Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Jun 03, 2024 |
referred to economic development delivered to assembly passed senate |
May 30, 2024 |
ordered to third reading cal.1555 committee discharged and committed to rules |
Feb 28, 2024 |
reported and committed to finance |
Jan 03, 2024 |
referred to commerce, economic development and small business returned to senate died in assembly |
May 30, 2023 |
referred to economic development delivered to assembly passed senate |
May 22, 2023 |
ordered to third reading cal.1072 committee discharged and committed to rules |
Jan 25, 2023 |
reported and committed to finance |
Jan 09, 2023 |
referred to commerce, economic development and small business |
Senate Bill S962
2023-2024 Legislative Session
Relates to the establishment of a state university-based center for employee ownership; repealer
download bill text pdfSponsored By
(D) 36th Senate District
Current Bill Status - In Assembly Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Votes
-
-
-
-
Floor Vote: Jun 3, 2024
aye (60)- Addabbo Jr.
- Ashby
- Bailey
- Borrello
- Breslin
- Brisport
- Canzoneri-Fitzpatrick
- Chu
- Cleare
- Comrie
- Cooney
- Felder
- Fernandez
- Gallivan
- Gianaris
- Gonzalez
- Gounardes
- Griffo
- Harckham
- Helming
- Hinchey
- Hoylman-Sigal
- Jackson
- Kavanagh
- Krueger
- Lanza
- Liu
- Mannion
- Martinez
- Martins
- Mattera
- May
- Mayer
- Murray
- Myrie
- O'Mara
- Oberacker
- Ortt
- Palumbo
- Parker
- Persaud
- Ramos
- Rhoads
- Rivera
- Rolison
- Ryan
- Salazar
- Sanders Jr.
- Scarcella-Spanton
- Sepúlveda
- Serrano
- Skoufis
- Stavisky
- Stec
- Stewart-Cousins
- Tedisco
- Thomas
- Webb
- Weber
- Weik
-
-
-
Floor Vote: May 30, 2023
aye (61)- Addabbo Jr.
- Ashby
- Bailey
- Borrello
- Breslin
- Brisport
- Brouk
- Canzoneri-Fitzpatrick
- Chu
- Cleare
- Comrie
- Felder
- Fernandez
- Gallivan
- Gianaris
- Gonzalez
- Gounardes
- Griffo
- Harckham
- Helming
- Hinchey
- Hoylman-Sigal
- Jackson
- Kavanagh
- Kennedy
- Krueger
- Lanza
- Liu
- Mannion
- Martinez
- Martins
- Mattera
- May
- Mayer
- Murray
- Myrie
- O'Mara
- Oberacker
- Ortt
- Palumbo
- Parker
- Persaud
- Ramos
- Rhoads
- Rivera
- Rolison
- Ryan
- Salazar
- Sanders Jr.
- Scarcella-Spanton
- Sepúlveda
- Serrano
- Skoufis
- Stavisky
- Stec
- Stewart-Cousins
- Tedisco
- Thomas
- Walczyk
- Webb
- Weber
-
May 30, 2024 - Rules Committee Vote
S96219Aye0Nay1Aye with Reservations0Absent0Excused0AbstainedMay 22, 2023 - Rules Committee Vote
S96219Aye0Nay2Aye with Reservations0Absent0Excused0AbstainedFeb 28, 2024 - Commerce, Economic Development And Small Business Committee Vote
S9629Aye0Nay0Aye with Reservations0Absent0Excused0AbstainedJan 25, 2023 - Commerce, Economic Development And Small Business Committee Vote
S9629Aye0Nay0Aye with Reservations0Absent0Excused0Abstained -
-
co-Sponsors
(D) 15th Senate District
(D) 14th Senate District
(D) 26th Senate District
(D, WF) 47th Senate District
(D, WF) 48th Senate District
(D, WF) 21st Senate District
(D) 19th Senate District
(D, WF) 13th Senate District
(D) 10th Senate District
2023-S962 (ACTIVE) - Details
- See Assembly Version of this Bill:
- A1920
- Current Committee:
- Assembly Economic Development
- Law Section:
- Economic Development Law
- Laws Affected:
- Rpld & add §104-a, Ec Dev L; amd §§1836-a, 1836-b, 1836-c, 1836-d & 1836-e, Pub Auth L; amd §612, Tax L
- Versions Introduced in Other Legislative Sessions:
-
2017-2018:
S5685
2019-2020: S2184, A7731
2021-2022: S3313, A6125
2023-S962 (ACTIVE) - Sponsor Memo
BILL NUMBER: S962 SPONSOR: BAILEY TITLE OF BILL: An act to amend the economic development law, the public authorities law and the tax law, in relation to the establishment of a state universi- ty-based center for employee ownership; and to repeal certain provisions of the economic development law relating thereto PURPOSE OR GENERAL IDEA OF BILL: This bill provides several updates and revisions to current law to support the expansion of employee-owned enterprises or worker cooper- ative businesses. SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends the Economic Development Law and creates the Center for Employee Ownership, housed within the State University of New York, out of a defunct economic development program to support education and outreach on employee ownership succession plans.
