S T A T E O F N E W Y O R K
________________________________________________________________________
2182
2009-2010 Regular Sessions
I N S E N A T E
February 13, 2009
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Introduced by Sen. DIAZ -- read twice and ordered printed, and when
printed to be committed to the Committee on Labor
AN ACT to amend the labor law, in relation to establishing the "minimum
standards for subsidized jobs act"
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known as the "minimum stand-
ards for subsidized jobs act".
S 2. Legislative findings and purpose. The legislature hereby finds
and declares that:
(a) Every year, New York state awards money in economic development
subsidies to for-profit businesses.
(b) When government invests in economic development, it makes no
economic sense to support the creation or promotion of jobs that do not
give workers the chance to earn a decent living.
(c) When state-subsidized jobs provide low wages and poor benefits,
they increase the need for government services, including public assist-
ance for food, housing, health care, and child care.
The purpose of this act is to improve the effectiveness of economic
development expenditures, take pressure off state social services
programs, and improve the public health and welfare by ensuring that
major state subsidies are used to support at least minimum living stand-
ards for working families.
S 3. The labor law is amended by adding a new article 19-C to read as
follows:
ARTICLE 19-C
MINIMUM STANDARDS FOR SUBSIDIZED JOBS ACT
SECTION 695. DEFINITION.
696. MINIMUM STANDARDS FOR WAGES AND BENEFITS.
697. ENFORCEMENT.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00115-01-9
S. 2182 2
S 695. DEFINITION. FOR PURPOSES OF THIS ARTICLE, "ECONOMIC DEVELOPMENT
SUBSIDY" MEANS ANY EXPENDITURE OF PUBLIC FUNDS WITH A VALUE OF AT LEAST
ONE HUNDRED THOUSAND DOLLARS FOR THE PURPOSE OF STIMULATING ECONOMIC
DEVELOPMENT WITHIN THE STATE, INCLUDING BUT NOT LIMITED TO BONDS,
GRANTS, LOANS, LOAN GUARANTEES, ENTERPRISE ZONES, EMPOWERMENT ZONES, TAX
INCREMENT FINANCING, FEE WAIVERS, LAND PRICE SUBSIDIES, MATCHING FUNDS,
TAX ABATEMENTS, TAX EXEMPTIONS AND TAX CREDITS.
S 696. MINIMUM STANDARDS FOR WAGES AND BENEFITS. 1. NO PERSON, ASSOCI-
ATION, LIMITED LIABILITY COMPANY, CORPORATION OR OTHER ENTITY SHALL BE
ELIGIBLE TO RECEIVE ANY ECONOMIC DEVELOPMENT SUBSIDY UNLESS IT:
(A) PAYS ALL ITS EMPLOYEES IN THE STATE A MINIMUM WAGE THAT IS AT
LEAST ONE DOLLAR PER HOUR HIGHER THAN THE STATE'S MINIMUM WAGE AS
PROVIDED BY THIS CHAPTER.
(B) OFFERS TO ALL ITS EMPLOYEES IN THE STATE, WHO WORK AT LEAST THIR-
TY-FIVE HOURS PER WEEK, A HEALTH INSURANCE BENEFITS PLAN FOR WHICH THE
EMPLOYER PAYS AT LEAST EIGHTY PERCENT OF THE MONTHLY PREMIUM, AND THE
COVERAGE PAYS AT LEAST EIGHTY PERCENT OF THE COSTS OF PHYSICIAN OFFICE
VISITS, EMERGENCY CARE, SURGERY AND PRESCRIPTIONS, WITH AN ANNUAL DEDUC-
TIBLE OF NO MORE THAN FIVE HUNDRED DOLLARS.
(C) OFFERS TO AT LEAST TWENTY PERCENT OF ITS WORKERS IN THE STATE A
WORKER TRAINING PROGRAM THAT MEETS MINIMUM STANDARDS ISSUED BY THE
COMMISSIONER.
(D) HAS NOT BEEN ADJUDICATED TO BE IN VIOLATION OF ANY FEDERAL, STATE
OR LOCAL LAWS FOR AT LEAST THE PRIOR FIVE YEARS.
2. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO:
(A) A NOT-FOR-PROFIT ENTITY THAT IS EXEMPT FROM TAXATION UNDER THIS
PURSUANT TO STATE OR FEDERAL LAW.
(B) AN INTERN OR TRAINEE WHO IS UNDER TWENTY-ONE YEARS OF AGE AND WHO
IS EMPLOYED FOR A PERIOD OF NOT LONGER THAN THREE MONTHS.
3. IF THE COMMISSIONER DETERMINES THAT APPLICATION OF THIS ARTICLE
WOULD CONFLICT WITH A FEDERAL PROGRAM REQUIREMENT, THE COMMISSIONER,
AFTER NOTICE AND PUBLIC HEARING, MAY GRANT A WAIVER FROM THE REQUIRE-
MENTS OF THIS ARTICLE.
S 697. ENFORCEMENT. 1. THE COMMISSIONER SHALL PROMULGATE SUCH REGU-
LATIONS AS ARE NECESSARY TO IMPLEMENT AND ADMINISTER COMPLIANCE WITH THE
PROVISIONS OF THIS ARTICLE.
2. NO PERSON, ASSOCIATION, LIMITED LIABILITY COMPANY, CORPORATION OR
OTHER ENTITY SHALL DISCHARGE, DEMOTE, HARASS OR OTHERWISE TAKE ADVERSE
ACTIONS AGAINST ANY INDIVIDUAL BECAUSE SUCH INDIVIDUAL SEEKS THE
ENFORCEMENT OF THIS ARTICLE, OR TESTIFIES, ASSISTS OR PARTICIPATES IN
ANY MANNER IN AN INVESTIGATION, HEARING OR OTHER PROCEEDING TO ENFORCE
THIS ARTICLE.
3. NO ENTITY SHALL PAY AN EMPLOYEE THROUGH A THIRD PARTY OR TREAT AN
EMPLOYEE AS A SUBCONTRACTOR OR INDEPENDENT CONTRACTOR TO AVOID THE
REQUIREMENTS OF THIS ARTICLE.
S 4. This act shall take effect July 1, 2009 and shall apply to any
economic development subsidy awarded or renewed on or after October 1,
2009.