
the renovation of existing facilities or the construction of new
facilities and the acquisition of equipment;
(ii) significant community support for the project;
(iii) the existence of prospective tenants for such incubator space;
(iv) demand for such incubator space, which may include evidence of
the unavailability of suitable space for prospective tenants at
appropriate rental or lease costs in the community in which such
prospective tenants are located; and
(v) the inability of the project to occur without financial assistance
from the corporation.
(f) The corporation shall establish criteria for eligibility for
funding for incubator projects, including but not limited to the
following:
(i) the project must be designed to provide low-cost space and support
services to incubator tenants, coordination with other sources of
assistance and flexible leasing arrangements for tenants;
(ii) the project sponsors must provide a management plan and a
business plan for operating the incubator satisfactory to the
corporation; and
(iii) the project gives preference for incubator space and assistance
to minority- and women-owned businesses which currently receive, or have
received, assistance from the corporation pursuant to this section and
to incubator projects proposed to be located in economically distressed
areas.
(8) Minority- and women-owned business technical assistance program.
(a) The corporation shall establish a comprehensive technical assistance
program within the minority and women business development office, in
cooperation with the department of economic development's division of
minority- and women-business development established pursuant to article
four-A of the economic development law, to provide technical assistance
to minority- and women-owned business enterprises and to prospective
minority- and women-business entrepreneurs through third party service
providers, which assistance shall include, but not be limited to: (i)
technical assistance in development and execution of business plans,
including the formation of, acquisition of, management of, or
diversification of a minority- or women-owned business enterprise; (ii)
technical assistance with applications for obtaining funds from public
and private financing sources; (iii) technical assistance in the
development of a working capital budget; (iv) referrals to other
providers of technical assistance to minority- and women-owned
businesses and minority and women entrepreneurs, where appropriate,
including the entrepreneurial assistance program established pursuant to
article nine of the economic development law; and (v) technical
assistance through education programs directed primarily at women and
minority entrepreneurs.
(b) Technical assistance may be provided through direct corporate
support, through grants to or contracts with service providers or
governmental entities, and minority- and women-owned business
enterprises and individuals.
(9) Priorities. The corporation shall give priority to applications
for assistance pursuant to this section in which the business seeking
such assistance indicates a commitment to first consider persons
eligible to participate in federal job training partnership act (P.L.
97-300) programs.
(10) Non-application of certain provisions. The provisions of section
ten and subdivision two of section sixteen of this act shall not apply
to assistance or projects authorized pursuant to this section.
(11) Rules and regulations. The corporation shall, assisted by the
commissioner of economic development and in consultation with the
department of economic development, promulgate rules and regulations in
accordance with the state administrative procedure act. Such rules and
regulations shall be consistent with the program plan required by
subdivision nineteen of section one hundred of the economic development
law. No funds shall be disbursed under this program until such rules and
regulations have been reviewed and approved by the corporation. All
assistance and projects funded under this program shall be funded in
accordance with the rules and regulations in effect on the date the
completed application for such assistance shall be received by the
corporation.
(12) Minority and women business development and lending account.
Notwithstanding any provision of law to the contrary, the corporation
shall establish within the treasury of the corporation a minority and
women business development and lending account, and shall pay into such
account any moneys which may be made available to the corporation for
this purpose from any source including, but not limited to, moneys
appropriated by the state and any repayment of principal and interest on
loans made by the corporation pursuant to the minority- and women-owned
business development and lending program. Funds in the minority and
women business development and lending account, including funds from the
repayment of principal and interest on loans made by the corporation,
may be used for any form of assistance authorized hereunder. The amounts
deposited in the minority and women business development and lending
account may not be interchanged with any other account, but may be
commingled with any other account for investment purposes. All loans
disbursed by the corporation shall be repaid into the account. The
corporation shall enter into a written agreement with the director of
the budget for repayment, to the state comptroller to the credit of the
capital projects fund, of all moneys in the account after a period of
time to be determined by the corporation and the director of the budget.
The corporation shall transfer to the minority and women business
development and lending account: all moneys appropriated or
reappropriated by New York state for the minority and women revolving
loan trust fund that have not been committed prior to the effective date
of the appropriation for the program in the current fiscal year, or
become uncommitted subsequent to the effective date of the program's
appropriation for the current fiscal year; and all repayments of
principal and interest on loans made by the corporation which are
currently on deposit in, or payable to, the minority and women business
development and lending account.
(13) Standardization. The corporation shall streamline the review and
approval process for projects and wherever possible standardize all
relevant attendant documentation and legal documents.
(14) Approval cycle. The corporation shall approve eligible loans or
grants on at least a four-month cycle and shall give priority
consideration to the comparative degree of economic distress within the
areas in which the project is located. Other factors to be considered by
the corporation shall include the impact of the project on the
employment and economic condition of the community and the financial
feasibility of the project.
(15) Repayment. Notwithstanding the provisions of section forty-a of
the state finance law and any other general or special law, no written
agreement under this program shall require repayment at any time or on
any terms inconsistent with the provisions of this act or the New York
state project finance agency act; except, however, that the corporation
may make grants to projects using funds appropriated for this purpose
and that the repayment provision may not apply to such grants.
(16) Reports. The chairman of the corporation shall submit to the
director of the budget, the speaker of the assembly and the temporary
president of the senate an evaluation of the effectiveness of the
program prepared by an entity independent of the corporation. The
corporation shall select the program evaluator through a request for
proposal process. Such evaluation shall determine whether the assistance
provided has enhanced the economic condition of assisted companies or
communities, and shall make recommendation for improvements which would
make the program more effective. Such evaluation shall be submitted by
September first, nineteen hundred ninety-five and September first every
two years thereafter.
Urban and community development program. (1) Definitions. For
the purposes of this section:
(a) "Business improvement district" shall mean a special assessment
district established pursuant to article nineteen-A of the general
municipal law.
(b) "Business district" or "central business district" shall mean the
central district of a municipality or neighborhood area traditionally
used for commercial purposes.
(c) "Commercial strip" shall mean a predominantly commercial area
traditionally used for commercial purposes which may not be the primary
business district and which is one of several commercial districts in
the municipality in which it is located.
(d) "Economically distressed areas" shall mean areas as determined by
the corporation meeting criteria indicative of economic distress,
including unemployment rate; rate of employment change; percentages and
numbers of low-income persons; per capita income and per capita real
property wealth; such other indicators of distress as the corporation
shall determine. Economically distressed areas may include cities,
municipalities, block numbering areas, and census tracts.
(e) "Highly distressed" shall mean suffering from severe economic
distress as determined by the corporation using criteria similar to
those set forth in subdivision (a) of section nine hundred fifty-eight
of article eighteen-B of the general municipal law for determining
eligibility for empire zone status.
(f) "Not-for-profit corporation" shall mean a corporation organized
under the provisions of the not-for-profit corporation law.
(2) Urban and community development program. The corporation shall
establish an urban and community development program which shall offer
the following assistance:
(a) Urban and community development assistance grants pursuant to
subdivision five of this section.
(b) Urban and community project development assistance pursuant to
subdivision six of this section.
(c) Neighborhood and community partnership assistance pursuant to
subdivision seven of this section.
(d) Urban and community commercial revitalization revolving loan fund
assistance pursuant to subdivision eight of this section.
(e) Urban and community technical assistance pursuant to subdivision
nine of this section.
(3) Applications. Applications for support under this program shall be
made in a form and manner as determined by the corporation and
applicants shall be required to meet the criteria and requirements
established by the corporation, which shall include but not be limited
to:
(a) Factors of economic distress;
(b) The extent of support for, and involvement in, the program or
project of units of local government, the local business community and
local economic development professionals; and
(c) Such other requirements as are necessary to implement the
provisions of this section.
(4) Preference. Preference will be given to projects which are located
in highly distressed communities, and for which other public or private
funding sources are not available.
(5) Urban and community development assistance grants. (a) Grants
awarded under this subdivision shall be awarded on a competitive basis,
in response to requests for proposals, and through direct applications
accepted at other times at the discretion of the corporation,
distributed to business improvement districts, local development
corporations, municipalities and other not-for-profit economic
development organizations by the corporation for the purpose of
soliciting applications. Requests for proposals under this subdivision
shall set forth such criteria as the corporation deems necessary,
including those set forth in subdivision three of this section and
including, but not limited to the following:
(i) the potential impact the proposed project would have on economic
development and employment opportunities in the community and the
region; and
(ii) the existence of significant support for such activities from the
local business community, local government and community organizations
within the community, including the commitment of financial resources.
(b) The corporation is hereby authorized, under this subdivision to:
(i) provide grants to business improvement districts, local
development corporations, other not-for-profit economic development
organizations, and municipalities involved in commercial revitalization
activities in central business districts or commercial strips, such
activities to include architectural design studies and services and
other redevelopment work in connection with the design and
implementation of a plan for facade and other improvements to commercial
strips and central business districts throughout New York state. Such
grants may include monies available for individual property owners
and/or tenants who agree to improve their property in accordance with an
overall design plan, provided that, such individual property owners
and/or tenants shall be required to match the amount of any grant
awarded to them.
(ii) provide grants to local development corporations, business
improvement districts and other not-for-profit organizations for
studies, surveys or reports, and feasibility studies and preliminary
planning studies to assess a particular site or sites or facility or
facilities for any economic development purpose other than residential;
and to identify development opportunities within established business
improvement districts.
(iii) provide urban planning grants on a matching basis to cities,
counties, or municipalities desiring to prepare and develop strategic
development plans for a city, county, or municipality or a significant
part thereof.
(iv) provide grants to municipalities for studies, surveys, or reports
and feasibility studies or preliminary planning studies to assess the
economic viability and local credit needs of the community for the
purposes of establishing a banking development district pursuant to
section ninety-six-d of the banking law.
(c) Notwithstanding anything contained to the contrary in this
subdivision, section ten and subdivision two of section sixteen of this
act shall not apply to any grants authorized under this subdivision.
(6) Urban and community project development assistance. (a) Grants,
loans and loan guarantees authorized pursuant to this subdivision shall
be limited to fifty percent of the actual cost of the proposed projects,
and shall be located in empire zones designated pursuant to article
eighteen-B of the general municipal law or in highly distressed areas.
(b) The corporation is hereby authorized, under this subdivision to:
provide loans, loan guarantees and grants for projects as set forth in
paragraph (c) of this subdivision, and to provide project development
assistance by the corporation acting as a project developer pursuant to
paragraph (d) of this subdivision.
(c) Project development loans, loan guarantees and grants. (i) The
corporation may make loans, loan guarantees and grants in accordance
with the provisions of this act for which no other funds of the
corporation are available, with the exception of the appropriations for
this program and moneys reappropriated under the high risk targeted
investment program, for the acquisition, renovation, and construction of
commercial industrial and mixed-use facilities, or for feasibility or
planning studies in connection with such development.
(ii) Such projects shall include projects related to the
implementation of necessary construction and reconstruction projects
identified or planned under grants received pursuant to subdivision five
of this section.
(iii) Projects intended to be publicly-owned shall not be eligible for
financial assistance in connection with the acquisition, construction or
renovation of a facility or development hereunder unless such project is
leased to a private enterprise.
(d) Notwithstanding anything contained to the contrary in this
subdivision, section ten and subdivision two of section sixteen of this
act shall not apply to any feasibility grants or planning studies
authorized under paragraph (c) of this subdivision.
(e) Project development assistance. (i) The corporation may act as
developer in the acquisition, renovation, construction, leasing or sale
of development projects, other than residential projects, authorized
pursuant to this act in order to stimulate private sector investment
within the affected community.
(ii) In acting as a developer, the corporation may borrow for purposes
of this paragraph for approved projects in which the lender's recourse
is solely to the assets of the project, and may make such arrangements
and agreements with community-based organizations and local development
corporations as may be required to carry out the purposes of this
section.
(iii) Prior to developing any such project, the corporation shall
secure a firm commitment from entities, independent of the corporation,
for the purchase or lease of such project.
(iv) Projects authorized under this paragraph whether developed by the
corporation or a private developer, must be located in either
state-designated empire zones or in highly distressed communities.
(v) The corporation, for purposes of this paragraph shall only select
projects that have project costs not to exceed three million dollars of
which the corporation's participation shall not exceed sixty percent of
the total, for which there is a demonstrated demand within the
particular community.
(f) Any other provisions of this subdivision notwithstanding, the
corporation may establish a loan guarantee program in conjunction with
banks and other financial institutions to guarantee working capital
loans and loans for real estate, construction and renovations to
not-for-profit community and economic development organizations that
serve highly distressed areas.
(7) Neighborhood and community partnership. (a) There is hereby
created within the urban and community development program a
neighborhood and community partnership program which shall be used to
support regional and local activities designed to retain existing
businesses and jobs within a region or locality, increase the viability
of existing businesses, and stimulate and encourage the formation of new
enterprises and small business growth.
(b) The corporation shall, within available appropriations, award
grants or enter into contracts for services to eligible entities and
organizations as set forth in this subdivision on a competitive basis,
in response to requests for proposals, and through direct applications
accepted at other times at the discretion of the corporation. Grants
shall not exceed one hundred thousand dollars per project, and an
applicant shall be permitted to apply for support in more than one
project area listed under paragraph (e) of this subdivision, but the sum
total of grants received under this subdivision by any one applicant for
more than one project approved under paragraph (e) of this subdivision
shall not exceed two hundred fifty thousand dollars.
(c) For the purposes of this subdivision the corporation shall enter
into annual contracts for services or award grants in an amount not to
exceed fifty percent of program or project costs in economically
distressed areas, or forty percent of such costs for eligible projects
or programs in non-economically distressed areas, or seventy percent of
program or project costs in empire zones established pursuant to article
eighteen-B of the general municipal law.
(d) The corporation shall enter into no more than one contract or make
more than one grant per year per application under this subdivision
regardless of the number of projects for which an applicant has applied
and for which funding has been approved. In the case of applications for
multiple projects to be conducted by a single applicant, the corporation
may, at its discretion, provide a grant or enter into a contract for
services with the applicant for some or all of the projects for which an
applicant has applied.
(e) Not-for-profit corporations, business improvement districts and
community development organizations shall be eligible to apply for
support under this subdivision to operate a program or programs of
business and economic development services to stabilize, retain or
revitalize existing businesses, and to assist small and new businesses,
including, but not limited to assistance to individual businesses or
business sectors in such project areas as:
(i) the analysis of industrial sectors;
(ii) the provision of services, such as regulatory compliance,
security and marketing, to industries;
(iii) productivity assistance to mature industries and small
businesses, including but not limited to, high performance work
organization and quality improvement programs;
(iv) labor-management cooperation specific to an area or industry;
(v) management services to industrial parks and incubator facilities;
(vi) the creation of business support networks, including flexible
manufacturing networks composed of small businesses, surveys of existing
businesses and business sectors, the formation of quality networks, the
targeting of firms or sectors with networking potential, analysis of
network firms' production potential, group marketing, group purchasing,
shared employee programs, and the establishment of regular lines of
communication between such firms;
(vii) the establishment and staffing of network service centers for
flexible manufacturing networks, combining business services,
marketing/procurement assistance, and technology demonstration/training
centers, such centers to be industry managed and to maintain strong
connections to labor unions, universities, and the services provided
through the industrial effectiveness program pursuant to article seven
of the economic development law, local or federal economic assistance
programs;
(viii) export, marketing, procurement and subcontracting assistance to
small and medium-sized industrial firms, including minority- and
women-owned businesses, and to flexible manufacturing networks, and
programs to assist regional and multi-county business marketing and
procurement programs;
(ix) assistance to targeted incubator facilities to support new firms
producing products and services for which there exists a stable demand
but no local production;
(x) business planning, management assistance and counseling, and
financial packaging assistance to small and medium-sized industrial
firms, including minority- and women-owned businesses, flexible
manufacturing networks, and new enterprises and small businesses,
including the establishment of neighborhood-based business service
centers designed to deliver comprehensive technical assistance to new
and small businesses in specific communities and neighborhoods;
(xi) programs to assist economically distressed regions and
communities to identify new business opportunities, plan for new
enterprise development, and manage economic development projects;
(xii) innovative programs of public and private cooperation to foster
new enterprise development and small business growth;
(xiii) programs to assist new enterprises and small businesses to
identify and access public and private sources of equity, working
capital and other types of financing;
(xiv) programs that improve the ability of small businesses to access
state job training programs;
(xv) programs to assess the need for, or to implement total quality
management training programs, employee retraining, and skills
remediation and/or upgrading;
(xvi) employment exchange services such as job placement and job
development;
(xvii) tourism matching grants to regions, as defined by the
commissioner of economic development, to conduct tourism marketing,
promotion and information activities;
(xviii) programs to assist small businesses in developing workplace
policies, including but not limited to the design of employee benefit
and assistance programs and developing child care programs;
(xix) assistance to formulate and implement a business retention
strategy developed by the corporation in cooperation with a local
development corporation. Such assistance may include grants to local
development corporations as well as funding for services and expenses
for that purpose.
(g) Applications for support or assistance under this subdivision
shall be made in a form and manner as determined by the corporation, and
applicants shall be required to meet the criteria and requirements set
forth in subdivision three of this section and other criteria and
requirements determined by the corporation pursuant to this act,
including:
(i) the likelihood that state assistance will enable local
not-for-profit organizations or other eligible organizations to provide
services and activities not otherwise provided in the area served by the
applicant;
(ii) the potential of the project or program to stimulate or enhance
economic development in the area and to create or retain substantial,
permanent private sector jobs;
(iii) the innovative nature of the proposed project or program in
furtherance of community economic development; and
(iv) the demonstrated ability of the applicant to deliver the proposed
assistance and services.
(h) Projects and programs in communities that do not qualify as
economically distressed areas shall be eligible for funding under this
subdivision if such projects meet one or more of the following purposes:
(i) projects located in a non-distressed area that will significantly
contribute to the revitalization of an economically distressed area;
(ii) support for business development projects of women, members of
minority groups, or dislocated workers;
(iii) assistance to small or medium-sized manufacturing firms which
are seeking to modernize to remain competitive;
(iv) projects to diversify the economic base of a community heavily
dependent on a single industry;
(v) projects that will prevent the loss or significant contraction of
a company which is the primary employer in a community, or where loss of
a company would have a major adverse impact on a community's overall
economic condition;
(vi) projects involving expanding companies that will create
substantial numbers of new, private sector jobs;
(vii) projects creating permanent private sector jobs for dislocated
workers, public assistance recipients, or the long-term unemployed; or
(viii) projects that are an integral part of a community commercial
revitalization strategy which contributes to the economic health of a
community, including the provision of matching funds to newly formed
business improvement districts pursuant to paragraph (i) of this
subdivision.
(i) Notwithstanding any other subdivision of this section, the
corporation may make grants to newly formed small- and medium-sized
business improvement districts during their first three years of
operation. Such grants shall provide up to sixty-six percent of eligible
project costs in highly distressed areas and up to fifty percent of
project costs in distressed areas.
(j) Notwithstanding anything contained to the contrary in this
subdivision, section ten and subdivision two of section sixteen of this
act shall not apply to any grants authorized under this subdivision.
(8) Urban and community commercial revitalization revolving loan and
loan guarantee fund. (a) The corporation shall, from any appropriations
made available for this purpose, establish an urban and community
commercial revitalization revolving loan fund account and a related
administrative expenses trust fund account in order to stimulate the
development of central business districts and commercial strips through
a decentralized lending program operated in conjunction with business
improvement districts, local development corporations and other
not-for-profit corporations serving central business districts or
commercial strips. Assistance from this subdivision will be awarded
through a competitive process initiated by the urban development
corporation, which includes a request for proposals as well as direct
applications accepted at other times at the discretion of the
corporation.
(b) Loans and loan guarantees made from the urban and community
commercial revitalization revolving loan fund shall be for improvements,
expansions, and start-ups of businesses located in central business
districts and commercial strips.
(c) Such loans and loan guarantees shall be administered by qualified
business improvement districts, local development corporations and other
not-for-profit corporations designated by the corporation on a
competitive basis pursuant to a request for proposals process.
(d) For the purpose of this subdivision, "local trust fund account"
and "local revolving loan fund" shall mean a local urban and community
commercial revitalization revolving loan fund account.
(e) The corporation shall pay into such fund any monies made available
to the corporation for such fund from any source including monies
appropriated by the state and any income earned by, or incremental to,
the fund due to the investment thereof, or any repayment of monies
advanced from the fund. The monies held in or credited to the fund shall
be expended for the purposes set forth in this subdivision and may not
be interchanged with any other account or fund, but may be commingled
with any other account for investment purposes. All loans disbursed by
the corporation from such fund shall be repaid into the fund.
(f) The corporation shall allocate any monies made available for such
fund for the purpose of establishing local trust fund accounts and a
corresponding number of local administrative expenses trust fund
accounts.
(g) The corporation shall establish a local administrative expenses
trust fund account for the benefit of each entity selected to administer
a local trust fund account pursuant to the following conditions:
(i) the initial deposit in each local administrative expenses trust
fund account shall be in an amount to be determined by the corporation,
but shall not exceed twenty-five thousand dollars;
(ii) an entity designated to administer a local trust fund account may
use the funds in its local administrative expenses trust fund account
for expenses incurred by it in the start-up and administration of the
financial and technical assistance programs it is required to administer
under this section; and
(iii) the corporation shall also deposit into each local
administrative expenses trust fund account:
(A) all income earned from the moneys on deposit in the corresponding
local loan trust fund account during the first year of the entity's
administration of said account. Beginning with its second year in
administering a local revolving loan trust fund account, said amounts
may be used for costs incurred by the entity in administering the local
revolving loan trust fund account; and
(B) repayments of interest on loans made from the corresponding local
revolving loan trust fund account. Such funds may be used for costs
incurred at any time by an administering entity in its administration of
a local revolving loan trust fund hereunder;
(iv) funds deposited in an administrative expenses trust fund account
shall be disbursed by the corporation to the entity that administers the
corresponding local revolving loan trust fund account on a semiannual
basis and shall be expended by the entity in accordance with a
semiannual budget and any updates of same approved by the corporation.
(g-1) Notwithstanding any other provision in this subdivision, where
applicable, the corporation is authorized to enter into agreements as
may be necessary for the administration and reporting of funds repaid,
received, expended or collected in a manner consistent with the
provisions in section sixteen-t of this act. The use of such funds by
the corporation shall be consistent with the terms, conditions and
restrictions set forth in this section, to provide financial assistance
to eligible entities as designated under this subdivision. Outstanding
expenses, loans and other obligations executed prior to the effective
date of this paragraph shall be subject to the terms and conditions of
the original contract or contracts.
(h) To be eligible to apply for designation to administer a local
trust fund account, a not-for-profit corporation shall be required to:
(i) have represented on its board of directors, in such cases where an
area to be served by a local trust fund account has located within its
service area an empire zone designated pursuant to section nine hundred
sixty of the general municipal law, one or more of the following:
(A) an empire zone capital corporation if established pursuant to
section nine hundred sixty-four of the general municipal law; or
(B) community based local development corporations, industrial
development agencies, or other not-for-profit entities which serve a
municipality in which an empire zone has been established and which, as
one of their primary purposes, provide services and assistance to
business enterprises located or to be located in such empire zone,
including minority- and women-owned businesses;
(ii) have represented on its board of directors, selected local and
community development corporations, industrial development agencies, and
other not-for-profit entities that provide services to community
businesses and, as one of their primary purposes, provide services and
assistance to business enterprises located in central business districts
or commercial strips;
(iii) have strong written commitments from any empire zone capital
corporation, local and community development corporation, industrial
development agency, and other not-for-profit entities, if represented on
its board, to assist the not-for-profit corporation in administering the
local trust fund account, including the provision of business planning,
loan application preparation, loan application analysis, management and
other technical assistance as needed;
(iv) have staff, or have access to staff from organizations which
participate in the administration of a designated local revolving loan
trust fund with sufficient expertise to analyze applications for
financial assistance, to regularly monitor financial assistance to
clients, and to provide or arrange for the provision of management or
technical assistance to clients;
(v) have an effective plan to market its services and market programs
provided by the corporation and the department of economic development;
and
(vi) have established a loan committee composed of six or more persons
experienced in business management, commercial lending or in the
operation of a for-profit business. Such committee shall review every
application submitted by an eligible entity for financial assistance
from the local trust fund account and shall determine the feasibility of
the project proposed in the application and the likelihood of repayment
of the requested financing and recommend to the governing body of the
eligible entity such action as the loan committee deems appropriate.
(i) Any entity selected to administer a local revolving loan trust
fund account shall be eligible to draw funds from the account as needed
to provide the following types of financial assistance to eligible
businesses upon certification to and acceptance by the corporation that
such assistance complies with rules and regulations promulgated by the
corporation:
(i) working capital loans, provided that the amount of the loan does
not exceed fifteen thousand dollars and the term of the loan does not
exceed five years; and
(ii) loans for the acquisition and/or improvement of real property and
for the acquisition of machinery and equipment, provided that the amount
of the loan does not exceed twenty thousand dollars and the term of the
loan does not exceed the useful life of the equipment or property.
(j) Any other provisions of this subdivision notwithstanding, the
corporation may enter into agreements for other types of locally,
community or regionally administered loan programs interested in making
small loans, including micro-loans, administered by municipalities and
not-for-profit organizations, to provide loans to businesses located in
commercial strips and central business districts located within their
respective service areas, provided that:
(i) the corporation must secure certification from an entity
administering such a program that the loans will be made to businesses
through these agreements and meet the purposes and requirements set
forth pursuant to this subdivision;
(ii) loan review committees are established by each such administering
entity and that each entity designated under this paragraph have
established a loan committee composed of six or more persons experienced
in business management, commercial lending or in the operation of a
for-profit business;
(iii) no other entity eligible under this subdivision which
satisfactorily meets all requirements of this program has applied to
meet the needs of an area proposed to be served under this paragraph;
and
(iv) the corporation shall not expend any more than twenty-five
percent of the amount appropriated for programs pursuant to this
subdivision in any one fiscal year, or an amount appropriated
specifically for the purpose of this paragraph.
(k) An entity designated to administer such a revolving loan trust
fund account shall pay to the corporation for deposit any repayments
received in connection with financial assistance provided from such
account pursuant to the following:
(i) payments consisting of the repayment of the principal amount of a
loan shall be deposited by the corporation in the local trust fund
account from which the loan was made; and
(ii) the interest earned from the investment, by the corporation, of
monies in each local revolving loan trust fund during and after the
second year of a selected entity's administration of said account shall
be deposited by the corporation into the corresponding local revolving
loan trust fund account and used to provide the financial assistance to
businesses located in commercial strips and central business districts.
(k-1) Notwithstanding any other provision in this subdivision, where
applicable, the corporation is authorized to enter into agreements as
may be necessary for the administration and reporting of funds repaid,
received, expended or collected in a manner consistent with the
provisions in section sixteen-t of this act. The use of such funds by
the corporation shall be consistent with the terms, conditions and
restrictions set forth in this section, to provide financial assistance
to eligible entities as designated under this subdivision. Outstanding
expenses, loans and other obligations executed prior to the effective
date of this paragraph shall be subject to the terms and conditions of
the original contract or contracts.
(l) The decision to approve or reject an application for financial
assistance pursuant to the provisions of this subdivision shall be made
by the majority of the board of directors of the entity designated to
administer the local revolving loan trust fund account and such decision
shall be final.
(m) An entity designated to administer a local revolving loan trust
fund account shall not provide any financial assistance authorized by
this subdivision unless the following conditions are met:
(i) the applicant has a minimum equity interest of at least ten
percent in the project;
(ii) there is reasonable prospect of repayment;
(iii) the project will comply with applicable environmental rules and
regulations;
(iv) the applicant has certified that it will not discriminate against
any employee or any applicant for employment because of race, religion,
color, national origin, sex, or age; and
(v) a staff member or a representative of the entity designated to
administer the local revolving loan trust fund account acting in an
official capacity has personally visited the project site or the
applicant's place of business.
(n) Financial assistance from the local trust fund shall not be made
available for:
(i) projects that would result in the relocation of any business
operation from one municipality within the state to another, provided,
however, that such a project shall not be deemed ineligible if all
municipalities from which such business will be relocated are notified
in writing of the corporation's approval of such funding and the chief
executive officers of the municipalities do not object to the
corporation in writing within a period of twenty days of receipt of the
notification;
(ii) refinancing any portion of the total project cost or other
existing loans or debts of an applicant, except for the purpose of
transferring to the employees or to other local interests ownership of a
company that would otherwise depart from or cease or substantially
reduce operations in the state; and
(iii) providing funds, directly or indirectly, for payment,
distribution, or as a loan, to owners, partners or shareholders of the
applicant enterprise, except as ordinary income for services rendered.
(o) An entity designated to administer a local revolving loan trust
fund account may charge application, commitment and loan guarantee fees
pursuant to a schedule of fees adopted by such entity and approved by
the corporation.
(p) An entity designated to administer a local revolving loan trust
fund account shall submit annual reports to the corporation describing
the financial assistance provided pursuant to this subdivision,
including:
(i) the number of projects assisted, the amount and type of assistance
provided and a description of the projects;
(ii) the number of jobs created or retained; and
(iii) such other information as the corporation may require.
(q) The corporation shall, assisted by the commissioner of economic
development and in consultation with the department of economic
development, promulgate rules and regulations in accordance with the
state administrative procedure act to implement the provisions of the
urban and community commercial revitalization revolving loan fund
established pursuant to this subdivision, and to implement such
revolving loan trust fund established pursuant to this subdivision,
setting forth procedures to be followed by, and the responsibilities and
obligations of, entities designated to administer local trust fund
accounts. Such rules and regulations shall be consistent with the
program plan required by subdivision nineteen of section one hundred of
the economic development law. No funds shall be disbursed from amounts
appropriated to implement the provisions of this section until such
rules and regulations have been reviewed and approved by the
commissioner of economic development and the director of the budget.
(9) Urban and community technical assistance. There is hereby
established within the urban and community development program an urban
and community technical assistance program. Assistance awarded under
this subdivision shall be awarded on a competitive basis, in response to
requests for proposals and through direct applications accepted at other
times at the discretion of the corporation. The corporation shall, from
appropriations made available therefor, provide assistance for the
purpose of developing the capacity of local and regional development
organizations and communities to undertake economic development
initiatives by:
(a) Conducting outreach to communities in areas where little, if any,
economic development capacity exists, including identifying potential
applicants and providing assistance to potential applicants in
completing the application process for assistance and meeting
eligibility requirements for federal, state and local programs.
Assistance may be provided through grants to not-for-profit economic
development organizations and through the deployment by the corporation
of circuit riders.
(b) Providing community building grants to not-for-profit economic
development or community development organizations where necessary, in
organizing for economic development, analyzing potential development
opportunities or obstacles to development, and developing economic
development strategies, including feasibility studies for the creation
of business improvement districts in highly distressed areas.
(c) Providing technical and financial packaging assistance to
not-for-profit community development and economic development
organizations through grants to third party providers of such services.
(d) Contracting with third parties for the purpose of providing
technical assistance to municipalities, not-for-profit organizations,
local development corporations, local empire zone administrative boards,
or business improvement districts to analyze potential development
opportunities or obstacles.
(e) Providing grants to not-for-profit economic development or
community development organizations for approved costs to strengthen
their capacity to implement economic development, job creation, or
business retention strategies, including assistance to enable such
organizations to provide technical and financial packaging assistance to
local businesses, manage economic development projects, and provide
other economic development services that are identified in their
strategic plans.
(f) Creating an urban internship program to provide training and field
experience to individuals committed to working in highly distressed
communities.
(g) Organizing and coordinating seminars and conferences to facilitate
the exchange of information regarding commercial revitalization
strategies.
(h) Establishing a community revitalization economic self-help program
to assist public officials, community leaders, economic development and
community groups to undertake an economic development planning process
and to organize for economic development. Eligible applicants for
assistance under this paragraph shall consist of a municipality or a
consortium of municipalities from a region of the state, such regions as
established by the commissioner of the department of economic
development pursuant to section two hundred thirty of the economic
development law.
(i) Each training program shall require each participating
municipality to:
(A) establish an economic development planning group;
(B) undertake a community profile and needs assessment;
(C) undertake labor market and resource surveys; and
(D) produce a five-year strategic plan and a one-year work program.
(ii) Requests from municipalities or consortia of municipalities for
technical assistance under this paragraph shall be made directly to the
corporation or through the regional offices of the department of
economic development.
(iii) Participating municipalities shall be required to provide
matching funds in an amount at least equal to any funds provided by the
corporation under this paragraph.
(iv) The corporation is authorized to enter into cooperative
agreements with statewide and regional economic development
organizations in New York state, acting as consultants, to conduct joint
training programs to train and educate local officials and economic
development practitioners pursuant to this paragraph. Any contract for
services with such organizations shall not exceed the sum of fifty
thousand dollars for the conduct of each training program.
(10) Standard project program application. The corporation shall, for
assistance provided in this program, develop and use standard project
program applications pursuant to rules and regulations, which shall be
promulgated by the corporation in accordance with the state
administrative procedure act.
(11) Standardization. The corporation shall streamline the review and
approval process for projects and shall standardize all relevant
attendant documentation and legal documents.
(12) Master agreement. The corporation shall enter into a written
master agreement with the director of the budget providing for repayment
by such corporation to the state of New York of all amounts expended by
the state from such appropriation for loans, on terms which may include
interest thereon at a rate per annum to be determined by the director of
the budget and a copy of such agreement shall be filed with the state
comptroller, the chairman of the senate finance committee and the
chairman of the assembly ways and means committee.
(13) Repayment. Notwithstanding the provisions of section forty-a of
the state finance law and any other general or special law, such written
agreement shall not require repayment at any time or on any terms
inconsistent with the provisions of this act or the New York state
project finance agency act. Except, however, that the corporation may
make grants to projects using funds appropriated for this purpose and
that the repayment provision may not apply to such grants.
(14) Report. The corporation shall: (a) Monitor the performance of
each recipient of a grant or contract under the provisions of this
section and require periodic and annual reports from each such recipient
at such time and in such a manner as prescribed by the chairman.
(b) Submit to the director of the budget, the speaker of the assembly
and the temporary president of the senate an evaluation of the
effectiveness of the urban and community development program prepared by
an entity independent of the corporation. The corporation shall select
the program evaluator through a request for proposal process. Such
evaluation shall discuss the variety and types of programs supported by
the corporation under this program; and, as appropriate, the extent to
which the program has served to create and maintain jobs; the extent to
which the program has helped to increase the vitality of local
communities; the extent to which the program is coordinated with other
related state and local assistance programs; the extent to which the
program serves minorities and women; the extent to which the program
serves urban and rural areas; the extent to which the program serves
economically distressed and highly distressed areas; the extent to which
the program has helped to increase the capacity of local governments and
organizations to undertake economic development activities; and such
other components as the commissioner of economic development shall deem
appropriate; and shall make recommendations for improvements which would
make the program more effective. Such evaluation shall be submitted by
September first, nineteen hundred ninety-five and by September first
every two years thereafter.
(c) (i) The lending organization shall submit to the corporation
annual reports stating: the number of program loans made; the amount of
program funding used for loans; the use of loan proceeds by the
borrower; the number of jobs created or retained; the status of each
outstanding program loan, including fund balance; and such other
information as the corporation may require.
(ii) Beginning April 1, 2019, the corporation shall publish on its
website the information contained in the annual reports required under
this paragraph and paragraphs (a) and (b) of this subdivision in
aggregate form omitting borrower identifiable information.
Regional economic development partnership program. (1) For the
purposes of this section, the following words and terms shall have the
following meanings:
(a) "Business development project". A project involving an industrial,
manufacturing, commercial, research and development, high technology,
tourism, agricultural or service company.
(b) "Business infrastructure project". A project involving an
industrial, manufacturing, commercial, research and development, high
technology, tourism, agricultural or service company which shall
include, but not be limited to, basic systems and facilities on public
or privately owned property including drainage systems, sewer systems,
access roads, sidewalks, docks, wharves, water supply systems, and site
clearance, preparation, improvements, and demolition.
(c) "Child care assistance project". A project for the establishment,
expansion, and development of licensed not-for-profit child day care
centers which serve the needs of small and medium-sized commercial,
industrial, service and other small and medium-sized businesses,
health-related businesses and degree-granting institutions of higher
education.
(d) "Infrastructure investment project". A project consisting solely
of site preparation, clearance and demolition on property owned by a
municipality, local development corporation, urban renewal agency or
industrial development agency designated by a municipality.
(e) "Infrastructure planning projects" shall mean projects consisting
solely of planning, including the preparation of schematic designs and
preliminary environmental assessments for a business infrastructure
project or an infrastructure investment project.
(f) "Skills training assistance". A project related to the provision
of firm-specific or industry-specific employee retraining, skills
upgrading, and productivity enhancement, including assessment and
training related to the implementation of high-performance work
organization strategies.
(g) "Tourism destination". A location or facility which is likely to
attract a significant number of visitors from outside the region.
(h) "Revolving loan fund account grants" shall include: (i) grants to
provide the local match for federally funded community-based loan funds;
(ii) grants to capitalize and recapitalize regional revolving loan trust
fund accounts pursuant to section sixteen-a of this act; and (iii)
grants to recapitalize minority and women revolving loan trust fund
accounts established pursuant to section sixteen-c of this act.
(2) Loans and grants. The corporation may make loans and grants for
regional strategic planning, business development projects, business
infrastructure and infrastructure investment projects, skills training
assistance projects, economic development assistance projects, and child
care assistance projects, that create or retain permanent private-sector
jobs. Such projects and programs except as specifically provided herein:
(a) Must be consistent with a regional strategic plan for economic
development, as coordinated by the chairman of the corporation and
approved by the director of the budget, with copies filed with the
speaker of the assembly and the temporary president of the senate;
(b) Must create or retain substantial permanent private-sector jobs in
the case of business development loans and business infrastructure
projects, or in the case of a child care assistance project the
corporation determines that the child day care center will improve or
maintain the productivity of the sponsoring company or companies;
(c) Must be reasonably likely to be completed within the time and cost
estimates presented in the proposal; and
(d) Must be unable to obtain sufficient funding on reasonable terms
from other public or private sources to permit the project to proceed
without the requested assistance; and
(3) Ineligible projects. Ineligible projects shall include retail
businesses, overnight lodging facilities, debt refinancing, or the
relocation of a business from one municipality within the state to
another municipality, provided, however, that such a project shall not
be deemed ineligible if all municipalities from which such business will
be relocated are notified in writing of the corporation's approval of
such funding and the chief executive officers of the municipalities do
not object to the corporation in writing within a period of twenty days
of receipt of the notification.
(4) Nonapplication to certain grants and projects. Section ten and
subdivision two of section sixteen of this act shall not apply to grants
and projects funded pursuant to the provisions of this section.
(5) Business development project loans. (a) Business development
project loans made by the corporation:
(i) may be for working capital, the purchase or leasing of equipment
and machinery, land acquisition, and the acquisition, renovation or
construction of facilities;
(ii) shall not exceed one-third of the total project cost or five
hundred thousand dollars, whichever is less; and
(iii) shall be at interest rates that are necessary to make the
project feasible, as determined by the corporation.
(b) Notwithstanding section five of this act, no more than twenty
percent of the funds available for business development projects shall
be grants limited to:
(i) interest subsidies to reduce costs of financing projects that
demonstrate an inability to occur without subsidy, which shall not
exceed one-third of project cost or four hundred thousand dollars,
whichever is less; and
(ii) feasibility studies of the transfer of ownership to local
interests of a company which shall not exceed forty thousand dollars.
(c) The corporation may make loans or grants for business development
projects in economically distressed areas and in other areas; provided,
however, that in the case of other areas, the project furthers:
(i) business development by women, minorities, or unemployed persons;
(ii) modernization and productivity improvements by eligible firms;
(iii) diversification of the economic base of a community;
(iv) creation of substantial, permanent private-sector jobs, including
jobs for dislocated workers, public assistance recipients, disadvantaged
youth, or long-term unemployed persons;
(v) retention of jobs involving companies at imminent risk of reducing
employment;
(vi) prevention of the loss of a primary employer which will have a
major adverse impact on the economic condition of a community; or
(vii) furthers the development of a tourism destination.
(6) Business infrastructure projects. (a) The corporation may make
loans and grants to businesses, municipalities, industrial development
agencies and local, county or regional development corporations
designated by local governments for specific business infrastructure
projects directly related and essential to specific business
developments.
(b) Grants and loans for infrastructure projects may be made in areas
encompassed by empire zones established pursuant to article eighteen-b
of the general municipal law and in other areas, except that in the case
of other areas, a project loan or grant for a business infrastructure
project must be for one of the purposes authorized for business
development projects in such areas pursuant to paragraph (c) of
subdivision five of this section, and shall be available only where
there is a firm commitment by a company to carry out a related business
development to create or retain substantial permanent private-sector
jobs.
(c) Assistance for business infrastructure projects shall not exceed
forty-nine percent of the total project cost or seven hundred fifty
thousand dollars, whichever is less. Loans for such projects shall be at
interest rates determined by the corporation, that are necessary to make
the project feasible.
(d) No more than fifty percent of funds available from the corporation
for any infrastructure project not located in an empire zone, and no
more than sixty percent of the funds available from the corporation for
any infrastructure project located in an empire zone shall be disbursed
as a grant.
(7) Infrastructure investment projects. Notwithstanding paragraph (b)
of subdivision two of this section, grants may be made by the
corporation for up to four hundred thousand dollars or eighty percent of
the total project cost, whichever is less, for infrastructure investment
projects which:
(a) Meet highly distressed area criteria as defined in article
eighteen-b of the general municipal law;
(b) Are part of an economic development or urban renewal plan to
attract, retain or permit the expansion of an industrial, manufacturing,
research and development, high-technology, tourism, service, food
processing or distribution company; and
(c) Are located in areas that are zoned industrial or commercial.
(8) Infrastructure planning projects. The corporation may make
infrastructure planning project grants in an amount not to exceed
twenty-five thousand dollars or fifty percent of project costs,
whichever is less, for the purpose of conducting preliminary planning on
business infrastructure development and infrastructure investment
projects that meet the criteria set forth in subdivisions six and seven
of this section.
(9) Tourism destination projects. (a) The corporation may make
business development and business infrastructure loans and grants for
tourism destination projects. Such projects must:
(i) involve the development of a recreational, educational, cultural
or historical facility;
(ii) significantly contribute to the development of a tourism
destination; and
(iii) either (A) involve construction of a new facility that will
encourage investment in an area where a shortage of tourism-related
facilities, attractions or services has deterred business growth and
where the proposed facility would significantly increase overall
business activity and the marketability of the location as a tourism
destination; or (B) improve an existing recreational, educational, or
cultural or historical facility where the proposed improvement would
significantly increase overall business activity and the marketability
of the location as a tourism destination.
(b) The corporation may make grants involving the regional marketing
of tourism destinations, including commercial tourism destination areas,
where an increase of visitors to such areas will contribute to the
stability and economic viability of the area.
(c) Preference shall be given to tourism destination projects which
attract a significant number of visitors from outside the state,
provided, however, that funding priority shall be given to tourism
destination projects in distressed areas of the state.
(d) No assistance shall be provided pursuant to this subdivision to
finance a tourism destination project consisting solely of overnight
lodging facilities or retail businesses. Provided, however, that nothing
contained herein shall prohibit the corporation from providing
assistance to a tourism destination project which includes such
facilities or businesses.
