S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7061

                            I N  S E N A T E

                             March 21, 2016
                               ___________

Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Labor

AN ACT in relation to enacting the empire state apprenticeship  program;
  to  amend  the labor law, in relation to establishing the empire state
  apprenticeship tax credit program and granting the commissioner of the
  department of labor the power to administer such program; and to amend
  the tax law, in relation to the empire state apprenticeship tax credit
  (Part A); to amend the labor law,  in  relation  to  establishing  the
  empire  state apprenticeship grant program for small business and not-
  for-profit corporations (Part B)

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  This  act  shall be known and may be cited as the "empire
state apprenticeship program".
  S 2. This act enacts into law components of  legislation  relating  to
the  empire  state  apprenticeship  program.  Each  component  is wholly
contained within a Part identified as Parts A through B.  The  effective
date  for  each  particular  provision contained within such Part is set
forth in the last section of such Part. Any  provision  in  any  section
contained within a Part, including the effective date of the Part, which
makes reference to a section "of this act", when used in connection with
that  particular  component,  shall  be  deemed to mean and refer to the
corresponding section of the Part in which it is found. Section four  of
this act sets forth the general effective date of this act.

                                 PART A

  Section  1.  The  labor law is amended by adding a new section 25-c to
read as follows:
  S 25-C. POWER TO ADMINISTER THE EMPIRE STATE APPRENTICESHIP TAX CREDIT
PROGRAM.  (A) THE COMMISSIONER IS AUTHORIZED TO ESTABLISH AND ADMINISTER
THE EMPIRE STATE APPRENTICESHIP TAX CREDIT PROGRAM TO PROVIDE TAX INCEN-
TIVES TO QUALIFIED AND CERTIFIED    EMPLOYERS  FOR  EMPLOYING  QUALIFIED
APPRENTICES  PURSUANT TO AN APPRENTICESHIP AGREEMENT REGISTERED WITH THE

