Bill Text: NY A10156 | 2019-2020 | General Assembly | Introduced

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

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Vetoed) 2020-11-27 - VETOED MEMO.65 [A10156 Detail]

Download: New_York-2019-A10156-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10156

                   IN ASSEMBLY

                                     March 24, 2020
                                       ___________

        Introduced by M. of A. STIRPE -- read once and referred to the Committee
          on Small Business

        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:
    21    With respect to employee ownership assistance loans  provided  for  in
    22  subtitle  six  of title eight of article eight of the public authorities
    23  law and paragraph (o) of subdivision one of section sixteen-m of section
    24  one of chapter one hundred seventy-four of the laws of nineteen  hundred
    25  sixty-eight,  constituting  the  New York state urban development corpo-
    26  ration act, the department shall have the power and duty and in  cooper-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05616-01-9
        A. 10156                            2

     1  ation  with  the job development authority, the empire state development
     2  corporation and any other applicable state agency or office to:
     3    §  3.  This act shall take effect immediately, provided, however, that
     4  the amendments to section 16-m of the urban development corporation  act
     5  made  by section one of this act shall not affect the expiration of such
     6  section and shall be deemed to expire therewith.