(10) Economic development assistance grants. (a) The corporation
shall, within available appropriations, award grants or enter into
contracts for services to eligible entities and organizations as set
forth in this subdivision on a competitive basis and in response to
requests for proposals issued by the corporation. Grants shall not
exceed one hundred thousand dollars per project. An applicant shall be
permitted to apply for support in more than one project area listed
under paragraph (c) of this subdivision, provided, however, that the sum
total of the grant received under this subdivision by any one applicant
for more than one project approved under paragraph (c) of this
subdivision shall not exceed two hundred fifty thousand dollars. No
application for industrial effectiveness on global export and marketing
assistance shall be approved by the corporation unless it is first
approved by the department of economic development.
(b) The corporation shall enter into no more than one contract or make
more than one grant per year per application under this subdivision
regardless of the number of projects for which an applicant has applied
and for which funding has been approved. In the case of applications for
multiple projects to be conducted by a single applicant, the corporation
may, at its discretion, provide a grant or enter into a contract for
services with the applicant for some or all of the projects for which an
applicant has applied.
(c) Not-for-profit corporations, business improvement districts and
regional and community development organizations shall be eligible to
apply for support under this subdivision to operate a program or
programs of business and economic development services to stabilize,
retain or revitalize existing businesses, and to assist small and new
businesses, including, but not limited to assistance to individual
businesses or business sectors in project areas, including, but not
limited to:
(i) the preparation of strategic plans for the economic development of
the region;
(ii) analysis of industrial sectors;
(iii) productivity assistance to mature industries;
(iv) assistance in marketing and promoting regional business clusters;
(v) export assistance;
(vi) management and procurement assistance to small business,
including minority- and women-owned businesses;
(vii) regional marketing of state economic development programs to
areas underserved in those programs;
(viii) assistance in the training of community and economic
development staff to assist communities to build capacity to engage in
economic development;
(ix) assistance to expand the capacity of existing entities
administering minority and women revolving loan funds to deliver
services;
(x) feasibility studies for the establishment of business improvement
districts and for initial eligible organizational costs; and
(xi) grants for the establishment and operation of neighborhood-based
small business service centers.
(d) In awarding grants or contracts pursuant to this subdivision,
preference shall be given to programs that:
(i) are located in distressed areas;
(ii) meet a substantial regional need;
(iii) complement local programs or provide services not readily
available from units of local government or the private sector;
(iv) provide a local match; or
(v) foster small business and minority business development.
(11) Skills training projects. (a) Funds may be available for
expenditure related to the provision of skills training assistance when
utilized in conjunction with other public or private development funds
for the purposes of the prevention of worker dislocation or the creation
of new employment opportunities.
(b) To the extent that training expenditures involve classroom or
on-the-job training, all funding by the corporation shall be in the form
of grants or contracts with employers matching fifty percent of the cost
of training.
(c) Allowable training expenditures may include expenses for classroom
instruction and on-the-job training.
(d) No skills training assistance shall be provided by the corporation
unless and until the department of economic development has reviewed and
approved each project.
(e) For those projects funded pursuant to the provisions of this
subdivision, the corporation shall submit to the governor, the speaker
of the assembly, the temporary president of the senate, and the chair of
the commission on skills development and vocational education a report
of the training assistance provided by such projects to be submitted not
later than September first of each year. Such report shall include, but
not be limited to, a description of the training activity provided,
evidence of linkages with other publicly funded training programs,
specification of outcomes achieved including number of job placements,
jobs retained, jobs created, or a measure of productivity improvement,
the types of businesses served by size and sector, and funds provided
for the construction/renovation of facilities or purchase of equipment
for training purposes.
(12) Child care assistance projects. (a) The corporation shall provide
financing for child care assistance projects for the establishment,
expansion and development of not-for-profit child day care centers which
serve the needs of small and medium-sized commercial, industrial,
service and other small and medium-sized businesses, and of
health-related businesses and degree-granting institutions of higher
education. Such financing may consist of grants for the establishment of
licensed, not-for-profit child day care centers developed in conjunction
with small and medium-sized businesses, health-related businesses and
degree-granting institutions of higher education. Such grants shall not
exceed forty percent of the total project cost, may be in amounts up to
one hundred thousand dollars and may be used for general project
development costs, including, but not limited to:
(i) studies to assess the feasibility of, or preliminary planning for,
the development of child day care centers sponsored by a not-for-profit
provider or a consortia of firms;
(ii) the acquisition, design, construction, improvement or renovation
of the child day care center; and
(iii) the purchase of permanently installed machinery and equipment
necessary to establish or expand a child day care center.
(b) Loans for costs associated with the development or expansion of
child day care centers to a not-for-profit child care provider, or a
small or medium-sized business, consortia of such firms or
health-related business or degree-granting institution of higher
education that has contracted with a not-for-profit child care provider
to supply child care services, provided, however, that:
(i) such loans may be used for the acquisition, design, construction,
improvement or renovation of a child day care center at the project site
and/or for the purchase of permanently installed machinery and equipment
in connection therewith, or for the provision of working capital to such
center; and
(ii) the corporation shall determine the terms and interest rates of
such loans, except that no loan shall exceed fifty percent of the total
project cost, or two hundred fifty thousand dollars, whichever is less,
provided that the total amount given to any individual child care
project shall not exceed two hundred fifty thousand dollars.
(c) Financing for child care assistance projects authorized pursuant
to this subdivision, shall only be made upon a determination by the
corporation that such center will improve or maintain the productivity
of the sponsoring company or companies. Such loans and grants shall only
be made for child care centers where adequate day care facilities are
not available for employees of businesses within the area of the
proposed center. Such centers shall:
(i) demonstrate an ability to obtain, from the appropriate
governmental agencies, all necessary approvals and licenses required to
operate the center; and
(ii) demonstrate an ability to prevent access by children to any
equipment in such centers which could be injurious to their health or
safety.
(d) The corporation shall work closely with the New York state job
development authority, the New York state department of economic
development, the New York state department of social services, child
care resource and referral centers, and other sources offering
assistance for child care in the state in order to assure coordination
of services.
(13) Regional loan fund account grants. Assistance from this program
may be provided for grants of up to five hundred thousand dollars to
capitalize, and up to two hundred thousand dollars to recapitalize,
regional revolving loan trust fund accounts established pursuant to
section sixteen-a of this act and up to two hundred thousand dollars to
recapitalize minority and women revolving loan trust fund accounts
established pursuant to section sixteen-c of this act; and up to two
hundred thousand dollars to provide the local match for appropriately
federally-financed community-based loan funds.
(14) Determination of economic distress. (a) The corporation shall
develop and consider criteria for determining economic distress within
the areas of the state. Factors to be considered in determining economic
distress shall include:
(i) unemployment rate;
(ii) rate of employment change;
(iii) percentages and numbers of low-income persons;
(iv) per capita income and per capita real property wealth; and
(v) such other indicators of distress as the corporation shall
determine.
(b) Economically distressed areas shall also include parts of
municipalities otherwise not qualifying, which meet unemployment, income
and other criteria established by the corporation.
(15) Application. (a) The corporation shall develop and use a standard
project application form. Project applications shall be completed,
reviewed and evaluated by the regional economic development councils
established pursuant to this section, pursuant to eligibility
requirements and criteria promulgated by the corporation pursuant to
this section. Such applications shall be submitted to the corporation
with recommendations for the project ranked in priority order; provided,
however, that an applicant may make an application directly to the
corporation for approval. Upon such direct application, the applicable
regional economic development council shall review the application and
shall make a recommendation within twenty days of receipt of such
application. The corporation may act on any such application twenty days
after the receipt of such application by the regional council.
(b) The corporation shall expedite the processing of approved loans
and grant awards with the objectives of simplifying the administrative
process and making prompt and timely payments to recipients and simplify
procedures by which approved applications are processed.
(16) Regional economic development assistance revolving loan account.
Notwithstanding any provisions of law to the contrary, the corporation
shall establish within its treasury a regional economic development
assistance revolving loan account, shall pay into such account any
moneys which may be made available to the corporation for this purpose
from any source including, but not limited to, moneys appropriated by
the state and any income earned by, or increment to, the account due to
the investment thereof, or any repayment of principal and interest on
loans made by the corporation for projects authorized pursuant to this
section. The amounts deposited in the regional economic development
assistance revolving loan account may not be interchanged with any other
account. All loans disbursed by the corporation shall be repaid into
such account and such repayments shall be available to the corporation
for relending and up to one hundred twenty-five thousand dollars of such
repayments shall be available for the co-location of staff of the
corporation in the regional offices of the department of economic
development, expediting project disbursement or outreach in highly
distressed areas.
(17) Approval cycle. The corporation shall approve project loans or
grants made under this section on at least a four-month cycle.
(18) Priority. In approving loans or grants authorized pursuant to the
provisions of this section, the corporation shall give priority
consideration to whether a project is located in an area of economic
distress. Other factors to be considered by the corporation shall
include:
(a) The number of jobs created or retained;
(b) The number of jobs created for persons eligible for benefits under
the provisions of the job training partnership act (P.L. 97-3400)(29
U.S.C.A. § 801 et seq.);
(c) The priority accorded the proposed project by the regional
economic development council;
(d) The participation of minority- and women-owned businesses;
(e) The impact of the project on the employment and economic condition
of the community;
(f) The cost per job created or retained based on total project cost;
(g) The amount of private investment leveraged;
(h) The level of local public support; and
(i) The likelihood of accomplishing the project in a timely fashion.
In the event that the corporation does not follow the priorities of a
regional economic development council, it shall make a finding, in
writing, as to why the council priority was not followed.
(19) Preference. For any positions opened as a result of business
development project loans, entities assisted shall first consider
persons eligible to participate in federal job training partnership act
programs (P.L. 97-3400) (29 U.S.C.A. §801 et. seq.) who shall be
referred to the business by administrative entities of service delivery
areas created pursuant to such act by the job service division of the
department of labor.
(20) Regional economic development council. Beginning April first,
nineteen hundred ninety-five, there shall be established within each
economic development region of the state, pursuant to section two
hundred thirty of the economic development law, a regional economic
development council.
(a) Appointments to a regional economic development council shall be
made according to the following provisions:
(i) Except as provided in subparagraph (iii) of this paragraph, in
regions composed of two or more counties, the chief executive officer of
each county within such region shall each appoint one representative to
serve on the regional economic development council; and the mayor or
other chief executive of each city within the region whose population
exceeds fifty thousand, shall each appoint one member to serve on the
regional economic development council; except that for regions that do
not contain a city of at least fifty thousand inhabitants, the mayor or
other chief executive of the municipality with the largest population
shall make such appointment.
(ii) In the case of regions composed of two or fewer counties, the
chief executive officer of each county within a region shall each
appoint three representatives to serve on the regional economic
development council; and the mayor or other chief executive of the two
largest towns within each county shall each appoint one member to serve
on the regional economic development council.
(iii) In the case of cities of one million or more constituting an
economic development region, six appointments to the regional economic
development council shall be made by the mayor, and one appointment each
shall be made by the chief executive officer of any county within such
city, who shall represent the county.
(iv) The governor shall make a number of appointments in each region
equal to the total number of appointments made pursuant to subparagraph
(i), (ii) or (iii) of this paragraph, as appropriate; provided however,
that of the appointments made by the governor in each region, one shall
be the director of the regional office of the department of economic
development; one shall be the regional representative of the New York
state job development authority, and one shall be a regional office
representative of the corporation. In addition, the governor shall
appoint the chair of each regional economic development council.
(b) Each individual appointed to a regional economic development
council shall serve for a term of four years but shall serve for no
longer than two consecutive terms.
(c) The chair of a regional economic development council shall serve
as chair for a single term of four years only.
(d) Representatives appointed pursuant to this section may be removed
for cause by the appointing authority.
(e) Any vacancy on a regional economic development council shall be
filled for the unexpired term in the same manner as the original
appointment.
* (f) Each regional economic development council awardee may certify
in writing to such regional economic development council that they
maintain internship opportunities, along with the number of
opportunities, a description of the work the interns will engage in, and
descriptions of any supplementary programming offered to the interns.
* NB Effective July 19, 2024
(21) Reports. The chairman of the corporation shall submit to the
director of the budget, the speaker of the assembly and the temporary
president of the senate an evaluation of the effectiveness of the
program prepared by an entity independent of the corporation. The
corporation shall select the program evaluator through a request for
proposal process. Such evaluation shall determine whether the assistance
provided has enhanced the economic conditions of assisted businesses or
projects, and shall make recommendations for improvements which would
make the program more effective. Such evaluation shall be submitted by
September first, nineteen hundred ninety-six.
(22) Co-location of services. The commissioner of economic
development, in consultation with the New York state science and
technology foundation, the New York state urban development corporation,
the New York state job development authority, the state university of
New York and the city university of New York shall develop and implement
a plan and schedule for the co-location of services provided by such
agencies in each economic development region throughout the state. Such
plan and schedule shall provide that at least one employee of each
agency providing such services shall be located at each co-located
regional office in New York state on at least a regularly scheduled part
time basis. The commissioner of economic development shall report to the
temporary president of the senate, the speaker of the assembly, the
chairpersons of the fiscal committees of the senate and assembly, and
the governor on the plan and schedule required pursuant to this act by
December thirty-first, nineteen hundred ninety-four.
Bonding guarantee assistance program. (1) Program created.
There is hereby created a state bonding guarantee assistance program to
enable small businesses, and minority-owned and women-owned business
enterprises, certified as a minority-owned or women-owned business
enterprise pursuant to article fifteen-A of the executive law, to meet
payment and/or performance bonding requirements by providing additional
financial backing needed to induce a surety company to issue a bond for
construction projects, including but not limited to, government
sponsored, transportation related construction projects. For purposes of
this section, the term small business shall have the same meaning as
defined in section one hundred thirty-one of the economic development
law. Such program shall give preference to minority-owned and
women-owned business enterprises and shall:
(a) Make available funds to surety companies providing bonds to small
businesses and minority- owned or women-owned business enterprises in an
amount equal to a percentage not to exceed fifty percent of the face
value of bonds issued by the surety.
(b) Provide technical assistance in completing bonding applications
for small businesses and minority-owned or women-owned business
enterprises seeking to become eligible for bonding in preparation for
bidding on construction projects, including transportation related
projects. The corporation shall provide and may refer such businesses to
the department of economic development for technical assistance as such
businesses may need, including but not limited to:
(i) a review of the applicants' market and business competitive
strategy;
(ii) consultation and review of the development and planned
implementation of a working capital budget;
(iii) assistance with applications for the receipt of funding from
other financial sources and providing referrals to other appropriate
public and private sources of financing; and
(iv) assistance from the regional offices of the department of
economic development, pursuant to article eleven of the economic
development law, and the entrepreneurial assistance program, pursuant to
article nine of such law, and any other such program receiving state
funds from this act or the department of economic development or any
other state agency that is intended to provide technical assistance to
small businesses and minority-owned and women-owned small business
enterprises.
(2) Criteria and regulations. (a) The corporation shall by rule
establish criteria for such program, such criteria to include detailed
provisions for eligibility.
(b) The corporation shall promulgate rules and regulations to
effectuate the purposes of this section which shall be approved by the
director of the budget.
(3) Funds. Funds for this program shall consist of such amounts as may
be appropriated, any repayment of funds made available under this
program, and any interest earned by the corporation from the investment
of moneys from this program.
(4) Nonapplication of certain provisions. The provisions of section
ten and subdivision two of section sixteen of this act shall not apply
to assistance provided under this program.
Child care facilities construction program. 1. Definitions.
For the purposes of this section:
(a) "Child care facilities construction project" shall mean a project
for the establishment, expansion, and development of licensed
not-for-profit child day care centers which are intended to serve the
needs of low-income working families or economically distressed areas or
highly distressed communities. The project shall be used as a licensed
child day care center for a period of at least ten years with at least
one-quarter of the available day care placements offered to the local
department of social services or set aside for persons eligible for
low-income day care subsidies.
(b) "Economically distressed areas" shall have the same meaning as
provided for in section 16-d of this act.
(c) "Highly distressed" shall have the same meaning as provided for in
section 16-d of this act.
(d) "Not-for-profit corporation" shall mean a corporation organized
under the provisions of the not-for-profit corporation law.
2. The corporation shall, from any appropriations made available for
this purpose, establish a child care facilities construction program
which shall offer the following assistance:
(a) Child care construction grants pursuant to paragraphs (a) and (b)
of subdivision 3 of this section.
(b) Child care construction revolving loans and loan guarantees
pursuant to paragraphs (c) and (d) of subdivision 3 of this section.
3. To the extent that monies are appropriated for the child care
facilities construction program, the corporation shall provide financing
for child care facilities construction projects for the establishment,
expansion and development of not-for-profit child day care centers which
are intended to serve the needs of low-income working families or
economically distressed areas or highly distressed communities. The
corporation, in consultation with the department of economic
development, shall develop a joint request for applications with the
department of social services soliciting potential applicants seeking
assistance for the development of licensed, not-for-profit child day
care centers. In determining award recipients, the corporation shall
consider, among other factors, the department of social services'
grouped rankings of the applications. Such financing shall consist of
grants, revolving loans and loan guarantees for the establishment,
expansion, and development of licensed, not-for-profit child day care
centers in accordance with section 410-ccc of the social services law
and this section.
(a) Grants shall be used for general project development costs,
including, but not limited to:
(i) the acquisition, design, construction, improvement or renovation
of the site; and
(ii) the purchase of necessary equipment.
(b) For the purposes of this subdivision grants shall not exceed
eighty percent of the total project cost in highly distressed
communities; shall not exceed sixty-five percent of the total project
cost in economically distressed areas; and shall not exceed fifty
percent of the total project cost in non-economically distressed areas.
(c) Child care construction revolving loan and loan guarantees. The
corporation shall provide revolving loans and loan guarantees for the
establishment of licensed, not-for-profit child day care centers. Such
revolving loans and loan guarantees shall be for construction costs,
including, but not limited to the design, construction, improvement or
renovation of a child day care center, and may include interim
financing.
(d) Child care construction revolving loan and loan guarantee fund.
For the purposes of this subdivision, the corporation shall establish a
child care construction revolving loan and loan guarantee fund account.
The corporation shall determine the terms and interest rates of such
loans, except that no loan shall exceed eighty percent of the total
project cost in highly distressed communities; sixty-five percent of the
total project cost in economically distressed areas; and fifty percent
of the total project cost in non-economically distressed areas. In
instances where an otherwise qualified applicant lacks equity in a
project, equity participation may include any commitment for grants.
Payments consisting of the repayment of the principal amount of the loan
and interest shall be deposited by the corporation into the child care
construction revolving loan fund account from which the loan was made.
4. Financing for child care facilities construction projects
authorized pursuant to this subdivision, shall only be made upon a
determination by the corporation, in consultation with the department of
economic development, and the department of social services that such a
center will increase supply and access to day care services. Such
revolving loans, loan guarantees and grants shall only be made for child
care centers where there is an insufficient supply of child day care.
Such centers shall demonstrate the potential to obtain, from the local
department of social services and other appropriate governmental
agencies, all necessary approvals, licenses, and other supports required
to operate the center.
5. In addition to the department of social services, the corporation
shall work closely with the job development authority, the department of
economic development, child care resource and referral programs, local
development corporations, neighborhood preservation companies, rural
preservation companies, and other sources offering assistance for child
care in the state in order to assure coordination of services.
The JOBS Now program is hereby created. 1. Funds of this
program, within available appropriations, shall be available to any
regional partnership, as provided in section 3154 of the public
authorities law, eligible business expansion or attraction project: (a)
Job creation grants. Proceeds from a job creation grant shall be used by
an eligible business to pay any tax liability resulting from any tax
imposed by the state or a local government that the business owes for
any taxable period beginning on or after the date in which the job
creation grant was awarded. A job creation grant shall equal a portion,
as determined by the urban development corporation, of the New York
state income tax that is withheld on the employees that were hired as a
result of the expansion or attraction project not to exceed one million
five hundred thousand dollars;
(b) Worker training grants. Worker training grants, that are completed
pursuant to eligible expansion and attraction projects, may receive
partial or total reimbursement of the costs associated with such
programs through a worker training grant if such training programs
include, but are not limited to skills training and upgrading,
productivity enhancement and total product/service quality improvements;
(c) Capital loans and grants. Capital loans and grants may be awarded
if the proceeds are used for the acquisition or improvements of land,
infrastructure and buildings and the acquisition of machinery and
equipment;
(d) Interest subsidy grants. Interest subsidy grants may be awarded if
the proceeds of such grants are used to offset debt service costs which
are associated with loans supplied to the business by a private lending
institution; and
(e) Working capital loan and loan guarantees. Working capital loans
may be awarded if the proceeds are used to cover capital-related
expenses such as, but not limited to, accounts receivable, inventory,
and other expenses required to upgrade and reconfigure the competitive
position of the project applicant.
2. To be eligible for a loan or grant from the JOBS Now program, a
regional partnership, as provided in section 3154 of the public
authorities law, or a business expansion or attraction project must
result in the creation of at least 100 new, permanent, full-time private
sector jobs. Not more than twenty-five percent of funds appropriated for
this program shall be allocated for projects that create less than 300
jobs. At least seventy-five percent of funds appropriated for this
program shall be allocated to projects that create at least 300 jobs.
Provided, however, a regional partnership, as provided in section 3154
of the public authorities law, shall be able to aggregate the total
number of jobs created among more than one eligible business in order to
meet the job creation amounts in this subdivision. Provided further,
however, that such aggregation shall be within similar industry
clusters.
3. Applications for assistance pursuant to this section shall be
reviewed and evaluated in consultation with local government officials
and regional economic development offices pursuant to eligibility
requirements and criteria set forth in rules and regulations promulgated
by the corporation. The corporation shall develop and use a standard
application project form.
4. The corporation shall, on or before March 1, 1997, submit a report
to the governor, the temporary president of the senate and the speaker
of the assembly on the operation and accomplishments of the assistance
provided pursuant to this section, including a complete inventory of
projects financed pursuant to this section.
* § 16-i. The empire state economic development fund. 1. The empire
state economic development fund is hereby created. The corporation is
authorized, within available appropriations, to provide financial,
technical or other assistance from such fund for the following: (a)
Loans, loan guarantees and grants including interest subsidy grants to
manufacturing and non-retail service firms, for headquarters facilities
of firms engaged generally in retail industries, retail firms located in
distressed areas and to other businesses, for the purpose of developing
recreational, cultural, or historical facilities that are likely to
attract significant numbers of visitors. Loans, loan guarantees and
interest subsidy grants may be used to finance new construction,
renovation or leasehold improvements and the acquisition of land,
buildings, machinery and equipment. The proceeds of such loans, loan
guarantees and interest subsidy grants may also be used to finance
working capital;
(b) Loans, loan guarantees, and grants including interest subsidy
grants may be provided to municipalities, industrial development
agencies, not-for-profit corporations or local development corporations
for the purpose of developing federal facility sites, urban industrial
sites, industrial parks and incubator buildings; or to undertake
preliminary planning relating thereto;
(c) Grants for the purpose of creating or retaining jobs or
preventing, reducing or eliminating unemployment or underemployment
including, but not limited to, productivity assessments, export market
development plans and other projects to promote international trade;
skills training assistance including classroom instruction or on the job
training; and programs to assist economically distressed regions and
communities to identify new business opportunities, plan for new
enterprise development and manage economic development projects;
(d) Loans, loan guarantees, interest subsidies and grants to
businesses, municipalities, industrial development agencies and local
and regional economic development corporations for projects for the
purpose of attracting, retaining or permitting the expansion of
industrial, manufacturing, commercial, research and development, high
technology, tourism, agricultural or non-retail service businesses and
not-for-profit organizations which shall include, but not be limited to
basic systems and facilities on public and privately owned property
including drainage systems, sewer systems, access roads, sidewalks,
docks, wharves, water supply systems, and site clearance, preparation,
improvements and demolition. In addition, grants for preliminary
planning of projects eligible to apply for financing pursuant to this
paragraph may be provided;
(e) Grants to municipalities, not-for-profit corporations and local
and regional economic development organizations seeking to attract,
stabilize, retain or revitalize existing businesses, and to assist small
and new businesses for activities including, but not limited to, the
preparation of strategic plans for local or regional economic
development, the analysis of business sectors, marketing and promoting
regional business clusters, and feasibility studies;
(f) Loans, loan guarantees, interest subsidy grants and direct grants
for feasibility studies, surveys and reports, architectural design,
studies, and other redevelopment work for non-residential improvements
to commercial buildings, commercial strips, downtown areas or business
districts;
(g) Assistance to local or regional organizations to facilitate
financing for small- and medium-sized business, including minority- and
women-owned business enterprises through flexible financing programs,
including, but not limited to, loan loss reserve and revolving loan
programs, working capital loans, working capital loan guarantees, or
other flexible financing programs that leverage traditional financing;
(h) Assistance to eligible entities and organizations as set forth in
section 16-l of this act to support community economic development
programs and activities, including value-added small business growth,
agricultural, agribusiness and forest products and those projects that
promote the family farm, increase or retain employment opportunities and
otherwise contribute to the revitalization of local rural areas which
are economically distressed.
2. Applications for assistance pursuant to this section shall be
reviewed and evaluated in cooperation with regional economic development
offices pursuant to eligibility requirements and criteria set forth in
rules and regulations promulgated by the corporation. Approval of
project applications shall be made only upon a determination by the
corporation:
(a) that the proposed project would promote the economic health of New
York state by facilitating the creation or retention of jobs or would
increase business activity within a municipality or region of the state
or would enhance or help to maintain the economic viability of family
farms;
(b) that the project would be unlikely to take place in New York state
without the requested assistance.
(c) that the project is reasonably likely to accomplish its stated
objectives and that the likely benefits of the project exceed costs; and
(d) the project is undertaken in accordance with the memorandum of
understanding executed in accordance with this section.
3. The provisions of this section shall expire, notwithstanding any
inconsistent provision of subdivision 4 of section 469 of chapter 309 of
the laws of 1996 or of any other law, upon the effective date of a
chapter of the laws of 2000 which appropriates funds for the principal
support of the urban development corporation for the 2000-01 state
fiscal year.
* NB Expired upon appropriation of funds to UDC for 2000--01 fiscal
year notwithstanding being repealed March 31, 1997 by chap. 309/1996 §
469 sub. 4.
See ch. 413/99 Pt. M
Strategic training alliance program. 1. Program created.
Pursuant to this section and article 24-A of the labor law there is
hereby established within the corporation and the department of labor a
strategic training alliance program to identify and address employer
demands for skilled workers. The corporation and the department of labor
may cooperate with the department of economic development, the state
university of New York, the city university of New York, and the state
education department, in providing support within amounts available for
the program for training activities by an eligible applicant which is
defined as an employer or an employer in conjunction with a labor
organization, a strategic alliance or network or association of
employers with common problems or concerns, a private industry council
established pursuant to the federal job training partnership act (P.L.
97-300) or one or more local workforce investment boards established
pursuant to the federal workforce investment act (P.L. 105-300)
representing a strategic alliance.
2. Project plans. (a) Project plans shall be submitted to the
corporation or the department of labor by applicants. The corporation
and the department of labor shall, upon receipt of project plans,
jointly review such plans in order to assure that they are approved or
disapproved within the time limits set forth in paragraph (c) of this
subdivision.
(b) Plans submitted pursuant to this article shall include:
(i) documentation of the need for such training;
(ii) the type of training and the number of individuals to be trained;
(iii) a commitment of a cash or in-kind contribution to the cost of
the project;
(iv) a commitment to first consider individuals who are unemployed,
dislocated, or economically disadvantaged for employment in positions
created as a result of training;
(v) the identification of an eligible training provider which is
defined as a community college, agricultural and technical college, an
institution of higher education, a local education agency, a community
based organization or a strategic alliance;
(vi) the identification of specific projects to be assisted; and,
(vii) a description of technologies to be used to disseminate the
training to participating employers.
(c) The corporation and the department of labor shall jointly approve
or disapprove project plans within thirty days of receipt of such plans.
3. Assistance. (a) Assistance provided by the corporation to eligible
applicants pursuant to the joint approval involving the department of
labor set forth in this article shall be used for the costs of classroom
training, curriculum development, and training materials associated with
on the job training, skills upgrading, skills retraining, and basic
skills training; and
(b) The corporation and the department of labor shall ensure that:
(i) not less than twenty percent of the program funds are used in
support of projects that assist small businesses as defined in section
one hundred thirty-one of the economic development law; and
(ii) not less than twenty percent of program funds are used in support
of projects that assist strategic alliances or networks or associations
of employers with common problems or concerns.
(c) The corporation and the department of labor may within amounts
available for the program provide additional funds for regional and
statewide initiatives that lead to the development and implementation of
an electronically supported training and workforce education system.
4. Report and evaluation. (a) The corporation and the department of
labor shall report to the legislature annually identifying the employers
or alliances receiving training assistance, the type of training
provided, and the number of individuals trained and newly hired
including those who were previously unemployed or economically
disadvantaged.
(b) The corporation and the department of labor shall also provide for
an independent evaluation of the program on or before June 1, 2002, and
every three years after. The cost of such evaluation shall be deemed to
be an eligible expense of the New York state strategic training alliance
program.
Capital access program. 1. Definitions. For the purposes of
this section:
(a) "Financial institution", means any bank, trust company, savings
bank, savings and loan association or cooperative bank chartered by the
state or any national banking association, federal savings and loan
association or federal savings bank or any community development
financial institution or community-based lending organization; provided,
however, that the financial institution has its principal office located
in the state.
(b) "Participating financial institution" shall mean any financial
institution participating in the program established by this section.
(c) "Small business" shall have the same meaning as set forth in
section 131 of the economic development law, whose primary place of
business is in New York state.
2. (a) The corporation, or its agent, shall establish a capital access
program to provide a loan loss reserve to assist small businesses that
otherwise find it difficult to obtain regular bank financing.
(b)(i) Assistance under the capital access program shall be provided
for a capital access program under which the corporation or its agent
shall be authorized to assist small businesses that otherwise find it
difficult to obtain regular or sufficient bank financing. Such
assistance shall take the form of deposits by the corporation or its
agent in the reserve funds in participating financial institutions to
fund loan loss reserves for loans made to such small businesses.
(ii) Any financial institution desiring to become a participating
financial institution shall execute an agreement in such form as the
corporation or its agent may prescribe, which agreement shall contain
the terms and provisions set forth in paragraph (c) of this subdivision
and such other terms and provisions as the corporation or its agent may
deem necessary or appropriate.
(c) A participating financial institution originating a loan to a
small business pursuant to this section shall:
(i) provide a plan to the corporation or its agent for the marketing
of the capital access program to small businesses, including those in
highly distressed areas and to minority- and women-owned businesses,
with appropriate lending objectives identified by the financial
institution for such areas and businesses;
(ii) disperse funds for the purposes of expansion, facility/technology
upgrading, start-up and working capital;
(iii) not disperse funds which exceed an amount greater than five
hundred thousand dollars;
(iv) set aside an amount, specified or agreed to by the corporation or
its agent, from both the participating financial organization and the
small business, not less than three percent nor more than seven percent
of the principal amount of the loan, whereby the amount contributed by
the small business does not exceed fifty percent of the total amount
contributed by the small business and the financial institution, into a
loan loss reserve which the institution shall maintain, applicable to
all such loans by said institution to small businesses pursuant to this
section; and
(v) certify to the corporation or its agent in such a fashion and with
such supporting information as the corporation or its agent shall
prescribe, that it has made such loan and has set aside its contribution
and the contribution of the small business.
(d) The corporation or its agent shall after such certification as
provided in subparagraph (v) of paragraph (c) of this subdivision,
transfer to the participating financial institution an amount equal to
the total of the contributions of the participating financial
institution and the small business or such additional amount up to one
hundred fifty percent of such contributions as determined by the
corporation or its agent. The participating financial institution shall
set aside such amount so received into said loan loss reserve.
(e) In the event the participating financial institution suffers a
loss on any such loan, it may in its discretion draw upon the funds in
such loan loss reserve to repay the loan in whole or in part.
(f) All amounts set aside by the participating financial institution
into said loan loss reserve shall be in an account at said institution.
(g) Earnings or interest from the principal of said loan loss reserve
accounts shall be:
(i) maintained in the account and held as additional loan loss
reserves; and
(ii) available to the corporation or its agent at any time and from
time to time, to be used to defray the costs of administering the
program or to replenish the loan loss reserve account of the corporation
or its agent.
(h) The corporation shall assure adequate geographic distribution of
participating financial institutions throughout the state to the extent
feasible.
3. Administration of the capital access program. (a) The corporation
is hereby authorized to do the following:
(i) enter into a contract with a third party financial institution,
which may be the New York business development corporation, established
under section 210 of the banking law, to act as the agent of the
corporation with respect to the administration of the program, provided
that the selection of a third party other than the New York business
development corporation shall be made pursuant to a competitive process;
(ii) conduct an annual review and assessment of the performance of the
third party in its capacity as agent for the corporation to determine
whether the contract referenced in subparagraph (i) of this paragraph
should be renewed for an additional two year period. The review shall be
based on whether the third party agent has satisfactorily met the terms
and conditions of the contract;
(iii) where an initial determination finds that the third party
agent's performance is unsatisfactory, allow the third party agent the
opportunity to take corrective action;
(iv) where a final review of the third party agent's performance
continues to conclude that the third party agent's performance is
unsatisfactory, submit to the speaker of the assembly and the temporary
president of the senate its recommendation to terminate the contract
with the third party agent and transfer the contract to another agent;
and
(v) promulgate rules and regulations with respect to the
implementation of the capital access program established by this section
and any other rules and regulations necessary to fulfill the purposes of
this section, in accordance with the state administrative procedure act,
and which shall be consistent with the program plan required by
subdivision 19 of section 100 of the economic development law.
(b) Any contract entered into pursuant to subparagraph (i) of
paragraph (a) of this subdivision shall:
(i) be for a period of two years and shall be renewed for an
additional two year period subject to requirements of subparagraph (ii)
of paragraph (a) of this subdivision;
(ii) provide for compensation for expenses incurred by the third party
agent in connection with its services as agent and for such other
services as the New York business development corporation may deem
appropriate including, but not limited to the use of the premises,
personnel and personal property of the third party agent; and
(iii) notwithstanding any law, rule or regulation to the contrary, use
the guidelines, related to, but not limited to underwriting standards
provided for in subdivision four of this section to evaluate
applications for loans pursuant to the program filed by a minority and
women-owned business enterprises, or a small business whose principal
place of business is in a highly distressed area.
(c) The corporation, and any third party it contracts with pursuant to
paragraph (a) of this subdivision, shall collaborate, to the extent
practicable, to increase minority and women-owned businesses' and small
businesses' whose principal place of business is in a highly distressed
area, awareness of, participation in, and referrals to the capital
access loan program.
4. Notwithstanding any law, rule or regulation to the contrary, the
department of financial services, the empire state development
corporation and the New York business development corporation, in
consultation with relevant stakeholders, shall jointly establish
guidelines relating to, but not limited to, underwriting standards to
assist minority and women-owned business enterprises and small
businesses in highly distressed areas in accessing and participating in
the capital access program. In addition to other factors, such
guidelines should incorporate verifiable alternative indications and
best practices of creditworthiness presented or made available by the
applicant.
5. Pursuant to subparagraph (v) of paragraph (b) of subdivision 1 of
section 212 of the banking law, the New York business development
corporation and the empire state development corporation shall enter
into an agreement pursuant to which the New York business development
corporation shall authorize, maintain and administer the program
established in such subparagraph.
Rural revitalization program. 1. Statement of legislative
intent. The legislature finds that vast areas of rural New York state
show signs of severe economic distress and lag behind the rest of the
state in employment growth and income, with the gap widening with
passing years. Poverty in many rural areas is pervasive, with the poor
often outnumbering the affluent.
The legislature further finds that rural communities in New York state
need immediate assistance to develop the capacity to plan and organize
for economic development, to undertake new economic development
initiatives, to overcome obstacles to economic development and to fully
utilize indigenous resources to provide rural residents with economic
opportunities.
The legislature further finds that, to begin to address these needs, a
catalyst is needed to stimulate and encourage innovative economic
development alternatives to declining employment in the agricultural and
manufacturing sectors.
The legislature further finds that, while agriculture is considered to
be a major New York industry, state economic development financing
programs do not treat agriculture as an industrial sector, and financing
is not available to provide farmers with assistance to become more
competitive in national and international markets.
Therefore, the legislature declares that the revitalization of the
state's rural economy is essential to New York's economic health and
that state assistance in this regard is necessary and proper for
achieving this public purpose.
2. Rural revitalization assistance grants. (a) The corporation is
authorized, within available appropriations in the empire state economic
development fund established pursuant to section 16-i of this act, to
award grants or enter into contracts for services, on a competitive
basis in response to requests for proposals, to eligible entities and
organizations as set forth in this subdivision to support community
economic development programs and activities which increase or retain
employment opportunities in rural New York state and otherwise
contribute to the revitalization of local rural areas which are
economically distressed through innovative activities designed to
generate economic alternatives and opportunities in rural areas.
(b) Grants and contracts made by the corporation pursuant to this
subdivision shall be subject to the following limitations:
(i) no such grant shall exceed one hundred thousand dollars per year,
except that for the purpose of paragraph (f) of this subdivision, no
such grant shall exceed fifty thousand dollars.
(ii) the corporation shall enter into no more than one grant per year
per application under this subdivision.
(c) Preference shall be given to programs which meet highly distressed
area criteria or which support empire zones established pursuant to
article 18-B of the general municipal law; provide a local match; meet a
substantial local or regional need; complement local programs or provide
services not readily available from units of local government or the
private sector.
(d) For the purposes of this subdivision, "rural area" shall mean a
rural area as defined in subdivision 7 of section 481 of the executive
law.
(e) Not-for-profit corporations, agricultural cooperative
corporations, public benefit corporations and educational institutions
serving rural areas, shall be eligible to apply for support under this
subdivision for the following activities, provided, however, that the
sum total of grants received by any one eligible entity does not exceed
two hundred fifty thousand dollars in any one year:
(i) innovative activities and programs designed to encourage
value-added small business development and growth in rural areas,
including cottage and crafts industries; group marketing of local
products; women-owned industries; natural resources development; and
tourism. Such activities and programs shall also include projects
pertaining to agriculture and agribusiness development to stimulate the
development and implementation of new and alternative production,
processing, storage, distribution and marketing technologies and
improvements for New York food, agricultural and forest products.
Projects promoting strengthened farm management practices shall also be
eligible for assistance;
(ii) in-depth analysis within rural areas to support local efforts to
identify new business opportunities, and to organize industry-wide
collaborative efforts designed to create jobs and to develop growth
strategies;
(iii) support for the operation of programs designed to generate and
leverage equity-type or working capital financing for new and small
business enterprises in rural areas, or to meet other critical financing
needs of existing rural businesses;
(iv) support for multi-county activities designed to provide small
business development and financial packaging assistance to new and small
rural business enterprises to assure the continuation and growth of such
enterprises; and
(v) provide, or cause to be provided, technical assistance to small
businesses to help such businesses comply with applicable federal, state
and local rules and regulations, including, but not limited to,
assistance to applicants for permits required by such rules and
regulations.
(f) Any vocational education agency offering technical assistance
services to small business, any small business development center
located at a post-secondary educational institution, any county
cooperative extension service, any agricultural cooperative corporation
offering technical assistance services to farmers and non-farm
agricultural businesses or any not-for-profit corporation offering
technical assistance, shall be eligible to apply under this paragraph to
establish rural enterprise extension services designed to provide
technical assistance and services to entrepreneurs who are seeking to
establish or who are operating small business ventures in rural areas
where, for reasons of distance, population dispersal, or scale of
business venture, conventional business incubation and assistance
programs are not feasible, such extension services to sponsor, employ
and support technical assistance specialists as circuit riders to serve
the rural area served by the sponsoring entity.
(i) Such specialists shall be the outreach arm of the technical
assistance program and shall:
(A) provide technical and management assistance to entrepreneurs
seeking to establish a new small business, including but not limited to,
agribusinesses, part-time businesses, crafts-related businesses,
tourism-related businesses, and other new businesses that are started in
areas distant from other existing programs and sources of technical
assistance;
(B) regularly visit outlying areas of the region or areas served by
the entity sponsoring the rural enterprise extension service program to
provide both short-term and ongoing technical assistance and services to
clients;
(C) arrange, when needed, for supplemental assistance to be provided
by the sponsoring entity;
(D) conduct, with assistance from both local sources of expertise and
the sponsoring entity local seminars in outlying regions on various
aspects of entrepreneurship and new enterprise development; and
(E) provide information on other sources and programs of assistance,
services and support, including financial sources, to entrepreneurs and
small business operators.
(ii) Applications for support under this paragraph shall be required
to demonstrate a need for a rural enterprise extension service program
in the area to be served; the ability and willingness of the applicant
to support technical assistance specialists employed as circuit riders
with additional resources to provide intensive, long-term technical
assistance or specialized technical assistance to client entrepreneurs
and small business operators when necessary; and the ability to assist
entrepreneurs and small business operators in locating appropriate
sources of financial assistance.
(iii) For the purposes of this subdivision "vocational education
agency" shall mean a community college or board of cooperative
educational services operating within the state.
3. Agricultural job training assistance. The corporation is
authorized, within available appropriations in the empire state economic
development fund established pursuant to section 16-i of this act, to
contract with the commissioner of agriculture and markets, in
consultation with the commissioner of labor, to administer a program of
job training for workers engaged in or to be engaged in the production,
harvesting and processing of farm or aquatic products.
4. Farmers' market grant program. (a) The corporation is authorized,
within available appropriations in the empire state economic development
fund established pursuant to section 16-i of this act, to award grants,
on a competitive basis in response to requests for proposals, to
municipal corporations, local development corporations, business
improvement districts, not-for-profit corporations, regional marketing
authorities and agricultural cooperatives organized pursuant to the
cooperative corporations law, for the construction, reconstruction,
improvement, expansion or rehabilitation of farmers' markets. The
corporation is further authorized to contract with the commissioner of
agriculture and markets, and such commissioner is authorized to contract
with the corporation, to prepare and issue requests for proposals,
accept grant applications, recommend those applications which best meet
established criteria and to administer grants awarded under this
subdivision.
(b) Grants made by the corporation pursuant to this subdivision shall:
(i) not exceed fifty thousand dollars per year; and
(ii) be limited to fifty percent of the total proposed farmers' market
start-up or expansion costs, not including any capital expenditures
except as set forth in paragraph (a) of this subdivision.
(c) The corporation shall enter into no more than one grant per year
per application under this subdivision.
(d) The corporation shall consult with the department of agriculture
and markets in order to establish such criteria governing the award of
grants as authorized herein, as the corporation and such department deem
necessary. Such criteria shall include, but not be limited to:
(i) the relative impact of the proposed farmers' market project on the
economy of the area to be served;
(ii) the anticipated level of municipal support and local
participation in the project by farmers and others;
(iii) the extent to which New York farmers would benefit, through the
direct sale of farm and food products;
(iv) the equitable distribution of monies awarded for state assistance
for farmers' markets among urban and rural areas; and
(v) the anticipated quantity of non-farm jobs which would be created
and retained due to the proposed project.
(e) Preference shall be given to: applicants located in highly
distressed areas and providing services not readily available from units
of local government or the private sector and to applicants who are
proposing to start a new farmers' market.
5. Rural single-tenant entrepreneurship and incubator facilities. The
corporation is authorized, within available appropriations in the empire
state economic development fund established pursuant to section 16-i of
this act, to award grants, loans and loan guarantees to vocational
education agencies for the development of single tenant entrepreneurship
and incubator facilities in rural areas as provided in this subdivision.
(a) For the purposes of this subdivision:
(i) "rural area" shall mean a rural area as defined in subdivision 7
of section 481 of the executive law;
(ii) "vocational education agency" shall mean a community college or
board of cooperative educational services operating within the state;
and
(iii) "entrepreneurship and incubator facility" shall mean a
single-tenant facility providing low-cost space, technical assistance
and support services, to new business enterprises.
