Bill Text: NY A05191 | 2017-2018 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to establishing an advisory panel on employee-owned enterprises; provides such panel shall consist of twelve members who shall report and make recommendations on how best to support existing employee-owned enterprises and promote new employee-owned enterprises.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2017-06-01 - enacting clause stricken [A05191 Detail]

Download: New_York-2017-A05191-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5191
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    February 6, 2017
                                       ___________
        Introduced  by  M. of A. RYAN -- read once and referred to the Committee
          on Labor
        AN ACT to amend the state finance law and the education law, in relation
          to employee owned enterprises; to amend the  cooperative  corporations
          law,  in  relation  to  creating an advisory panel on the viability of
          increasing employee-owned enterprises; and to amend the  tax  law,  in
          relation to a capital gains exemption
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1.  Paragraph j of subdivision 1 of section 163 of  the  state
     2  finance  law,  as amended by chapter 569 of the laws of 2015, is amended
     3  to read as follows:
     4    j. "Best value" means the basis for awarding contracts for services to
     5  the offerer which optimizes quality, cost and efficiency, among  respon-
     6  sive and responsible offerers. Such basis shall reflect, wherever possi-
     7  ble, objective and quantifiable analysis. Such basis may also identify a
     8  quantitative  factor  for  offerers that are small businesses, certified
     9  minority- or women-owned business enterprises as defined in subdivisions
    10  one, seven, fifteen and twenty of section three hundred ten of the exec-
    11  utive law or  service-disabled  veteran-owned  business  enterprises  as
    12  defined  in subdivision one of section three hundred sixty-nine-h of the
    13  executive law, or employee-owned enterprises as defined  by  subdivision
    14  five  of section eighteen hundred thirty-six-b of the public authorities
    15  law to be used in evaluation of offers for  awarding  of  contracts  for
    16  services.
    17    §  2.  Paragraph (a) of subdivision 4 of section 3032 of the education
    18  law, as amended by chapter 683 of the laws of 1986, is amended  to  read
    19  as follows:
    20    (a)  Employer specific skill training grant programs shall be designed
    21  to support, supplement and contribute to the expansion  and  maintenance
    22  of the economy of the state. Local education agencies shall apply to the
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08166-02-7
        A. 5191                             2
     1  commissioner  for grants for conducting employer specific skill training
     2  programs. Application for funds by local education agencies for training
     3  programs shall be in a manner consistent with  the  application  process
     4  for  business  and  industry  specific training programs under the voca-
     5  tional education act of 1963 and the job training partnership  act;  the
     6  sum of such grants per region shall not exceed the total funds allocated
     7  or  reallocated  to  the  region  for such purposes. Such programs shall
     8  provide retraining and upgrading to existing or potential  personnel  in
     9  order  to improve technology, quality control, production efficiency, or
    10  to adapt to other changes in the labor  market,  or  to  provide  unique
    11  training  programs  to  meet  the  emerging needs and occupations of the
    12  state's business and industry or providing training  to  individuals  to
    13  promote  the  successful  management  and/or  operation  of  [a business
    14  purchased by such individuals to provide for their continued  employment
    15  through the formation of a worker owned cooperative or an employee stock
    16  ownership  plan]  employee-owned  enterprises, as defined by subdivision
    17  five of section eighteen hundred thirty-six-b of the public  authorities
    18  law,  by  such  employees. No grant shall exceed fifty per centum of the
    19  total program cost. Eligible program cost  may  include  employer  wages
    20  paid  to  the employee for time spent in the training program.  Applica-
    21  tions for a grant by  local  education  agencies  shall  be  in  a  form
    22  prescribed by the commissioner.
    23    §  3.  The  cooperative  corporations  law  is amended by adding a new
    24  section 95 to read as follows:
    25    § 95. Advisory panel on viability of increasing employee-owned  enter-
    26  prises.  1.  An advisory panel is hereby created under the department of
    27  labor to investigate how the number of worker cooperatives and  employee
    28  stock  ownership  plans  can be increased to help keep local jobs within
    29  the state. The advisory panel shall also study the possibility of  fund-
    30  ing a state center for democratic employee ownership through section one
    31  hundred  four-a  of  the  economic development law, to promote employee-
    32  owned businesses, provide assistance to new companies, facilitate trans-
    33  fers from retiring business owners to new employee-owned enterprises, as
    34  defined by subdivision five of section eighteen hundred thirty-six-b  of
    35  the  public authorities law, and provide training to employees of worker
    36  cooperatives and employee stock ownership plans.
    37    2. Such advisory panel shall be appointed by the commissioner of labor
    38  and such commissioner shall establish  the  number  and  composition  of
    39  individuals to serve on such advisory panel.
    40    3.  Such  panel  members  shall serve without compensation except that
    41  such members shall be entitled to reimbursement for actual and necessary
    42  expenses incurred in such service.
    43    4. The advisory panel shall make an annual update and  recommendations
    44  to  the  speaker  of the assembly, temporary president of the senate and
    45  the governor regarding the findings  of  such  investigation  and  study
    46  described in subdivision one of this section.
    47    § 4. Subsection (c) of section 612 of the tax law is amended by adding
    48  a new paragraph 42 to read as follows:
    49    (42)  One  hundred percent of the capital gains from the sale of stock
    50  or member interest from a New  York  corporation  to  an  employee-owned
    51  enterprise  or  a  limited  liability company, as defined by subdivision
    52  five of section eighteen hundred thirty-six-b of the public  authorities
    53  law.    In  order  to qualify for such modification as described in this
    54  paragraph, such employee-owned enterprise must have its commercial domi-
    55  cile in New York. If the employee-owned enterprise is an "employee stock
        A. 5191                             3
     1  ownership plan," it must comply with federal requirements as  such  plan
     2  as defined in 26 U.S.C. § 4975(e)(7).
     3    §  5.  This  act shall take effect immediately; provided, however that
     4  the amendments to section 163 of the state finance law made  by  section
     5  one of this act shall not affect the repeal of such section and shall be
     6  deemed repealed therewith.