Bill Text: NY A02804 | 2017-2018 | General Assembly | Amended

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Bill Title: Relates to the creation of micro-business worker cooperatives upon transfer of ownership.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2018-12-07 - tabled [A02804 Detail]

Download: New_York-2017-A02804-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         2804--A
                                                                Cal. No. 223
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    January 23, 2017
                                       ___________
        Introduced by M. of A. THIELE -- read once and referred to the Committee
          on  Small  Business -- advanced to a third reading, passed by Assembly
          and delivered to the Senate, recalled from the Senate, vote  reconsid-
          ered,  bill  amended,  ordered  reprinted,  retaining its place on the
          order of third reading
        AN ACT to amend the New York state urban development corporation act and
          the economic development law, in relation to the creation of micro-bu-
          siness worker cooperatives upon transfer of ownership
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Subdivision 1 of section 16-m of section 1 of chapter 174
     2  of the laws of 1968, constituting the New York state  urban  development
     3  corporation  act,  is  amended  by adding a new paragraph (o) to read as
     4  follows:
     5    (o) Assistance to eligible entities pursuant to article five-a of  the
     6  cooperative  corporations law to provide financing in the form of loans,
     7  loan guarantees, and interest subsidy grants  to  subsidize  loans  from
     8  federally  chartered  instrumentalities  and  state  and private lending
     9  institutions to facilitate the  creation  of  worker  cooperatives  that
    10  promote  continuation of existing micro-businesses either as a part of a
    11  preexisting business succession of  ownership  plan  or  as  alternative
    12  option  if  a  business  is  being  offered  for sale or transfer by the
    13  current owner or the heirs or  estate  of  a  deceased  owner.  For  the
    14  purposes  of  this section, a micro-business shall be defined as a busi-
    15  ness with five or less full-time or full-time equivalent employees.  All
    16  eligible entities shall be required to submit a business plan with their
    17  application requesting assistance.
    18    §  2.  The opening paragraph of section 104-a of the economic develop-
    19  ment law, as added by chapter 788 of the laws of  1983,  is  amended  to
    20  read as follows:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08416-08-8
        A. 2804--A                          2
     1    With  respect  to  employee ownership assistance loans provided for in
     2  subtitle six of title eight of article eight of the  public  authorities
     3  law and paragraph (o) of subdivision one of section sixteen-m of section
     4  one  of chapter one hundred seventy-four of the laws of nineteen hundred
     5  sixty-eight,  constituting  the  New York state urban development corpo-
     6  ration act, the department shall have the power and duty and in  cooper-
     7  ation  with  the job development authority, the empire state development
     8  corporation and any other applicable state agency or office to:
     9    § 3. This act shall take effect immediately, provided,  however,  that
    10  the  amendments to section 16-m of the urban development corporation act
    11  made by section one of this act shall not affect the expiration of  such
    12  section and shall be deemed to expire therewith.