(b) In sparsely populated rural areas where multi-tenant incubator
facilities are not feasible, assistance from the rural revitalization
program may be provided to vocational education agencies that have an
existing technical assistance capability that can be applied to the
incubation of new firms for the purpose of constructing a single-tenant
entrepreneurship and incubator facility or rehabilitating an existing
space for use as a single-tenant entrepreneurship and incubator
facility.
(c) Funds from the rural revitalization program pursuant to this
subdivision shall only be provided for construction or rehabilitation of
a facility. A vocational education agency receiving such assistance
shall be required to provide any machinery and equipment necessary for a
tenant to operate a start-up enterprise and shall be responsible for
operating the facility, such operation to include classroom training in
business principles and practices to the prospective owners of such
enterprises prior to entering into any tenancy agreement with such
prospective owners, and the provision of technical assistance and
services to a tenant.
6. Agricultural industry competitiveness assistance. (a) For the
purposes of this subdivision, "project" shall mean an agricultural
project as set forth in paragraphs (b) and (b-1) of this subdivision.
(b) The corporation is authorized, within available appropriations in
the empire state economic development fund established pursuant to
section 16-m of this act, to provide financial assistance in the form of
loans, loan guarantees, and interest subsidy grants to subsidize loans
from federally chartered instrumentalities and state and private lending
institutions, including agricultural cooperative corporations, provided
that such assistance to state lending institutions shall not exceed
one-third of the total project cost or four hundred thousand dollars,
whichever is less, to agricultural enterprises seeking to implement the
following agricultural projects:
(i) making the transition from dairy farming to crop or livestock
farming or specialty wood productions, or using former dairy farms for
crop, livestock or specialty wood production, in order to keep farmland
in production by producing products in local, national or international
demand;
(ii) start-ups of new agribusinesses or expansions or upgrades of the
facilities, technologies and operations of existing agribusinesses.
(b-1) The corporation is authorized, within available appropriations
in the empire state economic development fund established pursuant to
section 16-m of this act, to provide financial assistance in the form of
loans, loan guarantees, working capital loans, and interest subsidy
grants to subsidize loans from federally chartered instrumentalities and
state and private lending institutions, including agricultural
cooperative corporations, provided that such assistance to state lending
institutions shall not exceed one-third of the total project cost or
four hundred thousand dollars, whichever is less, to agricultural
enterprises seeking to implement the projects listed in this paragraph.
Funds for such loans, grants, subsidies, or any other assistance
specified pursuant to this act may come from funds derived from the
financial assistance for small and medium-sized business assistance
projects established pursuant to section 9-a of this act, the regional
revolving loan trust fund established pursuant to section 16-a of this
act, the regional economic development partnership program established
pursuant to section 16-e of this act, the empire state economic
development fund established pursuant to section 16-m of this act, or
from any other funds, programs, or projects administered by the
corporation or by other state appropriations.
(i) the establishment or replanting of existing vineyards with other
varieties that are in greater demand in the national and international
marketplace and which will increase the national and international
competitiveness of New York state grape growers;
(ii) the establishment or replanting of fruit orchards or small fruit
acreages that have reached the end of their natural life cycles, with
preference to plantings in the more popular varieties which have
national and international markets;
(iii) the establishment, construction, retention, or expansion of
facilities, buildings, machinery, equipment, and other productive assets
used in the production, manufacture, processing, warehousing, research,
or distribution or sale of fresh fruits or the processing of such fruits
into juices, wines, or other food products. Such project costs may
include, but not be limited to, buildings, machinery, equipment, New
York raw fruits, New York unprocessed or partially processed fruits, or
other necessary working capital or operational funds or assistance
needed to ensure the success of such project.
(c) The corporation shall determine the terms and interest rates of
such loans; provided, however, in the case of financial assistance for
vineyards, orchards, small fruit acreages, wineries, or processing
plants, the corporation may defer repayment of principal and interest on
loans for up to five years.
(d) Funds may be used to undertake feasibility studies to determine
the projected local, national, and/or international demand for the
proposed crop or product to be financed and the suitability of the land
and climate for such production. In the case of a proposal to establish
or replant a vineyard, the corporation shall consult with the New York
state wine and grape foundation and the agricultural extension service
of Cornell University to determine the appropriateness and feasibility
of the proposed project.
(e) The provisions of section 10 and subdivision 2 of section 16 of
this act shall not apply to assistance provided under this subdivision.
7. Micro business revolving loan assistance grants. (a) The
corporation is authorized, within available appropriations in the empire
state economic development fund, to provide financial assistance in the
form of grants for the purpose of developing a statewide infrastructure
that delivers financing and technical assistance to micro businesses
across the state to stimulate new and existing micro business
development relating to the use of agricultural products, forest
products, cottage and crafts industries, tourism, and other businesses
as provided for in subparagraph (i) of paragraph (e) of subdivision 2 of
this section; provided such business employs five or fewer full-time
persons and is based on the production, processing, and/or marketing of
products grown or produced in this state. Assistance provided under this
subdivision shall be awarded through a competitive process initiated by
the corporation, in response to a request for proposals.
(b) Not-for-profit corporations and public benefit corporations
located in the state shall be eligible to apply to the corporation, in
response to a request for proposals, for a grant, not to exceed two
hundred thousand dollars in any one calendar year, to create a micro
business revolving loan fund to be administered by the entity applying
for such grant, hereafter referred to in this subdivision as "micro loan
administrators", who shall be selected by the corporation from among
eligible applicants. The corporation shall show preference in its
awarding of grants to micro loan administrators whose service area meets
the provisions of paragraph (c) of subdivision 2 of this section. All
grant funds shall be dedicated to being re-lent to individual micro
business borrowers, except that ten percent of such funds as are awarded
may be used by micro loan administrators to provide training and
technical assistance for such borrowers. Micro business loans shall be
limited to twenty-five thousand dollars per borrower. Borrowers shall
provide ten percent equity for loans up to ten thousand dollars. Loans
above ten thousand dollars shall be matched on a one to one basis by
including other loans, equity capital and in some circumstances,
leveraged capital. The interest rate and the terms on such loans shall
be determined by the micro loan administrators. The term of any loan
shall not exceed five years. All loans shall be secured by lien
positions on collateral at the highest level of priority that can
accommodate the borrower's ability to raise sufficient debt and equity
capital for the project. Any interest earned on micro business loans
shall be retained in a special account for the purpose of paying
expenses of the loan administrator associated with administering the
micro loan program.
(c) An eligible micro loan administrator applicant shall:
(i) serve one or more rural counties;
(ii) have established a loan committee comprised of five or more
persons experienced in commercial lending in rural areas or in the
operation of a for-profit small business and a staff person of the
regional office of the department of economic development. Such loan
committee shall review every application for micro loan assistance
pursuant to this subdivision, shall determine the feasibility of the
transaction proposed in the application and shall recommend to the board
of directors or other governing body of the micro loan administrator
such action as the committee deems appropriate;
(iii) have available to its staff sufficient expertise to analyze
applications for micro loan assistance, provide technical assistance to
borrowers and to regularly monitor micro loan assistance to clients; and
(iv) have an acceptable plan to market its services to potential
borrowers through such entities as chambers of commerce, industry trade
associations, banks, local development corporations, community based
organizations and industrial development agencies.
(d) Applications to the corporation for certification or
recertification as a micro loan administrator shall:
(i) describe the organization, membership, loan committee, staff and
sources of other funds, if any;
(ii) identify the geographic area to be served;
(iii) explain the method and criteria to be used in determining
businesses eligible for micro loan assistance;
(iv) describe the means for coordination of micro loan assistance with
other funding sources within the geographic area to be served for the
purposes of leveraging project financing;
(v) include a proposal to reconfigure the geographic area served by
the micro loan administrator, if applicable; and
(vi) contain such other information as the corporation deems
appropriate.
(e) The corporation shall, every five years, recertify that each micro
loan administrator has complied with the terms and conditions of this
subdivision. In the event a micro loan administrator is not recertified,
or its certification is withdrawn, then the corporation shall give
written notice to such micro loan administrator which shall thereafter
neither make new loans under this subdivision nor undertake new
obligations except upon written approval of the corporation. The
corporation may thereafter certify another micro loan administrator in
the manner provided in this subdivision for the selection of micro loan
administrators. Upon the certification of a successor micro loan
administrator, all remaining micro business loan funds, records and
accounts of the micro loan administrator not recertified shall be
transferred to the corporation, and the micro loan administrator not
recertified shall cease to function pursuant to this subdivision. The
corporation shall transfer returned funds to a successor micro loan
administrator, or in the event no successor micro loan administrator is
certified, equally to other existing micro loan administrators.
8. Cluster based industry and agribusiness development grants. (a) The
corporation is authorized, within available appropriations in the empire
state economic development fund, pursuant to section sixteen-m of this
act, to award matching grants, on a competitive basis in response to
requests for proposals, to eligible entities and organizations as set
forth in this subdivision to support cluster based industry and
agribusiness development activities which increase or retain employment
opportunities and otherwise contribute to the growth or revitalization
of rural areas.
(b) Cluster based industry and agribusiness development grants shall
provide financial assistance for the purpose of establishing a program
to support cluster based economic development efforts in rural areas.
Such grants shall be used to:
(i) Assess industry and agribusiness needs and develop methods of
identifying industry and agribusiness clusters in a region; and
(ii) Promote cluster based industry and agribusiness development
initiatives targeted at businesses that would benefit from joint
activities, marketing, and problem solving.
(c) Grant assistance provided under this subdivision shall be awarded
through a competitive process initiated by the corporation, in
consultation with the commissioner of agriculture and markets and local
development agencies, in response to a request for proposals. To be
eligible for a grant award, recipients shall provide matching funds in
the form of cash, in-kind services or other resources as defined by the
corporation.
(d) Not-for-profit corporations and public benefit corporations
located in the state shall be eligible to apply to the corporation, in
response to a request for proposals, for a matching grant, not to exceed
25,000 dollars in any one calendar year.
* § 16-m. The empire state economic development fund. 1. The empire
state economic development fund is hereby created. The corporation is
authorized, within available appropriations, to provide financial,
technical or other assistance from such fund for the following: (a)
Loans, loan guarantees and grants including interest subsidy grants to
manufacturing and non-retail service firms, for headquarters facilities
of firms engaged generally in retail industries, retail firms located in
distressed areas and to other businesses, for the purpose of developing
recreational, cultural, or historical facilities that are likely to
attract significant numbers of visitors. Loans, loan guarantees and
interest subsidy grants may be used to finance new construction,
renovation or leasehold improvements and the acquisition of land,
buildings, machinery and equipment. The proceeds of such loans, loan
guarantees and interest subsidy grants may also be used to finance
working capital;
(b) Loans, loan guarantees, and grants including interest subsidy
grants may be provided to municipalities, industrial development
agencies, not-for-profit corporations or local development corporations
for the purpose of developing federal facility sites, urban industrial
sites, industrial parks and incubator buildings; or to undertake
preliminary planning relating thereto;
(c) Grants for the purpose of creating or retaining jobs or
preventing, reducing or eliminating unemployment or underemployment
including, but not limited to, productivity assessments, export market
development plans and other projects to promote international trade;
skills training assistance including classroom instruction or on the job
training; and programs to assist economically distressed regions and
communities to identify new business opportunities, plan for new
enterprise development and manage economic development projects;
(d) Loans, loan guarantees, interest subsidies and grants to
businesses, municipalities, industrial development agencies and local
and regional economic development corporations for projects for the
purpose of attracting, retaining or permitting the expansion of
industrial, manufacturing, commercial, research and development, high
technology, tourism, agricultural or non-retail service businesses and
not-for-profit organizations which shall include, but not be limited to
basic systems and facilities on public and privately owned property
including drainage systems, sewer systems, access roads, sidewalks,
docks, wharves, water supply systems, and site clearance, preparation,
improvements and demolition. In addition, grants for preliminary
planning of projects eligible to apply for financing pursuant to this
paragraph may be provided;
(e) Grants to municipalities, not-for-profit corporations and local
and regional economic development organizations seeking to attract,
stabilize, retain or revitalize existing businesses, and to assist small
and new businesses for activities including, but not limited to, the
preparation of strategic plans for local or regional economic
development, the analysis of business sectors, marketing and promoting
regional business clusters, and feasibility studies;
(f) Loans, loan guarantees, interest subsidy grants and direct grants
for feasibility studies, surveys and reports, architectural design,
studies, and other redevelopment work for non-residential improvements
to commercial building, commercial strips, downtown areas or business
districts;
(g) Assistance to local or regional organizations to facilitate
financing for small- and medium-sized business, including minority- and
women-owned business enterprises through flexible financing programs,
including, but not limited to, loan loss reserve and revolving loan
programs, working capital loans, working capital loan guarantees, or
other flexible financing programs that leverage traditional financing;
(h) Assistance to eligible entities and organizations as set forth in
section 16-l of this act to support community economic development
programs and activities, including value-added small business growth,
agricultural, agribusiness, and forest products and those projects that
promote the family farm, increase or retain employment opportunities and
otherwise contribute to the revitalization of local rural areas which
are economically distressed;
(i) Assistance to eligible entities set forth in section 16-l of this
act to support value-added small businesses in the agricultural and
agribusiness industries that promote fruit production, fruit processing,
or wineries and which increase or retain employment opportunities in
such industries or in the related tourism industry;
(j) Assistance to local or regional organizations to facilitate
financing for the come home to New York program pursuant to article 9-A
of the economic development law;
(k) Assistance for regional partnership proposals, as provided in
subdivision 12 of section 3154 of the public authorities law;
** (l) Loans, loan guarantees, interest subsidies and grants including
interest subsidy grants to businesses, local and regional economic
development corporations, not-for-profit corporations, regional
marketing organizations, agricultural cooperatives organized pursuant to
the cooperative corporations law, and other local or regional
organizations to finance transportation and distribution projects that
facilitate distribution and sales of New York farm products by farmers
and associations of farmers to food and food services buyers and
processors, such as restaurants, schools, food retailers, farmers'
markets, colleges and other institutional operations especially in urban
and other communities where there has been a lack of availability of
such products. Loans, loan guarantees and interest subsidy grants may be
used to finance new construction, renovation or leasehold improvements
and the acquisition of land, buildings, machinery and equipment.
** NB There are 2 sub (l)'s
** (l) Assistance to biosciences research institutions and
organizations on a competitive basis to develop curriculum and
administer bioscience specific training programs for current and
prospective industry employees, in consultation with the division of
science, technology and innovation established pursuant to article 18 of
the economic development law. For the purposes of this paragraph, the
term biosciences research shall include, but not be limited to, the
basic, applied, or translational research that leads to the development
of therapeutics, diagnostics, or devices, to improve human health or
agriculture and that require federal drug administration approval;
** NB There are 2 sub (l)'s
(m) Assistance to businesses that conduct basic, applied or
translational research that leads to the development of products that
improve human health or agriculture and that require approval by the
federal food and drug administration, in order to create or expand
facilities, in accordance with good manufacturing practice regulations,
that will create or retain more than fifty jobs. For purposes of this
paragraph, good manufacturing practice regulations refers to those
regulations promulgated by the United States Food and Drug
Administration under the authority of the Federal Food, Drug and
Cosmetic Act.
(n) Loans, loan guarantees, interest subsidies and grants to
businesses, municipalities, industrial development agencies and local
and regional economic development corporations, not-for-profit
corporations, business improvement districts, regional marketing
authorities and agricultural cooperatives organized pursuant to the
cooperative corporations law, and other entities for the construction,
reconstruction, improvement, expansion or rehabilitation of wholesale
regional farmers' markets or food hubs that facilitate the sale and
promotion of farm products grown or produced in New York state.
For the purposes of this paragraph a wholesale regional farmers'
market or food hub is a market, business or organization that actively
manages the aggregation, distribution and marketing of source-identified
food products primarily from local or regional producers to satisfy
wholesale, retail and institutional demand for such products.
(o) Assistance to eligible entities pursuant to article five-A of the
cooperative corporations law to provide financing in the form of loans,
loan guarantees, and interest subsidy grants to subsidize loans from
federally chartered instrumentalities and state and private lending
institutions to facilitate the creation of worker cooperatives that
promote continuation of existing micro-businesses either as a part of a
preexisting business succession of ownership plan or as alternative
option if a business is being offered for sale or transfer by the
current owner or the heirs or estate of a deceased owner. For the
purposes of this section, a micro-business shall be defined as a
business with five or less full-time or full-time equivalent employees.
All eligible entities shall be required to submit a business plan with
their application requesting assistance.
2. Applications for assistance pursuant to this section shall be
reviewed and evaluated in cooperation with regional economic development
offices pursuant to eligibility requirements and criteria set forth in
rules and regulations promulgated by the corporation. Approval of
project applications shall be made only upon a determination by the
corporation:
(a) that the proposed project would promote the economic health of New
York state by facilitating the creation or retention of jobs or would
increase activity within a municipality or region of the state or would
enhance or help to maintain the economic viability of family farms;
(b) that the project would be unlikely to take place in New York state
without the requested assistance.
(c) that the project is reasonably likely to accomplish its stated
objectives and that the likely benefits of the project exceed costs; and
(d) the project is undertaken in accordance with the memorandum of
understanding executed in accordance with this section.
3. The provisions of this section shall expire, notwithstanding any
inconsistent provision of subdivision 4 of section 469 of chapter 309 of
the laws of 1996 or of any other law, on July 1, 2027.
* NB Expires July 1, 2027
* § 16-n. Restore New York's Communities Initiative. 1. Definitions.
(a) For the purposes of this section "deconstruction" shall mean the
careful disassembly of buildings of architectural or historic
significance with the intent to rehabilitate, reconstruct the building
or salvage the material disassembled from the building.
(b) For the purposes of this section "reconstruction" shall mean the
construction of a new building which is similar in architecture and size
to a previously existing building at such location.
(c) For the purposes of this section "rehabilitation" shall mean
structural repairs, mechanical systems repair or replacement, repairs
related to deferred maintenance, emergency repairs, energy efficiency
upgrades, accessibility improvements, mitigation of lead based paint
hazards, and other repairs which result in a significant improvement to
the property.
(d) For the purposes of this section "municipality" shall mean any
county, city, town or village within the state of New York, except a
city having a population of one million or more, unless such area is in
a distressed community as defined in paragraph (c) of subdivision six of
this section.
(e) For the purposes of this section "residential apartment unit"
shall mean a multiple dwelling consisting of one or more rooms
containing at least one bathroom, which room or rooms are separated and
set apart from all other rooms within a multiple dwelling.
(f) For the purposes of this section "affordable housing units" shall
mean permanent housing that is affordable to low- and moderate-income
households, such that the new housing achieves income averaging at or
below fifty percent of the area median income, with residents'
eligibility capped at a maximum of eighty percent of the area median
income at the start of their lease.
2. The Restore New York's Communities Initiative is hereby created.
The corporation is authorized, within available appropriations, to issue
request for proposals at least once per fiscal year to provide grants
for the purposes established in subdivisions four and five of this
section, to municipalities that have completed a property assessment
list, as established in subdivision three of this section.
3. Property assessment list. To be eligible for the demolition and
deconstruction program or rehabilitation and reconstruction program
assistance, as established in subdivisions four and five of this
section, municipalities shall conduct an assessment of vacant,
abandoned, surplus or condemned buildings in communities within their
jurisdiction. Such real property may include residential real property,
residential apartment units and commercial real properties. Such
properties shall be selected for the purpose of revitalizing urban
centers or rural areas, encouraging commercial investment, adding value
to the municipal housing stock, and increasing the amount of affordable
housing units available to low- and moderate-income households. The
property assessment list shall be organized to indicate the location,
size, whether the building is residential or commercial and whether the
building will be demolished, deconstructed, rehabilitated or
reconstructed. Such properties shall be published in a local daily
newspaper for no less than three consecutive days. Additionally, the
municipality shall conduct public hearings in the communities where the
buildings are identified.
4. Demolition and deconstruction program. Real property in need of
demolition or deconstruction on the property assessment list may receive
grants of up to thirty thousand dollars per residential real property.
The corporation shall determine the cost of demolition and
deconstruction of commercial properties on a per-square foot basis and
establish maximum grant awards accordingly. The corporation shall also
consider geographic differences in the cost of demolition and
deconstruction in the establishment of maximum grant awards.
5. Rehabilitation and reconstruction program. (a) Real property in
need of rehabilitation or reconstruction on the property assessment list
may receive grants of up to one hundred fifty thousand dollars per
residential real property. Exclusive of such grant of up to one hundred
fifty thousand dollars for residential real property, individual
residential apartment units on the property assessment list may receive
grants of up to seventy thousand dollars per unit. Nothing contained in
this paragraph shall be construed to authorize grants for real property
and residential apartment units to be combined.
(b) Provided, further, that a project for the rehabilitation or
reconstruction of real property pursuant to this subdivision for the
purpose of creating affordable housing units shall be eligible to
receive a grant of up to one hundred fifty thousand dollars plus up to
seventy thousand dollars per residential apartment unit.
(c) The corporation shall determine the cost of rehabilitation and
reconstruction of commercial properties on a per-square foot basis and
establish maximum grant awards accordingly. The corporation shall also
consider geographic differences in the cost of rehabilitation and
reconstruction in the establishment of maximum grant awards. Provided,
however, to the extent possible, all such rehabilitation and
reconstruction program real property shall be architecturally consistent
with nearby and adjacent properties or in a manner consistent with a
local revitalization or urban development plan. Provided, further, such
grant may be used for site development needs including but not limited
to water, sewer and parking.
6. Granting of assistance. (a) The corporation shall review all
property assessment lists and may make awards pursuant to subdivisions
four and five of this section. The corporation shall, to the fullest
extent possible, provide such assistance in a geographically
proportionate manner throughout the state based on the qualified
applications received pursuant to this section.
(b) Priority in granting such assistance shall be given to properties
eligible under this section that have approved applications or are
receiving grants pursuant to other state or federal redevelopment,
remediation or planning programs including, but not limited to, to the
brownfield opportunity areas program adopted pursuant to section 970-r
of the general municipal law or an investment zone designated pursuant
to paragraph (i) of subdivision (a) or subdivision (d) of section 958 of
the general municipal law.
(c) Priority shall also be given to properties in economically
distressed communities which are defined as cities and other communities
determined by the commissioner of the department of economic development
on the basis of criteria indicative of economic distress, including
poverty rates, numbers of persons receiving public assistance,
unemployment rates, rate of employment decline, population loss, rate of
per capita income change, decline in economic activity and private
investment, and such other indicators as the commissioner deems
appropriate to be in need of economic assistance.
(d) A municipality that is granted an award or awards under this
section shall provide a matching contribution of no less than ten
percent of the aggregated award or awards amount. Such matching
contribution may be in the form of a financial and/or in kind
contribution. Financial contributions may include grants from federal,
state and local entities. In kind contributions may include but shall
not be limited to the efforts of municipalities to conduct an inventory
and assessment of vacant, abandoned, surplus, condemned, and
deteriorated properties and to manage and administer grants pursuant to
subdivisions four and five of this section. A municipality that is
granted an award or awards under this section shall make best efforts to
ensure that minority-owned and women-owned business enterprises
certified pursuant to article fifteen-A of the executive law are given
the opportunity for maximum feasible participation in any municipal
contracting opportunities.
* NB There are 2 § 16-n's
The community development financial institutions program. 1.
Legislative intent. The legislature hereby finds that credit, banking
services, and investment capital are vital to the revitalization of
communities and neighborhoods throughout the state. The legislature
further finds that many communities with the greatest potential for
growth and the greatest need for jobs and investment lack access to the
services and capital of traditional banking and lending institutions.
The legislature further finds that access to banking services and
capital can be improved through a growing network of alternative
financial service providers known as community development financial
institutions, hereafter referred to as CDFIs. The legislature finds that
CDFIs are currently providing effective lending and financial services
and fulfill a vital role in meeting the needs of New York state's low
and moderate income communities.
The legislature finds that the continued growth of CDFIs requires an
established support structure in order to build capacity in these
institutions. The legislature further finds that creation of a statewide
CDFI fund will strengthen these institutions, allowing them to expand
their mission of addressing the credit and banking needs of low and
moderate income communities in New York state.
2. Definitions. As used in this section, the following terms shall
have the meanings indicated:
(a) "Community Development Financial Institution" or "CDFI" means an
organization located in this state which has been certified as a
community development financial institution by the federal community
development financial institutions fund, as established pursuant to 12
U.S.C. 4701 et seq.
(b) "Fund" means the community development financial institutions fund
as established by subdivision three of this section.
(c) "Investment area" means a geographic area that:
(i) is economically distressed as defined in section sixteen-d of this
act; and
(ii) has significant unmet needs for loans or encompasses or is
located in a federally designated empowerment zone or enterprise
community as established pursuant to title XIII of the federal Omnibus
Budget Reconciliation Act of 1993 (Pub.L. 103-66) or a designated empire
zone as defined pursuant to article eighteen-B of the general municipal
law.
(d) "Low income" means having an income, adjusted for family size, of
not more than:
(i) for metropolitan areas, eighty percent of the area median income;
and
(ii) for non-metropolitan areas, the greater of eighty percent of the
area median income or eighty percent of the statewide non-metropolitan
area median income.
(e) "Targeted population" means individuals or an identifiable group
of individuals who are low income persons or otherwise lack adequate
access to loans.
3. Establishment and purposes. The corporation shall establish a fund
to be known as the "community development financial institutions fund"
and shall pay into such fund any monies made available to the
corporation for such fund from any source. The monies held in or
credited to the fund shall be expended solely for the purposes set forth
in this section. The corporation shall not transfer the monies of such
fund to any other fund or monies of the corporation or any monies held
in trust by the corporation. The corporation is authorized, subject to
available funding, including, but not limited to, available
appropriations, to provide financial and technical assistance to
community development financial institutions that make loans and provide
development services to specific investment areas or targeted
populations.
4. Applications for assistance. An application for assistance shall be
submitted in such form and in accordance with such procedures as the
corporation shall establish. Applications submitted to the fund may
include but not be limited to:
(a) A business plan;
(b) An analysis of the needs of the investment area or targeted
population and a strategy for addressing those needs;
(c) An explanation of proposed activities, and information on how they
are consistent with any existing economic, community, and housing
development plans adopted by or applicable to an investment area or
targeted population;
(d) A description of how the applicant will coordinate with community
organizations and financial institutions and leverage private sector
investments, including, but not limited to, loans, secondary markets, or
other services to the investment area or targeted populations;
(e) In the case of an applicant with a prior history of serving
investment areas or targeted populations, a demonstration that the
applicant:
(i) has a record of success in serving investment areas or targeted
populations; and
(ii) will expand its operations into a new investment area or to serve
a new targeted population, offer more products or services, or increase
the volume of its current business;
(f) A description of how the applicant will provide financial services
for community businesses that employ or will create jobs for low income
persons or to businesses that are owned by low income persons, or
enhance the availability of products and services to low income persons;
and
(g) Any additional information that the corporation shall require.
5. Selection of CDFIs. In the awarding of assistance, the corporation
shall select from eligible CDFI applicants based on criteria that may
include:
(a) The likelihood of success of the applicant in meeting the goals of
its strategic plan;
(b) The experience and background of the CDFI's board of directors or
management team;
(c) The extent of need for loans and development services within the
investment areas or targeted populations;
(d) The extent of economic distress within the investment areas or the
extent of need within the targeted populations;
(e) The extent to which the proposed activities will expand economic
opportunities within the investment areas or targeted populations;
(f) The extent of support from the investment areas or targeted
populations;
(g) The extent of the applicant's current and planned community
involvement;
(h) The extent to which the applicant will increase its resources
through coordination with other institutions or participation in a
secondary market;
(i) In the case of an applicant with a prior history of serving
investment areas or targeted populations, the extent of success in
serving such areas or populations; and
(j) Other factors deemed to be appropriate by the corporation.
6. Assistance provided by the corporation. The corporation may
provide:
(a) Financial assistance through deposits, credit union shares, loans,
and grants.
(b) Technical assistance and training to any CDFI regardless of
whether or not it receives or has received financial assistance from the
fund. Monies from the fund may be used for activities that enhance the
capacity of a CDFI, such as training of management and other personnel,
and development of programs, investment, or loan products. Such
technical assistance and training may be provided:
(i) directly;
(ii) through grants; or
(iii) by contracting with organizations that possess expertise in
community development finance, without regard to whether or not the
organizations receive or are eligible to receive assistance under this
section.
7. Uses of financial assistance. A CDFI which files an application and
is approved by the corporation for financial assistance may use such
assistance for the following purposes:
(a) the development of commercial facilities that promote
revitalization, community stability, and the creation or retention of
jobs;
(b) the development or improvement of community facilities;
(c) the provision of basic financial services;
(d) housing that is principally affordable to low income people,
except that assistance used to facilitate home ownership shall only be
used for services and lending products that serve low income people and
are not provided by other lenders in the area or that complement the
services and lending products provided by other lenders in the area;
(e) the development or support of businesses that:
(i) provide jobs for low income people or are owned by low income
people, women, or minority entrepreneurs; or
(ii) enhance the availability of products and services to low income
people; or
(f) the development or support of other businesses and activities
deemed appropriate by the corporation.
8. Advisory committee. The corporation may create an advisory
committee, consisting of at least five members, to advise the
corporation in the promotion, implementation and administration of the
community development financial institutions program. Such members shall
have experience with CDFIs and shall, to the extent practical, reflect
diversity in geographic location and communities served.
9. Reporting requirements. The corporation shall submit a report to
the governor, the speaker of the assembly and the temporary president of
the senate on or before the first of October, and annually thereafter,
describing the financial and technical assistance provided pursuant to
this article, including: the number of CDFI applications filed and
accepted; the amount and type of assistance provided; a description of
projects financed or assisted by fund monies; the number of jobs created
or retained through the investment of fund monies; the amount and source
of funds leveraged; and such other information as the corporation may
deem appropriate.
10. Rules and regulations. The corporation is hereby authorized to
promulgate rules and regulations in accordance with the state
administrative procedure act that are necessary to fulfill the purposes
of this section.
The investment opportunity fund. 1. Definitions. For the
purposes of this section, the following terms, whenever used or referred
to in this section, shall apply, but not be limited to, the following
meanings:
(a) "Cost" as applied to a project or portion thereof financed under
this section, means all or any part of the cost of construction,
remediation, renovation, and acquisition of all lands, structures, real
or personal property, rights, air rights, rights-of-way, easements, and
interests acquired or used for a project; the cost of demolishing or
removing any buildings or structures on land so acquired, including the
cost of acquiring any lands to which the buildings or structures may be
moved, the cost of machinery and equipment, interest prior to, during,
and for a period after, completion of construction, remediation,
renovation, or acquisition, as determined by the corporation; for
extensions, enlargements, additions, replacements, renovations, and
improvements; the cost of architectural, engineering, plans,
specifications, estimates, and other expenses necessary or incidental to
the construction, acquisition, and financing of any project, excluding
lobbying and governmental relations expenses.
(b) "Facilities" means real and personal property, structures, air
rights, conveyances, equipment, thoroughfares, buildings, and supporting
components thereof located in the state, that are directly related to
the acquisition, construction, reconstruction, rehabilitation,
remediation, or improvement of a project which will achieve the purposes
of facilitating the creation or retention of jobs or increasing
investment or business activity within a municipality or region of the
state or academic research and development efforts that promote the
development of life sciences and high technology initiatives including
genomics and biotechnology research and which may include project
purposes set forth in this section.
(c) "Financial assistance" in connection with a project, includes, but
is not limited to, grants, loans, equity investments, loan forgiveness,
loan guarantee, or any combination thereof.
(d) "Project" shall include but not be limited to designing,
acquiring, planning, permitting, entitling, demolishing, removing,
constructing, improving, extending, restoring, financing, remediating
and generally developing facilities.
(e) "Sponsor" or "project sponsor" shall be the state or any political
subdivision of the state or a municipality, including but not limited to
any departments, agencies, public benefit corporations, or commissions.
In addition, a sponsor or project sponsor may include not-for-profit
corporations formed on behalf of a sponsor, special districts,
assessment districts, tax increment financing units or districts,
business improvement districts, regional and community development
organizations, not-for-profit organizations, not-for-profit
organizations or businesses organized to do business under the laws of,
or doing business within the state, or any combination of the
aforementioned entities that makes application to the corporation for
financial assistance in connection with an investment opportunity fund
project in a manner prescribed by the corporation.
2. Fund created. The investment opportunity fund is hereby created.
The corporation is authorized, within available appropriations, to
provide financial assistance pursuant to this section.
3. Selection of projects. Following consultation with the division of
the budget and with other appropriate state and local agencies and other
organizations, and prior to soliciting or accepting any application for
assistance, the corporation shall:
(a) provide public notice of the primary development objectives and
minimum standards of the program and individual projects expected to be
eligible for funding through the program; and
(b) promulgate rules and regulations setting forth the standards that
will govern the selection of projects. Such standards shall, at a
minimum:
(i) require that no project shall be awarded financial assistance
unless such project meets or exceeds specified minimum standards as
provided by rules and regulations with respect to economic impact;
(ii) require that each project be consistent with any existing local
or regional comprehensive plan. A municipality which is a lead sponsor
for a project or projects shall submit a resolution that has been
adopted by the legislative body or bodies of the lead project sponsor
that certifies that the proposed project is consistent with existing
local or regional plans; the proposed financing is appropriate for the
specific project; the project facilitates effective and efficient use of
existing and future public resources so as to promote both economic
development and appropriate use of natural resources; and the project
develops or enhances infrastructure or other facilities in a manner that
will attract, create, and sustain long-term investment and employment
opportunities; and
(iii) provide, to the fullest extent possible, assistance to projects
that will provide economic benefits to one or more regions of the state
or, for projects that are not anticipated to have a regionally
significant impact, that will provide economic benefits to localities
that suffer from disproportionate levels of poverty, unemployment,
population or job loss or other indicators of economic distress.
4. Reporting. The corporation shall submit a report to the director of
the budget, the temporary president of the senate, the speaker of the
assembly, the minority leader of the senate and the minority leader of
the assembly on the investments and accomplishments of the investment
opportunity fund. Such report shall include, but not be limited to,
information on the number of jobs created and retained, levels of
private sector investment, economic benefit to the state and local
economies and types of industries invested in. Such report shall be
submitted by July 1, 2009 and July first every year thereafter.
5. Evaluation. The corporation shall submit a report to the director
of the budget, the temporary president of the senate, the speaker of the
assembly, the minority leader of the senate and the minority leader of
the assembly evaluating the economic and social benefits of the
investment opportunity fund. Such evaluation shall be prepared by an
entity or entities independent of the corporation which shall be
selected through a request for proposal process. Such evaluation shall
be submitted by October 1, 2009 and October first every year thereafter.
6. The investment opportunity fund capital approval board. (a) a
capital approval board shall be a five member board that is created to
consider and review each project receiving material financial assistance
and the unanimous approval of the voting members of such capital
approval board shall be required before the corporation shall furnish
any material financial assistance; provided, however, that if, by thirty
days following the submission of written materials by the corporation no
voting member of the board has notified the chairperson of the capital
approval board in writing of his or her disapproval within such period,
or the capital approval board shall not have voted to approve or
disapprove any proposed furnishing of financial assistance, the capital
approval board shall have been deemed to have approved such proposal.
The voting members shall include: (i) the director of the budget or his
or her designee who shall act as chairperson, (ii) the temporary
president of the senate or his or her designee, and (iii) the speaker of
the assembly or his or her designee. The two non-voting members will be
appointed one each, by the minority leader of the senate and the
minority leader of the assembly. The review of the capital approval
board shall be limited to the adequacy of the economic and social
benefits of the proposed furnishing of financial assistance by the
corporation.
(b) the provisions of article 7 of the public officers law shall apply
to meetings of the capital approval board.
7. Notwithstanding any other provision of law to the contrary, any
project financed through the investment opportunity fund, and any bond
sale undertaken by the corporation to finance such projects, shall be
exempt from the provisions of sections 50 and 51 of the public
authorities law.
The upstate regional blueprint fund. 1. The upstate regional
blueprint fund is hereby created. The upstate empire state development
corporation is authorized to provide financial, product development, or
other assistance from such fund to eligible entities as set forth in
this subdivision to support the upstate revitalization fund, and in
support of such projects that focus on: intellectual capital capacity
building; investment products; applied research and development;
opportunities for foreign investment and international export; and
infrastructure requirements to attract new businesses or expand existing
businesses. For-profit businesses, not-for-profit corporations, public
benefit corporations, municipalities, and research and academic
institutions shall be eligible to apply for such activities under this
subdivision including, but not limited to, the following:
(a) Support for projects identified through region-wide collaborative
efforts as part of the overall growth strategy for the local economy,
including but not limited to smart growth and energy efficiency
initiatives.
(b) Support for the attraction or expansion of a business, including,
but not limited to, those primarily engaged in activities identified as
a strategic industry, and minority-owned and women-owned business
enterprises as defined by subdivisions (c) and (g) of section nine
hundred fifty-seven of the general municipal law.
(c) Support for land acquisition and/or the construction, acquisition
or expansion of buildings, machinery and equipment associated with a
project.
(d) Support for projects identified as a city by city or regional
blueprint priority.
2. Applications for assistance pursuant to this section shall be
reviewed and evaluated pursuant to eligibility requirements and criteria
set forth in rules and regulations promulgated by the upstate chairman,
and subject to approval by the board of directors of the upstate empire
state development corporation. Approval of project applications shall be
made by the upstate chairman, subject to approval by the board of
directors of the upstate empire state development corporation.
3. Priority in granting assistance generally will be given to projects
(a) with significant private financing or matching funds through other
public entities, (b) likely to produce a high return on public
investment, (c) with existence of significant support from the local
business community, local government, community organizations, academic
institutions and other regional parties, (d) with significant regional
breadth or likely to have wide regional impact, (e) with cost benefit
analysis that demonstrates sustainable job creation and investments, (f)
located in distressed areas using economic criteria developed by the
upstate empire state development corporation, which may include but not
be limited to land value, employment, private investment, economic
activity, and population, or (g) whose application is submitted by
multiple entities, both public and private.
4. The upstate empire state development corporation shall provide such
assistance in a geographically proportionate manner throughout upstate
based on qualified applications received pursuant to this section.
5. Assistance may be in the form of loans, grants, or monies
contributing to projects for which the corporation or a subsidiary acts
as developer. (i) The corporation may act as developer in the
acquisition, renovation, construction, leasing or sale of development
projects authorized pursuant to this act in order to stimulate private
sector investment within the affected community. (ii) In acting as a
developer, the corporation may borrow for purposes of this subdivision
for approved projects in which the lender's recourse is solely to the
assets of the project, and may make such arrangements and agreements
with community-based organizations and local development corporations as
may be required to carry out the purposes of this section. (iii) Prior
to developing any such project, the corporation shall secure a firm
commitment from entities, independent of the corporation, for the
purchase or lease of such project. (iv) Projects authorized under this
subdivision whether developed by the corporation or a private developer,
must be located in distressed communities, for which there is a
demonstrated demand within the particular community.
6. Eligible applicants shall include, but not be limited to, business
improvement districts, local development corporations, economic
development organizations, institutions of higher education, incubators,
technology parks, private firms, municipalities, counties, regional
planning councils, tourist attractions, and community facilities.
7. The corporation shall submit a report to the director of the
budget, the temporary president of the senate, the speaker of the
assembly, the minority leader of the senate and the minority leader of
the assembly on the investments and accomplishments of the upstate
regional blueprint fund. Such report shall include, but not be limited
to, information on the number of jobs created and retained, levels of
private sector investment, economic benefit to the state and local
economies and types of industries invested in. Such report shall be
submitted by July 1, 2009 and July first every year thereafter.
8. The corporation shall submit a report to the director of the
budget, the temporary president of the senate, the speaker of the
assembly, the minority leader of the senate and the minority leader of
the assembly evaluating the economic and social benefits of the upstate
regional blueprint fund. Such evaluation shall be prepared by an entity
or entities independent of the corporation which shall be selected
through a request for proposal process. Such evaluation shall be
submitted by October 1, 2009 and October first every year thereafter.
9. The corporation is hereby authorized to promulgate rules and
regulations in accordance with the state administrative procedure act as
are necessary to fulfill the purposes of this section.
The downstate revitalization fund. 1. The downstate
revitalization fund is hereby created. The corporation is authorized,
within available appropriations, to provide financial, project
development, or other assistance from such fund to eligible entities as
set forth in this subdivision for the purposes of supporting investment
in distressed communities in the downstate region, and in support of
such projects that focus on: encouraging business, community, and
technology-based development, and supporting innovative programs of
public and private cooperation working to foster new investment, job
creation and small business growth. For-profit businesses,
not-for-profit corporations, public benefit corporations,
municipalities, and research and academic institutions shall be eligible
to apply for such activities under this subdivision including, but not
limited to, the following:
(a) Support for projects identified through collaborative efforts as
part of the overall growth strategy for the local economy, including but
not limited to smart growth and energy efficiency initiatives.
(b) Support for the attraction or expansion of a business including,
but not limited to, those primarily engaged in activities identified as
a strategic industry and minority-owned and women-owned business
enterprises as defined by subdivisions (c) and (g) of section nine
hundred fifty-seven of the general municipal law.
(c) Support for land acquisition and/or the construction, acquisition
or expansion of buildings, machinery and equipment associated with a
project.
(d) Support for projects located in an investment zone as defined by
paragraph (i) of subdivision (d) of section 957 of the general municipal
law.
2. Applications for assistance pursuant to this section shall be
reviewed and evaluated pursuant to eligibility requirements and criteria
set forth in rules and regulations promulgated by the corporation.
Approval of project applications shall be made by the chairman and
subject to approval by the board of directors of the corporation. Grants
and loans awarded under this section shall be awarded on a competitive
basis, in response to requests for proposals, and through direct
applications accepted at other times at the discretion of the
corporation.
3. Priority in granting assistance generally will be given to projects
(a) with significant private financing or matching funds through other
public entities, (b) likely to produce a high return on public
investment, (c) with existence of significant support from the local
business community, local government, community organizations, academic
institutions and other regional parties, (d) deemed likely to increase
the community's economic and social viability, (e) with cost benefit
analysis that demonstrates sustainable job creation and investments, (f)
located in distressed areas using economic criteria developed by the
corporation, which may include but not be limited to land value,
employment, private investment, economic activity, and population, or
(g) whose application is submitted by multiple entities, both public and
private.
4. Applications for support or assistance under this subdivision shall
be made in a form and manner as determined by the corporation, and
applicants shall be required to meet the criteria and requirements
determined by the corporation pursuant to this act, which will focus on
the potential of the project or program to stimulate or enhance economic
development in the area or employment opportunities in the distressed
communities and regions.
5. Assistance may be in the form of loans, grants, or monies
contributing to projects for which the corporation or a subsidiary acts
as developer. (i) The corporation may act as developer in the
acquisition, renovation, construction, leasing or sale of development
projects authorized pursuant to this act in order to stimulate private
sector investment within the affected community. (ii) In acting as a
developer, the corporation may borrow for purposes of this subdivision
for approved projects in which the lender's recourse is solely to the
assets of the project, and may make such arrangements and agreements
with community-based organizations and local development corporations as
may be required to carry out the purposes of this section. (iii) Prior
to developing any such project, the corporation shall secure a firm
commitment from entities, independent of the corporation, for the
purchase or lease of such project. (iv) Projects authorized under this
subdivision whether developed by the corporation or a private developer,
must be located in distressed communities, for which there is a
demonstrated demand within the particular community.
6. Eligible applicants shall include, but not be limited to, business
improvement districts, local development corporations, economic
development organizations, institutions of higher education, incubators,
technology parks, private firms, municipalities, counties, regional
planning councils, tourist attractions, and community facilities.