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

                                                           LBD05401-05-6

S. 7061                             2

DEPARTMENT PURSUANT TO PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT
HUNDRED ELEVEN OF  THIS  CHAPTER.  THE  COMMISSIONER  IS  AUTHORIZED  TO
PROVIDE  TAX  CREDITS  TO  BE ALLOCATED UP TO TEN MILLION DOLLARS OF TAX
CREDITS ANNUALLY, BEGINNING TAXABLE YEAR TWO THOUSAND SIXTEEN AND ENDING
BEFORE  TAXABLE  YEAR TWO THOUSAND TWENTY.  ANY UNUSED ALLOCATION OF THE
CREDIT SHALL BE MADE AVAILABLE IN EACH OF THE SUBSEQUENT  TAXABLE  YEARS
FOR  ALL  ELIGIBLE YEARS OF THE APPRENTICESHIP ALLOWED UNDER SUBDIVISION
(C) OF THIS SECTION.
  (B) DEFINITIONS.  (1) THE TERM "APPRENTICESHIP  AGREEMENT"  MEANS  THE
AGREEMENT AS DEFINED BY SECTION EIGHT HUNDRED SIXTEEN OF THIS CHAPTER.
  (2)  THE  TERM "QUALIFIED EMPLOYER" MEANS AN EMPLOYER THAT HAS ENTERED
INTO A REGISTERED APPRENTICESHIP AGREEMENT. FOR  THE  PURPOSES  OF  THIS
SECTION  A  "QUALIFIED EMPLOYER" SHALL NOT INCLUDE AN EMPLOYER THAT IS A
CONTRACTOR OR SUBCONTRACTOR WHO IS  A  PARTNERSHIP,  FIRM,  CORPORATION,
LIMITED  LIABILITY  COMPANY, ASSOCIATION OR OTHER LEGAL ENTITY PERMITTED
BY LAW TO DO BUSINESS WITHIN THE STATE WHO ENGAGES  IN  CONSTRUCTION  AS
DEFINED  IN  THIS  SECTION  AND  WHOSE APPRENTICESHIP AGREEMENT INCLUDES
SKILLS RELATED TO THE CONSTRUCTION INDUSTRY.
  (3) FOR PURPOSES  OF  THIS  SECTION,  THE  TERM  "CONSTRUCTION"  MEANS
CONSTRUCTING,  RECONSTRUCTING,  ALTERING, MAINTAINING, MOVING, REHABILI-
TATING, REPAIRING, RENOVATING, FABRICATING, SERVICING, OR DEMOLITION  OF
ANY  BUILDING,  STRUCTURE,  OR IMPROVEMENT, OR COMPONENT, OR RELATING TO
THE EXCAVATION OF OR OTHER DEVELOPMENT OR IMPROVEMENT TO LAND.
  (4) THE TERM "CERTIFIED EMPLOYER" MEANS A QUALIFIED EMPLOYER THAT  HAS
BEEN  CERTIFIED  AS  ELIGIBLE  BY THE COMMISSIONER TO PARTICIPATE IN THE
EMPIRE STATE APPRENTICESHIP  TAX  CREDIT  PROGRAM  ESTABLISHED  IN  THIS
SECTION.
  (5)  THE TERM "QUALIFIED APPRENTICE" MEANS AN INDIVIDUAL EMPLOYED IN A
FULL TIME POSITION FOR AT LEAST SIX MONTHS OF A TAXABLE YEAR AND WHO HAS
ENTERED INTO AN AGREEMENT WITH A QUALIFIED EMPLOYER PURSUANT TO  SECTION
EIGHT HUNDRED SIXTEEN OF THIS CHAPTER.
  (6)  THE  TERM  "MENTOR" MEANS AN INDIVIDUAL WHO PROVIDES INSTRUCTION,
GUIDANCE, AND SUPPORT TO THE APPRENTICE ON A  REGULAR  BASIS  THROUGHOUT
THEIR  APPRENTICESHIP  UNTIL  THE COMPLETION OF THEIR APPRENTICESHIP AND
FOR THE YEAR AFTER THEY COMPLETE THEIR APPRENTICESHIP AS THE  APPRENTICE
SEEKS  EMPLOYMENT  IN THE FIELD OR INDUSTRY OF THEIR APPRENTICESHIP. THE
GOAL OF THE MENTOR IS TO HELP TRAIN THE APPRENTICE IN HIS OR  HER  TRADE
AND  TO HELP THE APPRENTICE SUCCESSFULLY COMPLETE THE APPRENTICESHIP AND
TO SECURE AND RETAIN EMPLOYMENT.
  (C) (1) A CERTIFIED EMPLOYER SHALL BE ENTITLED TO A TAX CREDIT AGAINST
INCOME TAX FOR EACH QUALIFIED APPRENTICE FOR TAX YEAR EQUAL TO: (A)  THE
LESSER OF TWO THOUSAND DOLLARS OR THE TOTAL AMOUNT OF WAGES PAID FOR THE
FIRST  YEAR  OF  THE  APPRENTICESHIP;  (B)  THE LESSER OF THREE THOUSAND
DOLLARS OR THE TOTAL AMOUNT OF WAGES PAID FOR THE  SECOND  YEAR  OF  THE
APPRENTICESHIP; AND (C) THE LESSER OF FOUR THOUSAND DOLLARS OR THE TOTAL
AMOUNT  OF  WAGES PAID FOR EACH OF THE THIRD, FOURTH, AND FIFTH YEARS OF
THE APPRENTICESHIP.
  (2) A CERTIFIED EMPLOYER SHALL BE ENTITLED TO AN ENHANCED  TAX  CREDIT
IF  THE  EMPLOYER  CAN  SHOW  THAT THE APPRENTICE FOR WHICH THE EMPLOYER
RECEIVED THE TAX CREDIT PURSUANT TO THIS SUBDIVISION IS BEING TRAINED IN
HIS OR HER TRADE BY A MENTOR AS DEFINED IN THIS SECTION.   THE  ENHANCED
CREDIT  SHALL BE AN ADDITIONAL FIVE HUNDRED DOLLARS FOR EACH YEAR OF THE
APPRENTICESHIP IN ADDITION TO THE BASE TAX CREDIT DESCRIBED IN PARAGRAPH
ONE OF THIS SUBDIVISION.
  (D) TO PARTICIPATE IN THE PROGRAM ESTABLISHED UNDER  THIS  SECTION,  A
QUALIFIED  EMPLOYER  MUST SUBMIT AN APPLICATION (IN A FORM PRESCRIBED BY