Sections 2-6 amends the Public Authorities Law and revitalizes a defunct lending program that supports loans and loan guarantees to finance employee-owned businesses, especially in the case of succession and purchase of a pre-existing business by employees. The authority shall have authorization to lend up to $100 million to such businesses, and all loans shall be repaid to the authority with proceeds used for addi- tional lending. Section 7 amends the Tax Law to provide complete capital gains tax exemption for sale of stock to an employee-owned enterprise. Section 8 is the effective date. JUSTIFICATION: Employee-owned businesses and worker cooperatives are a vital business sector that employs 13.5 million workers across the country at over 7,000 companies. New York provides a modicum of support for such busi- nesses, but several programs have become defunct and require new author- ization and revision to properly support this growing segment of the state's economy. This legislation will help support the creation of new employee-owned businesses by focusing on support for succession plan- ning, so that a business can continue when the owner retires or moves on by spinning the business off to a cooperative employee-owned enter- prise. PRIOR LEGISLATIVE HISTORY: 2019-20: S.2184/A.7731(Wright) - Reported to Finance 2021-22: S.3313/A.6125(Zinerman) - Reported to Finance FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Minimal. All funding authorized under this bill would be comprised of pre-existing appropriations or through loans or loan guarantees that will be repaid by the affected entities. EFFECTIVE DATE: Immediately, except that section one of the bill shall take effect 180 days after the bill shall have become a law.
2023-S962 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 962 2023-2024 Regular Sessions I N S E N A T E January 9, 2023 ___________ Introduced by Sens. BAILEY, ADDABBO, COMRIE, GOUNARDES, HOYLMAN, MAY, PARKER, PERSAUD, RAMOS, SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business AN ACT to amend the economic development law, the public authorities law and the tax law, in relation to the establishment of a state universi- ty-based center for employee ownership; and to repeal certain provisions of the economic development law relating thereto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 104-a of the economic development law is REPEALED and a new section 104-a is added to read as follows: § 104-A. ESTABLISHMENT OF A STATE UNIVERSITY-BASED CENTER FOR EMPLOYEE OWNERSHIP. WITH RESPECT TO EMPLOYEE OWNERSHIP, THE DEPARTMENT SHALL ESTABLISH A STATE UNIVERSITY-BASED CENTER FOR EMPLOYEE OWNERSHIP "THE CENTER". 1. THE CENTER SHALL: (A) PROVIDE EDUCATION AND OUTREACH TO INFORM BUSINESS OWNERS ABOUT THE BENEFITS OF EMPLOYEE OWNERSHIP SUCCESSIONS; (B) ORGANIZE WORKSHOPS AND CONFERENCES ON EMPLOYEE OWNERSHIP SUCCESSIONS; (C) PREPARE AND DISTRIBUTE MATERIALS CONCERNING EMPLOYEE OWNERSHIP SUCCESSIONS; (D) PROVIDE INITIAL CONSULTATION TO BUSINESS OWNERS EXPLORING THE POSSIBILITY OF TRANSFERRING FULL OR PARTIAL OWNERSHIP TO EMPLOYEES; (E) PROVIDE A REFERRAL SERVICE TO HELP BUSINESS OWNERS FIND LEGAL, FINANCIAL, AND TECHNICAL ADVICE IN CONNECTION WITH EMPLOYEE OWNERSHIP SUCCESSIONS; (F) PARTNER WITH KEY ORGANIZATIONS, SUCH AS PROFESSIONAL AND TRADE ASSOCIATIONS, FINANCIAL INSTITUTIONS, UNIONS, ECONOMIC DEVELOPMENT EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01164-01-3 S. 962 2
