Bill Text: NY A04125 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to disclosure authorization and reporting requirements for the START-UP NY program.
Spectrum: Strong Partisan Bill (Republican 16-1)
Status: (Introduced - Dead) 2020-01-08 - referred to economic development [A04125 Detail]
Download: New_York-2019-A04125-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4125 2019-2020 Regular Sessions IN ASSEMBLY February 1, 2019 ___________ Introduced by M. of A. RA, M. G. MILLER, BLANKENBUSH, McDONOUGH, GARBAR- INO, DiPIETRO, MONTESANO, LAWRENCE, B. MILLER, MORINELLO, CROUCH, FRIEND, PALUMBO, BRABENEC, WALSH -- Multi-Sponsored by -- M. of A. BARCLAY, HAWLEY -- read once and referred to the Committee on Economic Development AN ACT to amend the economic development law, in relation to reporting requirements for the START-UP NY program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The economic development law is amended by adding a new 2 section 438 to read as follows: 3 § 438. Disclosure authorization and reporting requirements. 1. The 4 commissioner and the department shall disclose publicly the names and 5 addresses of the businesses located within a tax-free NY area. In addi- 6 tion, the commissioner and the department shall disclose publicly and 7 include in the annual report required under subdivision two of this 8 section such other information contained in such businesses' applica- 9 tions and annual reports, including the projected number of net new jobs 10 to be created, as they determine is relevant and necessary to evaluate 11 the success of this program. 12 2. (a) The commissioner shall prepare an annual report to the governor 13 and the legislature. Such report shall include the number of business 14 applicants, number of businesses approved, the names and addresses of 15 the businesses located within a tax-free NY area, total amount of bene- 16 fits distributed, benefits received per business, number of net new jobs 17 created, net new jobs created per business, new investment per business, 18 the types of industries represented and such other information as the 19 commissioner determines is necessary to evaluate the progress of the 20 START-UP NY program. 21 (b) Any business located in a tax-free NY area must submit an annual 22 report to the commissioner in a form and at such time and with such EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02331-01-9A. 4125 2 1 information as prescribed by the commissioner in consultation with the 2 commissioner of taxation and finance. Such information shall be suffi- 3 cient for the commissioner and the commissioner of taxation and finance 4 to: (i) monitor the continued eligibility of the business and its 5 employees to participate in the START-UP NY program and receive the tax 6 benefits described in section thirty-nine of the tax law; (ii) evaluate 7 the progress of the START-UP NY program; and (iii) prepare the annual 8 report required by paragraph (a) of this subdivision. Such annual report 9 shall also include information regarding the wages paid during the year 10 to its employees employed in the net new jobs created and maintained in 11 the tax-free NY area. 12 3. The commissioner shall prepare on an annual basis a program report 13 for posting on the department's website. The report shall be due on 14 March first, two thousand eighteen and on March first every year there- 15 after. 16 § 2. Subdivision 1 of section 433 of the economic development law, as 17 amended by section 3 of part UUU of chapter 59 of the laws of 2017, is 18 amended to read as follows: 19 1. In order to participate in the START-UP NY program, a business must 20 satisfy all of the following criteria. 21 (a) The mission and activities of the business must align with or 22 further the academic mission of the campus, college or university spon- 23 soring the tax-free NY area in which it seeks to locate, and the busi- 24 ness's participation in the START-UP NY program must have positive 25 community and economic benefits. 26 (b) The business must demonstrate that it will, in its first year of 27 operation, create net new jobs. After its first year of operation, the 28 business must maintain net new jobs. In addition, the average number of 29 employees of the business and its related persons in the state during 30 the year must equal or exceed the sum of: (i) the average number of 31 employees of the business and its related persons in the state during 32 the year immediately preceding the year in which the business submits 33 its application to locate in a tax-free NY area; and (ii) net new jobs 34 of the business in the tax-free NY area during the year. The average 35 number of employees of the business and its related persons in the state 36 shall be determined by adding together the total number of employees of 37 the business and its related persons in the state on March thirty-first, 38 June thirtieth, September thirtieth and December thirty-first and divid- 39 ing the total by the number of such dates occurring within such year. 40 (c) Except as provided in paragraphs [(f)] (g) and [(g)] (h) of this 41 subdivision, at the time it submits its application for the START-UP NY 42 program, the business must be a new business to the state. 43 (d) The business may be organized as a corporation, a partnership, 44 limited liability company or a sole proprietorship. 45 (e) Upon completion of its first year in the START-UP NY program and 46 thereafter, the business must complete and timely file the annual report 47 required under section four hundred thirty-eight of this article. 48 (f) Except as provided in paragraphs [(f)] (g) and [(g)] (h) of this 49 subdivision, the business must not be engaged in a line of business that 50 is currently or was previously conducted by the business or a related 51 person in the last five years in New York state. 52 [(f)] (g) If a business does not satisfy the eligibility standard set 53 forth in paragraph (c) or [(e)] (f) of this subdivision, because at one 54 point in time it operated in New York state but moved its operations out 55 of New York state on or before June first, two thousand thirteen, the 56 commissioner shall grant that business permission to apply to partic-A. 4125 3 1 ipate in the START-UP NY program if the commissioner determines that the 2 business has demonstrated that it will substantially restore the jobs in 3 New York state that it previously had moved out of state. 4 [(g)] (h) If a business seeks to expand its current operations in New 5 York state into a tax-free NY area but the business does not qualify as 6 a new business because it does not satisfy the criteria in paragraph (c) 7 of subdivision six of section four hundred thirty-one of this article or 8 the business does not satisfy the eligibility standard set forth in 9 paragraph [(e)] (f) of this subdivision, the commissioner shall grant 10 the business permission to apply to participate in the START-UP NY 11 program if the commissioner determines that the business has demon- 12 strated that it will create net new jobs in the tax-free NY area and 13 that it or any related person has not eliminated any jobs in the state 14 in connection with this expansion. 15 § 3. This act shall take effect immediately.