S. 7061                             3

THE COMMISSIONER) TO THE COMMISSIONER AFTER JANUARY FIRST, BUT NO  LATER
THAN  NOVEMBER THIRTIETH OF EACH YEAR DURING TAXABLE YEARS THE CREDIT IS
ALLOCATED.  THE QUALIFIED APPRENTICES MUST START THEIR EMPLOYMENT ON  OR
AFTER JANUARY FIRST BUT NO LATER THAN DECEMBER THIRTY-FIRST, OF THE YEAR
FOR WHICH THE QUALIFIED EMPLOYER SEEKS THE TAX CREDIT.
  (E) AS PART OF SUCH APPLICATION, EACH QUALIFIED EMPLOYER MUST:
  (1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
TAX  INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED AS
A RESULT OF THIS AGREEMENT SHALL NOT  BE  AVAILABLE  FOR  DISCLOSURE  OR
INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
  (2)  ALLOW  THE  DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS
AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE.
  (F) THE COMMISSIONER SHALL  ESTABLISH  GUIDELINES  AND  CRITERIA  THAT
SPECIFY  REQUIREMENTS  FOR  QUALIFIED  EMPLOYERS  TO  PARTICIPATE IN THE
PROGRAM INCLUDING CRITERIA FOR  CERTIFYING  QUALIFIED  APPRENTICES.  ANY
REGULATIONS  THAT  THE  COMMISSIONER  DETERMINES  ARE  NECESSARY AND ARE
CONSISTENT WITH THE PURPOSE OF THIS ARTICLE MAY BE ADOPTED ON  AN  EMER-
GENCY  BASIS NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE
ADMINISTRATIVE PROCEDURE ACT. THE COMMISSIONER MAY  GIVE  PREFERENCE  TO
QUALIFIED  EMPLOYERS  THAT  ARE  ENGAGED IN DEMAND OCCUPATIONS OR INDUS-
TRIES, OR IN REGIONAL GROWTH SECTORS, INCLUDING THOSE IDENTIFIED BY  THE
DEPARTMENT,  SUCH  AS  CLEAN ENERGY, HEALTH CARE, ADVANCED MANUFACTURING
AND CONSERVATION.
  (G)(I) IF, AFTER REVIEWING THE APPLICATION SUBMITTED  BY  A  QUALIFIED
EMPLOYER,  THE  COMMISSIONER  DETERMINES THAT SUCH QUALIFIED EMPLOYER IS
ELIGIBLE TO PARTICIPATE IN THE PROGRAM ESTABLISHED UNDER  THIS  SECTION,
THE COMMISSIONER SHALL ISSUE THE QUALIFIED EMPLOYER A CERTIFICATE WITHIN
NINETY DAYS OF APPLICATION OF ELIGIBILITY THAT ESTABLISHES THE QUALIFIED
EMPLOYER  AS  A CERTIFIED EMPLOYER. THE CERTIFICATE OF ELIGIBILITY SHALL
SPECIFY THE MAXIMUM AMOUNT OF TAX CREDIT  THAT  THE  CERTIFIED  EMPLOYER
WILL BE ALLOWED TO CLAIM.
  (II) FOR EACH SUBSEQUENT APPLICATION SUBMITTED BY A QUALIFIED EMPLOYER
WHO  WAS  CERTIFIED BY THE COMMISSIONER IN A PRIOR TAX YEAR, THE COMMIS-
SIONER MAY CONSIDER THE FOLLOWING FACTORS WHEN DETERMINING IF THE QUALI-
FIED EMPLOYER SHOULD BE RE-CERTIFIED:
  (A) THE LENGTH  OF  THE  APPRENTICESHIP  AGREEMENT  THE  EMPLOYER  HAS
ENTERED INTO;
  (B)  HOW  MANY  APPRENTICES  HAVE  GRADUATED  FROM  THE APPRENTICESHIP
PROGRAM TO WHICH THE  QUALIFIED  APPRENTICE  EMPLOYED  BY  THE  EMPLOYER
BELONGS;
  (C) HOW MANY APPRENTICES IN THE FIRST, SECOND, THIRD, FOURTH, OR FIFTH
YEAR OF AN APPRENTICESHIP PROGRAM THE QUALIFIED EMPLOYER HAS HIRED; AND
  (D) ANY OTHER FACTORS THE COMMISSIONER DEEMS RELEVANT.
  (H) CERTIFIED EMPLOYERS THAT EMPLOY A QUALIFIED APPRENTICE PURSUANT TO
AN  APPRENTICESHIP AGREEMENT AS DEFINED BY SECTION EIGHT HUNDRED SIXTEEN
OF THIS ARTICLE THAT REQUIRES THE APPRENTICE TO BE TAUGHT TRADE OR CRAFT
DIVISIONS BY MORE THAN ONE EMPLOYER SHALL BE  ELIGIBLE  FOR  THE  CREDIT
BASED  ON  THE TOTAL NUMBER OF HOURS SUCH APPRENTICE IS EMPLOYED BY EACH
SUCH EMPLOYER IF THE TOTAL NUMBER OF HOURS EMPLOYED EXCEEDS THE  MINIMUM
NUMBER  OF  HOURS  REQUIRED TO BE A QUALIFIED APPRENTICESHIP UNDER PARA-
GRAPH FIVE OF SUBDIVISION (B) OF THIS SECTION, AS DETERMINED PURSUANT TO
REGULATIONS OF THE DEPARTMENT.
  (I) THE COMMISSIONER  SHALL  ANNUALLY  PUBLISH  A  REPORT  WITHIN  ONE
HUNDRED  EIGHTY  DAYS  OF  THE  CLOSE  OF THE TAX YEAR. SUCH REPORT MUST
CONTAIN THE NAMES AND ADDRESSES  OF  ANY  CERTIFIED  EMPLOYER  ISSUED  A
CERTIFICATE OF ELIGIBILITY UNDER THIS SECTION, AND THE MAXIMUM AMOUNT OF

