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A02429 Summary:

BILL NOA02429
 
SAME ASSAME AS S00661
 
SPONSORSchimminger (MS)
 
COSPNSRThiele, Barrett, Barron, Braunstein, Bronson, Cahill, Crouch, Benedetto, Lupardo, Hyndman, Jean-Pierre, Williams, Galef, Rozic, Abinanti, Miller MG, Dickens, Hevesi, Blake, Kolb, Lavine, Wright, Fahy, Cook, Hawley, Ra, Montesano, Blankenbush, Lawrence, Brabenec
 
MLTSPNSRBarclay, Buchwald, Glick, McDonough, Pretlow, Simon, Walsh
 
Amd 438 & 433, Ec Dev L
 
Relates to reporting requirements for the START-UP NY program; requires an annual report be prepared and provided to the governor and the legislature including, but not limited to, the number of business applicants, number of businesses approved, benefits distributed and received and the number of net new jobs created per business including cumulative data that reflects the amount previously recorded and adjusted for net new jobs that have been lost.
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A02429 Actions:

BILL NOA02429
 
01/22/2019referred to economic development
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A02429 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2429
 
SPONSOR: Schimminger (MS)
  TITLE OF BILL: An act to amend the economic development law, in relation to reporting requirements for the START-UP NY program including specific data relating to net new jobs   PURPOSE OF THE BILL: This bill would revive and restore and enhance the reporting require- ments for the "SUNY Tax-free Areas to Revitalize and Transform UPstate New York program," or the "START-UP NY program."   SUMMARY OF SPECIFIC PROVISIONS: Section one of this bill revives § 438 of the Economic Development Law which had been wholly repealed in the enacted 2017-18 state budget. Section two of this bill enhances annual reporting requirements. Section three of this bill restores the reporting requirements for participants in the START-UP NY program, as a condition of program eligibility in § 433 of the Economic Development Law which had also been repealed in the enacted 2017-18 budget. Section four sets an immediate effective date.   JUSTIFICATION: This legislation restores and clarifies the annual reporting requirement for Start-Up NY and statutorily sets the report submission date for START-UP NY as April 1st, and annually thereafter. The original statute was silent on the required reporting date, but the current regulations require April 1St. This legislation also specifies how job data is to be presented in annual reports issued by the Department of Economic Devel- opment so that there are distinct annual and adjusted cumulative data available for review. Further, since the inception of this program in 2013, participants in STARTUP NY have, as a condition of program eligi- bility, reported on their progress, including how many net new jobs their companies have created, this legislation restores that require- ment.   PRIOR LEGISLATIVE HISTORY: 2017-2018: A.7427-A.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None noted.   EFFECTIVE DATE: Immediately.
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A02429 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2429
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 22, 2019
                                       ___________
 
        Introduced by M. of A. SCHIMMINGER, THIELE, BARRETT, BARRON, BRAUNSTEIN,
          BRONSON,  CAHILL,  CROUCH,  BENEDETTO,  LUPARDO, HYNDMAN, JEAN-PIERRE,
          WILLIAMS,  GALEF,  ROZIC,  ABINANTI,  M. G. MILLER,  DICKENS,  HEVESI,
          BLAKE, KOLB, LAVINE, WRIGHT, FAHY, COOK, HAWLEY, RA, MONTESANO, BLANK-
          ENBUSH,  LAWRENCE, BRABENEC -- Multi-Sponsored by -- M. of A. BARCLAY,
          BUCHWALD, GLICK, McDONOUGH, PRETLOW, SIMON, WALSH  --  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  including  specific  data
          relating to net new jobs
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Notwithstanding the provisions of article 5 of the  general
     2  construction law, the provisions of section 438 of the economic develop-
     3  ment  law, as amended by section two of this act, are hereby revived and
     4  shall continue in full force and effect as such  provisions  existed  on
     5  April 10, 2017.
     6    §  2. Section 438 of the economic development law, as added by section
     7  1 of part A of chapter 68 of the laws of 2013, is  amended  to  read  as
     8  follows:
     9    §  438.  Disclosure  authorization  and reporting requirements. 1. The
    10  commissioner and the department shall disclose publicly  the  names  and
    11  addresses  of the businesses located within a tax-free NY area. In addi-
    12  tion, the commissioner and the department shall  disclose  publicly  and
    13  include  in  the  annual  report  required under subdivision two of this
    14  section such other information contained in  such  businesses'  applica-
    15  tions and annual reports, including the projected number of net new jobs
    16  to  be  created, as they determine is relevant and necessary to evaluate
    17  the success of this program.
    18    2. (a) The commissioner shall prepare an annual report to the governor
    19  and the legislature no later than April first, two thousand  twenty  and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03909-01-9