ORGANIZATIONS, AND OTHER NON-PROFIT ENTITIES, TO PROMOTE EMPLOYEE OWNER- SHIP SUCCESSIONS; (G) CONDUCT INVESTIGATIONS, RESEARCH, STUDIES, AND ANALYSES ON THE SUBJECT OF EMPLOYEE OWNERSHIP; AND (H) SUPPORT THE GROWTH OF ASSOCIATIONS OF EMPLOYEE-OWNED COMPANIES. 2. THE CENTER SHALL ADDITIONALLY PROVIDE SUPPORT AND ACCESS IN GOVERN- MENT RELATIONS, INCLUDING PROVIDING ACCESS TO INFORMATION REGARDING RULES AND REGULATIONS THAT RELATE TO EMPLOYEE OWNERSHIP AND DEVELOP PROPOSALS FOR CHANGES IN POLICIES TO PROMOTE EMPLOYEE OWNERSHIP. § 2. Section 1836-a of the public authorities law, as added by chapter 788 of the laws of 1983, is amended to read as follows: § 1836-a. Legislative findings. The legislature hereby finds and declares that [the health, safety and general welfare of the people of this state are directly dependent upon the state economy, and that one of the principal problems of our present economy is the permanent clos- ing of industrial and manufacturing plants, and their relocation out of state, which results in the loss of jobs and increasing unemployment. It is the purpose of this subtitle to encourage the employees of plants that are about to be permanently closed, or relocated, to acquire such plants and to continue to operate them as employee-owned enter- prises, thereby retaining the jobs that would otherwise be lost, and strengthening the economic base of this state] EMPLOYEE OWNERSHIP PROGRAM IS A MAINSTREAM ASPECT OF THE UNITED STATES ECONOMY WITH APPROX- IMATELY THIRTEEN AND A HALF MILLION WORKERS PARTICIPATING IN SOME FORM OF EMPLOYEE OWNERSHIP PROGRAM AT OVER SEVEN THOUSAND COMPANIES. THE VAST MAJORITY OF SUCH PROGRAMS ARE THE RESULT OF A TRANSFER FROM THE BUSINESS OWNERS TO THE EMPLOYEES AND IN ACCORDANCE WITH FEDERAL LAW THAT SEEKS TO FACILITATE SUCH TRANSFERS. EMPLOYEE OWNERSHIP TRANSFERS ARE IN THE INTEREST OF BUSINESS OWNERS, WHO SEEK TO LIQUIDATE THEIR OWNERSHIP INTEREST AND RETIRE. SUCH TRANSFERS ARE ALSO IN THE INTEREST OF THE EMPLOYEES, WHO GAIN THE OPPORTUNITY TO ENSURE THE FUTURE SURVIVAL OF THE FIRM AND THEIR JOBS. THE LEGISLATURE ALSO FINDS AND DECLARES THAT EMPLOYEE-OWNED BUSI- NESSES ARE MORE PRODUCTIVE, ENJOY INCREASED SALES, LOWER TURNOVER RATE AND GREATER LONGEVITY, OFFER BETTER EMPLOYMENT OPPORTUNITIES, AND ARE MORE LIKELY TO RETAIN JOBS IN-STATE AND LESS LIKELY TO RELOCATE OUT-OF- STATE. EMPLOYEE-OWNED BUSINESSES ALSO SUSTAIN THE STATE TAX BASE THROUGH EMPLOYEE AND CORPORATE INCOME TAX, WHILE SAVING COSTS ON UNEM- PLOYMENT INSURANCE AND OTHER STATE BENEFIT PROGRAMS. IT IS THE PURPOSE OF THIS SUBTITLE TO AMPLIFY FEDERAL PROGRAMS IN SUPPORT OF EMPLOYEE OWNERSHIP AT THE STATE LEVEL THROUGH LOANS AND LOAN GUARANTEES THAT PROVIDE FINANCING FOR THE CONVERSION OF EXISTING BUSINESSES TO EMPLOYEE OWNERSHIP. § 3. Subdivisions 3, 4, 5, 6, 7 and 8 of section 1836-b of the public authorities law, subdivisions 3, 6, 7 and 8 as added by chapter 788 of the laws of 1983, subdivisions 4 and 5 as amended by chapter 805 of the laws of 1985, are amended to read as follows: 3. "Eligible project" means the acquisition [or rehabilitation] by an employee ownership association of an existing [industrial or manufactur- ing plant] BUSINESS located in this state for the purpose of operating it as an employee-owned enterprise. 