S. 7061                             4

EMPIRE STATE APPRENTICESHIP TAX CREDIT ALLOWED TO THE CERTIFIED EMPLOYER
AS  SPECIFIED ON SUCH CERTIFICATE OF ELIGIBILITY. THE COMMISSIONER SHALL
INCLUDE IN SUCH REPORT RECOMMENDATIONS FOR LEGISLATIVE OR  OTHER  ACTION
TO FURTHER THE INTENT AND PURPOSE OF THE EMPIRE STATE APPRENTICESHIP TAX
CREDIT PROGRAM.
  (J)  THE  COMMISSIONER SHALL PROMOTE, PUBLISH AND DISSEMINATE INFORMA-
TION CONCERNING THE EMPIRE STATE APPRENTICESHIP  TAX  CREDIT  AND  OTHER
AVAILABLE FUNDING, PARTICULARLY TARGETING INDUSTRIES AND FIELDS OF BUSI-
NESS NOT CURRENTLY TAKING ADVANTAGE OF APPRENTICESHIPS.
  S  2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
  49. EMPIRE STATE APPRENTICESHIP TAX CREDIT. (A) A  TAXPAYER  THAT  HAS
BEEN  CERTIFIED  BY  THE  COMMISSIONER  OF LABOR AS A CERTIFIED EMPLOYER
PURSUANT TO SECTION TWENTY-FIVE-C OF THE LABOR LAW SHALL  BE  ALLOWED  A
CREDIT  AGAINST  THE  TAX  IMPOSED  BY  THIS ARTICLE, FOR EACH QUALIFIED
APPRENTICE, UP TO (I) TWO THOUSAND FIVE HUNDRED DOLLARS  FOR  THE  FIRST
YEAR OF THE APPRENTICESHIP; (II) THREE THOUSAND FIVE HUNDRED DOLLARS FOR
THE  SECOND YEAR OF THE APPRENTICESHIP; (III) FOUR THOUSAND FIVE HUNDRED
DOLLARS FOR THE THIRD YEAR OF THE  APPRENTICESHIP;  (IV)  FOUR  THOUSAND
FIVE  HUNDRED DOLLARS FOR THE FOURTH YEAR OF THE APPRENTICESHIP; AND (V)
FOUR THOUSAND FIVE HUNDRED DOLLARS FOR THE FIFTH YEAR OF THE APPRENTICE-
SHIP.  FOR PURPOSES OF THIS SUBDIVISION, THE TERM "QUALIFIED APPRENTICE"
SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B)  OF  SECTION
TWENTY-FIVE-C  OF  THE LABOR LAW. THE PORTION OF THE CREDIT DESCRIBED IN
SUBPARAGRAPHS (I) THROUGH (V) OF THIS PARAGRAPH SHALL BE ALLOWED FOR THE
TAXABLE YEARS IN WHICH THE WAGES ARE PAID TO THE QUALIFIED APPRENTICE.
  (B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY
NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT  PRESCRIBED
IN  PARAGRAPH  (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS
ARTICLE. HOWEVER, IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS  SUBDI-
VISION  FOR  ANY  TAXABLE  YEAR REDUCES THE TAX TO THAT AMOUNT OR IF THE
TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED  DOLLAR  MINIMUM  AMOUNT,
ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN THAT TAXABLE YEAR WILL BE TREATED
AS  AN  OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH
THE PROVISIONS OF SECTION  ONE  THOUSAND  EIGHTY-SIX  OF  THIS  CHAPTER.
PROVIDED, HOWEVER, NO INTEREST WILL BE PAID THEREON.
  (C)  THE  TAXPAYER  SHALL  BE REQUIRED TO ATTACH TO ITS TAX RETURN ITS
CERTIFICATE OF ELIGIBILITY ISSUED BY THE COMMISSIONER OF LABOR  PURSUANT
TO SECTION TWENTY-FIVE-C OF THE LABOR LAW. IN NO EVENT SHALL THE TAXPAY-
ER  BE  ALLOWED A CREDIT GREATER THAN THE AMOUNT OF THE CREDIT LISTED ON
THE CERTIFICATE OF ELIGIBILITY. NOTWITHSTANDING ANY  PROVISION  OF  THIS
CHAPTER  TO THE CONTRARY, THE COMMISSIONER AND THE COMMISSIONER'S DESIG-
NEES SHALL RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING THIS
CREDIT AND THE AMOUNT OF THE CREDIT EARNED BY  THE  TAXPAYER.  PROVIDED,
HOWEVER,  IF  A  TAXPAYER CLAIMS THIS CREDIT BECAUSE IT IS A MEMBER OF A
LIMITED LIABILITY COMPANY OR A PARTNER IN A PARTNERSHIP, ONLY THE AMOUNT
OF CREDIT EARNED BY THE ENTITY AND NOT THE AMOUNT OF CREDIT  CLAIMED  BY
THE TAXPAYER MAY BE RELEASED.
  S  3. Section 606 of the tax law is amended by adding a new subsection
(vvv) to read as follows:
  (VVV) EMPIRE STATE APPRENTICESHIP TAX CREDIT. (1)(A) A  TAXPAYER  THAT
HAS  BEEN CERTIFIED BY THE COMMISSIONER OF LABOR AS A CERTIFIED EMPLOYER
PURSUANT TO SECTION TWENTY-FIVE-C OF THE LABOR LAW SHALL  BE  ALLOWED  A
CREDIT  AGAINST  THE  TAX  IMPOSED  BY  THIS ARTICLE, FOR EACH QUALIFIED
APPRENTICE, UP TO (I) TWO THOUSAND FIVE HUNDRED DOLLARS  FOR  THE  FIRST
YEAR OF THE APPRENTICESHIP; (II) THREE THOUSAND FIVE HUNDRED DOLLARS FOR

