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A11018 Summary:

COSPNSRVanel, Thiele, Jean-Pierre, Fahy, Mosley, Dickens, Hyndman, Taylor, Arroyo, Cook, Epstein, D'Urso, Bichotte, Peoples-Stokes, Rivera
Amd 16-m, UDC Act
Relates to creating pilot programs to incentivize consumers to buy locally; up to ten pilot projects may be created in regions across the state that incorporate the principles of community currency or local community dollars.
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A11018 Actions:

05/31/2018referred to economic development
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A11018 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
SPONSOR: Rules (Kim)
  TITLE OF BILL: An act to amend the New York state urban development corporation act, in relation to creating pilot programs to incentivize consumers to buy locally   PURPOSE OR GENERAL IDEA OF BILL: This bill would authorize up to 10 regional pilot programs to create community currencies or local community dollars to be used by neighbor- hood-based small businesses, community organizations, and participants.   SUMMARY OF SPECIFIC PROVISIONS: This bill would amend the urban development corporation act by adding a new paragraph (p) to section 16-m, to provide capital improvements through grants and flexible financing programs in order to provide start-up funding. This bill would authorize up to 10 regional pilot programs to support neighborhood-based ecosystems that support a commu- nity currency or local dollars system that rewards participants for shopping locally. This bill would cap awards at $300,000 per region.   JUSTIFICATION: New York Community Currency (NYCC) will provide economic and purpose- driven incentives for local neighborhoods to keep and recirculate their money within their communities. NYCC addresses the following problems: 1) The draining of revenue from local communities as neighborhood-based small businesses shut down in increasing numbers while large corporate chain stores and franchises continue to grow. 2) Increased apathy towards local issues and civic engagement. 3) Unduly negative perceptions towards cryptocurrency and other alter- nate or digital forms of currency. More and more members of the younger generation are not only familiar with but expect widespread use of blockchain technology, a more secure form of information transfer. By giving new mission and purpose to this form of currency, we are empowering people to take ownership of local growth. By trading in their dollars for a local community currency, either in the form of a digital or cryptocurrency, people will keep their money in their neighborhoods, pay taxes, and also earn tangible rewards for positive civic action. For example, instead of going to a chain store pharmacy, where the money spent is then reallocated outside of the neighborhood, spending communi- ty currency at a mom and pop pharmacy will reinvest that currency back into the local economy. The recipient local store owner will be further incentivized to put that community currency back into the neighborhood. Local nonprofits and civic groups will participate and be able to allo- cate civic-based points and rewards, which will translate into addi- tional community currency for positive and neighborly behavior: Partic- ipating at local community meetings, helping seniors, mentoring kids, etc. Blockchain and cryptocurrency technologies allow us to implement this seamlessly by allowing consumers, citizens, and business owners to trade in and out from dollars to CC instantaneously. The CC model provides a deeper purpose to asset-backed cryptocurrency (a regional economy) and uses this latest trend in financial technology to achieve significant long-term social impact. In other countries like Bergen op Zoom and Tholen Netherlands, community currencies like the SamenDoen have been proven over the years to foster local economic growth while enforcing positive civic and personal behav- ior: http://wvvvv.qoin.com/samendoen/ In New York, Ithacash has taken off a leading example of supporting citizens who shop local through a neighborhood-based currency: http://ithacash.com Other towns around the country are launching various local currencies to support their mom and pop stores.   PRIOR LEGISLATIVE HISTORY: This is a new bill.   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: This act shall take effect on the ninetieth day after it shall have become a law.
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A11018 Text:

                STATE OF NEW YORK
                   IN ASSEMBLY
                                      May 31, 2018
        Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Kim, Vanel,
          Thiele) -- read once and referred to the Committee on Economic  Devel-
        AN ACT to amend the New York state urban development corporation act, in
          relation  to  creating  pilot programs to incentivize consumers to buy
          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) loans and grants to businesses, not-for-profits  and  other  enti-
     6  ties,  on  a  competitive  basis  to finance up to ten pilot projects in
     7  regions across the state that incorporate the  principals  of  community
     8  currency  or  local  community  dollars. Such loans and grants shall not
     9  exceed more than three  hundred  thousand  dollars  for  any  one  pilot
    10  program. For the purposes of this paragraph, community currency shall be
    11  limited  to,  crypto-currencies  that  are approved by the department of
    12  financial services. Such community currency shall be issued  and  regis-
    13  tered  at  the municipal level for use at local participating businesses
    14  for goods and services. Such community currencies pilot  programs  shall
    15  actively encourage the participation of local businesses and shall oper-
    16  ate  under  the premise that local residents and businesses can exchange
    17  United States currency for community currencies at  local  participating
    18  vendors, who may offer discounts for the community currency to encourage
    19  use  and  vitality of such program.  Such community currency may be used
    20  or traded at participating businesses in the community to promote  money
    21  being  circulated in the local economy and to encourage consumers to buy
    22  locally.
    23    § 2. This act shall take effect immediately.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
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