7. The corporation shall submit a report to the director of the
budget, the temporary president of the senate, the speaker of the
assembly, the minority leader of the senate and the minority leader of
the assembly on the investments and accomplishments of the downstate
revitalization fund. Such report shall include, but not be limited to,
information on the number of jobs created and retained, levels of
private sector investment, economic benefit to the state and local
economies and types of industries invested in. Such report shall be
submitted by July 1, 2009 and July first every year thereafter.
8. The corporation shall submit a report to the director of the
budget, the temporary president of the senate, the speaker of the
assembly, the minority leader of the senate and the minority leader of
the assembly evaluating the economic and social benefits of the
downstate revitalization fund. Such evaluation shall be prepared by an
entity or entities independent of the corporation which shall be
selected through a request for proposal process. Such evaluation shall
be submitted by October 1, 2009 and October first every year thereafter.
9. The corporation is hereby authorized to promulgate rules and
regulations in accordance with the state administrative procedure act as
are necessary to fulfill the purposes of this section.
The upstate agricultural economic development fund and healthy
food / healthy communities initiative. 1. The upstate agricultural
economic development fund and healthy food / healthy communities
initiative is hereby created. The corporation is authorized, within
available appropriations, to provide financial assistance in the form of
loans, grants or contracts for services, to eligible entities as set
forth in this subdivision to support the upstate revitalization fund to
reduce the cost of financing the construction, expansion or renovation
of agricultural economic development projects, to reduce the cost of
agricultural inputs or to support activities related to the retention of
existing farmers or the recruitment of new farmers and to increase the
number of food markets providing affordable and nutritious foods in
underserved areas.
2. Not-for-profit corporations, agricultural cooperative corporations,
public benefit corporations, municipalities and educational institutions
serving rural areas shall be eligible to apply for support under this
subdivision for the following activities:
(a) Support for local efforts to identify new agricultural economic
development opportunities, and to organize industry-wide collaborative
efforts designed to develop growth strategies for the agricultural
industry.
(b) Support for local or regional activities designed to provide
business development and financial packaging assistance to new and
expanding agricultural economic development projects.
(c) Development and delivery of programs to promote the retention of
existing farmers and to attract new farmers.
(d) Feasibility studies to determine the projected local, national
and/or international demand for the proposed crop or product to be
financed pursuant to this section and the suitability of the land and
climate for such production.
(e) Support for land acquisition and/or the construction, acquisition
or expansion of buildings, machinery and equipment associated with a
project.
(f) Loans can be provided by the corporation to agricultural
cooperative corporations, not-for-profit corporations and public benefit
corporations for the purpose of providing low cost financing from such
entities to projects for purposes described in this subdivision.
(g) Such projects shall be consistent with the environmental
protection goals of the state.
3. Community development financial institutions, as defined by
paragraph (a) of subdivision 2 of section sixteen-o of this act, shall
be eligible to apply for designation under this subdivision to perform
the duties of a program administrator for the healthy food / healthy
communities initiative.
(a) Program administrators will be required to enter into a contract
with the corporation for the following responsibilities:
(i) raise matching capital to leverage state funds within three years
of signing a contract with the corporation;
(ii) report, at least annually, on the sources and amounts of funds
raised;
(iii) develop underwriting criteria; and
(iv) process loans and grants for food markets.
(b) Administrative costs of program administrators will be
reimbursable as set forth in either rules and regulations issued in
accordance with paragraph (d) of subdivision 5 of this section or in a
request for proposal.
(c) Eligible food markets are any entities in subparagraph (i) of this
paragraph. Eligible food markets must demonstrate that their proposed
project will benefit an underserved area, as defined in subparagraph
(ii) of this paragraph.
(i) An eligible food market applicant may be a for-profit business
enterprise (including a corporation, limited liability company, sole
proprietor, cooperative or partnership), not-for-profit corporation,
agricultural cooperative corporation, public benefit corporation,
municipal corporation, regional market facility, or a food cooperative.
(ii) An underserved area is defined as a low- or moderate-income
census tract, an area of below average supermarket density or an area
having a supermarket customer base with more than 50 percent living in a
low-income census tract.
(iii) Eligible uses for funds from state grants and loans to food
markets include:
(A) pre-development costs for project feasibility, including
professional fees, market studies and appraisals;
(B) land assembly, including demolition and environmental remediation;
(C) site development;
(D) infrastructure improvements, including renovation, new
construction or adaptive reuse; and
(E) equipment purchases.
(d) The program administrator shall review, and if appropriate
approve, applications by food markets. The program administrator shall
review applications every other month for as long as funds remain
available in the loan pool. The program administrator shall review each
application to determine whether the proposed project is financially
viable and demonstrates all of the following:
(i) makes a positive impact on the local economy;
(ii) increases revenues to the state, the host municipality, or the
market region or creates a new agricultural economic development
opportunity;
(iii) adherence to sound land use principles;
(iv) promotes community development by working in conjunction with
other programs;
(v) incorporates energy efficiency and green building principles; and
(vi) to the maximum extent practicable, provides healthy, nutritious
food grown by sustainable agricultural practices.
4. Applications for assistance pursuant to this section, except for
the healthy foods / healthy communities initiative, shall be reviewed
and evaluated pursuant to eligibility requirements and criteria set
forth in rules and regulations promulgated by the upstate chairman, in
consultation with the commissioner of the department of agriculture and
markets, and subject to approval by the board of directors of the
upstate empire state development corporation. Approval of project
applications shall be made by the upstate chairman, in consultation with
the commissioner of the department of agriculture and markets, subject
to approval by the board of directors of the upstate empire state
development corporation.
5. Applications to be the program administrator for the healthy food /
healthy communities initiative shall be reviewed and evaluated pursuant
to eligibility requirements and criteria which may be set forth in
either rules and regulations, a request for proposal or an application.
(a) Applications shall identify at least one food access, health or
community development organization who will work with the program
administrator applicant to:
(i) analyze market opportunities in underserved areas;
(ii) recruit food market operators and developers;
(iii) pre-qualify food market applications on non-financial criteria;
and
(iv) provide technical assistance with regard to operating grocery
stores in low-income communities.
(b) Administrative costs of the food access, health or community
development organization will be reimbursable as set forth in rules and
regulations issued in accordance with paragraph (d) of this subdivision
or in a request for proposal.
(c) Approval of at least one program administrator shall be made by
the upstate chairman, in consultation with the commissioner of the
department of agriculture and markets, subject to approval by the board
of directors of the upstate empire state development corporation.
(d) At his or her discretion, the upstate chairman of the corporation
may promulgate rules and regulations, in consultation with the
commissioner of the department of agriculture and markets, and subject
to approval by the board of directors of the upstate empire state
development corporation for the implementation of this section.
6. The corporation, in consultation with the commissioner of the
department of agriculture and markets, shall submit a report to the
director of the budget, the temporary president of the senate, the
speaker of the assembly, the minority leader of the senate and the
minority leader of the assembly on the investments and accomplishments
of the upstate agricultural economic development fund. Such report shall
include, but not be limited to, information on the number of jobs
created and retained, levels of private sector investment, economic
benefit to the state and local economies and types of industries
invested in. Such report shall be submitted by July 1, 2009 and July
first every year thereafter.
7. The corporation, in consultation with the commissioner of the
department of agriculture and markets, shall submit a report to the
director of the budget, the temporary president of the senate, the
speaker of the assembly, the minority leader of the senate and the
minority leader of the assembly evaluating the economic and social
benefits of the upstate agricultural economic development fund. Such
evaluation shall be prepared by an entity or entities independent of the
corporation which shall be selected through a request for proposal
process. Such evaluation shall be submitted by October 1, 2009 and
October first every year thereafter.
8. The corporation is hereby authorized to promulgate rules and
regulations in accordance with the state administrative procedure act as
are necessary to fulfill the purposes of this section.
9. The provisions of section ten and subdivision 2 of section sixteen
of this act shall not apply to assistance provided under this section.
Small business revolving loan fund. 1. The small business
revolving loan fund program is hereby created. The corporation is
authorized, within available appropriations, to provide low interest
loans to community development financial institutions, in order to
provide funding for those lending organizations' loans to small
businesses, and micro-businesses located within New York state, that
generate economic growth and job creation within New York state but that
are unable to obtain adequate credit or adequate terms for such credit.
If in the discretion of the corporation the use of a community
development financial institution is not practicable based upon the
application of rules and regulations developed by the corporation,
including, but not limited to, assessments of geographic and
administrative capacity, then the corporation is authorized, within
available appropriations, to provide low interest loans to the following
other local community based lending organizations: small business
lending consortia, certified development companies, providers of United
States department of agriculture business and industrial guaranteed
loans, United States small business administration loan providers,
credit unions and community banks. As used in this section "small
business" means a business that is resident in New York state,
independently owned and operated, not dominant in its field, and employs
one hundred or fewer persons. As used in this section "micro-business"
means a business that is resident in New York state, independently owned
and operated, and employs less than five people.
2. In order for a lending organization to be eligible to receive
program funds, it must have established sufficient expertise to analyze
small business and micro-businesses applications for program loans,
evaluate the creditworthiness of small businesses, and micro-businesses
and regularly monitor program loans. The lending organization shall
review every program loan application in order to determine, among other
things, the feasibility of the proposed use of the requested financing
by the small business or micro-business applicant, the likelihood of
repayment and the potential that the loan will generate economic
development and jobs within New York state. The corporation shall
identify eligible lending organizations through one or more competitive
statewide or local solicitations. The corporation shall show preference
in awarding program funds to lending organizations who serve
micro-businesses and micro-loans.
3. Program loans to small businesses and micro-businesses shall be
targeted and marketed to minority and women-owned enterprises,
veteran-owned enterprises as set forth in 15 U.S.C. section 632(Q)(3),
as amended from time to time, and service-disabled veteran-owned
enterprises as set forth in article three of the veterans' services law,
and other small businesses and micro-businesses that are having
difficulty accessing traditional credit markets. Program loans to small
businesses and micro-businesses shall be used for the creation and
retention of jobs, as defined by the corporation, including: (a) working
capital; (b) the acquisition and/or improvement of real property; (c)
the acquisition of machinery and equipment, property or improvement; or
(d) the refinancing of debt obligations. There shall be two categories
of loans to small businesses and micro-businesses: a micro loan that
shall have a principal amount that is less than twenty-five thousand
dollars and a regular loan that shall have a principal amount not less
than twenty-five thousand dollars. Prior to receiving program funds, the
lending organization must certify to the corporation that such loan
complies with this section and rules and regulations promulgated for the
program and that the lending organization has performed its obligations
pursuant to and is in compliance with this section, the program rules
and regulations and all agreements entered into between the corporation
and the lending organization. The program funds amount used by the
lending organization to fund a program applicant loan shall not be more
than fifty percent of the principal amount of such loan. The program
funds amount used by the lending organization to fund a program
applicant loan shall not be greater than one hundred and twenty-five
thousand dollars. Minority- and women-owned business enterprises,
veteran-owned enterprises as set forth in 15 U.S.C. section 632(Q)(3),
as amended from time to time, and service-disabled veteran-owned
enterprises as set forth in article three of the veterans' services law,
and other small businesses or micro-businesses who access such program
loans under this subdivision shall not be precluded from accessing such
short-term financing loans provided under subdivision eleven of this
section.
4. Program funds shall not be used for: (a) projects that would result
in the relocation of any business operation from one municipality within
the state to another, except under one of the following conditions: (i)
when a business is relocating within a municipality with a population of
at least one million where the governing body of such municipality
approves such relocation; or (ii) the lending organization notifies each
municipality from which such business operation will be relocated and
each municipality agrees to such relocation; (b) projects of newspapers,
broadcasting or other news media; medical facilities, libraries,
community or civic centers; or public infrastructure improvements; and
(c) providing funds, directly or indirectly, for payment, distribution,
or as a loan, to owners, members, partners or shareholders of the
applicant business, except as ordinary income for services rendered.
5. With respect to its program loans, the lending organization may
charge application, commitment and loan guarantee fees pursuant to a
schedule of fees adopted by the lending organization and approved by the
corporation. Approved micro-loans for five thousand dollars or less
shall have applications fees waived.
6. Program funds shall be disbursed to a lending organization by the
corporation in the form of a loan to the lending organization. The term
of the loan shall commence upon disbursement of the program funds by the
corporation to the lending organization. The loan shall carry a low
interest rate determined by the corporation based on then prevailing
interest rates and the circumstances of the lending organization.
Notwithstanding the performance of the loans made by the lending
organization using program funds, the lending organization shall remain
liable to the corporation with respect to any unpaid amounts due from
the lending organization pursuant to the terms of the corporation's
loans to the lending organization. In addition, a portion of program
funds may be disbursed to a lending organization in the form of a grant
or forgivable loan, provided those funds are used by the lending
organization for administrative expenses associated with the fund,
loan-loss reserves, or other eligible expenses as determined by the
corporation.
7. Notwithstanding anything to the contrary in this section, the
corporation shall provide at least five hundred thousand dollars in
program funds pursuant to this section to lending organizations for the
purpose of making loans to small business located in Niagara county.
8. Notwithstanding anything to the contrary in this section, the
corporation shall provide at least five hundred thousand dollars in
program funds pursuant to this section to lending organizations for the
purpose of making loans to small business located in St. Lawrence
county.
9. Notwithstanding anything to the contrary in this section, the
corporation shall provide at least five hundred thousand dollars in
program funds pursuant to this section to lending organizations for the
purpose of making loans to small business located in Erie county.
10. Notwithstanding anything to the contrary in this section, the
corporation shall provide at least five hundred thousand dollars in
program funds pursuant to this section to lending organizations for the
purpose of making loans to small business located in Jefferson county.
11. Notwithstanding anything to the contrary in this section, the
corporation may provide at least five hundred thousand dollars in
program funds pursuant to this section to lending organizations for the
purpose of making short-term financing available to minority- and
women-owned business enterprises and other small businesses performing
contracts to provide construction or professional services for state
procurement purposes. Such loans shall be used to underwrite the cost of
labor, materials, and equipment directly associated with (1) the
contract being financed or (2) a contract that has been satisfied for
which the business is awaiting payment from the state. The program funds
amount used by the lending organization to fund a program applicant loan
shall not be more than eighty percent of the principal amount of such
loan. The program funds amount used by the lending organization to fund
a program applicant loan shall not be greater than one hundred
twenty-five thousand dollars. Minority- and women-owned business
enterprises and other small businesses who access such short-term
financing loans under this subdivision shall not be precluded from
accessing such program loans provided under subdivision three of this
section.
12. Notwithstanding any provision of law to the contrary, the
corporation may establish a program fund for program use and pay into
such fund any funds available to the corporation from any source that
are eligible for program use, including moneys appropriated by the
state.
13. With respect to a lending organization program loan applicants, no
person who is a member of the board or other governing body, officer,
employee, or member of a loan committee, or a family member of any such
lending organization shall participate in any decision on such
application if such person is a party to or has a financial or personal
interest in such loan. Any person who cannot participate in a loan
application decision for such reasons shall not be counted as a member
of the loan committee, board or other governing body for purposes of
determining the number of members required for approval of such
application.
14. The lending organization shall submit to the corporation annual
reports stating: the number of program loans made; the amount of program
funding used for loans; the use of loan proceeds by the borrower; the
number of jobs created or retained; the status of each outstanding
program loan, including fund balance; and such other information as the
corporation may require.
14-a. Beginning April 1, 2019, the corporation shall publish on its
website the information contained in the annual reports required under
subdivision fourteen of this section in aggregate form omitting borrower
identifiable information.
15. The corporation may conduct audits of the lending organization in
order to ensure compliance with the provisions of this section, any
regulations promulgated with respect thereto and agreements between the
lending organization and the corporation of all aspects of the use of
program funds and program loan transactions. In the event that the
corporation finds substantive noncompliance, the corporation may
terminate the lending organization's participation in the program.
16. Upon termination of a lending organization's participation in the
program, the lending organization shall return to the corporation,
promptly after its demand therefor, all program fund proceeds held by
the lending organization; and provide to the corporation, promptly after
its demand therefor, an accounting of all program funds received by the
lending organization, including all currently outstanding loans that
were made using program funds. Notwithstanding such termination, the
lending organization shall remain liable to the corporation with respect
to any unpaid amounts due from the lending organization pursuant to the
terms of the corporation's loans to the lending organization.
Innovate NY fund. 1. The Innovate NY fund is hereby created.
The purpose of the Innovate NY fund is to make available state funds to
eligible applicants to support emerging business ideas and products that
result in the growth of business within the state and the concomitant
creation of jobs and tax revenues for the state.
2. Eligible applicants for Innovate NY funds may include regional and
local economic development organizations, technology development
organizations, research universities, and investment funds that provide
seed-stage investments in New York state companies.
3. Funding from the Innovate NY fund may be made available to the
applicant for investment in beneficiary companies. In order to be
eligible for an investment that includes Innovate NY investment funds, a
beneficiary company must: (a) be, or agree in writing to be, located in
New York state; (b) be in the seed-stage of development, as defined by
the corporation; (c) demonstrate a potential for substantial growth and
job development in an emerging technology field, as defined in section
thirty-one hundred two-e of the public authorities law or in regulations
as adopted by the corporation; and (d) have the potential to generate
additional economic activity in New York state. Investment priority
shall be given to beneficiary companies involved in commercialization of
research and development or high technology manufacturing.
4. The corporation shall establish a competitive process for the
evaluation of applicants for the Innovate NY investment fund. Applicants
shall be evaluated on criteria including, but not limited to, the
applicant's: (a) track record of success in raising investment funds and
successfully investing them; (b) capacity to perform due diligence and
to provide management expertise and other value-added services to
beneficiary companies; (c) financial resources for identifying and
investing in seed-stage companies; (d) ability to secure non-state
matching program investment funds at a ratio that is equal to or greater
than one to one (1:1); (e) ability to evaluate the commercial potential
of emerging technologies; (f) ability to secure partnerships with local
or regional investors; (g) adoption of conflict of interest provisions
acceptable to the corporation; and (h) other criteria that the
corporation determines is relevant to making investment decisions
consistent with the purposes of the fund as set forth in subdivision one
of this section. When awarding funds pursuant to this subdivision, the
corporation shall assure that the applicants demonstrate the need for
seed capital in the areas served by the applicant and provide for
adequate geographic distribution of awards to beneficiary companies
throughout the state to the extent feasible. The corporation shall
distribute funds promptly pursuant to a disbursement process agreed to
between the corporation and applicant to enable the applicant to fulfill
commitments to beneficiary companies in a timely manner.
5. At the time the applicant has invested fifty percent of the
Innovate NY funds committed to such applicant and annually thereafter,
aggregate investments of Innovate NY funds by such applicant in
beneficiary companies shall be leveraged with private sources of capital
excluding investments after the initial funding round at a ratio equal
to or greater than two to one (2:1).
6. The Innovate NY fund shall not invest an amount in any single
beneficiary company that exceeds five hundred thousand dollars, or seven
hundred fifty thousand dollars in the case of any individual
biotechnology-related beneficiary, at any one time, subject to certain
exceptions to be established by rules and regulations of the
corporation.
7. Notwithstanding any provision of law to the contrary, the
corporation may establish a program fund for program use and pay into
such fund any eligible funds available to the corporation from any
source, including moneys appropriated by the state.
8. The corporation shall submit a report annually on December
thirty-first to the director of the budget, the temporary president of
the senate, the speaker of the assembly, the minority leader of the
senate and the minority leader of the assembly detailing (a) the total
amount of funds committed to each applicant that receives funds and the
amount of such funds that has been invested by each such applicant; (b)
the amount of Innovate NY and private funds invested in each beneficiary
company; (c) the type of product or technology being developed or
produced by each beneficiary company; (d) the location of each
beneficiary company; (e) the number of jobs projected to be created or
retained; and (f) such other information as the corporation deems
necessary.
9. The corporation is hereby authorized to promulgate rules and
regulations in accordance with the state administrative procedure act as
are necessary to fulfill the purposes of this section, including with
respect to reasonable management fees, promotes, share of return and
other fees and charges of applicants that receive funds, and to provide
for the repayment of funds received by the beneficiary company if the
beneficiary company leaves New York state within a period of time to be
established by the corporation.
10. In accordance with the rules and regulations to be promulgated by
the corporation, the corporation may impose fees, establish repayment
terms and provide for equity participation by the corporation in
connection with investments from the Innovate NY fund.
11. The provisions of section ten and subdivision two of section
sixteen of this act shall not apply to assistance provided under this
section.
New York state business incubator and innovation hot spot
support act. 1. (a) The corporation is authorized, within available
appropriations, to issue requests for proposals once per fiscal year to
provide grants pursuant to subdivisions five and six of this section for
the purposes established under this act. The corporation may designate
entities, which upon application meet the requirements of subdivision
two of this section as New York state incubators, and may provide grants
and assistance as provided under subdivisions five and six of this
section to such designated entities. "New York state incubator" shall
mean a business incubation program which also provides physical space or
which is a virtual incubation program that has been designated upon
application by the corporation as a New York state incubator pursuant to
subdivisions two and three of this section and which thereby becomes
eligible for benefits, support, services, and programs available
pursuant to such designation. Provided however, that virtual incubators
which provide assistance to eligible businesses not in residence in one
physical location, shall submit a plan of operation which sets forth the
maximum number of eligible businesses to be served and their geographic
distribution.
(b) From among the qualified "New York state incubators", the
corporation is further authorized, within available appropriations, to
designate applicants as "New York state innovation hot spots." An
incubator receiving a "New York state innovation hot spot" designation
shall be eligible for the benefits under section thirty-eight of the tax
law, subparagraph eighteen of paragraph (a) of subdivision nine of
section two hundred eight of the tax law, subdivision eleven of section
two hundred nine of the tax law, paragraph thirty-nine of subsection (c)
of section six hundred twelve of the tax law, paragraph one of
subdivision (d) of section one thousand one hundred nineteen of the tax
law, and paragraph thirty-five of subdivision (c) of section 11-1712 of
the administrative code of the city of New York.
2. Requirements for designation. (a) An entity wishing to be
designated as a New York state innovation hot spot or as a New York
state incubator pursuant to this section shall be located in New York
state and shall have been in existence or otherwise in operation for a
period of at least three fiscal years prior to the current fiscal year,
or demonstrate continuity of staffing, program, and purpose showing
continuation through another auspice or governing entity, and shall have
demonstrated a connection to regional sources of innovation and
expertise, and that it meets the goals of creating jobs and incubating
businesses with survival rates in excess of average startups, and that
the program has a strategic plan to continue to meet such goals for the
three years succeeding designation and that commits the program to
implementing best practices. Such demonstration shall include a
commitment by the sponsor to continue to maintain the program for at
least three years after such designation, and to provide any reporting
information that the corporation shall require.
(b) In determining whether an entity shall be designated as a New York
state innovation hot spot or New York state incubator, the corporation
shall require that the entity meet the requirements of subparagraphs (i)
and (ii) of this paragraph and may consider whether the entity has
developed the programs, services, and attributes in subparagraphs (iii)
through (xvi) of this paragraph:
(i) institutional stability and long term viability, indicated by: the
sponsor's commitment to financially and programmatically maintaining the
incubator for at least two years in addition to the current fiscal year;
receipt of non-state public and private grant and/or other revenue
sources including property rentals and program fees that are or have
proven to be predictable and reliable; and manageable debt service;
(ii) a strategic plan that describes the impact on the regional
entrepreneurial environment that the incubator is intended to have and
commits the incubator to best incubation practices and describes a
defined process that accelerates commercialization and development for a
client company or entity through provision of technical assistance,
direct mentorship, entrepreneurial education, and business development
services, including development of a business plan and markets, aid in
development of the management team, product, customers, and local or
regional supply chain partners, access to investment, and launching of a
successful business which will employ New Yorkers;
(iii) an integrated array of services which includes management
guidance, technical assistance, consulting, mentoring, business plan
development, aid in creation of the business entity, and ongoing
counseling;
(iv) opportunities for clients to network, collaborate with other
business programs, and gain access to services, including through such
programs as the small business development center, the local or area
chamber of commerce or other business association, programs of the small
business administration, and/or other similar business organizations,
associations, and programs;
(v) access to capital via referral or other arrangements with
financial institutions, venture capitalists, angel investors, investment
funds managed or financed by private entities or state or local economic
development organizations, or other similar or equivalent capital
sources, evidenced by written agreements, memorandums of understanding,
letters of intent, or other endorsements acceptable to the corporation,
and including readying clients for financial meetings and interviews;
(vi) aid in accessing markets, via bid assistance or access programs
that may include but are not limited to literature review, establishment
of a resource documents room (physical or virtual), opportunity
notification of local, state, and federal governmental and private
opportunities, and identification of and introductions to potential
first customers;
(vii) physical office space and/or laboratory space and/or
manufacturing space under a written agreement for a period not to exceed
five years for any individual incubator client;
(viii) policies requiring participation by clients in the incubator
program, including disqualification or suspension from the program for
failure to participate;
(ix) criteria for acceptance and graduation from the program or
physical space, and terms and conditions for ongoing relationships, if
any, between the incubator and the client;
(x) at least fifty percent of the total incubator budget provided from
sources other than tenant rents and fees and in-kind support from the
sponsoring entity, and must be from sources other than New York state
government agencies;
(xi) an independent advisory council or similar body that includes one
or more executive officers of firms that have graduated from the
incubator, local economic development professionals, and individuals
with business and technology expertise in areas appropriate to the
sector or concentration of clients, and the mission and goal of the
incubator;
(xii) a professional management and service delivery team with
experience, expertise, or credentials in management, entrepreneurship,
business development, or other equivalent areas;
(xiii) access by clients to mentoring, advisory, or educational
services, including classroom teaching, from individuals who have
successfully created, grown or managed businesses or are lawyers,
professional accountants, or individuals who have been in business at an
executive level for at least five years;
(xiv) evidence that the incubator is a center of entrepreneurial
activities of a city, region, or distressed portion thereof, as
documented by programs and activities coordinated with county or local
economic development organizations, investor and financial clubs or
institutions, or student or youth-oriented entrepreneurial activities;
(xv) a partnership with other incubators in the region to offer
services and opportunities for entrepreneurs and leverage regional
economic development assets; and
(xvi) a plan to recruit minority- and women-owned businesses for
location and participation with the incubator program.
(c) The corporation, subject to appropriations provided for this
purpose, may approve and designate ten New York state incubator hot
spots. Such designees will be required to demonstrate an affiliation
with and the application support of at least one college, university or
independent research institution, and that its programs and purposes are
consistent with regional economic development strategies.
3. Designation. (a) The corporation may designate applicants that meet
the requirements of subdivision two of this section as New York state
innovation hot spots or as New York state incubators.
(b) As a condition of maintaining designation, each incubator shall
annually submit to the corporation in a manner and according to a
schedule established by the corporation:
(i) updated information requested by the corporation pursuant to
subparagraph (iii) of paragraph (a) of subdivision two of this section;
(ii) its strategic plan, as updated along with a brief description of
its success in meeting the goals of its strategic plan;
(iii) a statement that the items listed in paragraph (b) of
subdivision two of this section and, in the case of New York state
innovation hot spots, paragraph (c) of subdivision two of this section
are still applicable to the operations of the incubator, or any change
in applicability;
(iv) a list of business enterprises served by the incubator, and in
the case of New York state innovation hot spots, those clients certified
as a "qualified entity" eligible for tax incentives under section
thirty-eight of the tax law; and
(v) such additional information as the corporation may require.
(c) The corporation shall design simplified forms to aid in the
submission of the data required in this subdivision, which may be
submitted electronically. Such forms shall state the purposes of the
required data submissions.
(d) The corporation shall evaluate the operations of the New York
state innovation hot spot or the New York state incubator using methods
including but not limited to site visits, reports pursuant to specified
information, and review evaluations. If the corporation is unsatisfied
with the progress of a New York state innovation hot spot or a New York
state incubator, the corporation shall notify such incubator of the
results of its evaluations and the findings of deficiencies in the
incubator's operations and shall allow such incubator to remedy such
findings in a timely manner. For New York state innovation hot spots or
New York state incubators that receive operating grants pursuant to
paragraph (a) of subdivision five of this section, such evaluations
shall include independent peer review and shall take place no less than
once every three years or more frequently at the discretion of the
corporation. Such independent peer review shall result in a written
report that includes programmatic and fiscal evaluation of the
incubation program and recommendations for improvement.
(e) Notwithstanding any other provision of law to the contrary, a
qualified entity that has previously been designated as a New York state
incubator and has not fully disbursed any grants awarded pursuant to
this section, shall continue being designated as such by the corporation
for an additional three years.
4. Audit. The corporation shall have the authority to audit New York
innovation hot spots, New York state incubators and clients designated
by such hot spots as qualified entities.
5. Grants. (a) Operating grants. A program designated as a New York
state innovation hot spot or as a New York state incubator shall be
eligible for an operating grant in an amount to be determined by the
corporation from funds appropriated to the corporation for such purpose,
provided however that:
(i) Any such grant shall be matched on a two-to-one basis by the
institution receiving the funds and collaborative partners in the form
of cash or in-kind personnel, equipment, material donations, and other
facility and operations expenditures, provided that no more than fifty
percent of such match shall be in-kind;
(ii) A program applying for a grant shall demonstrate financial
stability and long term viability, as provided in subparagraph (i) of
paragraph (b) of subdivision two of this section;
(iii) A grant recipient shall agree to provide data as required to the
corporation and shall agree to conform to best practices as outlined by
state and/or national business incubator associations;
(iv) Failure to abide by the requirements of this subdivision or to
cure a default after review and agreement with the corporation shall
result in loss of the grant and disqualification of the designee as a
New York state innovation hot spot or as a New York state incubator; and
(v) Provided that a portion of the grants shall be awarded to the New
York state innovation hot spots and the New York state incubators.
(b) The corporation shall make entities designated as New York state
innovation hot spots or as New York state incubators aware of
opportunities for funding or grants by or through the corporation or the
department of economic development.
(c) No deduction. In addition to the foregoing requirements, an
incubator sponsor shall agree to dedicate all funds from any grants or
support received pursuant to this subdivision to the operations of the
incubator without deductions for indirect costs of such sponsor. In no
case shall an incubator sponsor agree to provide less than eighty-five
percent of all funds received pursuant to this subdivision to the
operations of the incubator without exception.
6. Other assistance. The corporation may make such other aid,
assistance, and resources available to New York state innovation hot
spots and New York state incubators and their clients as it shall deem
useful and appropriate for the furtherance of the purposes of this act,
including without limitation technical assistance, aid in marketing, aid
in reaching and providing entrepreneurship training opportunities to
such marginalized groups as those composed of individuals who are
minority, female, disabled, or poor, and others, curriculum development,
and other services and resources. The corporation shall also seek
assistance from other state agencies in the development of procurement
and marketing resources and training opportunities for New York state
innovation hot spots and New York state incubators and their clients.
7. Association of incubators. The corporation may consult with a
statewide entity which is a membership association of incubators and
others and which has expertise in providing services to incubators for
the purpose of providing services to entities designated as New York
state innovation hot spots and New York state incubators and to entities
seeking to apply or applying to become New York state innovation hot
spots and New York state incubators or which otherwise are included as
recipients of services pursuant to this section. Such services shall
include advising concerning best practices of incubation and development
of plans to incorporate and integrate such practices, development of
data concerning incubation in this state and recommendations for
improvement, aid in marketing and event sponsorship, and such other
services as the corporation shall deem necessary and appropriate to the
strengthening of business incubation in this state.
8. New York state innovation hot spots may certify clients which meet
the requirements of subdivision nine of this section as qualified
entities eligible for New York state innovation hot spot program tax
benefits pursuant to section thirty-eight of the tax law. Business
enterprises of incubators designated as New York state incubators under
paragraph (a) of subdivision one of this section may be certified by the
New York state innovation hot spot if the incubator has entered into a
memorandum of understanding with such hot spot establishing a process
and threshold for the provision of innovation hot spot benefits to
qualified enterprises or the hot spot is providing demonstrable services
or assistance to the business enterprise in addition to those provided
by the incubator.
9. "Qualified entity" shall mean a business enterprise that is:
(i) in the formative stage of development;
(ii) located in New York state;
(iii) either: (A) any corporation, except a corporation which:
(1) over fifty percent of the number of shares of stock entitling the
holders thereof to vote for the election of directors or trustees is
owned or controlled, either directly or indirectly, by a taxpayer
subject to tax under the following provisions of the tax law: article
nine-A; section one hundred eighty-three or one hundred eighty-four
former section of article nine; or article thirty-three; or
(2) is substantially similar in operation and in ownership to a
business entity (or entities) taxable or previously taxable under the
following provisions of the tax law: article nine-A; section one hundred
eighty-three, one hundred eighty-four, former section one hundred
eighty-five or former section one hundred eighty-six of article nine;
former article thirty-two; article thirty-three; article twenty-three,
or would have been subject to tax under such article twenty-three (as
such article was in effect on January first, nineteen hundred eighty) or
the income (or losses) of which is (or was) includable under article
twenty-two; or
(B) a sole proprietorship, partnership, limited partnership, limited
liability company, or New York subchapter S corporation that is not
substantially similar in operation and in ownership to a business entity
(or entities) taxable, or previously taxable, under article nine-A of
the tax law, section one hundred eighty-three, one hundred eighty-four,
former section one hundred eighty-five or former section one hundred
eighty-six of article nine of the tax law, former article thirty-two or
article thirty-three of the tax law, article twenty-three of the tax law
or which would have been subject to tax under such article twenty-three
(as such article was in effect on January first, nineteen hundred
eighty) or the income (or losses) of which is (or was) includable under
article twenty-two of the tax law; and
(iv) is certified by a New York state innovation hot spot as being
approved to locate in, or be part of a virtual incubation program
operated by, such New York innovation hot spot.
10. The corporation may establish guidelines concerning this program
to implement the purposes of this act.
Beginning farmers NY fund. 1. The beginning farmers NY fund is
hereby created. The purpose of the beginning farmers NY fund is to make
grants to eligible applicants, to support beginning farmers and
encourage them to consider farming as a career, resulting in the growth
of agribusiness within the state and the concomitant tax revenues for
the state.
2. The corporation shall consult with the department of agriculture
and markets in order to establish such criteria governing the award of
grants as authorized herein, as the corporation and such department deem
necessary. Such criteria shall include, but not be limited to, farmers
who have not produced an "agricultural product" as defined by section
three hundred twenty-eight of the agriculture and markets law, for more
than ten consecutive years, and who will materially and substantially
participate in the production of an agricultural product within a region
of the state.
3. Appropriations to the beginning farmers NY fund may be used for the
following purposes:
(a) to assist farmers in demonstrating innovative agricultural
techniques including, but not limited to, organic farming and specialty
crops.
(b) capital grants in accordance with a business plan to improve farm
profitability. Upon completion of such business plan, recipients shall
be eligible for capital grants to enhance the profitability of farming
operations. Such grants may be used for purposes including, but not
limited to, the purchase of machinery or the construction or improvement
of physical structures. Any capital grant shall be issued with a
one-to-one match between the state and recipient.
4. The corporation shall establish a competitive process for the
evaluation of applicants for the beginning farmers NY fund. When
awarding funds pursuant to this section, the corporation shall ensure
that applicants meet the criteria and requirements determined by the
corporation pursuant to this section.
5. The beginning farmers NY fund shall not invest an amount in any
single beneficiary that exceeds fifty thousand dollars, subject to any
exceptions to be established by guidelines of the corporation.
6. Notwithstanding any provision of law to the contrary, the
corporation may establish a program fund for program use and pay into
such fund any eligible funds available to the corporation from any
source, including moneys appropriated by the state.
7. The corporation shall submit a report annually on December
thirty-first to the director of the budget, the temporary president of
the senate, the speaker of the assembly, the minority leader of the
senate and the minority leader of the assembly detailing (a) the total
amount of funds committed to each applicant; (b) the location of each
applicant; and (c) such other information as the corporation deems
necessary.
8. The corporation is hereby authorized to establish guidelines for
the administration of the program, including application procedures and
disbursement terms, and to provide for the repayment of funds received
by the beneficiary if the beneficiary leaves New York state or otherwise
ceases farming activity within a period of time to be established by the
corporation.
* § 16-x. Dairy promotion act. 1. Declaration of policy. (a) It is
hereby declared that the mission of the corporation is to promote a
vigorous and growing state economy. In implementing this mission, the
corporation has undertaken a vigorous campaign to market the state's
assets and, by carrying out the provisions of this section, would
further this mission by promoting the state's dairy industry.
(b) It is further declared that the continued existence of the state
dairy industry, and the continued production of milk on the farms of
this state, is of vast economic importance to the state and to the
health and welfare of the inhabitants thereof; that it is essential, in
order to assure such continued production of milk and its handling and
distribution, that prices to producers be such as to return reasonable
costs of production, and at the same time to assure an adequate supply
of milk and dairy products to consumers at reasonable prices; and to
these ends it is essential that consumers and others be adequately
informed as to the dietary needs and advantages of milk and dairy
products and as to the economies resulting from the use of milk and
dairy products, and to command for milk and dairy products, consumer
attention and demand consistent with their importance and value. It is
further declared that continued decline in the consumption of fluid milk
and some other dairy products will jeopardize the production of adequate
supplies of milk and dairy products because of increasing surpluses
necessarily returning less to producers; and that continued adequate
supplies of milk and dairy products is a matter of vital concern as
affecting the health and general welfare of the people of this state. It
is therefore declared to be the legislative intent and policy of the
state:
(i) To enable milk producers and others in the dairy industry, with
the aid of the state, to more effectively promote the consumption of
milk and dairy products,
(ii) To provide methods and means for the development of new and
improved dairy products, and to promote their use, and
(iii) To this end, to eliminate the possible impairment of the
purchasing power of the milk producers of this state and to assure an
adequate supply of milk for consumers at reasonable prices.
2. Definitions. As used in this section the following terms shall have
the following meanings:
(a) "President" means the president of the corporation.
(b) "Dairy products" means milk and products derived therefrom, and
products of which milk or a portion thereof is a significant part.
(c) "Producer" means any person in this state who is engaged in the
production of milk or who causes milk to be produced for any market in
this or any other state.
(d) "Advisory board" means the persons appointed by the commissioner
from nominations from producers to assist the president in administering
a dairy promotion order.
(e) "Milk dealer" means any person who purchases or handles or
receives or sells milk, including individuals, partnerships,
corporations, cooperative associations, and unincorporated cooperative
associations.
(f) "Dairy promotion order" means an order issued by the president,
pursuant to the provisions of this section.
(g) "Cooperative" means an association or federation or cooperative of
milk producers organized under the laws of New York state, or any other
state, having agreements with their producer members to market, bargain
for or sell the milk of such producers, and is actually performing one
or more of these services in the marketing of the milk produced by their
members, through the cooperative or through a federation of milk
cooperatives in which the cooperative has membership.
(h) "State" means the state of New York.
(i) "Department" means the New York state department of agriculture
and markets.
(j) "Commissioner" means the commissioner of the New York state
department of agriculture and markets.
3. Powers and duties of the president. (a) The president shall
administer and enforce the provisions of this section. In order to
effectuate the declared policy of this section the president, in
consultation with the commissioner and producers, may, after due notice
and hearing, make and issue a dairy promotion order, or orders.
(b) Such order or orders shall, in consultation with the commissioner
and producers, be issued and amended or terminated in accordance with
the following procedures:
(i) Before any such order may become effective it must be approved by
fifty-one per centum of the producers of milk voting in the referendum
for the area to be regulated by such order. Such referendum shall not
constitute valid approval unless fifty-one per centum of all milk
producers for the area to be regulated vote in the referendum. Producers
may vote by individual ballot or through their cooperatives in
accordance with the following procedures:
(A) Cooperatives may submit written approval of such order within a
period of one hundred twenty days after the president has announced a
referendum on a proposed order, for such producers who are listed and
certified to the president as members of such cooperative; provided,
however, that any cooperative before submitting such written approval
shall give at least sixty days prior written notice to each producer who
is its member, of the intention of the cooperative to approve such
proposed order, and further provide that if such cooperative does not
intend to approve such proposed order, it shall likewise give written
notice to each such producer who is its member, of its intention not to
approve of such proposed order.
(B) Any producer may obtain a ballot from the president so that he or
she may register his or her own approval or disapproval of the proposed
order.
(C) A producer who is a member of a cooperative which has notified him
or her of its intent to approve or not to approve of a proposed order,
and who obtains a ballot and with such ballot expresses his or her
approval or disapproval of the proposed order, shall notify the
president as to the name of the cooperative of which he or she is a
member, and the president shall remove such producer's name from the
list certified by such cooperative.
(D) In order to ensure that all milk producers are informed regarding
a proposed order, the president shall notify all milk producers that an
order is being considered and that each producer may register his or her
approval or disapproval with the president either directly or through
his or her cooperative.
(E) The president shall consult with the milk producers and establish
a referendum advisory committee to assist and advise him or her in the
conduct of the referendum. Such committee shall review referendum
procedures and the tabulation of results, and shall advise the president
of its findings. The final certification of the referendum results shall
be made by the president. The committee shall be selected by the
commissioner in consultation with the president, and shall consist of
not less than three members, none of whom shall be persons directly
affected by the promotion order being voted upon. Two members shall be
representatives of general farm organizations which are not directly
affected by the order being voted upon. The members of the committee
shall not receive a salary but shall be entitled to actual and
reasonable expenses incurred in the performance of their duties.
(ii) The president, in consultation with the commissioner, may, and
upon written petition of not less than ten per centum of the producers
in the area, either as individuals or through cooperative
representation, shall, call a hearing to amend or terminate such order,
and any such amendment or termination shall be effective only upon
approval of fifty-one per centum of the producers of milk for the area
regulated participating in a referendum vote as provided pursuant to
this paragraph.
(c) The president, consulting with and seeking the advice and consent
of the advisory board, shall administer and enforce any such dairy
promotion order while it is in effect, for the purpose of:
(i) Encouraging the consumption of milk and dairy products by
acquainting consumers and others with the advantages and economy of
using more of such products,
(ii) Protecting the health and welfare of consumers by assuring an
adequate supply of milk and dairy products,
(iii) Providing for research programs designed to develop new and
improved dairy products,
(iv) Providing for research programs designed to acquaint consumers
and the public generally with the effects of the use of milk and dairy
products on the health of such consumers,
(v) Carrying out, in other ways, the declared policy and intent of
this section.
4. Provisions of dairy promotion orders. Any dairy promotion order or
orders may contain, among others, any or all of the following:
(a) Provision for levying an assessment against all producers subject
to the regulation for the purpose of carrying out the provisions of such
order and to pay the cost of administering and enforcing such order. In
order to collect any such assessments, provision shall be made for each
milk dealer who receives milk from producers to deduct the amount of
assessment from moneys otherwise due to producers for the milk so
delivered. The rate of such assessment shall not exceed two percent per
hundredweight of the gross value of the producers' milk, and there may
be credited against any such assessment the amounts per hundredweight
otherwise paid by any producer covered by the order by voluntary
contribution or otherwise pursuant to any other federal or state milk
market order for any similar research promotion or advertising program.
Notwithstanding the provisions of paragraph (b) of subdivision three of
this section, the president, upon written petition of no less than
twenty-five percent of producers in the area, either as individuals or
through cooperative representation, and in consultation with the
commissioner, may call a hearing for the sole purpose of establishing a
new rate of assessment hereunder and may submit a proposed change in the
rate of assessment to the producers for acceptance or rejection without
otherwise affecting the order. The producers in the area may vote on the
proposed rate either as individuals or through cooperative
representation. Notwithstanding the foregoing provisions of this
paragraph and of paragraph (b) of subdivision three of this section, or
the provisions of any order promulgated pursuant to this section, the
rate of assessment, for any period during which a dairy products
promotion and research order established pursuant to the federal dairy
and tobacco adjustment act of 1983 is in effect, shall not be less than
an amount equal to the maximum credit which producers participating in
this state's dairy products promotion or nutrition education programs
may receive pursuant to subdivision (g) of Sec. 113 of said federal act.