4. "Employee ownership association" means a corporation, LIMITED LIABILITY COMPANY, TRUST, or other association formed by or on behalf of the employees of [an industrial or manufacturing plant] A BUSINESS located in this state for the purpose of assuming ownership or control of the [plant] BUSINESS and operating it as an employee-owned enterprise S. 962 3 or as a worker cooperative as defined in section eighty-one of the coop- erative corporations law. 5. "Employee-owned enterprise" means a business in which the employees are represented on the board of directors OR MANAGERS and the employees control the majority of the voting stock OR MEMBER INTEREST, or if the business is held in a trust which controls the majority of the voting stock OR MEMBER INTEREST, the trustees are elected by the employees. The term "employee-owned enterprise" shall also refer to a worker cooper- ative as defined in section eighty-one of the cooperative corporations law. 6. ["Funding partner" means an entity which singly or in combination with other entities has agreed to finance a portion of the project cost of an eligible project, and may include the employee ownership associ- ation undertaking the project as well as any financial entity. 7. "Plant" includes the site, structure, building and equipment and all real and personal property in connection therewith, whether or not in existence, and may include any road, railroad, or utility or equip- ment appurtenant thereto. 8.] "Project cost" includes all reasonable and necessary costs to be incurred in the course of an eligible project, including [any antic- ipated acquisition,] THE FAIR MARKET VALUE OF THE BUSINESS INTEREST TO BE ACQUIRED, AS WELL AS COSTS FOR ANY ADDITIONAL construction, land acquisition, improvements, equipment, pertinent rights and easements, and associated technical, engineering, legal and financial services. § 4. The opening paragraph and paragraphs (a), (b) and (d) of subdivi- sion 1 and subdivision 2 of section 1836-c of the public authorities law, as added by chapter 788 of the laws of 1983, are amended to read as follows: Any employee ownership association may apply to [a local development corporation serving the municipality in which the eligible project is located] THE AUTHORITY for an employee ownership assistance loan to be used to help finance an eligible project. Such application must include a written statement from the entity from which the project is being acquired, stating that such entity consents to the acquisition. The application shall include [in detail]: (a) [the history and membership] A DESCRIPTION of the EMPLOYEE OWNER- SHIP association; (b) [the history and circumstances of the plant to be acquired] A DESCRIPTION OF THE BUSINESS; (d) estimate of the number of jobs [to be saved or created by the project] BEFORE AND AFTER THE TRANSACTION; and 2. The application shall also include a detailed financial statement of [funding partner] ACTUAL AND ANTICIPATED FINANCIAL participation in the project, which shall include: (a) the identity of all funding [partners] SOURCES; [and] (b) THE NATURE OF THE FINANCIAL PARTICIPATION, WHICH MAY INCLUDE, BUT IS NOT LIMITED TO, SELLER NOTES, SENIOR DEBT, JUNIOR DEBT, AND EQUITY INVESTMENT; AND (C) the terms of the financing agreements with the funding [partners] SOURCES, including any repayment schedules and finance charges to be included in such agreements. § 5. Subdivision 1 of section 1836-d of the public authorities law, as added by chapter 788 of the laws of 1983, is amended to read as follows: 1. have a higher level of funding from the funding [partners] SOURCE OR FINANCIAL PARTICIPANT; S. 962 4 § 6. The section heading and subdivisions 1 and 3 of section 1836-e of the public authorities law, as added by chapter 788 of the laws of 1983, are amended and two new subdivisions 5 and 6 are added to read as follows: Loan agreements AND LENDING AUTHORITY. 