        A. 2429                             2
 
     1  annually  thereafter.   Such report shall include the number of business
     2  applicants, number of businesses approved, the names  and  addresses  of
     3  the  businesses located within a tax-free NY area, total amount of bene-
     4  fits distributed, benefits received per business, number of net new jobs
     5  created, net new jobs created per business, new investment per business,
     6  the  types  of  industries represented and such other information as the
     7  commissioner determines is necessary to evaluate  the  progress  of  the
     8  START-UP  NY  program.   Such annual report shall, at a minimum, include
     9  annual program data and information attributable solely to the preceding
    10  calendar year.  In addition, such report shall include cumulative annual
    11  program data including all net new jobs  previously  recorded,  adjusted
    12  for net new jobs that have been subsequently lost. Cumulative data shall
    13  be  presented  separate and distinct from annual program data reporting.
    14  Such report shall be posted as a separate document on  the  department's
    15  website.
    16    (b)  Any  business located in a tax-free NY area must submit an annual
    17  report to the commissioner in a form and at  such  time  and  with  such
    18  information  as  prescribed by the commissioner in consultation with the
    19  commissioner of taxation and finance. Such information shall  be  suffi-
    20  cient  for the commissioner and the commissioner of taxation and finance
    21  to: (i) monitor the  continued  eligibility  of  the  business  and  its
    22  employees  to participate in the START-UP NY program and receive the tax
    23  benefits described in section thirty-nine of the tax law; (ii)  evaluate
    24  the  progress  of  the START-UP NY program; and (iii) prepare the annual
    25  report required by paragraph (a) of this subdivision. Such annual report
    26  shall also include information regarding the wages paid during the  year
    27  to  its employees employed in the net new jobs created and maintained in
    28  the tax-free NY area.
    29    § 3. Subdivision 1 of section 433 of the economic development law,  as
    30  amended  by  section 3 of part UUU of chapter 59 of the laws of 2017, is
    31  amended to read as follows:
    32    1. In order to participate in the START-UP NY program, a business must
    33  satisfy all of the following criteria.
    34    (a) The mission and activities of the  business  must  align  with  or
    35  further  the academic mission of the campus, college or university spon-
    36  soring the tax-free NY area in which it seeks to locate, and  the  busi-
    37  ness's  participation  in  the  START-UP  NY  program must have positive
    38  community and economic benefits.
    39    (b) The business must demonstrate that it will, in its first  year  of
    40  operation,  create  net new jobs. After its first year of operation, the
    41  business must maintain net new jobs. In addition, the average number  of
    42  employees  of  the  business and its related persons in the state during
    43  the year must equal or exceed the sum of:  (i)  the  average  number  of
    44  employees  of  the  business and its related persons in the state during
    45  the year immediately preceding the year in which  the  business  submits
    46  its  application  to locate in a tax-free NY area; and (ii) net new jobs
    47  of the business in the tax-free NY area during  the  year.  The  average
    48  number of employees of the business and its related persons in the state
    49  shall  be determined by adding together the total number of employees of
    50  the business and its related persons in the state on March thirty-first,
    51  June thirtieth, September thirtieth and December thirty-first and divid-
    52  ing the total by the number of such dates occurring within such year.
    53    (c) Except as provided in paragraphs [(f)] (g) and [(g)] (h)  of  this
    54  subdivision,  at the time it submits its application for the START-UP NY
    55  program, the business must be a new business to the state.

        A. 2429                             3
 
     1    (d) The business may be organized as  a  corporation,  a  partnership,
     2  limited liability company or a sole proprietorship.
     3    (e)  Upon  completion of its first year in the START-UP NY program and
     4  thereafter, the business must complete and timely file the annual report
     5  required under section four hundred thirty-eight of this article.
     6    (f) Except as provided in paragraphs [(f)] (g) and [(g)] (h)  of  this
     7  subdivision, the business must not be engaged in a line of business that
     8  is  currently  or  was previously conducted by the business or a related
     9  person in the last five years in New York state.
    10    [(f)] (g) If a business does not satisfy the eligibility standard  set
    11  forth  in paragraph (c) or [(e)] (f) of this subdivision, because at one
    12  point in time it operated in New York state but moved its operations out
    13  of New York state on or before June first, two  thousand  thirteen,  the
    14  commissioner  shall  grant  that business permission to apply to partic-
    15  ipate in the START-UP NY program if the commissioner determines that the
    16  business has demonstrated that it will substantially restore the jobs in
    17  New York state that it previously had moved out of state.
    18    [(g)] (h) If a business seeks to expand its current operations in  New
    19  York  state into a tax-free NY area but the business does not qualify as
    20  a new business because it does not satisfy the criteria in paragraph (c)
    21  of subdivision six of section four hundred thirty-one of this article or
    22  the business does not satisfy the  eligibility  standard  set  forth  in
    23  paragraph  [(e)]  (f)  of this subdivision, the commissioner shall grant
    24  the business permission to apply  to  participate  in  the  START-UP  NY
    25  program  if  the  commissioner  determines  that the business has demon-
    26  strated that it will create net new jobs in the  tax-free  NY  area  and
    27  that  it  or any related person has not eliminated any jobs in the state
    28  in connection with this expansion.
    29    § 4. This act shall take effect immediately.
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