(b) Provision for payments to organizations engaged in campaigns by
advertisements or otherwise, including participation in similar regional
or national plans or campaigns to promote the increased consumption of
milk and dairy products, to acquaint the public with the dietary
advantages of milk and dairy products and with the economy of their
inclusion in the diet and to command, for milk and dairy products,
consumer attention consistent with their importance and value.
(c) Provision for payments to institutions or organizations engaged in
research leading to the development of new or improved dairy products or
research with respect to the value of milk and dairy products in the
human diet.
(d) Provision for requiring records to be kept and reports to be filed
by milk dealers with respect to milk received from producers and with
respect to assessments on the milk of such producers.
(e) Provision for the auditing of the records of such milk dealers for
the purpose of verifying payment of producer assessments.
(f) Provision for an advisory board pursuant to subdivision 10 of this
section.
(g) Provision for the president to retain money collected under any
marketing order issued pursuant to this section, to defray the costs and
expenses in the administration thereof.
(h) Such other provisions as may be necessary to effectuate the
declared policies of this section.
5. Matters to be considered. In carrying out the provisions of this
section and particularly in determining whether or not a dairy promotion
order shall be issued, the president, in consultation with the
commissioner, shall take into consideration, among others, facts
available to him or her with respect to the following:
(a) The total production of milk in the area and the proportion of
such milk being utilized in fluid form and in other products,
(b) The prices being received for milk by producers in the area,
(c) The level of consumption per capita for fluid milk and of other
dairy products,
(d) The purchasing power of consumers,
(e) Other products which compete with milk and dairy products and
prices of such products.
6. Interstate orders for compacts. The commissioner is authorized to
confer and cooperate with the legally constituted authorities of other
states and of the United States with respect to the issuance and
operation of joint and concurrent dairy promotion orders or other
activities tending to carry out the declared intent of the act. The
commissioner may join with such other authorities in conducting joint
investigations, holding joint hearings and issuing joint or concurrent
order or orders complementary to those of the federal government and the
president, after consulting with the commissioner, shall have the
authority to employ or designate a joint agent or joint agencies to
carry out and enforce such joint, concurrent or supplementary orders.
7. Prior assessments. Prior to the effective date of any dairy
promotion order as provided in this section, the president, in
consultation with the commissioner, may require that cooperative
associations which have petitioned for such an order and that have
approved of the issuance of such an order, to deposit with the president
such amounts as he or she may deem necessary to defray the expense of
administering and enforcing such order until such time as the
assessments as herein before provided are adequate for that purpose.
Such funds shall be received, deposited and disbursed by the president
in the same manner as other funds received by him or her pursuant to
this section and the president shall reimburse those who paid these
prior assessments from other funds received by him or her pursuant to
this section.
8. Status of funds. Any moneys collected under any market order issued
pursuant to this section shall not be deemed to be state or corporation
funds and shall be deposited in a bank or other depository of the
corporation, approved by the president, allocated to each dairy
promotion order under which they were collected, and shall be disbursed
by the president only for the necessary expenses incurred by the
president with respect to each separate order, all in accordance with
the rules and regulations of the president. All such expenses shall be
subject to audits by the state comptroller. Any moneys remaining in such
fund allocable to a particular order, after the termination of such
order and not required by the president to defray the expenses of
operating such order, may in the discretion of the president be refunded
on a pro-rata basis to all persons from whom assessments therefor were
collected; provided, however, that if the president finds that the
amounts so refundable are so small as to make impracticable the
computation and refunding of such moneys, the president may use such
moneys to defray the expenses incurred by him or her in the
promulgation, issuance, administration or enforcement of any other
similar dairy promotion order or in the absence of any other such dairy
promotion order, the president may pay such moneys to any organization
or institution as provided in paragraph (b) or (c) of subdivision four
of this section.
9. Budget. The commissioner, in consultation with the president, shall
prepare a budget for the administration and operating costs and expenses
including advertising and sales promotion when required in any dairy
promotion order executed hereunder and to provide for the collection of
such necessary fees or assessments to defray costs and expenses, in no
case to exceed two percent per hundredweight of the gross value of milk
marketed by producers in the area covered by the order.
10. Advisory board. (a) Any dairy promotion order issued pursuant to
this section shall provide for the establishment of an advisory board to
advise and assist the president in the administration of such order. The
president shall administer and enforce any such dairy promotion order
while it is in effect, consulting with the advisory board and seeking
its advice and consent. This board shall consist of not less than five
members and shall be appointed by the commissioner from nominations
submitted by producers marketing milk in the area to which the order
applies. Nominating procedure, qualification, representation, and size
of the advisory board shall be prescribed in the order for which such
board was appointed.
(b) No member of an advisory board shall receive a salary but shall be
entitled to his or her actual and reasonable expenses incurred while
performing his or her duties as authorized in this section.
(c) The duties and responsibilities of the advisory board shall be
prescribed by the president, in consultation with the commissioner, and
he or she shall specifically delegate to the advisory board, by
inclusion in the dairy promotion order the following duties and
responsibilities:
(i) The recommendation to the president of administrative rules and
regulations relating to the order.
(ii) Recommending to the president such amendments to the order as
deemed advisable.
(iii) The preparation and submission to the commissioner, in
consultation with the president, of an estimated budget required for the
proper operation of the order.
(iv) Recommending to the president methods for assessing producers and
methods for collecting the necessary funds.
(v) Assisting the president in the collection and assembly of
information and data necessary for the proper administration of the
order.
(vi) The performance of such other duties in connection with the order
as the president shall designate.
11. Rules and regulations; enforcement. (a) The president may, with
the advice and consent of the advisory board, make and issue such rules
and regulations as may be necessary to effectuate the provisions and
intent of this section and to enforce the provisions of any dairy
promotion order, all of which shall have the force and effect of law.
(b) The president, in consultation with the commissioner may institute
such action at law or in equity as may appear necessary to enforce
compliance with any provision of this section, or any rule or
regulation, or dairy promotion order committed to his or her
administration, and may apply for relief by injunction if necessary to
protect the public interest without being compelled to allege or prove
that an adequate remedy at law does not exist. Such application shall be
made to the supreme court in any district or county provided in the
civil practice law and rules, or to the supreme court in the third
judicial district.
12. Cooperation by the department. The president may request and
receive, within ninety days of such request from the department such
assistance, information and cooperation as may be necessary for the
corporation to provide services with respect to the administration of
the procedures set forth for the issuance, termination or amendment of
any dairy promotion order and/or the administration of any such order.
The corporation shall retain an amount equal to the expenses incurred by
the corporation in performing its duties pursuant to this section and
reimburse the department an amount equal to the expenses incurred by the
department in supplying such services, subsequent to submission and
audit of a voucher therefor. Such reimbursement shall not exceed the
total amount of funds collected by the corporation pursuant to this
section less the reasonable expenses incurred by the corporation in
performing its duties pursuant to this section.
13. Indemnification. The state shall defend, indemnify and hold
harmless the corporation, its directors, officers, and employees, from
and against any and all claims, demands, causes of action, damages,
costs and expenses whatsoever arising directly or indirectly from, or
relating to, the administration of a dairy promotion order issued or
administered pursuant to this section. In connection with the foregoing,
the corporation shall give the state (a) prompt written notice of any
action, claim or threat of suit, (b) the opportunity to take over,
settle or defend such action, claim or suit at the state's sole expense,
and (c) assistance in the defense of any such action at the expense of
the state.
14. Contractual provisions. The corporation may contract for services
with respect to the implementation of this section in accordance with
the corporation's policies, procedures and guidelines. Notwithstanding
section 2879 of the public authorities law or any other law to the
contrary, any such contract may be procured by the corporation on a
sole-source basis, and shall not be subject to competitive bid or
competitive request for proposal requirements.
* NB Repealed July 1, 2026
* § 16-y. Marketing of agricultural products. Declaration of policy.
(a) It is hereby declared that the mission of the corporation is to
promote a vigorous and growing state economy. In implementing this
mission, the corporation has undertaken a vigorous campaign to market
the state's assets and by carrying out the provisions of this section,
would further this mission by promoting the development of markets for
agricultural products grown and produced in the state.
(b) It is further declared that the marketing of agricultural
commodities and aquatic products in this state, in excess of reasonable
and normal market demands therefor; disorderly marketing of such
commodities; improper preparation for market and lack of uniform grading
and classification of agricultural commodities and aquatic products;
unfair methods of competition in the marketing of such commodities and
the inability of individual producers to develop new and larger markets
for agricultural commodities and aquatic products, result in an
unreasonable and unnecessary economic waste of the agricultural wealth
of this state. Such conditions and the accompanying waste jeopardize the
future continued production of adequate food supplies for the people of
this and other states. These conditions vitally concern the health,
safety and general welfare of the people of this state.
It is therefore declared the legislative purpose and the policy of
this state:
(i) To enable agricultural producers and aquatic producers of this
state, with the aid of the state, more effectively to correlate the
marketing of their agricultural commodities and aquatic products with
market demands therefor.
(ii) To establish orderly, efficient and equitable marketing of
agricultural commodities and aquatic products.
(iii) To provide for uniform grading and proper preparation of
agricultural commodities and aquatic products for market.
(iv) To provide methods and means for the development of new and
larger markets for agricultural commodities and aquatic products
produced in New York.
(v) To eliminate or reduce the economic waste in the marketing of
agricultural commodities and aquatic products.
(vi) To eliminate unjust impairment of the purchasing power of aquatic
producers and the agricultural producers of this state; and
(vii) To aid agricultural and aquatic producers in maintaining an
income at an adequate and equitable level.
2. Definitions. (a) "Agricultural commodity" means any and all
agricultural, horticultural, vineyard products, corn for grain, oats,
soybeans, barley, wheat, poultry or poultry products, bees, maple sap
and pure maple products produced therefrom, christmas trees, livestock,
including swine, and honey, sold in the state either in their natural
state or as processed by the producer thereof but does not include milk,
timber or timber products, other than christmas trees, all hay, rye and
legumes except for soybeans.
(b) "Aquaculture" means the culture, cultivation and harvest of
aquatic plants and animals.
(c) "Aquatic products" means any food or fiber products obtained
through the practice of aquaculture, including mariculture; or by
harvest from the sea when such products are cultured or landed in this
state. Such products include but are not limited to fish, shellfish,
seaweed or other water based plant life.
(d) "Producer" means any person engaged within this state in the
business of producing, or causing to be produced for any market, any
agricultural commodity or aquatic product.
(e) "Handler" means any person engaged in the operation of packing,
grading, selling, offering for sale or marketing any marketable
agricultural commodities or aquatic products, who as owner, agent or
otherwise ships or causes an agricultural commodity to be shipped.
(f) "Processor" means any person engaged within this state in
processing, or in the operation of receiving, grading, packing, canning,
freezing, dehydrating, fermenting, distilling, extracting, preserving,
grinding, crushing, or in any other way preserving or changing the form
of an agricultural product or aquatic product for the purpose of
marketing such commodity but shall not include a person engaged in
manufacturing from an agricultural commodity or aquatic product another
and different product.
(g) "Distributor" means any person engaged within this state, in
selling, offering for sale, marketing or distributing an agricultural
commodity or aquatic product which he or she has purchased or acquired
from a producer or other person or which he or she is marketing on
behalf of a producer or other person, whether as owner, agent, employee,
broker or otherwise, but shall not include a retailer, except such
retailer who purchases or acquires from, or handles on behalf of any
producer or other person, an agricultural commodity or aquatic product
subject to regulation by the marketing agreement or order covering such
commodity.
(h) "President" means the president of the corporation.
(i) "Marketing agreement" means an agreement entered into, with the
approval of the president, by producers with distributors, processors
and handlers regulating the preparation, sale and handling of
agricultural commodities or aquatic products.
(j) "Marketing order" means an order issued by the president pursuant
to this section, prescribing rules and regulations governing the
marketing for processing, the distributing, the sale of, or the handling
in any manner of any agricultural commodity or aquatic product sold in
this state during any specified period or periods.
(k) "Commissioner" means the commissioner of the New York state
department of agriculture and markets.
(l) "Department" means the New York state department of agriculture
and markets.
3. Powers and duties of the president. (a) In order to effectuate the
declared policy of this section, the president, in consultation with the
commissioner, may, after due notice and opportunity for hearing, approve
marketing agreements, which marketing agreements shall thereupon be
binding upon the signatories thereto exclusively.
(b) The president, in consultation with the commissioner and the
producers, may make and issue marketing orders, after due notice and
opportunity for hearing, subject to:
(i) approval of not less than sixty-six and two-thirds per centum of
the producers participating in a referendum in the area affected, or
(ii) approval of not less than sixty-five per centum of the producers
participating in a referendum vote, in the area affected, and having
marketed not less than fifty-one per centum of the total quantity of the
commodity which was marketed in the next preceding, ordinary marketing
season by all producers that voted in the referendum, or
(iii) approval of not less than fifty-one per centum of the producers
participating in a referendum vote, in the area affected, and having
marketed not less than sixty-five per centum of the total quantity of
the commodity which was marketed in the next preceding, ordinary
marketing season by all producers that voted in the referendum. The
president may, and upon written petition duly signed by twenty-five per
centum of the producers in the area amend or terminate such order after
due notice and opportunity for hearing, but subject to the approval of
not less than fifty per centum of such producers participating in a
referendum vote.
(c) The president, consulting with and seeking the advice and consent
of the advisory board shall administer and enforce any marketing order,
while it is in effect, to:
(i) Encourage and maintain stable prices received by producers for
such agricultural commodity and aquatic product at a level which is
consistent with the provisions and aims of this act.
(ii) Prevent the unreasonable or unnecessary waste of land or water
based wealth.
(iii) Protect the interests of consumers of such commodity, by
exercising the powers of this section to such extent as is necessary to
effectuate the purposes of this act.
(iv) Provide consultation to the commissioner who shall budget for the
administration and operating costs and expenses, seeking the advice and
consent of the advisory board, including advertising and sales promotion
when required in any marketing agreement or order executed in this
section and to provide for the collection and retention of such
necessary fees to defray such costs and expenses, in no case to exceed
five percent of the gross dollar volume of sales or dollar volume of
purchases or amounts handled, to be collected from each person engaged
in the production, processing, distributing or the handling of any
marketable agricultural commodity and aquatic product produced or landed
in this state and directly affected by any marketing order issued
pursuant to this section for such commodity.
(v) Confer and cooperate with the legally constituted authorities of
other states and the United States.
(d) Any marketing agreement or order issued by the president pursuant
to this section, in consultation with the commissioner, may contain any
or all of the following:
(i) Provisions for determining the existence and extent of the surplus
of any agricultural commodity, or of any grade, size or quality thereof,
and providing for the regulation and disposition of such surplus.
(ii) Provisions for limiting the total quantity of any agricultural
product, or of any grade or grades, size or sizes, or quality or
portions or combinations thereof, which may be marketed during any
specified period or periods. Such total quantity of any such commodity
so regulated shall not be less than the quantity which the president
shall find is reasonably necessary to supply the market demand of
consumers for such commodity.
(iii) Provisions regulating to the period, or periods, during which
any agricultural commodity, or any grade or grades, size or sizes or
quality or portions or combinations of such commodity, may be marketed.
(iv) Provisions for the establishment of uniform grading, standards,
and inspection of any agricultural commodity delivered by producers or
other persons to handlers, processors, distributors or others engaging
in the handling thereof, and for the establishment of grading or
standards of quality, condition, size, maturity or pack for any
agricultural commodity, and the inspection and grading of such commodity
in accordance with such grading or standards so established; and for
provisions that no producer, handler, processor or distributor of any
agricultural commodity for which grading or standards are so established
may, except as otherwise provided in such marketing agreement or order,
sell, offer for sale, process, distribute or otherwise handle any such
commodity whether produced within or without this state, not meeting and
complying with such established grading or standards. For the purposes
of this section, the federal-state inspection service shall perform all
inspections made necessary by such provisions.
(v) Provisions for the establishment of research programs designed to
benefit a specified commodity or New York agriculture in general.
(vi) Provisions for the president to retain money collected under any
marketing order issued pursuant to this section to defray the costs and
expenses in the administration thereof.
(vii) Such other provisions as may be necessary to effectuate the
declared policies of this section.
(viii) Provisions to establish marketing promotion and research
programs for aquatic products which may include subparagraphs (i)
through (vii) of this paragraph.
(e) The president, seeking the advice and the consent of the advisory
board, may temporarily suspend the operation of an effective marketing
order for a continuing period of not longer than one growing and
marketing season, if the purposes of this section are deemed unnecessary
during such season.
(f) In carrying out the purposes of this section, the president, in
consultation with the commissioner and consulting with and seeking the
advice and consent of the advisory board, shall take into consideration
any and all facts available to him or her with respect to the following
economic factors:
(i) The quantity of such agricultural commodity available for
distribution.
(ii) The quantity of such agricultural commodity normally required by
consumers.
(iii) The cost of producing such agricultural commodity.
(iv) The purchasing power of consumers.
(v) The level of prices of commodities, services and sections which
the farmers commonly buy.
(vi) The level of prices of other commodities which compete with or
are utilized as substitutes for such agricultural commodity.
(g) The execution of such marketing agreements shall in no manner
affect the issuance, administration or enforcement of any marketing
order provided for in this section. The president, in consultation with
the commissioner, may issue such marketing order without executing a
marketing agreement or may execute a marketing agreement without issuing
a marketing order covering the same commodity. The president, in his or
her discretion, in consultation with the commissioner may hold a
concurrent hearing upon a proposed marketing agreement and a proposed
marketing order in the manner provided for giving due notice and
opportunity for hearing for a marketing order as provided in this
section.
(h) Prior to the issuance, amendment or termination of any marketing
order, the president may require the applicants for such issuance,
amendment or termination to deposit with him or her such amount as he or
she may deem necessary to defray the expenses of preparing and making
effective amending or terminating a marketing order. Such funds shall be
received, deposited and disbursed by the president in the same manner as
other fees received by him or her under this section and, in the event
the application for adoption, amendment or termination of a marketing
order is approved in a referendum, the president shall reimburse any
such applicant in the amount of any such deposit from any unexpended
monies collected under the marketing order affected by such referendum.
(i) Any moneys collected by the president pursuant to this section
shall not be deemed state or corporation funds and shall be deposited in
a bank or other depository of the corporation, approved by the
president, allocated to each marketing order under which they are
collected, and shall be disbursed by the president only for the
necessary expenses incurred by the president with respect to each such
separate marketing order, all in accordance with the rules and
regulations of the president. All such expenditures shall be subject to
audits by the state comptroller. Any moneys remaining in such fund
allocable to any particular commodity affected by a marketing order may,
in the discretion of the president, be refunded at the close of any
marketing season upon a pro-rata basis to all persons from whom
assessments therefor were collected or, whenever the president finds
that such moneys may be necessary to defray the cost of operating such
marketing order in a succeeding marketing season, he or she may carry
over all or any portion of such moneys into the next such succeeding
season. Upon the termination by the president of any marketing order,
all moneys remaining and not required by the president to defray the
expenses of operating such marketing order, shall be refunded by the
president upon a pro-rata basis to all persons from whom assessments
therefor were collected; provided, however, that if the president finds
that the amounts so refundable are so small as to make impracticable the
computation and refunding of such refunds, the president may use such
moneys to defray the expenses incurred by him or her in the formulation,
issuance, administration or enforcement of any subsequent marketing
order for such commodity.
(j) Advisory board. (i) Any marketing order issued pursuant to this
section shall provide for the establishment of an advisory board, to
consist of not less than five members nor more than nine members, to
advise the president in the administration of such marketing order in
accordance with its terms and provisions. The president shall administer
and enforce any such order while it is in effect, consulting with the
advisory board and seeking its advice and consent. The members of said
board shall be appointed by the commissioner from nominations received
from the commodity group for which the marketing order is established.
Nominating procedure, qualification, representation and size of the
advisory board shall be prescribed in each marketing order for which
such board is appointed. Each advisory board shall be composed of such
producers and handlers or processors as are directly affected by the
marketing order in such proportion of representation as the order shall
prescribe. The commissioner may appoint one person who is neither a
producer, processor or other handler to represent the department of
agriculture and markets, the corporation, or the public generally.
(ii) No member of an advisory board shall receive a salary, but each
shall be entitled to his or her actual expenses incurred while engaged
in performing his or her duties herein authorized.
(iii) The duties and responsibilities of each advisory board shall be
prescribed by the president, in consultation with the commissioner, and
he or she shall specifically delegate to the advisory board, by
inclusion in the marketing order, the following duties and
responsibilities:
(A) The recommendation to the president of administrative rules and
regulations relating to the marketing order.
(B) Recommending to the president such amendments to the marketing
order as deemed advisable.
(C) The preparation and submission to the commissioner, in
consultation with the president, of the estimated budget required for
the proper operation of the marketing order.
(D) Recommending to the president methods for assessing members of the
industry and methods for collecting the necessary funds.
(E) Assisting the president in the collection and assembling of
information and data necessary to the proper administration of the
order.
(F) The performance of such other duties in connection with the
marketing order as the president shall designate.
4. Rules and regulations; enforcement. The president, with the advice
and consent of the advisory board, may make and promulgate such rules
and regulations as may be necessary to effectuate the provisions and
intent of this section and to enforce the provision of any marketing
agreement or order, all of which shall have the force and effect of law.
The president, in consultation with the commissioner may institute
such action at law or in equity as may appear necessary to enforce
compliance with any provision of this section, or any rule or
regulation, marketing agreement or order, committed to his or her
administration, and in addition may apply for relief by injunction if
necessary to protect the public interest without being compelled to
allege or prove that an adequate remedy at law does not exist. Such
application may be made to the supreme court in any district or county
as provided in the civil practice law and rules, or to the supreme court
in the third judicial district.
5. Cooperation by the department. The president of the corporation may
request and receive, within ninety days of such request, from the
department such assistance, information and cooperation as may be
necessary for the corporation to provide services with respect to the
administration of the procedures set forth for the issuance, termination
or amendment of any agricultural, commodities or aquatic order and/or
the administration of any such order. The corporation shall retain an
amount equal to the expenses incurred by the corporation in performing
its duties pursuant to this section and reimburse the department an
amount equal to the expenses incurred by the department in supplying
such services, subsequent to submission and audit of a voucher therefor.
Such reimbursement shall not exceed the total amount of funds collected
by the corporation pursuant to this section less the reasonable expenses
incurred by the corporation in performing its duties pursuant to this
section.
6. Indemnification. The state shall defend, indemnify and hold
harmless the corporation, its directors, officers, and employees, from
and against any and all claims, demands, causes of action, damages,
costs and expenses whatsoever arising directly or indirectly from, or
relating to, the administration of any agricultural, commodities or
aquatic promotion order issued or administered pursuant to this section.
In connection with the foregoing, the corporation shall give the state
(a) prompt written notice of any action, claim or threat of suit, (b)
the opportunity to take over, settle or defend such action, claim or
suit at the state's sole expense, and (c) assistance in the defense of
any such action at the expense of the state.
7. Contractual provisions. The corporation may contract for services
with respect to the implementation of this section in accordance with
the corporation's policies, procedures and guidelines. Notwithstanding
section 2879 of the public authorities law or any other law to the
contrary, any such contract may be procured by the corporation on a
sole-source basis, and shall not be subject to competitive bid or
competitive request for proposal requirements.
* NB Repealed July 1, 2026
* § 16-z. Marketing orders. The marketing orders, the regulatory
provisions relating thereto, set forth in title one of the official
compilation of codes, rules and regulations of the state of New York
parts 40, 200, 201, 202, 203, 204, and 205, and the contracts relating
thereto shall remain in full force and effect until amended or repealed
pursuant to the statutory authority set forth in sections 16-x and 16-y
of this act except that: (a) such marketing orders, the regulatory
provisions relating thereto, and the contracts relating thereto shall be
administered by and under the supervision of the president of the
corporation as of the effective date of sections 16-x and 16-y of this
act; (b) all undisbursed funds under the control of the department of
agriculture and markets shall be transferred to the corporation on or
before such effective date; and (c) any assessments due and payable
under such marketing orders shall be remitted to the corporation
starting 30 days after the effective date of this section.
* NB Repealed July 1, 2026
Life sciences initiatives program. The life sciences
initiatives program is hereby established for the purpose of attracting
new life sciences technologies, to promote critical public and private
sector investment in emerging life sciences fields in New York state,
and to create and expand life sciences related businesses and
employment.
1. Such life sciences initiatives program is designated to operate in
areas identified by the corporation as having significant potential for
economic growth in New York, or in which the application of new life
sciences technologies could significantly enhance the productivity and
stability of New York businesses.
2. Life sciences are defined as advanced and applied sciences that
expand the understanding of human physiology and have the potential to
lead to medical advances or therapeutic applications including, but not
limited to, academic medical centers, agricultural biotechnology,
biogenerics, bioinformatics, biomedical engineering, biopharmaceuticals,
biotechnology, chemical synthesis, chemistry technology, diagnostics,
genomics, image analysis, marine biology, marine technology, medical
devices, nanotechnology, natural product pharmaceuticals, proteomics,
regenerative medicine, RNA interference, stem cell research, clinical
trials, including but not limited to neurological clinical trials and
veterinary science.
3. A life sciences entity is defined as a business corporation,
partnership, firm, unincorporated association, or any other entity
engaged in life sciences research, development, manufacturing or
commercialization.
4. (a) The corporation is authorized, within available appropriations
and consistent with such appropriations in the Life Sciences Initiatives
Program to provide financial support, through an application and
approval process and such funds may be used for the advancement and
economic growth of life sciences programs, employment of staff,
development and facilities or other working capital that are aligned
with the life sciences program strategy and approved by the corporation.
(b) A life sciences entity must submit a completed application as
prescribed by the chief executive officer of the corporation. Life
sciences initiatives entity applications will be accepted, reviewed and
approved on a rolling basis. Life sciences initiatives entity applicants
may include a program or multiple programs in their application. Each
life sciences program applicant shall include information in such
application relating to how its life sciences program initiative will
enhance and accelerate life science programs, research and job creation
and retention within New York.
5. The chief executive officer of the corporation shall, on or before
October first, two thousand eighteen and every year thereafter, submit
to the governor, the temporary president of the senate and the speaker
of the assembly an annual report on the operations and accomplishments
of the life sciences initiatives programs which shall include, but not
be limited to, the economic impact of the activities undertaken with
state funds, the number and amount of federal funds procured after
program approval, including such factors as jobs created and maintained,
the average salary of the jobs created and average salary of jobs
retained.
6. (a) The corporation shall by rule establish criteria for such
program, such criteria shall include detailed provisions for
eligibility.
(b) The corporation shall issue guidelines to effectuate the purpose
of this section.
Community development revolving loan program. 1. Definitions.
As used in this section, the following terms shall have the following
meanings:
(a) "Community development financial institution" means an
organization whose principal office is located in this state, which has
been certified as a community development financial institution by the
federal community development financial institutions fund, as
established pursuant to 12 U.S.C. § 4701, et seq.
(b) "Investment area" means a geographic area which:
(i) Is economically distressed as defined in section sixteen-d of this
act; and
(ii) Has significant unmet needs for loans or is located in a
federally designated empowerment zone or enterprise community as
established pursuant to title XIII of the federal omnibus budget
reconciliation act of 1993 (Public Law 103-66).
(c) "Low income" means having an income, adjusted for family size, of
not more than:
(i) For metropolitan areas, eighty percent of the area median income;
or
(ii) For non-metropolitan areas, the greater of eighty percent of the
area median income or the statewide non-metropolitan area median income.
(d) "Targeted population" means low-income individuals, minority and
women-owned business enterprises, small businesses, microbusinesses,
small farm businesses, community-based not-for-profit corporations, and
such other individuals and entities that otherwise lack adequate access
to loans as the corporation shall establish through guidelines.
(e) "Target market" means a defined service area which serves one or
more investment areas or targeted population.
2. The community development revolving loan program is hereby created
to provide low interest loans or loan guarantees to a target market,
where it is underserved and otherwise difficult to obtain regular bank
financing. Such loans or loan guarantees shall be made by a community
development financial institution and shall be made in target markets to
members of a targeted population for purposes including, but not limited
to, working capital, the acquisition and/or improvement of real
property, the acquisition of machinery and equipment, property or
improvements thereto, residential mortgages, commercial mortgages,
housing rehabilitation, home improvement, and for such other purposes as
the corporation shall establish through guidelines.
3. A community development financial institution desiring to
participate in the program shall execute an agreement in such form as
the corporation may prescribe and shall contain such terms and
provisions as the corporation or its agent may deem as necessary and
appropriate.
4. (a) The corporation is hereby authorized to administer the program
created in subdivision two of this section or, alternatively, to do the
following:
(i) enter into a contract with a third party to act as the agent of
the corporation with respect to the administration of such program,
pursuant to a competitive process;
(ii) conduct an annual review and assessment of the performance of the
third party in its capacity as agent for the corporation to determine
whether the contract referenced in subparagraph (i) of this paragraph
should be renewed for an additional two year period. The review shall be
based on whether the third party agent has satisfactorily met the terms
and conditions of the contract; and
(iii) promulgate rules and regulations with respect to the
implementation of the community development revolving loan program
established by this section and any other rules and regulations
necessary to fulfill the purposes of this section, in accordance with
the state administrative procedure act.
(b) Any contract entered into pursuant to subparagraph (i) of
paragraph (a) of this subdivision shall:
(i) be for a period of two years and shall be renewed for an
additional two year period subject to requirements of subparagraph (ii)
of paragraph (a) of this subdivision; and
(ii) provide for compensation for expenses incurred by the third party
agent in connection with its services as agent and for such other
services as the corporation may deem appropriate including, but not
limited to the use of the premises, personnel and personal property of
the third party agent.
5. The corporation is authorized to establish a revolving loan fund
account into which funds may be received from any source, including but
not limited to, the corporation, financial institutions, insurance
companies, business corporations and from settlements of civil actions
by the department of financial services, and from which funds may be
expended for the aforementioned purposes.
6. With respect to loans pursuant to this program, a community
development financial institution may charge application, commitment and
loan guarantee fees subject to a schedule of fees approved by the
corporation.
7. A community development financial institution participating in the
program shall submit to the corporation, an annual report detailing the
following:
(a) the number of program loans made;
(b) the amount of program funding used for loans;
(c) the use of loan proceeds by the borrower;
(d) the number of jobs created or retained;
(e) a description of the economic development generated;
(f) the status of outstanding program loans; and
(g) such other information as the corporation or its agent shall
require.
8. The corporation may directly or through a third party conduct
audits of a community development financial institution's compliance
with the provisions of this section and any regulations promulgated. In
the event of substantive noncompliance, the corporation may terminate
the participation of such community development financial institution in
the program.
Loans to social and economic equity applicants. The
corporation is authorized, on the recommendation of the state cannabis
control board, to provide low interest or zero-interest loans to
qualified social and economic equity applicants and to provide funds
necessary for the provision of such loans, as provided for in article
four of the cannabis law.
COVID-19 pandemic small business recovery grant program. 1.
Definitions. As used in this section, the following terms shall have the
following meanings:
(a) "Small business" shall mean a business which is resident in this
state, independently owned and operated, not dominant in its field, and
employs one hundred or less persons.
(b) "Micro-business" shall mean a business which is a resident in this
state, independently owned and operated, not dominant in its field, and
employs ten or less persons.
(c) "The program" shall mean the COVID-19 pandemic small business
recovery grant program established pursuant to subdivision two of this
section.
(d) "Applicant" shall mean a small business or for-profit independent
arts and cultural organization submitting an application for a grant
award to the program.
(e) "COVID-19 health and safety protocols" means any restrictions
imposed on the operation of businesses by executive order 202 of 2020
issued by the governor, or any extension or subsequent executive order
issued in response to the novel coronavirus (COVID-19) pandemic, or any
other statute, rule, or regulation imposing restrictions on the
operation of businesses in response to the novel coronavirus (COVID-19)
pandemic.
(f) "For-profit independent arts and cultural organization" shall mean
a small or medium sized private for-profit, independently operated
live-performance venue, promoter, production company, or performance
related business located in New York state negatively impacted by
COVID-19 health and safety protocols, and having one hundred or less
full-time employees, excluding seasonal employees. The qualifying
organizations under this definition may include businesses engaged in a
field including, but not limited to, architecture, dance, design, film,
music, theater, opera, media, literature, museum activities, visual
arts, folk arts and casting.
2. COVID-19 pandemic small business recovery grant program
established. The COVID-19 pandemic small business recovery grant
program is hereby created to provide assistance to small businesses and
for-profit independent arts and cultural organizations who have
experienced economic hardship during the COVID-19 pandemic.
3. Authorization. The corporation is hereby authorized, using
available funds, to issue grants and provide technical assistance and
outreach to small businesses, for-profit independent arts and cultural
organizations, and technical assistance partners for the purpose of
aiding the recovery of the New York state economy, and may promulgate
guidelines or regulations to effectuate the purposes herein.
4. Selection criteria and application process. (a) In order to be
eligible for a grant or additional form of support under the program, an
eligible small business or for-profit independent arts and cultural
organization shall:
(i) Be incorporated in New York state or licensed or registered to do
business in New York state;
(ii) Be a currently viable small business or for-profit independent
arts and cultural organization that has been in operation since before
March 1, 2019;
(iii) Be able to demonstrate lost revenue or other economic hardship
due to the COVID-19 pandemic or compliance with COVID-19 health and
safety protocols which resulted in business modifications,
interruptions, or closures. To demonstrate lost revenue or other
economic hardship, the applicant shall show a loss in year-to-date
revenue as of December 31, 2020, compared with the same period in 2019;
(iv) Be in substantial compliance with applicable federal, state and
local laws, regulations, codes and requirements; and
(v) Not owe any federal, state or local taxes prior to July 15, 2020,
or have an approved repayment, deferral plan, or agreement with
appropriate federal, state and local taxing authorities.
(b) Grants awarded from this program shall be available to eligible
micro-businesses, small businesses, and for-profit independent arts and
cultural organizations that do not qualify for business assistance grant
programs under the federal American Rescue Plan Act of 2021 or any other
available federal COVID-19 economic recovery or business assistance
grant programs, including loans forgiven under the federal Paycheck
Protection Program, or are unable to obtain sufficient business
assistance from such federal programs, with priority given to socially
and economically disadvantaged business owners including, but not
limited to, minority and women-owned business enterprises,
service-disabled veteran-owned businesses, and veteran-owned businesses,
or businesses located in communities that were economically distressed
prior to March 1, 2020, as determined by the most recent census data.
5. Eligible costs. (a) Eligible costs shall be considered for
micro-businesses, small businesses, and for-profit independent arts and
cultural organizations negatively impacted by the COVID-19 pandemic or
by their compliance with COVID-19 health and safety protocols which
resulted in lost revenue, business modifications, interruptions, or
closures. Such eligible costs shall have been incurred between March 1,
2020 and April 1, 2021.
(b) The following costs incurred by a micro-business, small business,
or for-profit independent arts and cultural organization shall be
considered eligible under the program at a minimum: payroll costs; costs
of rent or mortgage as provided for in subparagraph (i) of this
paragraph; costs of repayment of local property or school taxes
associated with such small business's location as provided for in
subparagraph (ii) of this paragraph; insurance costs; utility costs;
costs of personal protection equipment (PPE) necessary to protect worker
and consumer health and safety; heating, ventilation, and air
conditioning (HVAC) costs, or other machinery or equipment costs, or
supplies and materials necessary for compliance with COVID-19 health and
safety protocols, and other documented COVID-19 costs as approved by the
corporation.
(i) Mortgage payments or commercial rent shall be considered eligible
costs.
(ii) Payment of local property taxes and school taxes shall be
considered eligible costs.
(c) Grants awarded under the program shall not be used to re-pay or
pay down any portion of a loan obtained through a federal coronavirus
relief package for business assistance or any New York state business
assistance programs.
6. Application and approval process. (a) An eligible micro-business,
small business, or for-profit independent arts and cultural organization
shall submit a complete application in a form and manner prescribed by
the corporation.
(b) The corporation shall establish the procedures and time period for
micro-businesses, small businesses, or for-profit independent arts and
cultural organizations to submit applications to the program. As part of
the application each micro-business, small business, or for-profit
independent arts and cultural organization shall provide sufficient
documentation in a manner prescribed by the corporation to demonstrate
hardship, and prevent fraud, waste, and abuse.
7. Reporting. The corporation, on a quarterly basis beginning
September 30, 2021, and ending when all program funds are expended,
shall submit a separate and distinct report to the governor, the
temporary president of the senate, and the speaker of the assembly
setting forth the activities undertaken by the program. Such quarterly
report shall include, but need not be limited to: the number of
applicants and their county locations; the number of applicants approved
by the program and their county location; the total amount of grants
awarded, and the average amount of such grants awarded; and such other
information as the corporation determines necessary and appropriate.
Such report shall be included on the corporation's website and any other
publicly accessible state database that list economic development
programs, as determined by the commissioner.
8. Technical assistance and outreach. The corporation may offer or
make available to all applicants, regardless of approval status, direct
or indirect access to financial and business planning, legal
consultation, language assistance services, mentoring services for
post-pandemic planning, reopening planning assistance and other
assistance and support as determined by the corporation. Assistance,
support, outreach and other services may be provided by or through
partner organizations, including but not limited to chambers of
commerce, local business development corporations, trade associations
and other community organizations that have expertise and background in
providing technical assistance, at the discretion of the corporation.
* § 16-gg. Small business seed funding grant program. 1. Definitions.
As used in this section, the following terms shall have the following
meanings:
(a) "Small business" shall mean a business which is resident in this
state, independently owned and operated, not dominant in its field, and
employs one hundred or less persons, was started on September 1, 2018 or
later and has been operational for a minimum of six months prior to
application.
(b) "Micro-business" shall mean a business which is a resident in this
state, independently owned and operated, not dominant in its field, and
employs ten or less persons.
(c) "The program" shall mean the small business seed funding grant
program established pursuant to subdivision two of this section.
(d) "Applicant" shall mean a micro-business, small business, or
for-profit independent arts and cultural organization, including
independent arts contractors submitting an application for a grant award
to the program.
(e) "For-profit independent arts and cultural organization" shall mean
a small or medium sized private for-profit, independently operated
live-performance venue, promoter, production company, or performance
related business, including independent arts contractors, located in New
York state negatively impacted by COVID-19 health and safety protocols,
and having one hundred or less full-time employees, excluding seasonal
employees.
2. Small business seed funding grant program established. The small
business seed funding grant program is hereby created to provide
assistance to early-stage small businesses to succeed in a recovering
New York state economy.
3. Authorization. The corporation is hereby authorized, using
available funds, to issue grants and provide technical assistance and
outreach to micro-businesses, small businesses, for-profit arts and
cultural organizations including independent arts contractors and
technical assistance partners for the purpose of aiding the recovery of
the New York state economy, and may promulgate guidelines to effectuate
the purposes herein.
4. Selection criteria and application process. (a) In order to be
eligible for a grant or additional form of support under the program, an
eligible small business shall:
(i) be incorporated in New York state or licensed or registered to do
business in New York state and must be resident in the state of New
York;
(ii) be a currently viable micro-business, small business, for-profit
arts and cultural organization including independent arts contractors
that started business on September 1, 2018 or later and has been
operational for at least six months before an application is submitted;
(iii) have between five thousand and one million dollars in gross
receipts or be able to demonstrate five thousand dollars in business
expenses;
(iv) be in substantial compliance with applicable federal, state and
local laws, regulations, codes and requirements; and
(v) not owe any federal, state or local taxes, or have an approved
repayment, deferral plan, or agreement with appropriate federal, state,
and local taxing authorities.
(b) (i) Grants awarded from this program shall be available to
eligible micro-businesses, small businesses, and for-profit arts and
cultural organizations including independent arts contractors that do
not qualify for business assistance grant programs under the federal
American Rescue Plan Act of 2021 or any other available federal COVID-19
economic recovery or business assistance grant programs, including loans
forgiven under the federal Paycheck Protection Program, or are unable to
obtain sufficient business assistance from such federal programs, with
priority given to socially and economically disadvantaged business
owners including, but not limited to, minority and women-owned business
enterprises, service-disabled veteran-owned businesses, and
veteran-owned businesses, or businesses located in communities that were
economically distressed prior to March 1, 2020, as determined by the
most recent census data.
(ii) Grants awarded from this program shall be available to eligible
micro-businesses, small businesses and for-profit arts and cultural
organizations including independent arts contractors that did not
qualify for business assistance under the COVID-19 pandemic small
business recovery grant program as provided for in section sixteen-ff of
this act.
5. Eligible costs. (a) Eligible costs considered for micro-businesses
and small businesses under this program must have been incurred between
September 1, 2018 and January 1, 2022.
(b) (i) The following costs incurred by a micro-business, small
business, and for-profit arts and cultural organization including
independent arts contractors shall be considered eligible under the
program at a minimum: payroll costs; costs of rent or mortgage as
provided for in subparagraph (ii) of this paragraph; costs of repayment
of local property or school taxes associated with such small business's
location as provided for in subparagraph (iii) of this paragraph;
insurance costs; utility costs; costs of personal protection equipment
(PPE) necessary to protect worker and consumer health and safety;
heating, ventilation, and air conditioning (HVAC) costs, or other
machinery or equipment costs, or supplies and materials necessary for
compliance with COVID-19 health and safety protocols, and other
documented COVID-19 costs as approved by the corporation.
(ii) Mortgage payments or commercial rent shall be considered eligible
costs.
(iii) Payment of local property taxes and school taxes shall be
considered eligible costs.
(c) Grants awarded under the program shall not be used to re-pay or
pay down any portion of a loan obtained through a federal coronavirus
relief package for business assistance or any New York state business
assistance programs.
6. Application and approval process. (a) An eligible micro-business,
small business, or for-profit arts and cultural organization including
independent arts contractors shall submit a complete application in a
form and manner prescribed by the corporation.
(b) The corporation shall establish the procedures and time period for
micro-businesses, small businesses, or for-profit arts and cultural
organizations including independent arts contractors to submit
applications to the program. As part of the application each
micro-business, small business, or for-profit arts and cultural
organization including independent arts contractors shall provide
sufficient documentation in a manner prescribed by the corporation to
demonstrate hardship, and prevent fraud, waste, and abuse.
7. Technical assistance and outreach. The corporation may offer or
make available to all applicants, regardless of approval status, direct
or indirect access to financial and business planning, legal
consultation, language assistance services, mentoring services for
post-pandemic planning, reopening planning assistance and other
assistance and support as determined by the corporation. Assistance,
support, outreach and other services may be provided by or through
partner organizations, including but not limited to chambers of
commerce, local business development corporations, trade associations
and other community organizations that have expertise and background in
providing technical assistance, at the discretion of the corporation.
8. Reporting. The corporation, on a quarterly basis beginning
September 30, 2022, and ending when all program funds are expended,
shall submit a separate and distinct report to the governor, the
temporary president of the senate, and the speaker of the assembly
setting forth the activities undertaken by the program. Such quarterly
report shall include, but need not be limited to: the number of
applicants and their county locations; the number of applicants approved
by the program and their county location; the total amount of grants
awarded, and the average amount of such grants awarded; and such other
information as the corporation determines necessary and appropriate.
Such report shall be included on the corporation's website and any other
publicly accessible state database that list economic development
programs, as determined by the commissioner. Such reporting may be
incorporated as part of any reporting required under section sixteen-ff
of this act.