1. If the authority approves an application for a loan under this subtitle, the [local development corporation] AUTHORITY may enter into a loan agreement with the employee ownership association whereby the [local development corporation] AUTHORITY agrees to loan to the employee ownership association the remaining funds necessary for the eligible project. 3. The [local development corporation] AUTHORITY may not enter into any loan agreement unless the authority determines through an appropri- ate method that there is reasonable assurance of repayment. The authori- ty shall establish such requirements or terms as it may deem necessary or desirable to secure the repayment of the loan and to protect the interests of the authority and the holders of its bonds. 5. (A) THE AUTHORITY MAY ESTABLISH A TRUST FUND ACCOUNT FOR THE PURPOSES OF PROVIDING A LOAN OR LOAN GUARANTEE PURSUANT TO THE PROVISIONS OF THIS CHAPTER. THE INITIAL DEPOSIT OF FUNDS TO THE TRUST FUND SHALL BE IN AN AMOUNT TO BE DETERMINED BY THE AUTHORITY BUT SHALL NOT EXCEED ONE HUNDRED MILLION DOLLARS FROM AN AMOUNT OTHERWISE AVAIL- ABLE FROM FUNDS APPROPRIATED. (B) THE AUTHORITY SHALL DEPOSIT INTO THE TRUST FUND ALL INCOME EARNED FROM THE MONEYS PAID BACK FROM LOANS TO BE USED FOR ADDITIONAL LENDING. 6. THE AUTHORITY SHALL MAKE A LOAN DECISION OR LOAN GUARANTEE DECI- SION, AND INFORM THE APPLICANT OF THE AUTHORITY'S DECISION, NO LATER THAN THIRTY DAYS AFTER THE AUTHORITY RECEIVES THE APPLICANT'S APPLICA- TION FOR AN EMPLOYEE OWNERSHIP LOAN OR EMPLOYEE OWNERSHIP LOAN GUARAN- TEE. IF THE AUTHORITY REQUESTS THAT AN APPLICANT SUPPLEMENT ITS APPLICA- TION BY SUBMITTING ADDITIONAL INFORMATION, THE AUTHORITY SHALL HAVE AN ADDITIONAL FIFTEEN DAYS AFTER RECEIVING THE ADDITIONAL INFORMATION BY WHICH THE AUTHORITY MUST MAKE A LOAN DECISION OR A LOAN GUARANTEE DECI- SION AND INFORM THE APPLICANT OF THE AUTHORITY'S DECISION. § 7. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 47 to read as follows: (47) ONE HUNDRED PERCENT OF THE CAPITAL GAINS FROM THE SALE OF STOCK OR MEMBER INTEREST FROM A NEW YORK CORPORATION OR LIMITED LIABILITY COMPANY TO AN EMPLOYEE-OWNED ENTERPRISE, AS DEFINED IN SUBDIVISION FIVE OF SECTION EIGHTEEN HUNDRED THIRTY-SIX-B OF THE PUBLIC AUTHORITIES LAW. IN ORDER TO QUALIFY FOR SUCH MODIFICATION AS DESCRIBED IN THIS PARA- GRAPH, SUCH EMPLOYEE-OWNED ENTERPRISE MUST HAVE ITS COMMERCIAL DOMICILE IN NEW YORK. IF THE EMPLOYEE-OWNED ENTERPRISE IS AN "EMPLOYEE STOCK OWNERSHIP PLAN," IT MUST COMPLY WITH FEDERAL REQUIREMENTS AS SUCH PLAN IS DEFINED IN 26 U.S.C. § 4975(E)(7). § 8. This act shall take effect immediately; provided, however, that section one of this act shall take effect on the one hundred eightieth day after it shall have become a law.
Comments
Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.
Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.
Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.