* NB There are 2 § 16-gg's
* § 16-hh. Small business and entrepreneurs grant program. 1. The
corporation shall establish and support, within available
appropriations, the small business and entrepreneurs grant program, as a
two-year pilot initiative of the corporation, to award grants of up to
twenty-five thousand dollars, but no less than five thousand dollars, to
entrepreneurs and small business owners to cover start up costs of a new
small business, or to support or expand an existing small business in
New York state. The corporation shall establish criteria for selection
and designation of awardees which shall include, without limitation, the
following requirements:
(a) any applicant for a grant under this program shall have
successfully completed a training program at an entrepreneurship
assistance center established pursuant to section 211 of the economic
development law;
(b) an entrepreneur or small business owner shall not be eligible for
more than one award under this program for the same small business; and
(c) the recipient of the grant shall agree to maintain the operations
of the small business for which the grant was approved physically
located in the state for at least two years after receipt of the grant,
to the extent the business remains operational. Provided however that if
within two years of receiving the grant, such business is found to have
moved its operations outside the state, the department may seek to
recapture the funds or a portion thereof.
2. The corporation may promulgate guidelines necessary to effectuate
the purposes of this section including, but not limited to, guidelines
setting forth procedures for submission and processing of grant
applications.
* NB Repealed July 2, 2025
Empire AI consortium reports. Beginning May first, two
thousand twenty-seven, and annually thereafter, the corporation shall
prepare and publish on its website, an annual report on the empire AI
research institute at the university of Buffalo. Such report shall
include but not be limited to: detail on achieving the goals and mission
of the empire AI research institute at the university of Buffalo, a
summary of the state investment into the empire AI research institute at
the university of Buffalo, the leveraged investment, job creation
impact, the total investment, total funding disbursed by the corporation
to date, the names of the private sector and academic partners that
participate in the empire AI research institute at the university of
Buffalo and affirmation that any and all academic partners are
recognized by the board of regents as defined in section two hundred two
of the education law, a list of research areas of focus, an accounting
of the total number of small businesses provided access to the
supercomputing equipment, an assessment of whether or not the contract
awardee, via the corporation, is in compliance with the terms and
conditions of the contract with regard to the empire AI research
institute at the university of Buffalo, an articulation of any
additional state benefits for empire state development projects as
defined in paragraph (a-3) of subdivision one of section fifty-eight of
this chapter. Additionally, in all years in which the institute is fully
operational, such report shall include noteworthy projects or
innovations which serve to highlight the developments occurring in New
York state as a result of the project.
Bonds and notes of the corporation. (1) Subject to the
provisions of section eighteen of this act, the corporation shall have
the power and is hereby authorized from time to time to issue its
negotiable bonds and notes in conformity with applicable provisions of
the uniform commercial code in such principal amounts, as, in the
opinion of the corporation, shall be necessary to provide sufficient
funds for achieving any of its corporate purposes, including the payment
of interest on bonds and notes of the corporation, establishment of
reserves to secure such bonds and notes, and all other expenditures of
the corporation incident to and necessary or convenient to carry out its
corporate purposes and powers.
(2) All bonds and notes issued by the corporation may be secured by
the full faith and credit of the corporation or may be payable solely
out of the revenues and receipts derived from the lease, mortgage or
sale by the corporation of its projects or of any thereof, all as may be
designated in the proceedings of the corporation under which the bonds
or notes shall be authorized to be issued. Such bonds and notes may be
executed and delivered by the corporation at any time and from time to
time, may be in such form and denominations and of such tenor and
maturities, may be in bearer form or in registered form, as to principal
and interest or as to principal alone, all as the corporation may
determine.
(3) Bonds may be payable in such installments and at such time or
times not exceeding fifty years from the date thereof, as shall be
determined by the corporation.
(4) Notes, or any renewals thereof, may be payable in such
installments and at such time or times as shall be determined by the
corporation, not exceeding ten years from the date of the original issue
of such notes.
(5) Bonds and notes may be payable at such place or places whether
within or without the state, may bear interest at such rate or rates
payable at such time or times and at such place or places and evidenced
in such manner, and may contain such provisions not inconsistent
herewith, all as shall be provided in the proceedings of the corporation
under which the bonds or notes shall be authorized to be issued.
(6) If deemed advisable by the corporation, there may be retained in
the proceedings under which any bonds or notes of the corporation are
authorized to be issued an option to redeem all or any part thereof as
may be specified in such proceedings, at such price or prices and after
such notice or notices and on such terms and conditions as may be set
forth in such proceedings and as may be recited in the face of the bonds
or notes, but nothing herein contained shall be construed to confer on
the corporation any right or option to redeem any bonds or notes except
as may be provided in the proceedings under which they shall be issued.
(7) Any bonds or notes of the corporation may be sold at such price or
prices, at public or private sale, in such manner and from time to time
as may be determined by the corporation, and the corporation may pay all
expenses, premiums and commissions which it may deem necessary or
advantageous in connection with the issuance and sale thereof. No bonds
or notes of the corporation may be sold at private sale, however, unless
such sale and the terms thereof have been approved in writing by (a) the
comptroller where such sale is not to the comptroller, or (b) the state
director of the budget, where such sale is to the comptroller.
(8) Any moneys of the corporation, including proceeds from the sale of
any bonds or notes, and revenues, reciepts and income from any of its
projects or mortgages, may be invested and reinvested in such
obligations, securities and other investments as shall be provided in
the resolution or resolutions under which such bonds or notes are
authorized.
(9) Issuance by the corporation of one or more series of bonds or
notes for one or more purposes shall not preclude it from issuing other
bonds or notes in connection with the same project or any other project,
but the proceedings whereunder any subsequent bonds or notes may be
issued shall recognize and protect any prior pledge or mortgage made for
any prior issue of bonds or notes unless in the proceedings authorizing
such prior issue the right is reserved to issue subsequent bonds or
notes on a parity with such prior issue.
(10) The corporation is authorized to provide for the issuance of its
bonds or notes for the purpose of refunding any bonds or notes of the
corporation then outstanding, including the payment of any redemption
premium thereon and any interest accrued or to accrue to the earliest or
subsequent date of redemption, purchase or maturity of such bonds or
notes, and, if deemed advisable by the corporation, for the additional
purpose of paying all or any part of the cost of acquiring,
constructing, reconstructing, rehabilitating, or improving any project,
or the making of any mortgage loan on any project. The proceeds of any
such bonds or notes issued for the purpose of refunding outstanding
bonds or notes, may, in the discretion of the corporation, be applied to
the purchase or retirement at maturity or redemption of such outstanding
bonds or notes either on their earliest or any subsequent redemption
date, and may, pending such application, be placed in escrow to be
applied to such purchase or retirement at maturity or redemption on such
date as may be determined by the corporation. Any such escrowed
proceeds, pending such use, may be invested and reinvested in
obligations of or guaranteed by the United States of America, or in
certificates of deposit or time deposits secured in such manner as the
corporation shall determine, maturing at such time or times as shall be
appropriate to assure the prompt payment, as to principal, interest and
redemption premium, if any, on the outstanding bonds or notes to be so
refunded. The interest, income and profits, if any, earned or realized
on any such investment may also be applied to the payment of the
outstanding bonds or notes to be so refunded. After the terms of the
escrow have been fully satisfied and carried out, any balance of such
proceeds and interest, income and profits, if any, earned or realized on
the investments thereof may be returned to the corporation for use by it
in any lawful manner. The portion of the proceeds of any such bonds or
notes issued for the additional purpose of paying all or any part of the
cost of acquiring, constructing, reconstructing, rehabilitating, or
improving any project, or the making of any mortgage loan on any
project, may be invested and reinvested in obligations of or guaranteed
by the United States of America, maturing not later than the time or
times when such proceeds will be needed for the purpose of paying all or
any part of such cost, or the making of any such mortgage loan. The
interest, income and profits, if any, earned or realized on such
investments may be applied to the payment of all or any part of such
cost, or the making of any such mortgage loan, or may be used by the
corporation in any lawful manner. All such bonds or notes shall be
issued and secured and shall be subject to the provisions of this act in
the same manner and to the same extent as any other bonds or notes
issued pursuant to this act.
Bond authorization. The corporation shall not issue bonds and
notes in an aggregate principal amount exceeding one billion two hundred
ninety-five million dollars, excluding (1) bonds and notes issued to
refund or otherwise repay outstanding bonds and notes of the corporation
or of the New York state project finance agency, (2) notes issued by the
corporation to evidence eligible loans made to the corporation pursuant
to the New York state project finance agency act, and (3) bonds and
notes issued with the approval of the state director of the budget and
the New York state public authorities control board which are secured by
and payable solely out of a specific project, other than a residential
project, undertaken by the corporation subsequent to June first,
nineteen hundred seventy-seven, and the revenues and receipts derived
therefrom, without recourse against other assets of the corporation or
against a debt service reserve fund to which state funds are
apportionable pursuant to subdivision three of section twenty of this
act, provided that the corporation shall not issue bonds or notes
pursuant to this clause (3) if (a) (i) the arrangements under which the
project is undertaken do not provide for annual real property taxes, or
payments in lieu of real property taxes, on the real property included
in the project securing such bonds or notes which together at least
equal the average annual real property taxes which were paid with
respect to such real property for three years prior to the acquisition
of such project or any portion thereof by the corporation or a
subsidiary thereof, and (ii) after a public hearing, the local
legislative body of the city, town or village in which such project is
to be located has not consented to such arrangements, provided, however,
that in a city having a population of one million or more such consent
shall be given by the board of estimate of such city, or (b) the
aggregate principal amount of any such bonds and notes is less than
twice the amount of any moneys appropriated by the state and made
available by the corporation to the project securing such bonds and
notes, or (c) the aggregate principal amount of the bonds and notes
issued pursuant to this clause (3) will thereby exceed three hundred
seventy-nine million dollars, excluding bonds and notes issued to refund
or otherwise repay outstanding bonds and notes issued pursuant to this
clause (3), provided, however, that the corporation may provide for a
pooled financing arrangement with regard to bonds issued for the
purposes of financing the construction of the Center for Computers,
Microelectronics and Telecommunications at Columbia University, the
Center for Science and Technology at Syracuse University, the Cornell
Super Computer Center at Cornell University, the Onondaga County
Convention Center Complex, the Center for Advanced Materials Processing
at Clarkson University, the Center for Electro-Optic Imaging at
University of Rochester, the Center for Neural Science at New York
University, the Alfred University Incubator Facilities in Allegany
County and Steuben County, the Broadway Redevelopment Project, and the
Sematech Semiconductor facility, and, that the aggregate amount of bonds
which may be issued pursuant to this clause (3) shall be increased above
the amounts in the following schedule for the purposes of providing for
the costs of issuance including any debt service reserve requirements
that may be necessary in accordance with the following schedule:
Schedule
Project Amount
The Carborundum Company
Niagara Falls............................ 4,400,000
Hooker Chemicals & Plastics Corporation
Niagara Falls............................ 13,500,000
Moog, Inc.
Town of Elma............................. 8,925,000
Sybron Corporation
Rochester................................ 6,600,000
Refined Syrups & Sugars, Inc.
Yonkers.................................. 7,500,000
Sheraton Hotel
Utica.................................... 4,300,000
Urban Renewal Parcel
Office Building
Utica.................................... 5,000,000
Downtown Retail Center
Binghamton............................... 3,000,000
American Stock Exchange/Office Facility
New York City............................ -0
New Printing Plant
New York City (Bronx).................... 16,000,000
New Electronics Manufacturing Plant
New York City (Bronx).................... 8,000,000
Savin Corporation
Binghamton............................... 6,000,000
Industrial Renewal Project
New York City (Brooklyn)................. 2,700,000
Manufacturing Plant Expansion
New York City (Bronx).................... 15,000,000
Shopping Mall
City of Buffalo.......................... 2,100,000
Nettleton Shoe
Syracuse................................. 2,200,000
Batten Kill Railroad Project
Warren/Washington Counties............... 2,250,000
Carrier Corporation
Onondaga County.......................... 27,000,000
Center for Industrial Innovation
City of Troy............................. 33,000,000
Fordham Plaza
New York City (Bronx).................... 10,000,000
Freezer Queen Foods, Inc.
Buffalo.................................. 2,380,000
Chelsea Homes Project
Marlboro (Ulster County)................. 2,700,000
Columbia University
Center for Computers, Microelectronics
and Telecommunications
City of New York......................... 36,000,000
Syracuse University
Center for Science and Technology
City of Syracuse......................... 27,000,000
Cornell University
Cornell Super Computer Center
City of Ithaca........................... 5,000,000
Onondaga County Convention
Center Complex at Syracuse............... 40,000,000
Clarkson University
Center for Advance
Materials Processing..................... 23,500,000
University of Rochester
Center for Elector-Optic Imaging......... 10,000,000
New York University
Center for Neural Science................ 5,000,000
Alfred University Incubator Facilities in
Allegany County and Steuben County....... 10,000,000
Broadway Redevelopment Project
at Schenectady........................... 5,500,000
Albany International
East Greenbush (Rensselaer County)....... 2,500,000
Sematech Semi-Conductor Facility
New York State........................... 40,000,000
Stony Brook Incubator
Project.................................. 2,305,000
-----------
Total of Schedule...................... $389,360,000
============
The amounts in the above schedule are interchangeable among the
projects listed but in no case may be used to fund or initiate any other
project.
Security for bonds or notes; construction and acquisition of
projects. (1) The principal of and interest on any bonds or notes issued
by the corporation may be secured by a pledge of any revenues and
receipts of the corporation and may be secured by a mortgage or other
instrument covering all or any part of a project, including any
additions, improvements, extensions to or enlargements of any projects
thereafter made.
(2) Bonds or notes issued for the acquisition, construction,
reconstruction, rehabilitation, or improvement of a project may also be
secured by an assignment of any lease of or mortgage on such project and
by an assignment of the revenues and receipts derived by the corporation
from any such lease or mortgage.
(3) The resolution under which the bonds or notes are authorized to be
issued and any such mortgage, lease or other instrument may contain
agreements and provisions respecting the maintenance of the projects
covered thereby, the fixing and collection of rents or other revenues
therefrom, including monies received in repayment of mortgage loans, and
interest thereon, the creation and maintenance of special funds from
such rents or other revenues and the rights and remedies available in
the event of default, all as the corporation shall deem advisable.
(4) Each pledge, agreement, mortgage or other instrument made for the
benefit or security of any of the bonds or notes of the corporation
shall continue effective until the principal of and interest on the
bonds or notes for the benefit of which the same were made shall have
been fully paid, or until provision shall have been made for such
payment in the manner provided in the resolution or resolutions under
which the same may be authorized.
(5) The corporation may provide in any proceedings under which bonds
or notes may be authorized that any project or part thereof may be
constructed, reconstructed, rehabilitated or improved by the
corporation, any subsidiary, or any lessee or any designee of the
corporation, and may also provide in such proceedings for the time and
manner of and requisites for disbursements to be made for the cost of
such construction, and for all such certificates and approvals of
construction and disbursements as the corporation shall deem necessary
and provide for in such proceedings.
(6) Any resolution or resolutions or trust indenture or indentures
under which bonds or notes of the corporation are authorized to be
issued may contain provisions for vesting in a trustee or trustees such
properties, rights, powers and duties in trust as the corporation may
determine which may include any or all of the rights, powers and duties
of the trustee appointed by the holders of any issue of notes or bonds
pursuant to section twenty-seven of this act, in which event the
provisions of said section twenty-seven authorizing the appointment of a
trustee by such holders of bonds or notes shall not apply.
(7) It is the intention hereof that any pledge or assignment for
security made by the corporation shall be valid and binding from the
time when the same is made; that the monies or property so pledged or
assigned and then held or thereafter received by the corporation shall
immediately be subject to the lien or security interest of such pledge
or assignment without any physical delivery thereof or further act; and
that the lien or security interest of any such pledge or assignment
shall be valid and binding as against all parties having claims of any
kind in tort, contract or otherwise against the corporation,
irrespective of whether such parties have notice thereof. Neither the
resolution nor any other instrument by which any such pledge or
assignment is created need be recorded, and no filing with respect to
such pledge or assignment need be made under the uniform commercial
code.
Reserve funds and appropriations. (1) The corporation may create
and establish one or more reserve funds to be known as debt service
reserve funds and may pay into such reserve funds (a) any moneys
appropriated and made available by the state for the purposes of such
funds, (b) any proceeds of sale of bonds and notes to the extent
provided in the resolution of the corporation authorizing the issuance
thereof, and (c) any other moneys which may be made available to the
corporation for the purposes of such funds from any other source or
sources. The moneys held in or credited to any debt service reserve fund
established under this subdivision, except as hereinafter provided,
shall be used solely for the payment of the principal of bonds of the
corporation secured by such reserve fund, as the same mature, the
purchase of such bonds of the corporation, the payment of interest on
such bonds of the corporation or the payment of any redemption premium
required to be paid when such bonds are redeemed prior to maturity;
provided, however, that moneys in any such fund shall not be withdrawn
therefrom at any time in such amount as would reduce the amount of such
fund to less than the maximum amount of principal and interest maturing
and becoming due in any succeeding calendar year on the bonds of the
corporation then outstanding and secured by such reserve fund, except
for the purpose of paying principal and interest on the bonds of the
corporation secured by such reserve fund maturing and becoming due and
for the payment of which other moneys of the corporation are not
available. Any income or interest earned by, or increment to, any such
debt service reserve fund due to the investment thereof may be
transferred to any other fund or account of the corporation to the
extent it does not reduce the amount of such debt service reserve fund
below the maximum amount of principal and interest maturing and becoming
due in any succeeding calendar year on all bonds of the corporation then
outstanding and secured by such reserve fund.
(2) The corporation shall not issue bonds at any time if the maximum
amount of principal and interest maturing and becoming due in a
succeeding calendar year on the bonds outstanding and then to be issued
and secured by a debt service reserve fund will exceed the amount of
such reserve fund at the time of issuance, unless the corporation, at
the time of issuance of such bonds, shall deposit in such reserve fund
from the proceeds of the bonds so to be issued, or otherwise, an amount
which together with the amount then in such reserve fund, will be not
less than the maximum amount of principal and interest maturing and
becoming due in any succeeding calendar year on the bonds then to be
issued and on all other bonds of the corporation then outstanding and
secured by such reserve fund.
(3) To assure the continued operation and solvency of the corporation
for the carrying out of the public purposes of this act provision is
made in subdivision one of this section for the accumulation in each
debt service reserve fund of an amount equal to the maximum amount of
principal and interest maturing and becoming due in any succeeding
calendar year on all bonds of the corporation then outstanding and
secured by such reserve fund. In order further to assure the maintenance
of such debt service reserve funds, there shall be annually apportioned
and paid to the corporation for deposit in each debt service reserve
fund such sum, if any, as shall be certified by the chairman of the
corporation to the governor and state director of the budget as
necessary to restore such reserve fund to an amount equal to the maximum
amount of principal and interest maturing and becoming due in any
succeeding calendar year on the bonds of the corporation then
outstanding and secured by such reserve fund. The chairman of the
corporation shall annually, on or before December first, make and
deliver to the governor and state director of the budget his certificate
stating the sum, if any, required to restore each such debt service
reserve fund to the amount aforesaid, and the sum or sums so certified,
if any, shall be apportioned and paid to the corporation during the then
current state fiscal year.
(4) In computing any debt service reserve fund for the purposes of
this section, securities in which all or a portion of such reserve fund
shall be invested shall be valued at par, or if purchased at less than
par, at their cost to the corporation.
(5) With respect to any project, the corporation may create and
establish a special fund to be known as the project reserve fund and
deposit therein (a) any moneys appropriated and made available by the
state for the purposes of such fund, (b) such amount as may be
determined by the corporation in connection with any lease by the
corporation to others to be charged to such lessee for deposit in such
fund, and (c) any other moneys which may be made available to the
corporation for the purpose of such fund from any other source or
sources. All moneys held in or credited to any project reserve fund
shall be first used for the payment of the principal of and interest on
the bonds or notes of the corporation issued for the project secured by
such project reserve fund in the event that other moneys of the
corporation, other than moneys held in the debt service reserve fund,
are not available for such purpose. Upon the retirement of the bonds or
notes of the corporation issued for the project secured by such project
reserve fund, moneys so held in such fund may be used by the corporation
for any lawful purpose.
Trust funds. All moneys received pursuant to the authority of
this act, whether as proceeds from the sale of bonds or notes or as
revenues, receipts or income, shall be deemed to be trust funds to be
held and applied solely as provided in the proceedings under which such
bonds or notes are authorized. Any officer with whom or any bank or
trust company with which such moneys shall be deposited as trustee
thereof shall hold and apply the same for the purposes thereof, subject
to such provisions as this act and the proceedings authorizing the bonds
or notes of any issue or the trust agreement securing such bonds or
notes may provide.
Exemption from taxation. The exercise of the powers granted by
this act will be in all respects for the benefit of the people of this
state, for the increase of their commerce, welfare and prosperity, and
for the improvement of their health and living conditions, and will
constitute the performance of an essential governmental function and the
corporation and its subsidiaries shall not be required to pay any taxes,
other than assessments for local improvements, upon or in respect of a
project or of any property or moneys of the corporation or any of its
subsidiaries, levied by any municipality or political subdivision of the
state, nor shall the corporation or its subsidiaries be required to pay
state taxes of any kind, and the corporation, its subsidiaries,
projects, property and moneys and, except for estate and gift taxes and
taxes on transfers, any bonds or notes issued under the provisions of
this act and the income therefrom, shall at all times be free from
taxation of every kind by the state and by the municipalities and all
other political subdivisions of the state.
Notes and bonds as legal investments. The notes and bonds of the
corporation are hereby made securities in which all public officers and
bodies of this state and all municipalities and municipal subdivisions,
all insurance companies and associations, and other persons carrying on
an insurance business, all banks, bankers, trust companies, savings
banks and savings associations, including savings and loan associations,
building and loan associations, investment companies and other persons
carrying on a banking business, all administrators, guardians,
executors, trustees and other fiduciaries, and all other persons
whatsoever who are now or may hereafter be authorized to invest in bonds
or other obligations of the state, may properly and legally invest
funds, including capital, in their control or belonging to them.
Agreement with the state. The state does hereby pledge to and
agree with the holders of any bonds or notes issued under this act, that
the state will not limit or alter the rights hereby vested in the
corporation to fulfill the terms of any agreements made with the holders
thereof, or in any way impair the rights and remedies of such holders
until such bonds or notes, together with the interest thereon, with
interest on any unpaid installments of interest, and all costs and
expenses in connection with any action or proceeding by or on behalf of
such holders, are fully met and discharged. The corporation is
authorized to include this pledge and agreement of the state in any
agreement with the holders of such bonds or notes.
State's right to require redemption of bonds. Notwithstanding
and in addition to any provisions for the redemption of bonds which may
be contained in any contract with the holders of the bonds, the state
may, upon furnishing sufficient funds therefor, require the corporation
to redeem, prior to maturity, as a whole, any issue of bonds on any
interest payment date not less than twenty years after the date of the
bonds of such issue at one hundred five per centum of their face value
and accrued interest or at such lower redemption price as may be
provided in the bonds in case of the redemption thereof as a whole on
the redemption date. Notice of such redemption shall be published at
least twice in at least two newspapers publishing and circulating
respectively in the cities of Albany and New York, the first publication
to be at least thirty days before the date of redemption. The provisions
of this section relating to the state's right to require redemption of
bonds shall not apply to state-supported debt, as defined by section
67-a of the state finance law, issued by the corporation. Such
corporation bonds shall remain subject to redemption pursuant to any
contract with the holders of such bonds.
State payments to municipalities and political subdivisions. In
order to prevent undue loss of revenues to municipalities and political
subdivisions, there shall be annually apportioned and paid by the state,
during the then current state fiscal year, to any municipality or
political subdivision in which an industrial project is located, a sum
equal to one hundred per centum of the average annual real property
taxes paid or due to such municipality or political subdivision on the
real property constituting the project site for three years prior to the
time of its acquisition by the corporation or subsidiary thereof, or in
the case of real property acquired by the corporation from an urban
renewal agency or from a municipality which acquired such property for
urban renewal purposes, for three years prior to the time of its
acquisition by such urban renewal agency or municipality. The chairman
of the corporation shall annually, on or before December first, make and
deliver to the governor and director of the budget his certificate
stating the sum, if any, required to be paid to each municipality and
political subdivision by reason of tax exemptions for industrial
projects received pursuant to section twenty-two of this act, and the
sum or sums so certified, if any, shall be apportioned and paid to each
such municipality and political subdivision, as provided herein. Such
apportionment and payment shall also be made to each municipality and
political subdivision in which is located real property of the
corporation as to which no project findings have been made by the
corporation, pursuant to section ten hereof, and the chairman of the
corporation shall certify the sums required to be paid in respect of
such real property, and the state shall apportion and pay such sums, if
any, in the manner provided herein.
Remedies of noteholders and bondholders. (1) In the event that
the corporation shall default in the payment of principal of or interest
on any issue of notes or bonds after the same shall become due, whether
at maturity or upon call for redemption, and such default shall continue
for a period of thirty days, or in the event that the corporation shall
fail or refuse to comply with the provisions of this act, or shall
default in any agreement made with the holders of any issue of notes or
bonds, the holders of twenty-five per centum in aggregate principal
amount of the notes or bonds of such issue then outstanding, by
instrument or instruments filed in the office of the clerk of the county
of Albany and approved or acknowledged in the same manner as a deed to
be recorded, may appoint a trustee to represent the holders of such
notes or bonds for the purposes herein provided.
(2) Such trustee may, and upon written request of the holders of
twenty-five per centum in principal amount of such notes or bonds then
outstanding shall, in his or its own name:
(a) by suit, action or proceeding in accordance with the civil
practice law and rules, enforce all rights of the noteholders or
bondholders, to require the corporation to carry out any other
agreements with the holders of such notes or bonds and to perform its
duties under this act;
(b) bring suit upon such notes or bonds;
(c) by action or suit, require the corporation to account as if it
were the trustee of an express trust for the holders of such notes or
bonds;
(d) by action or suit, enjoin any acts or things which may be unlawful
or in violation of the rights of the holders of such notes or bonds;
(e) declare all such notes or bonds due and payable, and if all
defaults shall be made good, then, with the consent of the holders of
twenty-five per centum of the principal amount of such notes or bonds
then outstanding, to annul such declaration and its consequences.
(3) Such trustee shall in addition to the foregoing have and possess
all of the powers necessary or appropriate for the exercise of any
functions specifically set forth herein or incident to the general
representation of bondholders or noteholders in the enforcement and
protection of their rights.
(4) The supreme court shall have jurisdiction of any suit, action or
proceeding by the trustee on behalf of such noteholders or bondholders.
The venue of any such suit, action or proceeding shall be laid in the
county in which the principal office of the corporation is located.
(5) Before declaring the principal of notes or bonds due and payable,
the trustee shall first give thirty days notice in writing to the
governor, to the corporation, and to the attorney general of the state.
Monies of the corporation. (1) All monies of the corporation,
except as otherwise authorized or provided in this act, shall be paid to
the commissioner of taxation and finance as agent of the corporation,
who shall not commingle such monies with any other monies. Such monies
shall be deposited in a separate bank account or accounts. The monies in
such accounts shall be paid out on checks signed by the commissioner of
taxation and finance on requisition of the chairman of the corporation
or of such other officer or employee or officers or employees as the
corporation shall authorize to make such requisition. All deposits of
such monies shall, if required by the commissioner of taxation and
finance or the corporation, be secured by obligations of the United
States or of the state of a market value equal at all times to the
amount of the deposit, and all banks and trust companies are authorized
to give such security for such deposits.
Notwithstanding the provisions of this section, the corporation shall
have power to contract with the holders of any of its notes or bonds, as
to the custody, collection, securing, investment, and payment of any
monies of the corporation, of any monies held in trust or otherwise for
the payment of notes or bonds, and to carry out such contract. Monies
held in trust or otherwise for the payment of notes or bonds or in any
way to secure notes or bonds and deposits of such monies may be secured
in the same manner as monies of the corporation, and all banks and trust
companies are authorized to give such security for such deposits.
(2) Subject to agreements with noteholders and bondholders and the
approval of the comptroller, the corporation shall prescribe a system of
accounts.
(3) The comptroller, or his legally authorized representative, is
hereby authorized and empowered from time to time to examine the books
and accounts of the corporation including its receipts, disbursements,
contracts, reserve funds, sinking funds, investments, and any other
matters relating to its financial standing. Such an examination shall be
conducted by the comptroller at least once in every five years; the
comptroller is authorized, however, to accept from the corporation, in
lieu of such an examination, an external examination of its books and
accounts made at the request of the corporation.
(4) The corporation shall submit to the governor, chairman of the
senate finance committee, chairman of the assembly ways and means
committee and the comptroller, within thirty days of the receipt thereof
by the corporation, a copy of the report of every external examination
of the books and accounts of the corporation other than copies of the
reports of such examinations made by the comptroller.
Assistance by state officers, departments, boards and
commissions. (1) The department of audit and control, department of law,
and all other state agencies may render such services to the corporation
within their respective functions as may be requested by the
corporation.
(2) Upon request of the corporation, any state agency is hereby
authorized and empowered to transfer to the corporation such officers
and employees as it may deem necessary from time to time to assist the
corporation in carrying out its functions and duties under this act.
Officers and employees so transferred shall not lose their civil service
status or rights.
(3) In order most effectively to carry out its corporate purposes, the
corporation shall assist and cooperate with the corporation for urban
development and research of New York, created by the New York state
urban development and research act.
Reports and evaluations. (a) Annual fiscal report. The
corporation shall submit to the governor, the chairman of the senate
finance committee, the chairman of the assembly ways and means
committee, the comptroller and the director of the budget within 6
months after the end of its fiscal year, a complete and detailed report
setting forth: (1) its operations and accomplishments; (2) its receipts
and expenditures during such fiscal year in accordance with the
categories or classifications established by the corporation for its
operating and capital outlay purposes, including a listing of all
private consultants engaged by the corporation on a contract basis and a
statement of the total amount paid to each such private consultant; (3)
its assets and liabilities at the end of its fiscal year, including a
schedule of its leases and mortgages and the status of reserve, special
or other funds; and (4) a schedule of its bonds and notes outstanding at
the end of its fiscal year, together with a statement of the amounts
redeemed and incurred during such fiscal year.
(b) Annual program report. The corporation shall report on an annual
basis beginning October 1, 2005, and on each October 1 thereafter, to
the governor, the chairpersons of the senate committees on finance,
commerce, economic development and small business, and corporations,
authorities and commissions, the chairpersons of the assembly committees
on ways and means, economic development, job creation, commerce and
industry, corporations, authorities and commissions, and small business
on each of the financial assistance programs, and for each program, each
category of assistance administered by the corporation, identifying each
proposal for assistance through such program for which the corporation
has received a formal application or otherwise has begun to undertake an
analysis.
(1) For those requests which are currently being evaluated but which
have not yet been approved such description shall include, but not be
limited to, the name and location of the applicant, the amount of
assistance requested, the date of receipt of such request, and the
status of such request.
(2) In providing such report, where necessary to promote the
development of proposed projects, the corporation may delete references
to the specific names of the participants, instead making references to
them in some other form so as to make it possible to identify the
progress of specific proposals.
(3) Such report shall provide a breakdown, for each of the regions
established pursuant to section 230 of the economic development law, of
proposals for assistance through each program. In addition, such report
shall summarize, by program, the data reported pursuant to this
paragraph.
(4) For those requests which have been evaluated and for which no
further action has been recommended, the corporation shall present
summary data indicating why no further action was taken.
(5) The corporation shall make available to each of the legislative
committees specified in this subdivision, a copy of the materials
provided to its board prior to each board meeting.
(c) Evaluations. (1) In addition to any other requirements imposed by
the act or otherwise regarding evaluations of programs administered by
the corporation, each evaluation shall include an analysis of the job
creation effect of such program, the number of small businesses that
received assistance, the number of minority and women-owned firms that
received assistance, the number of projects undertaken in distressed and
highly distressed communities, and, if applicable, the repayment
experience of borrowers of funds from the corporation.
(2) (i) In the case of any assistance programs administered by the
corporation for which independent evaluations are not otherwise
required, the corporation shall submit to the director of the budget,
the chairperson of the senate finance committee and the chairperson of
the assembly ways and means committee an evaluation of such programs
prepared by an entity independent of the corporation. Such evaluations
shall be submitted by September 1, 2005 and by September 1 every four
years thereafter.
(ii) Between evaluation due dates, the corporation shall maintain the
necessary records and data required to satisfy such evaluation
requirements and to satisfy information requests received from the
director of the budget, the chairperson of the senate finance committee
and the chairperson of the assembly ways and means committee between
such evaluation due dates.
With respect to applications for assistance submitted pursuant
to this act:
(a) The corporation shall, upon receipt of an application or other
formal request for funding for any project, provide notice of such
application or request within ten days of such receipt to the senator
and member of assembly representing the district in which such project
is to be located;
(b) The corporation shall provide copies of all correspondence
relating to each such application to such senator or member of assembly
on a timely basis; provided, however, that proprietary information may
be withheld from such correspondence if such senator and member of
assembly is given notice that such information has been withheld;
(c) Such senators and members of assembly shall be provided notice of
all proceedings relating to such application and shall be invited to
participate in such proceedings. A copy of such notice shall also be
provided to the designees of the temporary president of the senate and
the speaker of assembly;
(d) Such senators and members of assembly shall be provided with
notice of the final disposition of the application by the corporation
and the reasons for such disposition;
(e) In order to ensure that the funds appropriated for existing
statutory programs are approved in a equitable, ratable and timely
manner, the corporation shall:
(1) require all projects, including those in an amount of fifty
thousand dollars or less, be approved by the governing board of the
corporation and included in the agenda and the minutes of the meetings
of the board, accompanied by a summary of the proposed project and the
source of funds used to finance the project; and
(2) require projects to be financed out of the empire state economic
development fund be approved generally in amounts which are proportional
to amounts appropriated for the urban and community development program,
and the minority and women-owned business development and lending
program;
(f) The corporation shall accept no funds through transfer from the
department of economic development for personal or nonpersonal service
expenses, except for economic development program funds where such
transfer will facilitate the prompt and effective distribution of
program funds to projects, provided that those funds are used for the
statutory purposes for which they were appropriated to the department of
economic development;
(g) No later than twenty days after the end of each fiscal year
quarter, the chairman of the urban development corporation shall:
(1) report to the senate majority leader and the speaker of the
assembly on the status of all economic development programs administered
during the current fiscal year. Such report shall include but not be
limited to:
(A) a cumulative summary of commitments and disbursements by year of
original appropriation;
(B) the geographic distribution of approved projects;
(C) the extent to which approved projects are expected to create or
retain jobs in New York state; and
(D) the impact of approved projects, where quantified and available,
on distressed urban and rural communities, small- and medium-sized
businesses, and strategic industries.
(2) Copies of such report shall also be provided to the designees of
the temporary president of the senate and the speaker of the assembly in
both paper and electronic format;
(h) If: (1) such report is not submitted on or before the required
date, or (2) the corporation has failed to undertake a good faith effort
to comply with this act, upon a written determination of non-compliance
issued, not more than quarterly, by either the temporary president of
the senate or speaker of the assembly, the corporation agrees that it
shall approve no further project commitments from the empire state
economic development fund and no state funds appropriated from the local
assistance account shall be allocated to the corporation for such
commitments until such report is submitted or the corporation provides
evidence of good faith effort to be in compliance with provisions
hereof; and
(i) Upon the issuance of such a determination of non-compliance, the
corporation shall undertake the necessary acts to comply with this
agreement and shall provide evidence of such compliance within ten days
of receipt of such determination.
Court proceedings; preferences; venue. Any action or proceeding
to which the corporation or the people of the state of New York may be
parties, in which any question arises as to the validity of this act,
shall be preferred over all other civil causes except election causes in
all courts of the state of New York and shall be heard and determined in
preference to all other civil business pending therein except election
causes, irrespective of position on the calendar. The same preference
shall be granted upon application of counsel to the corporation in any
action or proceeding questioning the validity of this act in which he
may be allowed to intervene. The venue of any such action or proceeding
shall be laid in the county in which the principal office of the
corporation is located.
Actions against corporation. Except in an action for wrongful
death, in any case founded upon tort a notice of claim shall be required
as a condition precedent to the commencement of an action or special
proceeding against the corporation, any of it subsidiary corporations,
or any officer, appointee or employee thereof, and the provisions of
section fifty-e of the general municipal law shall govern the giving of
such notice. No such action shall be commenced more than one year and
ninety days after the cause of action therefor shall have accrued. An
action for wrongful death shall be commenced in accordance with the
notice of claim and time limitation provisions of title eleven of
article nine of the public authorities law.
Special provisions relating to directors of the corporation and
members of the business advisory council for urban development.
Notwithstanding the provisions of any other law, any state
instrumentality, including any state agency, trust fund or public
benefit corporation other than the corporation, may purchase from, sell
to, borrow from, loan to, contract with or otherwise deal with any
corporation, trust, association, partnership or other entity in which
any director of the corporation or any member of the business advisory
council for urban development, created by section four of this act, has
a financial interest, direct or indirect, and the corporation may engage
in any such transaction with any other state instrumentality with which
any director of the corporation is affiliated as a state officer or
employee, provided that prior to such transaction such interest or
affiliation is disclosed to such other state instrumentality and is
disclosed in the minutes of the corporation, and provided further that
no director having such an affiliation (except such an affiliation with
a subsidiary corporation of the corporation organized in accordance with
section twelve of this act or with any authority or commission
heretofore or hereafter continued or created under the public
authorities law) may participate in any decision of the corporation
affecting such transaction.
Inconsistent provisions of other laws superseded. Insofar as the
provisions of this act are inconsistent with the provisions of any other
law, general, special or local, the provisions of this act shall be
controlling.
Construction. This act, being necessary for the welfare of the
state and its inhabitants, shall be liberally construed so as to
effectuate its purposes.
Separability. If any clause, sentence, paragraph, section or
part of this act shall be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair or
invalidate the remainder thereof, but shall be confined in its operation
to the clause, sentence, paragraph, section or part thereof directly
involved in the controversy in which such judgment shall have been
rendered.
Limitation on new projects
The corporation shall not expend any proceeds of the sale of assets
to, or borrowings from, the New York state project finance agency for
the construction or development of any new project which on February
twenty-fifth, nineteen hundred seventy-five, was not under construction
by the corporation, or the subject of a contract or legally binding
commitment for the construction or financing thereof by the corporation,
except for expenditures related to the prompt and orderly termination of
the corporation's activities in relation to a project that was not under
construction or subject to such a contract or legally binding commitment
on that date.
Assistance; application and evaluation, generally. (1) The
corporation shall develop guidelines for application for assistance
through each of its programs which are consistent with the rules
published pursuant to section 9-c of this act and pursuant to the state
administrative procedure act. Guidelines shall provide clear guidance to
potential applicants as to criteria for program eligibility, and shall
specify criteria used by the corporation in evaluating applications.
(2) The corporation shall prepare forms, application procedures and
evaluation processes which are consistent with the rules and guidelines
promulgated by the corporation and which are developed with the goal of
making them easily understandable to applicants.
(3) The corporation shall make available, with the department of
economic development, applications and guidance to applicants for each
of its programs of assistance at the regional offices of the department
of economic development.
(4) The corporation shall establish, by rule, procedures for (i) the
notification to each applicant for assistance of the receipt of such
application; (ii) notification to each applicant for assistance of such
additional materials as the corporation requires for evaluation of such
application; and (iii) periodic notifications not exceeding thirty days
apart to each applicant of the status of such application. Such rule
shall specify uniform time periods within which the corporation shall
make the notifications required by this paragraph.
(5) Whenever possible, the corporation shall render a determination on
an application within thirty working days of the receipt of a completed
application including necessary documentation. In the event that a
determination cannot be reached within the thirty working day period,
the corporation shall submit to the applicant a statement of the reasons
for such delay upon or prior to the expiration of the thirty working day
period.
(6) Upon approval of an application for financial assistance, the
corporation shall inform the recipient of all steps which must be taken
in order to receive the promised assistance. The requirements imposed by
the corporation shall be pursuant to statute or rules adopted pursuant
to the state administrative procedure act.
Small business and minority-owned and women-owned business
enterprises transportation capital assistance and guaranteed loan
program. 1. To provide financial assistance to small business and
minority-owned and women-owned business enterprises engaged in
government sponsored, transportation related construction projects, the
corporation shall establish a small business and minority-owned and
women-owned business enterprise transportation capital assistance
revolving loan fund which shall provide loans or loan guarantees to
small business and minority-owned and women-owned business enterprises.
For purposes of this section: (a) the term small business shall have the
same meaning as defined in section one hundred thirty-one of the
economic development law and (b) the term project shall mean a project
of state agency or authority that sponsors transportation related
construction projects and participates in this program and any
definition of project contained elsewhere in this act shall not apply.
2. Such loans, or loan guarantees for loans made by federally and
state chartered credit institutions, financial institutions, and
federally insured banking organizations to small business and
minority-owned and women-owned business enterprises, shall be used to
(a) enable such businesses, through the acquisition, leasing or
improvement of real property, machinery or equipment, or through the
provision of working capital to secure service, commodity or
construction contracts; (b) restore working capital to such businesses
which have successfully completed work under a contract but whose
liquidity has been adversely affected by problems resulting from delayed
payments; and (c) ensure the completion of the work associated with a
governmental service, commodity or construction contract in order to
prevent default on such contract.
3. (a) To be eligible for such loans or loan guarantees (i) a
minority-owned or women-owned business enterprise must be certified as a
minority-owned or women-owned business enterprise pursuant to article
15-A of the executive law; and (ii) a small business or a minority-owned
or women-owned business enterprise shall have a contract or sub-contract
to provide goods or services related to a government sponsored,
transportation related construction project.
(b) Only such business enterprises referred to the corporation by a
written application of a state agency or authority that sponsors
transportation related construction projects shall be eligible for
program assistance. Such assistance shall be provided to such an
enterprise only in connection with its performance as a contractor or
sub-contractor on a specific transportation related project of the
referring agency or authority. In order for such an agency or authority
to refer such enterprises to the corporation, such agency or authority
shall enter into a master agreement with the corporation covering
procedures and requirements for providing program assistance. The
corporation shall determine whether or not to approve such an agency's
or authority's written application for program assistance to such a
business within twenty business days of the corporation's receipt of
such application. If it approves the application, the corporation will
provide assistance pursuant to the applicable master agreement.
4. The corporation shall give preference to minority-owned and
women-owned business enterprises in making such loans and loan
guarantees and shall establish such other criteria as it may deem
necessary for this program and for any required amount that shall be
held in reserve for any guarantees made under this program.
5. Notwithstanding any inconsistent provision of law, general, special
or local, including pursuant to capital projects budget appropriations
or reappropriations, where applicable, the corporation is hereby
authorized to enter into such agreements as may be necessary for the
operation and administration of a small business and minority-owned and
women-owned business enterprises transportation capital assistance and
guaranteed loan program.
6. The corporation is authorized to establish a revolving loan fund
account into which funds may be received and from which funds may be
expended for the aforementioned purposes.
7. The provisions of section ten and subdivision two of section
sixteen of this act shall not apply to assistance provided under this
program.
Lease and operation of seventh regiment armory. (a) The
corporation is hereby authorized to act on behalf of the state and the
division of military and naval affairs to enter into a lease or
subsequent leases and the management agreement on behalf of the state
and the division with a lessee, subsequent lessee or the manager
pursuant to the terms of the management agreement in order to accomplish
the purposes of this section. The leasing of the armory to a lessee or
subsequent lessee and the entrance into the management agreement and the
repair, restoration and refurbishment of the armory and operation
thereof by a lessee or subsequent lessee for cultural and other civic
uses pursuant to the lease is hereby declared to be a valid use under
the city lease, and is undertaken for public purposes.
(b) The lease with a lessee or subsequent lessee authorized by this
section shall require a lessee or subsequent lessee to undertake a
program of repair, restoration and refurbishment of the armory and to
manage and use the same as a facility for cultural and other civic uses.
The lease shall demise all portions of the armory other than those
reserved for a homeless shelter for women operated by the city of New
York pursuant to agreement with the state, those spaces reserved for use
by a legacy cadet corps program pursuant to an agreement between the
division and the state of New York, and for that reserved for military
use by the division. The portion of the premises allocated to the
shelter for homeless women shall be sufficient and suitable space for
the current and uninterrupted operation of the shelter by the city of
New York. The portion of the premises allocated to a legacy cadet corps
program shall be sufficient and suitable space for the current and
uninterrupted operation, provided that it is no less than twelve hundred
square feet for their headquarters. The division shall cause the 107th
corps support group or its lineal descendent to maintain military use
within the reserved portions of the armory. The division, and the city
of New York, respectively, shall be responsible to repair and maintain
their reserved premises, including the costs of renovation and
uninterrupted use, and to pay an annual common maintenance charge to a
lessee or subsequent lessee to cover allocated costs of repair,
maintenance and operation of the common portions of the armory. The
lessee or subsequent lessee shall be required to apply all revenues
generated by operations at the armory to pay or provide for costs of
repairs, restoration, refurbishment, operating, maintenance and
programming of the armory and the uses therein and the activities of the
lessee or subsequent lessee with respect thereto.
(c) The corporation, in carrying out its authorization under this
section may exercise all of the power granted it in law, as if fully
enumerated herein. Without limiting the generality of the foregoing, the
powers granted to the corporation under sections sixteen and twenty-two
of this act shall be utilized by the corporation in its administration
of the lease, and shall be applicable in respect to the repair,
restoration, refurbishment and operation of the armory pursuant to the
lease.
(d) In no event shall the lessee or subsequent lessee be deemed a
state actor or an agent or an instrumentality of the state by reason of
the lease or this section or any of the activities of the lessee or
subsequent lessee with respect to the armory pursuant to the lease or
this section.
(e) Except with respect to military use or periods of civil or
military emergency, for any action involving the armory that may have a
significant effect on the environment, the corporation shall be the lead
agency having principal responsibility for carrying out or approving
such action for purposes of article eight of the environmental
conservation law.
International computer chip research and development center. 1.
Notwithstanding the provisions of any other law to the contrary, the
urban development corporation is hereby authorized to issue bonds or
notes in one or more series for the purpose of funding project costs at
the College of Nanoscale Science and Engineering of the University at
Albany - State University of New York for the development and/or
expansion of an international computer chip research and development
center, including but not limited to the construction and renovation,
purchase and installation of equipment or other state costs associated
with the project at the College of Nanoscale Science and Engineering of
the University at Albany - State University of New York. The aggregate
principal amount of bonds authorized to be issued pursuant to this
section shall not exceed three hundred million dollars, excluding bonds
issued to fund one or more debt service reserve funds, to pay costs of
issuance of such bonds, and bonds or notes issued to refund or otherwise
repay such bonds or notes previously issued. Such bonds and notes of the
corporation shall not be a debt of the state, and the state shall not be
liable thereon, nor shall they be payable out of any funds other than
those appropriated by the state to the corporation for principal,
interest, and related expenses pursuant to a service contract and such
bonds and notes shall contain on the face thereof a statement to such
effect. Except for purposes of complying with the internal revenue code,
any interest income earned on bond proceeds shall only be used to pay
debt service on such bonds.
2. Notwithstanding any other provision of law to the contrary, in
order to assist the corporation in undertaking the financing of the
development and/or expansion of an international computer chip research
and development center, including but not limited to the construction
and renovation, purchase and installation of equipment, or other state
costs associated with the project, the director of the budget is hereby
authorized to enter into one or more service contracts with the
corporation, none of which shall exceed thirty years in duration, upon
such terms and conditions as the director of the budget and the
corporation agree, so as to annually provide to the corporation, in the
aggregate, a sum not to exceed the principal, interest, and related
expenses required for such bonds and notes. Any service contract entered
into pursuant to this section shall provide that the obligation of the
state to pay the amount therein provided shall not constitute a debt of
the state within the meaning of any constitutional or statutory
provision and shall be deemed executory only to the extent of monies
available and that no liability shall be incurred by the state beyond
the monies available for such purpose, subject to annual appropriation
by the legislature. Any such contract or any payments made or to be made
thereunder may be assigned and pledged by the corporation as security
for its bonds and notes, as authorized by this act.
3. The corporation, in conjunction with the College of Nanoscale
Science and Engineering of the University at Albany-State University of
New York, shall develop a program and financing plan for the project.
Upon certification by the corporation, copies of such plan shall be
filed with the director of the budget, the chair of the senate finance
committee and the chair of the assembly ways and means committee.
Further, the corporation shall provide an annual report to the director
of the budget, chair of the senate finance committee and the chair of
the assembly ways and means committee detailing the use of state
assistance for the project and the progress of the project in meeting
the performance criteria set forth on the program and financing plan.
Such report shall be submitted by March thirty-first, two thousand eight
and March thirty-first thereafter for a period not to exceed seven
years.
New York state modernization projects. 1. Notwithstanding the
provisions of any other law to the contrary, the dormitory authority and
the corporation are hereby authorized to issue bonds or notes in one or
more series for the purpose of funding project costs for the Roosevelt
Island operating corporation related to the modernization of the aerial
tramway, critical maintenance and improvement projects on Governor's
Island, redevelopment initiatives at the Harriman research and
technology park and USA Niagara and other state costs associated with
such projects. The aggregate principal amount of bonds authorized to be
issued pursuant to this section shall not exceed fifty million four
hundred fifty thousand dollars, excluding bonds issued to fund one or
more debt service reserve funds, to pay costs of issuance of such bonds,
and bonds or notes issued to refund or otherwise repay such bonds or
notes previously issued. Such bonds and notes of the dormitory authority
and the corporation shall not be a debt of the state, and the state
shall not be liable thereon, nor shall they be payable out of any funds
other than those appropriated by the state to the dormitory authority
and the corporation for principal, interest, and related expenses
pursuant to a service contract and such bonds and notes shall contain on
the face thereof a statement to such effect. Except for purposes of
complying with the internal revenue code, any interest income earned on
bond proceeds shall only be used to pay debt service on such bonds.
2. Notwithstanding any other provision of law to the contrary, in
order to assist the dormitory authority and the corporation in
undertaking the financing for the Roosevelt Island operating corporation
related to the modernization of the aerial tramway, critical maintenance
and improvement projects on Governor's Island, redevelopment initiatives
at the Harriman research and technology park and USA Niagara and other
state costs associated with such projects, the director of the budget is
hereby authorized to enter into one or more service contracts with the
dormitory authority and the corporation, none of which shall exceed
thirty years in duration, upon such terms and conditions as the director
of the budget and the dormitory authority and the corporation agree, so
as to annually provide to the dormitory authority and the corporation,
in the aggregate, a sum not to exceed the principal, interest, and
related expenses required for such bonds and notes. Any service contract
entered into pursuant to this section shall provide that the obligation
of the state to pay the amount therein provided shall not constitute a
debt of the state within the meaning of any constitutional or statutory
provision and shall be deemed executory only to the extent of monies
available and that no liability shall be incurred by the state beyond
the monies available for such purpose, subject to annual appropriation
by the legislature. Any such contract or any payments made or to be made
thereunder may be assigned and pledged by the dormitory authority and
the corporation as security for its bonds and notes, as authorized by
this section.
2008 and 2009 Economic development initiatives. 1.
Notwithstanding the provisions of any other law to the contrary, the
dormitory authority and the corporation are hereby authorized to issue
bonds or notes in one or more series for the purpose of funding project
costs for various economic development and regional initiatives, the
upstate regional blueprint fund, the downstate revitalization fund, the
upstate agricultural economic fund, the New York state capital
assistance program, the New York state economic development assistance
program and other state costs associated with such projects. The
aggregate principal amount of bonds authorized to be issued pursuant to
this section shall not exceed one billion two hundred sixty-nine million
four hundred fifty thousand dollars, excluding bonds issued to fund one
or more debt service reserve funds, to pay costs of issuance of such
bonds, and bonds or notes issued to refund or otherwise repay such bonds
or notes previously issued. Such bonds and notes of the dormitory
authority and the corporation shall not be a debt of the state, and the
state shall not be liable thereon, nor shall they be payable out of any
funds other than those appropriated by the state to the dormitory
authority and the corporation for principal, interest, and related
expenses pursuant to a service contract and such bonds and notes shall
contain on the face thereof a statement to such effect. Except for
purposes of complying with the internal revenue code, any interest
income earned on bond proceeds shall only be used to pay debt service on
such bonds.
2. Notwithstanding any other provision of law to the contrary, in
order to assist the dormitory authority and the corporation in
undertaking the financing for various economic development and regional
initiatives, the upstate regional blueprint fund, the downstate
revitalization fund, the upstate agricultural economic fund, the New
York state capital assistance program, the New York state economic
development assistance program and other state costs associated with
such projects, the director of the budget is hereby authorized to enter
into one or more service contracts with the dormitory authority and the
corporation, none of which shall exceed thirty years in duration, upon
such terms and conditions as the director of the budget and the
dormitory authority and the corporation agree, so as to annually provide
to the dormitory authority and the corporation, in the aggregate, a sum
not to exceed the principal, interest, and related expenses required for
such bonds and notes. Any service contract entered into pursuant to this
section shall provide that the obligation of the state to pay the amount
therein provided shall not constitute a debt of the state within the
meaning of any constitutional or statutory provision and shall be deemed
executory only to the extent of monies available and that no liability
shall be incurred by the state beyond the monies available for such
purpose, subject to annual appropriation by the legislature. Any such
contract or any payments made or to be made thereunder may be assigned
and pledged by the dormitory authority and the corporation as security
for its bonds and notes, as authorized by this section.
Issuance of certain bonds or notes. 1. Notwithstanding the
provisions of any other law to the contrary, the dormitory authority and
the corporation are hereby authorized to issue bonds or notes in one or
more series for the purpose of funding project costs for the regional
economic development council initiative, the economic transformation
program, state university of New York college for nanoscale and science
engineering, projects within the city of Buffalo or surrounding
environs, the New York works economic development fund, projects for the
retention of professional football in western New York, the empire state
economic development fund, the clarkson-trudeau partnership, the New
York genome center, the Cornell university college of veterinary
medicine, the olympic regional development authority, projects at nano
Utica, Onondaga county revitalization projects, Binghamton university
school of pharmacy, New York power electronics manufacturing consortium,
regional infrastructure projects, high tech innovation and economic
development infrastructure program, high technology manufacturing
projects in Chautauqua and Erie county, an industrial scale research and
development facility in Clinton county, upstate revitalization
initiative projects, downstate revitalization initiative, market New
York projects, fairground buildings, equipment or facilities used to
house and promote agriculture, the state fair, the empire state trail,
the moynihan station development project, the Kingsbridge armory
project, strategic economic development projects, the cultural, arts and
public spaces fund, water infrastructure in the city of Auburn and town
of Owasco, a life sciences laboratory public health initiative,
not-for-profit pounds, shelters and humane societies, arts and cultural
facilities improvement program, restore New York's communities
initiative, heavy equipment, economic development and infrastructure
projects, Roosevelt Island operating corporation capital projects, Lake
Ontario regional projects, Pennsylvania station and other transit
projects, athletic facilities for professional football in Orchard Park,
New York, Rush - NY, New York AI Consortium, New York Creates UEV Tool,
and other state costs associated with such projects. The aggregate
principal amount of bonds authorized to be issued pursuant to this
section shall not exceed twenty-six billion four hundred ninety-eight
million four hundred fifty-three thousand dollars $26,498,453,000,
excluding bonds issued to fund one or more debt service reserve funds,
to pay costs of issuance of such bonds, and bonds or notes issued to
refund or otherwise repay such bonds or notes previously issued. Such
bonds and notes of the dormitory authority and the corporation shall not
be a debt of the state, and the state shall not be liable thereon, nor
shall they be payable out of any funds other than those appropriated by
the state to the dormitory authority and the corporation for principal,
interest, and related expenses pursuant to a service contract and such
bonds and notes shall contain on the face thereof a statement to such
effect. Except for purposes of complying with the internal revenue code,
any interest income earned on bond proceeds shall only be used to pay
debt service on such bonds.
2. Notwithstanding any other provision of law to the contrary, in
order to assist the dormitory authority and the corporation in
undertaking the financing for project costs for the regional economic
development council initiative, the economic transformation program,
state university of New York college for nanoscale and science
engineering, projects within the city of Buffalo or surrounding
environs, the New York works economic development fund, projects for the
retention of professional football in western New York, the empire state
economic development fund, the clarkson-trudeau partnership, the New
York genome center, the cornell university college of veterinary
medicine, the olympic regional development authority, projects at nano
Utica, onondaga county revitalization projects, Binghamton university
school of pharmacy, New York power electronics manufacturing consortium,
regional infrastructure projects, New York State Capital Assistance
Program for Transportation, infrastructure, and economic development,
high tech innovation and economic development infrastructure program,
high technology manufacturing projects in Chautauqua and Erie county, an
industrial scale research and development facility in Clinton county,
upstate revitalization initiative projects, downstate revitalization
initiative, market New York projects, fairground buildings, equipment or
facilities used to house and promote agriculture, the state fair, the
empire state trail, the moynihan station development project, the
Kingsbridge armory project, strategic economic development projects, the
cultural, arts and public spaces fund, water infrastructure in the city
of Auburn and town of Owasco, a life sciences laboratory public health
initiative, not-for-profit pounds, shelters and humane societies, arts
and cultural facilities improvement program, restore New York's
communities initiative, heavy equipment, economic development and
infrastructure projects, Roosevelt Island operating corporation capital
projects, Lake Ontario regional projects, Pennsylvania station and other
transit projects, athletic facilities for professional football in
Orchard Park, New York, Rush - NY, New York AI Consortium, New York
Creates UEV Tool, and other state costs associated with such projects
the director of the budget is hereby authorized to enter into one or
more service contracts with the dormitory authority and the corporation,
none of which shall exceed thirty years in duration, upon such terms and
conditions as the director of the budget and the dormitory authority and
the corporation agree, so as to annually provide to the dormitory
authority and the corporation, in the aggregate, a sum not to exceed the
principal, interest, and related expenses required for such bonds and
notes. Any service contract entered into pursuant to this section shall
provide that the obligation of the state to pay the amount therein
provided shall not constitute a debt of the state within the meaning of
any constitutional or statutory provision and shall be deemed executory
only to the extent of monies available and that no liability shall be
incurred by the state beyond the monies available for such purpose,
subject to annual appropriation by the legislature. Any such contract or
any payments made or to be made thereunder may be assigned and pledged
by the dormitory authority and the corporation as security for its bonds
and notes, as authorized by this section.
NY-SUNY 2020. 1. Notwithstanding the provisions of any other law
to the contrary, the urban development corporation of the state of New
York is hereby authorized to issue bonds or notes in one or more series
for the purpose of funding project costs for the implementation of a
NY-SUNY and NY-CUNY 2020 challenge grant program subject to the approval
of a NY-SUNY and NY-CUNY 2020 plan or plans by the governor and either
the chancellor of the state university of New York or the chancellor of
the city university of New York, as applicable. The aggregate principal
amount of bonds authorized to be issued pursuant to this section shall
not exceed $660,000,000, excluding bonds issued to fund one or more debt
service reserve funds, to pay costs of issuance of such bonds, and bonds
or notes issued to refund or otherwise repay such bonds or notes
previously issued. Such bonds and notes of the corporation shall not be
a debt of the state, and the state shall not be liable thereon, nor
shall they be payable out of any funds other than those appropriated by
the state to the corporation for principal, interest, and related
expenses pursuant to a service contract and such bonds and notes shall
contain on the face thereof a statement to such effect. Except for
purposes of complying with the internal revenue code, any interest
income earned on bond proceeds shall only be used to pay debt service on
such bonds.
2. Notwithstanding any other law, rule, or regulation to the contrary,
the comptroller is hereby authorized and directed to deposit to the
credit of the capital projects fund, reimbursement from the proceeds of
notes or bonds issued by the urban development corporation of the state
of New York for capital disbursements associated with such project
costs.
3. Notwithstanding any other provision of law to the contrary, in
order to assist the urban development corporation in undertaking the
financing for project costs for the NY-SUNY 2020 challenge grant
program, the director of the budget is hereby authorized to enter into
one or more service contracts with the corporation, none of which shall
exceed thirty years in duration, upon such terms and conditions as the
director of the budget and the corporation agree, so as to annually
provide to the corporation, in the aggregate, a sum not to exceed the
principal, interest, and related expenses required for such bonds and
notes. Any service contract entered into pursuant to this section shall
provide that the obligation of the state to pay the amount therein
provided shall not constitute a debt of the state within the meaning of
any constitutional or statutory provision and shall be deemed executory
only to the extent of monies available and that no liability shall be
incurred by the state beyond the monies available for such purpose,
subject to annual appropriation by the legislature. Any such contract or
any payments made or to be made thereunder may be assigned and pledged
to the corporation as security for its bonds and notes, as authorized by
this section.
1. Notwithstanding the provisions of any other law to the
contrary, the dormitory authority and the corporation are hereby
authorized to issue bonds or notes in one or more series for the purpose
of funding project costs for restoring state properties damaged as a
result of Storm Sandy and other state costs associated with such capital
projects. The aggregate principal amount of bonds authorized to be
issued pursuant to this section shall not exceed four hundred fifty
million dollars, excluding bonds issued to fund one or more debt service
reserve funds, to pay costs of issuance of such bonds, and bonds or
notes issued to refund or otherwise repay such bonds or notes previously
issued. Such bonds and notes of the dormitory authority and the
corporation shall not be a debt of the state, and the state shall not be
liable thereon, nor shall they be payable out of any funds other than
those appropriated by the state to the dormitory authority and the
corporation for principal, interest, and related expenses pursuant to a
service contract and such bonds and notes shall contain on the face
thereof a statement to such effect. Except for purposes of complying
with the internal revenue code, any interest income earned on bond
proceeds shall only be used to pay debt service on such bonds.
2. Notwithstanding any other provision of law to the contrary, in
order to assist the dormitory authority and the corporation in
undertaking the financing for project costs for restoring state
properties damaged as a result of Storm Sandy and other state costs
associated with such capital projects, the director of the budget is
hereby authorized to enter into one or more service contracts with the
dormitory authority and the corporation, none of which shall exceed
thirty years in duration, upon such terms and conditions as the director
of the budget and the dormitory authority and the corporation agree, so
as to annually provide to the dormitory authority and the corporation,
in the aggregate, a sum not to exceed the principal, interest, and
related expenses required for such bonds and notes. Any service contract
entered into pursuant to this section shall provide that the obligation
of the state to pay the amount therein provided shall not constitute a
debt of the state within the meaning of any constitutional or statutory
provision and shall be deemed executory only to the extent of monies
available and that no liability shall be incurred by the state beyond
the monies available for such purpose, subject to annual appropriation
by the legislature. Any such contract or any payments made or to be made
thereunder may be assigned and pledged by the dormitory authority and
the corporation as security for its bonds and notes, as authorized by
this section.
3. The comptroller is hereby authorized to receive from the dormitory
authority and the corporation any portion of bond proceeds paid to
provide funds for or reimburse the state for its costs associated with
such capital project costs and to credit such amounts to the capital
projects fund or any other appropriate fund.
1. Notwithstanding the provisions of any other law to the
contrary, the dormitory authority and the corporation are hereby
authorized to issue bonds or notes in one or more series for the purpose
of funding project costs for the office of information technology
services, department of law, and other state costs associated with such
capital projects. The aggregate principal amount of bonds authorized to
be issued pursuant to this section shall not exceed two billion four
million one hundred twelve thousand dollars $2,004,112,000, excluding
bonds issued to fund one or more debt service reserve funds, to pay
costs of issuance of such bonds, and bonds or notes issued to refund or
otherwise repay such bonds or notes previously issued. Such bonds and
notes of the dormitory authority and the corporation shall not be a debt
of the state, and the state shall not be liable thereon, nor shall they
be payable out of any funds other than those appropriated by the state
to the dormitory authority and the corporation for principal, interest,
and related expenses pursuant to a service contract and such bonds and
notes shall contain on the face thereof a statement to such effect.
Except for purposes of complying with the internal revenue code, any
interest income earned on bond proceeds shall only be used to pay debt
service on such bonds.
2. Notwithstanding any other provision of law to the contrary, in
order to assist the dormitory authority and the corporation in
undertaking the financing for project costs for the office of
information technology services, department of law, and other state
costs associated with such capital projects, the director of the budget
is hereby authorized to enter into one or more service contracts with
the dormitory authority and the corporation, none of which shall exceed
thirty years in duration, upon such terms and conditions as the director
of the budget and the dormitory authority and the corporation agree, so
as to annually provide to the dormitory authority and the corporation,
in the aggregate, a sum not to exceed the principal, interest, and
related expenses required for such bonds and notes. Any service contract
entered into pursuant to this section shall provide that the obligation
of the state to pay the amount therein provided shall not constitute a
debt of the state within the meaning of any constitutional or statutory
provision and shall be deemed executory only to the extent of monies
available and that no liability shall be incurred by the state beyond
the monies available for such purpose, subject to annual appropriation
by the legislature. Any such contract or any payments made or to be made
thereunder may be assigned and pledged by the dormitory authority and
the corporation as security for its bonds and notes, as authorized by
this section.
3. The comptroller is hereby authorized to receive from the dormitory
authority and the corporation any portion of bond proceeds paid to
provide funds for or reimburse the state for its costs associated with
such capital project costs and to credit such amounts to the capital
projects fund or any other appropriate fund.
Authorization for transportation infrastructure finance and
innovation act loans. 1. (a) Notwithstanding the provisions of any other
law to the contrary, each of the authorized issuers, as such term is
defined in paragraphs (a) and (b) of subdivision 1 of section 68-a of
the state finance law, are hereby authorized to accept transportation
infrastructure finance and innovation act (TIFIA) loans from the United
States of America, subject to any applicable agreement with bondholders
or noteholders, to enter into contracts, secured loan agreements,
service agreements or repayment agreements and to execute all
instruments necessary, convenient or desirable in connection therewith,
including, its bonds, notes or other obligations evidencing any such
loan from the United States of America, and to pledge and assign as
security for any such grants or loans, bonds or notes issued by such
authorized issuer or payments due to such authorized issuer in
connection therewith or revenues of such authorized issuer, as
applicable. The aggregate principal amount of bonds authorized to be
issued by the authorized issuers pursuant to this section shall not
exceed seven hundred fifty million dollars, excluding bonds issued to
fund one or more debt service reserve funds, to pay costs of issuance of
such bonds, and bonds, notes, or other obligations issued to refund or
otherwise repay such bonds, notes, or other obligations previously
issued. If such bonds, notes, or other obligations are secured by a
service contract with the state of New York, such bonds, notes, or other
obligations of the authorized issuers shall not be a debt of the state,
and the state shall not be liable thereon, nor shall they be payable out
of any funds other than those appropriated by the state to the
authorized issuers for principal, interest, and related expenses
pursuant to a service contract and such bonds, notes, and other
obligations shall contain on the face thereof a statement to such
effect. Except for purposes of complying with the internal revenue code,
any interest income earned on bond proceeds shall only be used to pay
debt service on such bonds.
(b) Any bonds, notes, or other obligations issued pursuant to this
section shall (i) be in furtherance of capital projects and public
purposes consistent with the objectives of the TIFIA loans from the
United States of America, and (ii) any such financings shall provide a
demonstrable benefit to the state of New York and the authorized issuers
through a lower cost of financing than could otherwise be achieved, as
evidenced by a report from an independent financial advisor.
2. Notwithstanding the provisions of any other law to the contrary, in
order to assist the authorized issuers in undertaking the TIFIA loans
from the United States of America, the state of New York, acting through
the director of the budget, is hereby authorized to enter into one or
more service contracts with the authorized issuers upon such terms and
conditions as the director of the budget and the authorized issuers
agree, so as to annually provide to the authorized issuers, in the
aggregate, a sum not to exceed the principal, interest, and related
expenses required for such bonds, notes, and other obligations. Any
service contract entered into pursuant to this section shall provide
that the obligation of the state to pay the amount therein provided
shall not constitute a debt of the state within the meaning of any
constitutional or statutory provision and shall be deemed executory only
to the extent of monies available and that no liability shall be
incurred by the state beyond the monies available for such purpose,
subject to annual appropriation by the legislature. Any such contract or
any payments made or to be made thereunder may be assigned and pledged
by the authorized issuers as security for their bonds, notes, and other
obligations as authorized by this section.
3. The state comptroller is hereby authorized to receive from the
authorized issuers TIFIA loan proceeds from the United States of
America, to reimburse the state for costs associated with capital
projects related thereto and to credit such amounts to the capital
projects fund or any other appropriate fund.
4. Prior to submitting a letter of interest to the United States
department of transportation for a TIFIA loan, the director of the
budget shall submit a report from an independent financial advisor to
the speaker of the assembly, the temporary president of the senate, the
chair of the senate finance committee and the chair of the assembly ways
and means committee evidencing a demonstrable benefit to the state of
New York through a lower cost of financing than could otherwise be
achieved.
1. Notwithstanding the provisions of any other law to the
contrary, the dormitory authority and the corporation are hereby
authorized to issue bonds or notes in one or more series for the purpose
of funding project costs for the state and municipal facilities program
and other state costs associated with such capital projects. The
aggregate principal amount of bonds authorized to be issued pursuant to
this section shall not exceed three billion one hundred eighty-three
million five hundred thousand dollars $3,183,500,000, excluding bonds
issued to fund one or more debt service reserve funds, to pay costs of
issuance of such bonds, and bonds or notes issued to refund or otherwise
repay such bonds or notes previously issued. Such bonds and notes of the
dormitory authority and the corporation shall not be a debt of the
state, and the state shall not be liable thereon, nor shall they be
payable out of any funds other than those appropriated by the state to
the dormitory authority and the corporation for principal, interest, and
related expenses pursuant to a service contract and such bonds and notes
shall contain on the face thereof a statement to such effect. Except for
purposes of complying with the internal revenue code, any interest
income earned on bond proceeds shall only be used to pay debt service on
such bonds.
2. Notwithstanding any other provision of law to the contrary, in
order to assist the dormitory authority and the corporation in
undertaking the financing for project costs for the state and municipal
facilities program and other state costs associated with such capital
projects, the director of the budget is hereby authorized to enter into
one or more service contracts with the dormitory authority and the
corporation, none of which shall exceed thirty years in duration, upon
such terms and conditions as the director of the budget and the
dormitory authority and the corporation agree, so as to annually provide
to the dormitory authority and the corporation, in the aggregate, a sum
not to exceed the principal, interest, and related expenses required for
such bonds and notes. Any service contract entered into pursuant to this
section shall provide that the obligation of the state to pay the amount
therein provided shall not constitute a debt of the state within the
meaning of any constitutional or statutory provision and shall be deemed
executory only to the extent of monies available and that no liability
shall be incurred by the state beyond the monies available for such
purpose, subject to annual appropriation by the legislature. Any such
contract or any payments made or to be made thereunder may be assigned
and pledged by the dormitory authority and the corporation as security
for its bonds and notes, as authorized by this section.
3. The comptroller is hereby authorized to receive from the dormitory
authority and the corporation any portion of bond proceeds paid to
provide funds for or reimburse the state for its costs associated with
such capital project costs and to credit such amounts to the capital
projects fund or any other appropriate fund.
1. Notwithstanding the provisions of any other law to the
contrary, the dormitory authority and the urban development corporation
are hereby authorized to issue bonds or notes in one or more series for
the purpose of funding project costs undertaken by or on behalf of the
state education department, special act school districts,
state-supported schools for the blind and deaf, approved private special
education schools, non-public schools, community centers, day care
facilities, residential camps, day camps, Native American Indian Nation
schools, and other state costs associated with such capital projects.
The aggregate principal amount of bonds authorized to be issued pursuant
to this section shall not exceed four hundred eighty-five million nine
hundred sixty thousand dollars $485,960,000, excluding bonds issued to
fund one or more debt service reserve funds, to pay costs of issuance of
such bonds, and bonds or notes issued to refund or otherwise repay such
bonds or notes previously issued. Such bonds and notes of the dormitory
authority and the urban development corporation shall not be a debt of
the state, and the state shall not be liable thereon, nor shall they be
payable out of any funds other than those appropriated by the state to
the dormitory authority and the urban development corporation for
principal, interest, and related expenses pursuant to a service contract
and such bonds and notes shall contain on the face thereof a statement
to such effect. Except for purposes of complying with the internal
revenue code, any interest income earned on bond proceeds shall only be
used to pay debt service on such bonds.
2. Notwithstanding any other provision of law to the contrary, in
order to assist the dormitory authority and the urban development
corporation in undertaking the financing for project costs undertaken by
or on behalf of special act school districts, state-supported schools
for the blind and deaf and approved private special education schools,
non-public schools, community centers, day care facilities, and other
state costs associated with such capital projects, the director of the
budget is hereby authorized to enter into one or more service contracts
with the dormitory authority and the urban development corporation, none
of which shall exceed thirty years in duration, upon such terms and
conditions as the director of the budget and the dormitory authority and
the urban development corporation agree, so as to annually provide to
the dormitory authority and the urban development corporation, in the
aggregate, a sum not to exceed the principal, interest, and related
expenses required for such bonds and notes. Any service contract entered
into pursuant to this section shall provide that the obligation of the
state to pay the amount therein provided shall not constitute a debt of
the state within the meaning of any constitutional or statutory
provision and shall be deemed executory only to the extent of monies
available and that no liability shall be incurred by the state beyond
the monies available for such purpose, subject to annual appropriation
by the legislature. Any such contract or any payments made or to be made
thereunder may be assigned and pledged by the dormitory authority and
the urban development corporation as security for its bonds and notes,
as authorized by this section.
1. Notwithstanding the provisions of any other law to the
contrary, the dormitory authority and the urban development corporation
are hereby authorized to issue bonds or notes in one or more series for
the purpose of funding project costs for the nonprofit infrastructure
capital investment program and other state costs associated with such
capital projects. The aggregate principal amount of bonds authorized to
be issued pursuant to this section shall not exceed one hundred seventy
million dollars $170,000,000, excluding bonds issued to fund one or more
debt service reserve funds, to pay costs of issuance of such bonds, and
bonds or notes issued to refund or otherwise repay such bonds or notes
previously issued. Such bonds and notes of the dormitory authority and
the urban development corporation shall not be a debt of the state, and
the state shall not be liable thereon, nor shall they be payable out of
any funds other than those appropriated by the state to the dormitory
authority and the urban development corporation for principal, interest,
and related expenses pursuant to a service contract and such bonds and
notes shall contain on the face thereof a statement to such effect.
Except for purposes of complying with the internal revenue code, any
interest income earned on bond proceeds shall only be used to pay debt
service on such bonds.
2. Notwithstanding any other provision of law to the contrary, in
order to assist the dormitory authority and the urban development
corporation in undertaking the financing for project costs for the
nonprofit infrastructure capital investment program and other state
costs associated with such capital projects, the director of the budget
is hereby authorized to enter into one or more service contracts with
the dormitory authority and the urban development corporation, none of
which shall exceed thirty years in duration, upon such terms and
conditions as the director of the budget and the dormitory authority and
the urban development corporation agree, so as to annually provide to
the dormitory authority and the urban development corporation, in the
aggregate, a sum not to exceed the principal, interest, and related
expenses required for such bonds and notes. Any service contract entered
into pursuant to this section shall provide that the obligation of the
state to pay the amount therein provided shall not constitute a debt of
the state within the meaning of any constitutional or statutory
provision and shall be deemed executory only to the extent of monies
available and that no liability shall be incurred by the state beyond
the monies available for such purpose, subject to annual appropriation
by the legislature. Any such contract or any payments made or to be made
thereunder may be assigned and pledged by the dormitory authority and
the urban development corporation as security for its bonds and notes,
as authorized by this section.
Small business innovation research (SBIR)/small business
technology transfer (STTR) technical assistance program. 1. The small
business innovation research/small business technology transfer
technical assistance program, hereafter referred to as "the program", is
hereby created in the corporation for the purposes of providing funds to
eligible entities to provide technical assistance to small businesses of
one hundred employees or less and located in New York state in competing
successfully for grants made available through phase I and II of the
federal small business innovation research program as enacted pursuant
to the small business innovation development act of 1982, and the small
business technology transfer act of 1982, so as to increase the number
of phase I and II SBIR and STTR award winners within the state.
2. Technical assistance services under this section may include, but
are not limited to:
(a) outreach to small businesses to promote awareness of SBIR/STTR
program solicitations;
(b) counseling to determine the ability of a business to pursue
SBIR/STTR phase I and II funding, the technology match with the federal
agency solicitation to be pursued, the qualifications of personnel
involved in the proposed project, and the level of support needed from
the technical assistance program to produce a competitive application;
and
(c) proposal preparation assistance including grant writing,
technology evaluation, and general proposal evaluation.
3. In determining whether to provide technical assistance authorized
pursuant to this section to a small business, eligible entities shall
consider the probability of such business commercializing any
innovations resulting from research funded by an SBIR or STTR award in
New York state.
4. (a) Entities that are eligible to receive funds under this section
shall have demonstrable experience and success in providing technical
assistance authorized pursuant to this section, and as determined by the
corporation, and shall include:
(i) centers for advanced technology established pursuant to section
thirty-one hundred two-b of the public authorities law;
(ii) technology development corporations established pursuant to
section thirty-one hundred two-d of the public authorities law;
(iii) any university, college or community college located in New York
state;
(iv) centers of excellence established pursuant to section 3 of part T
of chapter 84 of the laws of 2002 and section four hundred ten of the
economic development law; and
(v) any other entities that are located and based in New York state
and demonstrate continuity of staffing, program, and purpose adequate to
provide technical assistance to small businesses pursuant to this
section.
(b) Preference for receiving funds under this section shall be given
to entities that partner with other eligible entities to provide the
full range of technical assistance services as specified in subdivision
two of this section.
(c) Entities receiving funds under this section shall match such funds
on a one-to-one basis. Such match shall consist of actual cash,
salaries, staff time, or expenses directly attributable to the purposes
of this section. Overhead costs may not be included in the match.
5. (a) Funds can be used for costs related to conducting outreach to
small businesses to promote awareness of SBIR/STTR program
solicitations, grant preparation and review, and printing costs and
supplies associated with the submission of grants.
(b) From such funds as may be appropriated for this purpose by the
legislature, the corporation shall make competitive awards in amounts of
up to two hundred thousand dollars to providers of assistance pursuant
to this section.
6. (a) Entities receiving funds shall annually provide to the
corporation details on the following:
(i) description of small businesses served, including technology
focus, business size and location;
(ii) SBIR and STTR grants applied for and received as a result of
assistance provided; and
(iii) any other information deemed appropriate by the corporation.
(b) The corporation shall include the information provided pursuant to
subdivision five of this section in the annual report filed pursuant to
section four hundred four of the economic development law.
(c) On or before June first, two thousand nineteen, the corporation
shall evaluate the effectiveness of the SBIR/STTR technical assistance
program and report such findings to the governor and legislature.
Small business innovation research and small business
technology transfer matching grant program. 1. The corporation, subject
to available appropriations and in consultation with the department of
economic development's division for small business, shall establish a
matching grant program to provide funds to small businesses who have
been awarded phase one or phase two grants under the federal small
business innovation research program or the small business technology
transfer program. Such grants shall be awarded based on a company's
potential for commercialization and job growth. As used in this section,
"small business" shall have the same meaning as provided for in section
one hundred thirty-one of the economic development law.
2. The funding amounts for such grant program shall be as follows:
(a) For small businesses that have been awarded phase one funding
under the federal small business innovation research program or the
small business technology transfer program, the amount shall be up to
one hundred thousand dollars.
(b) For small businesses that have been awarded phase two funding
under the federal small business innovation research program or the
small business technology transfer program, the amount shall be up to
two hundred thousand dollars.
(c) For small businesses that have been awarded phase three status
under the federal small business innovation research program or the
small business technology transfer program, such businesses shall be
provided access to technical assistance and outreach support through
relevant programs of the corporation or the division of economic
development best suited to foster such businesses continued success and
growth, including but not limited to the manufacturing extension
program, centers for advanced technology program, centers of excellence
program, the state small business credit initiative program, certified
innovation hot spots program, certified business incubator program,
entrepreneurial assistance centers, business competitions and
accelerators supported by the corporation or department of economic
development, and venture capital investments administered by the
corporation or department of economic development.
3. Small businesses applying to the federal small business innovation
research program or the small business technology transfer program may
apply to the corporation for a commitment letter that may be included in
their application to the federal programs named herein to demonstrate
contingent state support and therefore increase their likelihood of
receiving federal small business innovation research and small business
technology transfer matching grant program funding. State matching
grants shall only be provided to small businesses that are selected for
an award through the federal small business innovation research program
or the small business technology transfer program.
4. Such funds awarded pursuant to this section shall be used to
expedite commercialization and generally used to cover expenses not
allowed under the federal small business innovation research program or
the small business technology transfer program, including but not
limited to business planning, commercialization, patents and marketing
studies in sales efforts. Additionally, the corporation shall offer
grantees assistance with accessing existing resources offered through
the corporation or the department of economic development that cover
areas such as business planning inclusive of business financial
planning, commercialization, intellectual property and patents,
mentoring, international trade and export development, and marketing
studies in sales efforts support to ensure the most efficient use of
funds awarded through this program.
5. Such funds shall be awarded on condition that the small business
recipient remains headquartered and operates or manufactures in the
state for at least two years following the successful commercialization
of the business's product or products. Any small business that has
received funding under this program that is not headquartered and
operates or manufactures in the state for at least two years following
the successful commercialization of the business's product or products
shall return all grant awards to the state. If the small business ceases
operations before five years after the commercialization of its product
or products, such business shall be eligible for a waiver of this
clawback provision, as determined by the corporation, in consultation
with the department of economic development's division for small
business.
6. The corporation, in consultation with the department of economic
development's division for small business, shall establish the form and
manner in which applications for grant awards shall be submitted and
shall establish rules, regulations, or guidelines for the grant program.
The corporation shall endeavor to advance applicants that can
demonstrate the degree to which their small business or product advances
a green and sustainable economy, or supports traditionally disadvantaged
populations.
The corporation shall review each application for compliance with the
eligibility criteria and other requirements set forth in the program's
rules, regulations, or guidelines established by the commissioner. The
corporation may approve or reject each application or may return an
application for modifications, if necessary.
7. The corporation, beginning on June first, two thousand twenty-four,
and annually thereafter, provided program funds remain, shall submit a
report to the governor, the temporary president of the senate, and the
speaker of the assembly. Such annual report shall include, but need not
be limited to: the number of applicants by stage; the number of
applicants approved to receive grants; the total amount of grants
awarded and the average amount of such grants awarded; and such other
information as the corporation determines necessary and appropriate.
Such report shall be included on the corporation's website and any other
publicly accessible state databases that list economic development
programs, as determined by the corporation.
1. Notwithstanding the provisions of any other law to the
contrary, the dormitory authority and the urban development corporation
are hereby authorized to issue bonds or notes in one or more series for
the purpose of funding project costs for the acquisition of equipment,
including but not limited to the creation or modernization of
information technology systems and related research and development
equipment, health and safety equipment, heavy equipment and machinery,
the creation or improvement of security systems, and laboratory
equipment and other state costs associated with such capital projects.
The aggregate principal amount of bonds authorized to be issued pursuant
to this section shall not exceed seven hundred ninety-three million
dollars $793,000,000, excluding bonds issued to fund one or more debt
service reserve funds, to pay costs of issuance of such bonds, and bonds
or notes issued to refund or otherwise repay such bonds or notes
previously issued. Such bonds and notes of the dormitory authority and
the urban development corporation shall not be a debt of the state, and
the state shall not be liable thereon, nor shall they be payable out of
any funds other than those appropriated by the state to the dormitory
authority and the urban development corporation for principal, interest,
and related expenses pursuant to a service contract and such bonds and
notes shall contain on the face thereof a statement to such effect.
Except for purposes of complying with the internal revenue code, any
interest income earned on bond proceeds shall only be used to pay debt
service on such bonds.
2. Notwithstanding any other provision of law to the contrary, in
order to assist the dormitory authority and the urban development
corporation in undertaking the financing for project costs for the
acquisition of equipment, including but not limited to the creation or
modernization of information technology systems and related research and
development equipment, health and safety equipment, heavy equipment and
machinery, the creation or improvement of security systems, and
laboratory equipment and other state costs associated with such capital
projects, the director of the budget is hereby authorized to enter into
one or more service contracts with the dormitory authority and the urban
development corporation, none of which shall exceed thirty years in
duration, upon such terms and conditions as the director of the budget
and the dormitory authority and the urban development corporation agree,
so as to annually provide to the dormitory authority and the urban
development corporation, in the aggregate, a sum not to exceed the
principal, interest, and related expenses required for such bonds and
notes. Any service contract entered into pursuant to this section shall
provide that the obligation of the state to pay the amount therein
provided shall not constitute a debt of the state within the meaning of
any constitutional or statutory provision and shall be deemed executory
only to the extent of monies available and that no liability shall be
incurred by the state beyond the monies available for such purpose,
subject to annual appropriation by the legislature. Any such contract or
any payments made or to be made thereunder may be assigned and pledged
by the dormitory authority and the urban development corporation as
security for its bonds and notes, as authorized by this section.
1. Findings and declaration of need. (a) The state of New York
finds and determines that the global spread of the COVID-19 coronavirus
disease is having and is expected to continue to have a significant
impact on the health and welfare of individuals in the state as well as
a significant financial impact on the state. The serious threat posed by
the COVID-19 coronavirus disease has caused governments, including the
state, to adopt policies, regulations and procedures to suspend various
legal requirements in order to (i) respond to and mitigate the impact of
the outbreak, and (ii) provide temporary relief to individuals,
including the deferral of the federal income tax payment deadline from
April 15, 2020 to a later date in the calendar year. The state of New
York further finds and determines that certain fiscal management
authorization measures should be authorized and established.
(b) Notwithstanding any other provision of law to the contrary,
including, specifically, the provisions of chapter 59 of the laws of
2000 and section sixty-seven-b of the state finance law, the dormitory
authority of the state of New York and the corporation are hereby
authorized to issue until December 31, 2020, notes with a maturity no
later than March 31, 2021, to be designated as personal income tax
revenue or bond anticipation notes, in one or more series in an
aggregate principal amount not to exceed eight billion dollars,
excluding notes issued to finance one or more debt service reserve
funds, to pay costs of issuance of such notes, and notes issued to
renew, refund or otherwise repay such notes previously issued, for the
purpose of temporarily financing budgetary needs of the state following
the federal government deferral of the federal income tax payment
deadline from April 15, 2020 to a later date in the calendar year. Such
purpose shall constitute an authorized purpose under subdivision two of
section sixty-eight-a of the state finance law for all purposes of
article five-C of the state finance law with respect to the notes,
renewal notes, refunding notes and any state personal income tax revenue
bonds issued to refinance any notes, renewal notes, refunding notes
authorized by this paragraph. On or before their maturity, such notes
may be renewed or refunded once with renewal or refunding notes for an
additional period not to exceed one year from the date of renewal or
refunding. If on or before the maturity date of such notes or such
renewal or refunding notes, the director of the division of the budget
shall determine that all or a portion of such notes or such renewal or
refunding notes shall be refinanced on a long term basis, such notes or
such renewal or refunding notes may be refinanced with state personal
income tax revenue bonds in one or more series in an aggregate principal
amount not to exceed the then outstanding principal amount of such notes
or such renewal or refunding notes plus an amount necessary to finance
one or more debt service reserve funds and to pay costs of issuance of
such refunding bonds, notwithstanding any other provision of law to the
contrary, including, specifically, the provisions of chapter fifty-nine
of the laws of two thousand and section sixty-seven-b of the state
finance law. For so long as any notes, renewal or refunding notes or
such refunding bonds authorized by this paragraph shall remain
outstanding, including any state-supported debt issued to refinance the
refunding bonds authorized by this paragraph, the restrictions,
limitations and requirements contained in article five-B of the state
finance law shall not apply.
(c) Such notes, renewal or refunding notes and refunding bonds of the
dormitory authority and the corporation shall not be a debt of the
state, and the state shall not be liable thereon, nor shall they be
payable out of any funds other than those appropriated by the state to
the dormitory authority and the corporation for debt service and related
expenses pursuant to any financing agreement described in paragraph (d)
of this subdivision, and such notes, renewal or refunding notes and
refunding bonds shall contain on the face thereof a statement to such
effect. Such notes, renewal or refunding notes and any refunding bonds
issued to refinance such notes and/or any renewal or refunding notes on
a subordinate basis shall be secured by subordinate payments from the
revenue bond tax fund established pursuant to section ninety-two-z of
the state finance law. Refunding bonds issued to refinance any such
notes and/or renewal or refunding notes on a parity basis with
outstanding state personal income tax revenue bonds shall be issued only
in accordance with the provisions of the applicable resolution of the
dormitory authority or the corporation authorizing the issuance of state
personal income tax revenue bonds and shall be secured by payments from
the revenue bond tax fund on a parity with such outstanding state
personal income tax revenue bonds. Except for purposes of complying with
the internal revenue code, any interest income earned on note proceeds
shall only be used to pay debt service on such notes. All of the
provisions of the dormitory authority act and the New York state urban
development corporation act relating to notes and bonds which are not
inconsistent with the provisions of this section shall apply to notes
and bonds authorized by paragraph (b) of this subdivision, including but
not limited to the power to establish adequate reserves therefor and to
issue renewal notes, refunding notes and refunding bonds, in any case
subject to the final maturity limitation for such notes set forth in
paragraph (b) of this subdivision. The issuance of any notes, renewal or
refunding notes and refunding bonds authorized by paragraph (b) of this
subdivision shall further be subject to the approval of the director of
the division of the budget.
(d) Notwithstanding any other law, rule or regulation to the contrary
but subject to the limitations contained in paragraph (b) of this
subdivision, in order to assist the dormitory authority and the
corporation in undertaking the administration and financing of such
notes, renewal or refunding notes and refunding bonds, the director of
the budget is hereby authorized to supplement any existing financing
agreement with the dormitory authority and the corporation, or to enter
into a new financing agreement with the dormitory authority and the
corporation, upon such terms and conditions as the director of the
budget and the dormitory authority and the corporation shall agree, so
as to annually provide to the dormitory authority and the corporation,
in the aggregate, a sum not to exceed the annual debt service payments
and related expenses required for any notes, renewal or refunding notes
and refunding bonds issued pursuant to this section. Any financing
agreement supplemented or entered into pursuant to this section shall
provide that the obligation of the state to pay the amount therein
provided shall not constitute a debt of the state within the meaning of
any constitutional or statutory provision and shall be deemed executory
only to the extent of monies available and that no liability shall be
incurred by the state beyond the monies available for such purposes,
subject to annual appropriation by the legislature. Any such financing
agreement or any payments made or to be made thereunder may be assigned
or pledged by the dormitory authority and the corporation as security
for the notes, renewal and refunding notes and refunding bonds
authorized by paragraph (b) of this subdivision.
(e) Notwithstanding any other provision of law to the contrary,
including specifically the provisions of subdivision 3 of section 67-b
of the state finance law, no capital work or purpose shall be required
for any issuance of personal income tax revenue or bond anticipation
notes, renewal or refunding notes or refunding bonds issued by the
dormitory authority and the corporation pursuant to this section.
(f) Notwithstanding any other law, rule, or regulation to the
contrary, the comptroller is hereby authorized and directed to deposit
to the credit of the general fund, all proceeds of personal income tax
revenue or bond anticipation notes issued by the dormitory authority and
the New York state urban development corporation pursuant to this
section.
2. Effect of inconsistent provisions. Insofar as the provisions of
this section are inconsistent with the provisions of any other law,
general, special, or local, the provisions of this section shall be
controlling.
3. Severability; construction. The provisions of this section shall be
severable, and if the application of any clause, sentence, paragraph,
subdivision, section or part of this section to any person or
circumstance shall be adjudged by any court of competent jurisdiction to
be invalid, such judgment shall not necessarily affect, impair or
invalidate the application of any such clause, sentence, paragraph,
subdivision, section, part of this section or remainder thereof, as the
case may be, to any other person or circumstance, but shall be confined
in its operation to the clause, sentence, paragraph, subdivision,
section or part thereof directly involved in the controversy in which
such judgment shall have been rendered.
Personal income tax notes; 2022. 1. Findings and declaration
of need. (a) The state of New York finds and determines that the global
spread of the COVID-19 pandemic has had and is expected to continue to
have a significant adverse impact on the health and welfare of
individuals in the state as well as to the financial condition of the
state during the state's 2021 and 2022 fiscal years and beyond. The
anticipated shortfalls and deferrals in the state's financial plan
receipts caused by the COVID-19 pandemic has required the state to adopt
policies, regulations and procedures that suspend various legal
requirements and address state budgetary pressures, some of which
require certain fiscal management authorization measures to be
legislatively authorized and established.
(b) Notwithstanding any other provision of law to the contrary,
including, specifically, the provisions of chapter 59 of the laws of
2000 and section sixty-seven-b of the state finance law, the dormitory
authority of the state of New York and the corporation are hereby
authorized for the state's 2022 fiscal year, to issue until December 31,
2021, notes with a maturity no later than March 31, 2022, to be
designated as personal income tax revenue anticipation notes, in one or
more series in an aggregate principal amount not to exceed three billion
dollars, excluding any such notes issued to finance one or more debt
service reserve funds, and to pay costs of issuance of such notes, for
the purpose of temporarily financing budgetary needs of the state. Such
purpose shall constitute an authorized purpose under subdivision two of
section sixty-eight-a of the state finance law for all purposes of
article five-C of the state finance law with respect to the notes
authorized by this paragraph. Such notes shall not be renewed or
refunded beyond March 31, 2022. For so long as any notes authorized by
this paragraph shall remain outstanding, the restrictions, limitations
and requirements contained in article five-B of the state finance law
shall not apply, other than subdivision four of section sixty-seven-b of
such article.
(c) Such notes of the dormitory authority and the corporation shall
not be a debt of the state, and the state shall not be liable thereon,
nor shall they be payable out of any funds other than those appropriated
by the state to the dormitory authority and the corporation for debt
service and related expenses pursuant to any financing agreement
described in paragraph (d) of this subdivision, and such notes shall
contain on the face thereof a statement to such effect. Such notes shall
be issued on a subordinate basis and shall be secured by subordinate
payments from the revenue bond tax fund established pursuant to section
ninety-two-z of the state finance law. Except for purposes of complying
with the internal revenue code, any interest income earned on note
proceeds shall only be used to pay debt service on such notes. All of
the provisions of the state finance law, the dormitory authority act and
this act relating to notes and bonds which are not inconsistent with the
provisions of this section shall apply to notes authorized by paragraph
(b) of this subdivision, including but not limited to the power to
establish adequate reserves therefor, subject to the final maturity
limitation for such notes set forth in paragraph (b) of this
subdivision. The issuance of any notes authorized by paragraph (b) of
this subdivision shall further be subject to the approval of the
director of the division of the budget.
(d) Notwithstanding any other law, rule or regulation to the contrary
but subject to the limitations contained in paragraph (b) of this
subdivision, in order to assist the dormitory authority and the
corporation in undertaking the administration and financing of such
notes, the director of the budget is hereby authorized to supplement any
existing financing agreement with the dormitory authority and the
corporation, or to enter into a new financing agreement with the
dormitory authority and the corporation, upon such terms and conditions
as the director of the budget and the dormitory authority and the
corporation shall agree, so as to provide to the dormitory authority and
the corporation, a sum not to exceed the debt service payments and
related expenses required for any notes issued pursuant to this section.
Any financing agreement supplemented or entered into pursuant to this
section shall provide that the obligation of the state to pay the amount
therein provided shall not constitute a debt of the state within the
meaning of any constitutional or statutory provision and shall be deemed
executory only to the extent of monies available and that no liability
shall be incurred by the state beyond the monies available for such
purposes, subject to annual appropriation by the legislature. Any such
financing agreement or any payments made or to be made thereunder may be
assigned or pledged by the dormitory authority and the corporation as
security for the notes authorized by paragraph (b) of this subdivision.
(e) Notwithstanding any other provision of law to the contrary,
including specifically the provisions of subdivision 3 of section 67-b
of the state finance law, no capital work or purpose shall be required
for any issuance of personal income tax revenue anticipation notes
issued by the dormitory authority and the corporation pursuant to this
section.
(f) Notwithstanding any other law, rule, or regulation to the
contrary, the comptroller is hereby authorized and directed to deposit
to the credit of the general fund, all proceeds of personal income tax
revenue anticipation notes issued by the dormitory authority and the New
York state urban development corporation pursuant to this section.
2. Effect of inconsistent provisions. Insofar as the provisions of
this section are inconsistent with the provisions of any other law,
general, special, or local, the provisions of this section shall be
controlling.
3. Severability; construction. The provisions of this section shall be
severable, and if the application of any clause, sentence, paragraph,
subdivision, section or part of this section to any person or
circumstance shall be adjudged by any court of competent jurisdiction to
be invalid, such judgment shall not necessarily affect, impair or
invalidate the application of any such clause, sentence, paragraph,
subdivision, section, part of this section or remainder thereof, as the
case may be, to any other person or circumstance, but shall be confined
in its operation to the clause, sentence, paragraph, subdivision,
section or part thereof directly involved in the controversy in which
such judgment shall have been rendered.
Personal income tax notes. 1. Findings and declaration of
need. (a) The state of New York finds and determines that shortfalls in
the state's financial plan arising from adverse economic and fiscal
events and risks, disasters and emergencies, including but not limited
to, public health emergencies, may occur or develop, and that the
financial impact of such events, risks, disasters and emergencies could
be prudently mitigated by certain fiscal management authorization
measures being legislatively authorized and established.
(b) Notwithstanding any other provision of law to the contrary,
including, specifically, the provisions of chapter 59 of the laws of
2000 and section sixty-seven-b of the state finance law, the dormitory
authority of the state of New York and the corporation are hereby
authorized to issue personal income tax revenue anticipation notes with
a maturity no later than March 31, 2027, in one or more series in an
aggregate principal amount for each fiscal year not to exceed three
billion dollars, and to pay costs of issuance of such notes, for the
purpose of temporarily financing budgetary needs of the state. Such
purpose shall constitute an authorized purpose under subdivision two of
section sixty-eight-a of the state finance law for all purposes of
article five-C of the state finance law with respect to the notes
authorized by this paragraph. Such notes shall not be renewed, extended
or refunded. For so long as any notes authorized by this paragraph shall
be outstanding, the restrictions, limitations and requirements contained
in article five-B of the state finance law shall not apply.
(c) Such notes of the dormitory authority and the corporation shall
not be a debt of the state, and the state shall not be liable thereon,
nor shall they be payable out of any funds other than those appropriated
by the state to the dormitory authority and the corporation for debt
service and related expenses pursuant to any financing agreement
described in paragraph (d) of this subdivision, and such notes shall
contain on the face thereof a statement to such effect. Such notes shall
be issued on a subordinate basis and shall be secured by subordinate
payments from the revenue bond tax fund established pursuant to section
ninety-two-z of the state finance law. Except for purposes of complying
with the internal revenue code, any interest income earned on note
proceeds shall only be used to pay debt service on such notes. All of
the provisions of the state finance law, the dormitory authority act and
this act relating to notes and bonds which are not inconsistent with the
provisions of this section shall apply to notes authorized by paragraph
(b) of this subdivision, including but not limited to the power to
establish adequate reserves therefor, subject to the final maturity
limitation for such notes set forth in paragraph (b) of this
subdivision. The issuance of any notes authorized by paragraph (b) of
this subdivision shall further be subject to the approval of the
director of the division of the budget.
(d) Notwithstanding any other law, rule or regulation to the contrary
but subject to the limitations contained in paragraph (b) of this
subdivision, in order to assist the dormitory authority and the
corporation in undertaking the administration and financing of such
notes, the director of the budget is hereby authorized to supplement any
existing financing agreement with the dormitory authority and/or the
corporation, or to enter into a new financing agreement with the
dormitory authority and/or the corporation, upon such terms and
conditions as the director of the budget and the dormitory authority and
the corporation shall agree, so as to provide to the dormitory authority
and the corporation, a sum not to exceed the debt service payments and
related expenses required for any notes issued pursuant to paragraph (b)
of this subdivision. Any financing agreement supplemented or entered
into pursuant to this section shall provide that the obligation of the
state to pay the amount therein provided shall not constitute a debt of
the state within the meaning of any constitutional or statutory
provision and shall be deemed executory only to the extent of monies
available and that no liability shall be incurred by the state beyond
the monies available for such purposes, subject to annual appropriation
by the legislature. Any such financing agreement or any payments made or
to be made thereunder may be assigned or pledged by the dormitory
authority and the corporation as security for the notes authorized by
paragraph (b) of this subdivision.
(e) Notwithstanding any other provision of law to the contrary,
including specifically the provisions of subdivision 3 of section 67-b
of the state finance law, no capital work or purpose shall be required
for any issuance of personal income tax revenue anticipation notes
issued by the dormitory authority and the corporation pursuant to
paragraph (b) of this subdivision.
(f) Notwithstanding any other law, rule, or regulation to the
contrary, the comptroller is hereby authorized and directed to deposit
to the credit of the general fund, all proceeds of personal income tax
revenue anticipation notes issued by the dormitory authority and the New
York state urban development corporation pursuant to paragraph (b) of
this subdivision.
2. Effect of inconsistent provisions. Insofar as the provisions of
this section are inconsistent with the provisions of any other law,
general, special, or local, the provisions of this section shall be
controlling.
3. Severability; construction. The provisions of this section shall be
severable, and if the application of any clause, sentence, paragraph,
subdivision, section or part of this section to any person or
circumstance shall be adjudged by any court of competent jurisdiction to
be invalid, such judgment shall not necessarily affect, impair or
invalidate the application of any such clause, sentence, paragraph,
subdivision, section, part of this section or remainder thereof, as the
case may be, to any other person or circumstance, but shall be confined
in its operation to the clause, sentence, paragraph, subdivision,
section or part thereof directly involved in the controversy in which
such judgment shall have been rendered.
1. Findings and declaration of need. (a) The state of New York
finds and determines that the global spread of the COVID-19 coronavirus
disease is having and is expected to continue to have a significant
impact on the health and welfare of individuals in the state as well as
a significant financial impact on the state. The serious threat posed by
the COVID-19 coronavirus disease has caused governments, including the
state, to adopt policies, regulations and procedures to suspend various
legal requirements in order to: (i) respond to and mitigate the impact
of the outbreak; and (ii) address budgetary pressures to the state
arising from anticipated shortfalls and deferrals in the state's fiscal
2021 financial plan receipts, thereby requiring that certain fiscal
management authorization measures be authorized and established.
(b) Notwithstanding any other provision of law to the contrary,
including, specifically, the provisions of chapter 59 of the laws of
2000 and section 67-b of the state finance law, during the state's 2021
fiscal year, the dormitory authority of the state of New York and the
urban development corporation are authorized to: (i) enter into
commitments with financial institutions for the establishment of one or
more line of credit facilities and other similar revolving financing
arrangements not in excess of three billion dollars in aggregate
principal amount outstanding at any one time; (ii) draw, at one or more
times at the direction of the director of the budget, upon such line of
credit facilities and provide to the state the amounts so drawn for the
purpose of assisting the state to temporarily finance its budgetary
needs; and (iii) secure repayment of such draws under such line of
credit facilities with a service contract of the state, which payment
obligation thereunder shall not constitute a debt of the state within
the meaning of any constitutional or statutory provision and shall be
deemed executory only to the extent moneys are available and that no
liability shall be incurred by the state beyond the moneys available for
such purpose, and that such payment obligation is subject to annual
appropriation by the legislature. Any line of credit facility agreements
entered by the dormitory authority of the state of New York and/or the
urban development corporation with financial institutions pursuant to
this section may contain such provisions that the dormitory authority of
the state of New York and/or the urban development corporation deem
necessary or desirable for the establishment of such credit facilities.
The maximum original term of any line of credit facility shall be one
year from the date of incurrence; provided however that any such line of
credit facility may be extended, renewed or refinanced for up to two
additional one year terms. If on or before the maturity date of the
original term of such line of credit facility or any renewal or
extension term thereof, the director of the division of the budget shall
determine that all or a portion of any outstanding line of credit
facility shall be refinanced on a long-term basis, the dormitory
authority of the state of New York and/or the urban development
corporation are authorized to refinance such line of credit facility
with state personal income tax revenue bonds and/or state service
contract bonds in one or more series in an aggregate principal amount
not to exceed the then outstanding principal amount of such line of
credit facility and any accrued interest thereon, plus an amount
necessary to finance one or more debt service reserve funds and to pay
costs of issuance of such state personal income tax revenue bonds and/or
state service contract bonds.
(c) Notwithstanding any other law, rule, or regulation to the
contrary, the comptroller is hereby authorized and directed to deposit
to the credit of the general fund, all amounts provided by the dormitory
authority of the state of New York and/or the urban development
corporation to the state from draws made on any line of credit facility
authorized by paragraph (b) of this subdivision.
(d) Notwithstanding any other provision of law to the contrary,
including specifically the provisions of subdivision 3 of section 67-b
of the state finance law, no capital work or purpose shall be required
for any indebtedness incurred in connection with any line of credit
facility authorized by paragraph (b) of this subdivision and any
extensions or renewals thereof, or for any state personal income tax
revenue bonds and/or state service contract bonds issued to refinance
any of the foregoing, or for any service contract entered into in
connection with any line of credit facility, all in accordance with this
section.
(e) Notwithstanding any other provision of law to the contrary, for so
long as any such line of credit facility shall remain outstanding, the
restrictions, limitations and requirements contained in article 5-B of
the state finance law shall not apply. In addition, such restrictions,
limitations and requirements shall not apply to any state personal
income tax revenue bonds and/or state service contract bonds issued to
refund such line of credit facility for so long as such state personal
income tax revenue bonds and/or state service contract bonds shall
remain outstanding, including any state-supported debt issued to refund
such state personal income tax revenue bonds and/or state service
contract bonds. Any such line of credit facility, including any
extensions or renewals thereof, and any state personal income tax
revenue bonds and/or state service contract bonds issued to refund such
line of credit facilities shall be deemed to be incurred or issued for
an authorized purpose within the meaning of subdivision 2 of section
68-a of the state finance law. As applicable, all of the provisions of
the state finance law, the dormitory authority act and the New York
state urban development corporation act relating to notes and bonds
which are not inconsistent with the provisions of this section shall
apply to any issuance of state personal income tax revenue bonds and/or
state service contract bonds issued to refinance any line of credit
facility authorized by paragraph (b) of this subdivision. The issuance
of any state personal income tax revenue bonds and/or state service
contract bonds issued to refinance any such line of credit facility
shall further be subject to the approval of the director of the division
of the budget.
(f) Any draws on a line of credit facility authorized by paragraph (b)
of this subdivision shall only be made and the service contract entered
into in connection with such line of credit facilities shall only be
executed and delivered to the dormitory authority of the state of New
York and/or the urban development corporation if the legislature has
enacted sufficient appropriation authority to provide for the repayment
of all amounts expected to be drawn by the dormitory authority of the
state of New York and/or the urban development corporation under such
line of credit facility during fiscal year 2021. Amounts repaid under a
line of credit facility during fiscal year 2021 may be re-borrowed
during such fiscal year provided that the legislature has enacted
sufficient appropriation authority to provide for the repayment of any
such re-borrowed amounts. Neither the dormitory authority of the state
of New York nor the urban development corporation shall have any
financial liability for the repayment of draws under any line of credit
facility authorized by paragraph (b) of this subdivision beyond the
moneys received for such purpose under the service contract authorized
by paragraph (g) of this subdivision.
(g) The director of the budget is authorized to enter into one or more
service contracts or other agreements, none of which shall exceed 30
years in duration, with the dormitory authority of the state of New York
and/or the urban development corporation, upon such terms and conditions
as the director of the budget and dormitory authority of the state of
New York and/or the urban development corporation shall agree. Any
service contract or other agreements entered into pursuant to this
paragraph shall provide for state commitments to provide annually to the
dormitory authority of the state of New York and/or the urban
development corporation a sum or sums, upon such terms and conditions as
shall be deemed appropriate by the director of the budget and the
dormitory authority of the state of New York and/or the urban
development corporation, to fund the payment of amounts due under any
line of credit facility and any state personal income tax revenue bonds
and/or state service contract bonds issued to refinance such line of
credit facility. Any such service contract or other agreements shall
provide that the obligation of the director of the budget or of the
state to fund or to pay the amounts therein provided for shall not
constitute a debt of the state within the meaning of any constitutional
or statutory provision and shall be deemed executory only to the extent
moneys are available and that no liability shall be incurred by the
state beyond the moneys available for such purpose, and that such
obligation is subject to annual appropriation by the legislature.
(h) Any service contract or other agreements entered into pursuant to
paragraph (g) of this subdivision or any payments made or to be made
thereunder may be assigned and pledged by the dormitory authority of the
state of New York and/or the urban development corporation as security
for any related payment obligation it may have with one or more
financial institutions in connection with a line of credit facility
authorized by paragraph (b) of this subdivision.
(i) In addition to the foregoing, the director of the budget, the
dormitory authority of the state of New York and the urban development
corporation shall each be authorized to enter into such other agreements
and to take or cause to be taken such additional actions as are
necessary or desirable to effectuate the purposes of the transactions
contemplated by a line of credit facility and the related service
contract.
(j) No later than seven days after a draw occurs on the line of credit
facility, the director of the budget shall provide notification of such
draw to the president pro tempore of the senate and the speaker of the
assembly.
(k) The authorization, establishment and use by the dormitory
authority of the state of New York and the urban development corporation
of a line of credit facility authorized by paragraph (b) of this
subdivision, and the execution, sale and issuance of state personal
income tax revenue bonds and/or state service contract bonds to
refinance any such line of credit facility shall not be deemed an
action, as such term is defined in article 8 of the environmental
conservation law, for the purposes of such article. Such exemption shall
be strictly limited in its application to such financing activities of
the dormitory authority of the state of New York and the urban
development corporation undertaken pursuant to this section and does not
exempt any other entity from compliance with such article.
(l) Nothing contained in this section shall be construed to limit the
abilities of the director of the budget and the authorized issuers of
state-supported debt to perform their respective obligations on existing
service contracts or other agreements entered into prior to April 1,
2020.
2. Effect of inconsistent provisions. Insofar as the provisions of
this section are inconsistent with the provisions of any other law,
general, special, or local, the provisions of this act shall be
controlling.
3. Severability; construction. The provisions of this section shall be
severable, and if the application of any clause, sentence, paragraph,
subdivision, section or part of this section to any person or
circumstance shall be adjudged by any court of competent jurisdiction to
be invalid, such judgment shall not necessarily affect, impair or
invalidate the application of any such clause, sentence, paragraph,
subdivision, section, part of this section or remainder thereof, as the
case may be, to any other person or circumstance, but shall be confined
in its operation to the clause, sentence, paragraph, subdivision,
section or part thereof directly involved in the controversy in which
such judgment shall have been rendered.
Line of credit facilities; 2022. 1. Findings and declaration
of need. (a) The state of New York finds and determines that the global
spread of the COVID-19 pandemic has had and is expected to continue to
have a significant adverse impact on the health and welfare of
individuals in the state as well as to the financial condition of the
state during the state's 2021 and 2022 fiscal years and beyond. The
anticipated shortfalls and deferrals in the state's financial plan
receipts caused by the COVID-19 pandemic has required the state, to
adopt policies, regulations and procedures that suspend various legal
requirements and address state budgetary pressures, some of which
require certain fiscal management authorization measures to be
legislatively authorized and established.
(b) Definitions. When used in this subdivision "related expenses and
fees" shall mean interest costs, commitment fees and other costs,
expenses and fees incurred in connection with a line of credit facility
and/or a service contract or other agreement of the state securing such
line of credit facility that contractually obligates the state to pay
debt service subject to an appropriation.
(c) Notwithstanding any other provision of law to the contrary,
including, specifically, the provisions of chapter 59 of the laws of
2000 and section 67-b of the state finance law, the dormitory authority
of the state of New York and the urban development corporation are
authorized until March 31, 2022 to: (i) enter into commitments with
financial institutions for the establishment of one or more line of
credit facilities and other similar revolving financing arrangements not
in excess of two billion dollars in aggregate principal amount; (ii)
draw, at one or more times at the direction of the director of the
budget, upon such line of credit facilities and provide to the state the
amounts so drawn for the purpose of assisting the state to temporarily
finance its budgetary needs; provided, however, that the total amount of
such draws shall not exceed two billion dollars; and (iii) secure
repayment of such draws under such line of credit facilities, together
with related expenses and fees, which payment obligation thereunder
shall not constitute a debt of the state within the meaning of any
constitutional or statutory provision and shall be deemed executory only
to the extent moneys are available and that no liability shall be
incurred by the state beyond the moneys available for such purpose, and
that such payment obligation is subject to annual appropriation by the
legislature. Any line of credit facility agreements entered by the
dormitory authority of the state of New York and/or the urban
development corporation with financial institutions pursuant to this
section may contain such provisions that the dormitory authority of the
state of New York and/or the urban development corporation deem
necessary or desirable for the establishment of such credit facilities.
The maximum term of any line of credit facility shall be one year from
the date of incurrence; provided however that no draw on any such line
of credit facility shall occur after March 31, 2022, and provided
further that any such line of credit facility whose term extends beyond
March 31, 2022, shall be supported by sufficient appropriation authority
enacted by the legislature that provides for the repayment of all
amounts drawn and remaining unpaid as of March 31, 2022, together with
related expenses and fees incurred and to become due and payable by the
dormitory authority of the state of New York and/or the urban
development corporation.
(d) Notwithstanding any other law, rule, or regulation to the
contrary, the comptroller is hereby authorized and directed to deposit
to the credit of the general fund, all amounts provided by the dormitory
authority of the state of New York and/or the urban development
corporation to the state from draws made on any line of credit facility
authorized by paragraph (c) of this subdivision.
(e) Notwithstanding any other provision of law to the contrary,
including specifically the provisions of subdivision 3 of section 67-b
of the state finance law, no capital work or purpose shall be required
for any indebtedness incurred in connection with any line of credit
facility authorized by paragraph (c) of this subdivision, or for any
service contract or other agreement entered into in connection with any
such line of credit facility, all in accordance with this section.
(f) Notwithstanding any other provision of law to the contrary, for so
long as any such line of credit facility shall remain outstanding, the
restrictions, limitations and requirements contained in article 5-B of
the state finance law shall not apply. Any such line of credit facility
shall be deemed to be incurred or issued for (i) an authorized purpose
within the meaning of subdivision 2 of section 68-a of the state finance
law for all purposes of article 5-C of the state finance law and section
92-z of the state finance law, and/or (ii) an authorized purpose within
the meaning of subdivision 2 of section 69-m of the state finance law
for all purposes of article 5-F of the state finance law and section
92-h of the state finance law, as the case may be. As applicable, all of
the provisions of the state finance law, the dormitory authority act and
the New York state urban development corporation act relating to notes
and bonds which are not inconsistent with the provisions of this section
shall apply to any line of credit facility and other similar revolving
financing arrangement established in accordance with the authorization
contained in paragraph (c) of this subdivision.
(g) Each draw on a line of credit facility authorized by paragraph (c)
of this subdivision shall only be made if the service contract or other
agreement entered into in connection with such line of credit facility
is supported by sufficient appropriation authority enacted by the
legislature to repay the amount of the draw, together with related
expenses and fees to become due and payable. Amounts repaid under a line
of credit facility may be re-borrowed under the same or another line of
credit facility authorized by paragraph (c) of this subdivision provided
that the legislature has enacted sufficient appropriation authority that
provides for the repayment of any such re-borrowed amounts, together
with related expenses and fees to become due and payable. Neither the
dormitory authority of the state of New York nor the urban development
corporation shall have any financial liability for the repayment of
draws under any line of credit facility authorized by paragraph (c) of
this subdivision beyond the moneys received for such purpose under any
service contract or other agreement authorized by paragraph (h) of this
subdivision.
(h) The director of the budget is authorized to enter into one or more
service contracts or other agreements, none of which shall exceed one
year in duration, with the dormitory authority of the state of New York
and/or the urban development corporation, upon such terms and conditions
as the director of the budget and dormitory authority of the state of
New York and/or the urban development corporation shall agree. Any
service contract or other agreement entered into pursuant to this
paragraph shall provide for state commitments to provide annually to the
dormitory authority of the state of New York and/or the urban
development corporation a sum or sums, upon such terms and conditions as
shall be deemed appropriate by the director of the budget and the
dormitory authority of the state of New York and/or the urban
development corporation, to fund the payment of all amounts to become
due and payable under any line of credit facility. Any such service
contract or other agreement shall provide that the obligation of the
director of the budget or of the state to fund or to pay the amounts
therein provided for shall not constitute a debt of the state within the
meaning of any constitutional or statutory provision and shall be deemed
executory only to the extent moneys are available and that no liability
shall be incurred by the state beyond the moneys available for such
purpose, and that such obligation is subject to annual appropriation by
the legislature.
(i) Any service contract or other agreement entered into pursuant to
paragraph (h) of this subdivision or any payments made or to be made
thereunder may be assigned and pledged by the dormitory authority of the
state of New York and/or the urban development corporation as security
for any related payment obligation it may have with one or more
financial institutions in connection with a line of credit facility
authorized by paragraph (c) of this subdivision.
(j) In addition to the foregoing, the director of the budget, the
dormitory authority of the state of New York and the urban development
corporation shall each be authorized to enter into such other agreements
and to take or cause to be taken such additional actions as are
necessary or desirable to effectuate the purposes of the transactions
contemplated by a line of credit facility and the related service
contract or other agreement.
(k) No later than seven days after a draw occurs on a line of credit
facility, the director of the budget shall provide notification of such
draw to the president pro tempore of the senate and the speaker of the
assembly.
(l) The authorization, establishment and use by the dormitory
authority of the state of New York and the urban development corporation
of a line of credit facility authorized by paragraph (c) of this
subdivision shall not be deemed an action, as such term is defined in
article 8 of the environmental conservation law, for the purposes of
such article. Such exemption shall be strictly limited in its
application to such financing activities of the dormitory authority of
the state of New York and the urban development corporation undertaken
pursuant to this section and does not exempt any other entity from
compliance with such article.
(m) Nothing contained in this section shall be construed to limit the
abilities of the director of the budget and the authorized issuers of
state personal income tax revenue bonds, state sales tax revenue bonds
or service contract bonds to perform their respective obligations with
respect to existing service contracts or other agreements.
2. Effect of inconsistent provisions. Insofar as the provisions of
this section are inconsistent with the provisions of any other law,
general, special, or local, the provisions of this act shall be
controlling.
3. Severability; construction. The provisions of this section shall be
severable, and if the application of any clause, sentence, paragraph,
subdivision, section or part of this section to any person or
circumstance shall be adjudged by any court of competent jurisdiction to
be invalid, such judgment shall not necessarily affect, impair or
invalidate the application of any such clause, sentence, paragraph,
subdivision, section, part of this section or remainder thereof, as the
case may be, to any other person or circumstance, but shall be confined
in its operation to the clause, sentence, paragraph, subdivision,
section or part thereof directly involved in the controversy in which
such judgment shall have been rendered.
State-supported debt; 2021. 1. In light of the significant
impact that the global spread of the COVID-19 coronavirus disease is
having and is expected to continue to have on the health and welfare of
individuals in the state as well as on the financial condition of the
state, and notwithstanding any other provision of law to the contrary,
the dormitory authority of the state of New York and the urban
development corporation are each authorized to issue state-supported
debt pursuant to article 5-C of the state finance law to assist the
state to manage its financing needs during its 2021 fiscal year, without
regard to any restrictions, limitations and requirements contained in
article 5-B of the state finance law, other than subdivision 4 of
section 67-b of such article, and such state-supported debt shall be
deemed to be issued for an authorized purpose within the meaning of
subdivision 2 of section 68-a of the state finance law for all purposes
of article 5-C of the state finance law. Furthermore, any bonds issued
directly by the state during the state's 2021 fiscal year shall be
issued without regard to any restrictions, limitations and requirements
contained in article 5-B of the state finance law, other than
subdivision 4 of section 67-b of such article. For so long as any
state-supported debt issued during the state's 2021 fiscal year shall
remain outstanding, including any state-supported debt issued to refund
state-supported debt issued during such fiscal year, the restrictions,
limitations and requirements contained in article 5-B of the state
finance law, other than subdivision 4 of section 67-b of such article,
shall not apply.
2. Effect of inconsistent provisions. Insofar as the provisions of
this section are inconsistent with the provisions of any other law,
general, special, or local, the provisions of this act shall be
controlling.
3. Severability; construction. The provisions of this section shall be
severable, and if the application of any clause, sentence, paragraph,
subdivision, section or part of this section to any person or
circumstance shall be adjudged by any court of competent jurisdiction to
be invalid, such judgment shall not necessarily affect, impair or
invalidate the application of any such clause, sentence, paragraph,
subdivision, section, part of this section or remainder thereof, as the
case may be, to any other person or circumstance, but shall be confined
in its operation to the clause, sentence, paragraph, subdivision,
section or part thereof directly involved in the controversy in which
such judgment shall have been rendered.
State-supported debt; 2022. 1. In light of the continuing
adverse impact that the COVID-19 pandemic is expected to have on the
health and welfare of individuals in the state as well as to the
financial condition of the state during the state's 2022 fiscal year,
and notwithstanding any other provision of law to the contrary, the
dormitory authority of the state of New York, the urban development
corporation, and the New York state thruway authority are each
authorized to issue state-supported debt pursuant to article 5-B,
article 5-C and article 5-F of the state finance law to assist the state
to manage its financing needs during its 2022 fiscal year, without
regard to any restrictions, limitations and requirements contained in
article 5-B of the state finance law, other than subdivision 4 of
section 67-b of such article, and such state-supported debt shall be
deemed to be issued for (i) an authorized purpose within the meaning of
subdivision 2 of section 68-a of the state finance law for all purposes
of article 5-C of the state finance law and section 92-z of the state
finance law, or (ii) an authorized purpose within the meaning of
subdivision 2 of section 69-m of the state finance law for all purposes
of article 5-F of the state finance law and section 92-h of the state
finance law, as the case may be. Furthermore, any bonds issued directly
by the state during the state's 2022 fiscal year shall be issued without
regard to any restrictions, limitations and requirements contained in
article 5-B of the state finance law, other than subdivision 4 of
section 67-b of such article. For so long as any state-supported debt
issued during the state's 2022 fiscal year shall remain outstanding,
including any state-supported debt issued to refund state-supported debt
issued during such fiscal year, the restrictions, limitations and
requirements contained in article 5-B of the state finance law, other
than subdivision 4 of section 67-b of such article, shall not apply.
2. Effect of inconsistent provisions. Insofar as the provisions of
this section are inconsistent with the provisions of any other law,
general, special, or local, the provisions of this act shall be
controlling.
3. Severability; construction. The provisions of this section shall be
severable, and if the application of any clause, sentence, paragraph,
subdivision, section or part of this section to any person or
circumstance shall be adjudged by any court of competent jurisdiction to
be invalid, such judgment shall not necessarily affect, impair or
invalidate the application of any such clause, sentence, paragraph,
subdivision, section, part of this section or remainder thereof, as the
case may be, to any other person or circumstance, but shall be confined
in its operation to the clause, sentence, paragraph, subdivision,
section or part thereof directly involved in the controversy in which
such judgment shall have been rendered.
1. Notwithstanding the provisions of any other law to the
contrary, the dormitory authority and the urban development corporation
are hereby authorized to issue bonds or notes in one or more series for
the purpose of funding project costs for the Empire Station Complex
project, and such project shall be deemed a capital work or purpose for
purposes of subdivision 3 of section 67-b of the state finance law. The
aggregate principal amount of bonds authorized to be issued pursuant to
this section shall not exceed one billion three hundred million dollars
$1,300,000,000, excluding bonds issued to fund one or more debt service
reserve funds, to pay costs of issuance of such bonds, and bonds or
notes issued to refund or otherwise repay such bonds or notes previously
issued. Such bonds and notes of the dormitory authority and the urban
development corporation shall not be a debt of the state, and the state
shall not be liable thereon, nor shall they be payable out of any funds
other than those appropriated by the state to the dormitory authority
and the urban development corporation for principal, interest, and
related expenses pursuant to a service contract and such bonds and notes
shall contain on the face thereof a statement to such effect. Except for
purposes of complying with the internal revenue code, any interest
income earned on bond proceeds shall only be used to pay debt service on
such bonds.
2. Notwithstanding any other provision of law to the contrary, in
order to assist the dormitory authority and the urban development
corporation in undertaking the financing for project costs for the
Empire Station Complex project, the director of the budget is hereby
authorized to enter into one or more service contracts with the
dormitory authority and the urban development corporation, none of which
shall exceed thirty years in duration, upon such terms and conditions as
the director of the budget and the dormitory authority and the urban
development corporation agree, so as to annually provide to the
dormitory authority and the urban development corporation, in the
aggregate, a sum not to exceed the principal, interest, and related
expenses required for such bonds and notes. Any service contract entered
into pursuant to this section shall provide that the obligation of the
state to pay the amount therein provided shall not constitute a debt of
the state within the meaning of any constitutional or statutory
provision and shall be deemed executory only to the extent of monies
available and that no liability shall be incurred by the state beyond
the monies available for such purpose, subject to annual appropriation
by the legislature. Any such contract or any payments made or to be made
thereunder may be assigned and pledged by the dormitory authority and
the urban development corporation as security for its bonds and notes,
as authorized by this section.
* § 58. Gateway project. 1. Findings and declaration of need. The
state of New York finds and determines that providing funding for the
passenger rail transportation project commonly known as the gateway
project, is needed to preserve and improve the functionality and
strengthen the resiliency of long-distance and commuter rail
infrastructure between the state of New York and the state of New
Jersey.
2. Definitions. When used in this section:
(a) "Commission" shall mean the gateway development commission, a
bi-state commission and a body corporate and politic established by the
state of New Jersey and the state of New York, acting in the public
interest and exercising essential governmental functions in accordance
with the Gateway development commission act, and any successor thereto.
(b) "Federal transportation loan" shall mean one or more loans made to
the commission to finance the Hudson tunnel project under or pursuant to
any U.S. Department of Transportation program or act, including but not
limited to the Railroad Rehabilitation & Improvement Financing Program
or the Transportation Infrastructure Finance and Innovation Act, which
loan or loans are related to the state capital commitment.
(c) "Gateway development commission act" shall mean chapter 108 of the
laws of New York, 2019, as amended.
(d) "Gateway project" shall mean the Hudson tunnel project.
(e) "Hudson tunnel project" shall mean the project consisting of
construction of a tunnel connecting the states of New York and New
Jersey and the completion of certain ancillary facilities including
construction of concrete casing at Hudson Yards in Manhattan, New York
and the rehabilitation of the existing North River Tunnels.
(f) "State capital commitment" shall mean (i) an aggregate principal
amount not to exceed $2,850,000,000, plus (ii) any interest costs,
including capitalized interest, and (iii) related expenses and fees, all
of which shall be payable by the state of New York to, or at the
direction of, the commission under one or more service contracts or
other agreements pursuant to this section, as well as any expenses of
the state incurred in connection therewith.
(g) "Related expenses and fees" shall mean commitment fees, servicing
and monitoring costs, credit risk premium payments and similar charges,
administrative fees and other ancillary costs, expenses and fees
incurred, and to become due and payable, by the commission in connection
with the Federal transportation loan, or by the state in connection with
any service contract.
3. Notwithstanding any other provision of law to the contrary, in
order to provide for the payment for the state capital commitment, the
director of the budget is hereby authorized to enter into one or more
service contracts or other agreements with the commission, none of which
shall exceed the maximum duration of the Federal transportation loan,
upon such terms and conditions as the director of the budget and
commission agree, so as to provide to or at the direction of the
commission, for each state fiscal year, a sum not to exceed the amount
required to be paid as principal and interest under the Federal
transportation loan for such fiscal year, plus related expenses and fees
for such fiscal year. Any such service contract or other agreement shall
provide that the obligation of the state to pay the amount therein
provided shall not constitute a debt of the state within the meaning of
any constitutional or statutory provision and shall be deemed executory
only to the extent of monies available, that no liability shall be
incurred by the state beyond the monies available for such purpose, and
that such obligation is subject to annual appropriation by the
legislature. Any such service contract or other agreement and any
payments made or to be made thereunder may be assigned and pledged by
the commission as security for the repayment by the commission of the
Federal transportation loan.
4. The director of the budget is also authorized to enter into such
other agreements and to take or cause to be taken such additional
actions as are necessary or desirable to effectuate the purposes of the
transactions contemplated by the state capital commitment provided for
herein and the service contract or other agreement authorized by
subdivision 3 of this section.
5. On or before the beginning of each quarter, the director of the
budget shall certify to the state comptroller the estimated amount of
monies that shall be reserved in the general debt service fund for
payment pursuant to any service contract authorized by subdivision 3 of
this section payable by such fund during each month of the state fiscal
year. Such certificate may be periodically updated, as necessary.
Notwithstanding any provision of law to the contrary, the state
comptroller shall reserve in the general debt service fund the amount of
monies identified on such certificate as necessary for payment pursuant
to any service contract authorized by subdivision 3 of this section
during the current or next succeeding quarter of the state fiscal year.
Such monies so reserved shall not be available for any other purpose.
Such certificate shall be reported to the chairpersons of the Senate
Finance Committee and the Assembly Ways and Means Committee.
* NB There are 2 § 58's
The dormitory authority of the state of New York, the New York
state urban development corporation, and the New York state thruway
authority are hereby authorized to issue bonds in one or more series
under either article 5-C or article 5-F of the state finance law for the
purpose of refunding obligations of the power authority of the state of
New York to fund energy efficiency projects at state agencies including,
but not limited to, the state university of New York, city university of
New York, the New York state office of general services, New York state
office of mental health, state education department, and New York state
department of agriculture and markets. The aggregate principal amount of
bonds authorized to be issued pursuant to this section shall not exceed
four hundred seventy-five million dollars ($475,000,000), excluding
bonds issued to pay costs of issuance of such bonds and to refund or
otherwise repay such bonds. Such bonds issued by the dormitory authority
of the state of New York, the New York state urban development
corporation, and New York state thruway authority shall not be a debt of
the state, and the state shall not be liable thereon, nor shall they be
payable out of any funds other than those appropriated by the state
under article 5-C or article 5-F of the state finance law, as
applicable.