S. 7061                             5

THE  SECOND YEAR OF THE APPRENTICESHIP; (III) FOUR THOUSAND FIVE HUNDRED
DOLLARS FOR THE THIRD YEAR OF THE  APPRENTICESHIP;  (IV)  FOUR  THOUSAND
FIVE  HUNDRED DOLLARS FOR THE FOURTH YEAR OF THE APPRENTICESHIP; AND (V)
FOUR THOUSAND FIVE HUNDRED DOLLARS FOR THE FIFTH YEAR OF THE APPRENTICE-
SHIP.
  (B) A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED
LIABILITY  COMPANY  OR  SHAREHOLDER  IN  AN  S CORPORATION THAT HAS BEEN
CERTIFIED BY THE COMMISSIONER OF LABOR AS A CERTIFIED EMPLOYER  PURSUANT
TO  SECTION TWENTY-FIVE-C OF THE LABOR LAW SHALL BE ALLOWED ITS PRO RATA
SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY
OR S CORPORATION.
  (C) FOR PURPOSES OF THIS SUBSECTION, THE TERM  "QUALIFIED  APPRENTICE"
SHALL  HAVE  THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION
TWENTY-FIVE-C OF THE LABOR LAW.  THE PORTION OF THE CREDIT DESCRIBED  IN
CLAUSE  (I)  THROUGH  (V) OF SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE
ALLOWED FOR THE TAXABLE YEARS IN WHICH THE WAGES ARE PAID TO THE  QUALI-
FIED APPRENTICE.
  (2)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION EXCEEDS
THE TAXPAYER'S TAX FOR THE TAXABLE YEAR, ANY AMOUNT OF CREDIT NOT DEDUC-
TIBLE IN THAT TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF  TAX  TO
BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE.  PROVIDED, HOWEVER, NO INTEREST WILL
BE PAID THEREON.
  (3)  THE  TAXPAYER  SHALL  BE REQUIRED TO ATTACH TO ITS TAX RETURN ITS
CERTIFICATE OF ELIGIBILITY ISSUED BY THE COMMISSIONER OF LABOR  PURSUANT
TO SECTION TWENTY-FIVE-C OF THE LABOR LAW. IN NO EVENT SHALL THE TAXPAY-
ER  BE  ALLOWED A CREDIT GREATER THAN THE AMOUNT OF THE CREDIT LISTED ON
THE CERTIFICATE OF ELIGIBILITY. NOTWITHSTANDING ANY  PROVISION  OF  THIS
CHAPTER  TO THE CONTRARY, THE COMMISSIONER AND THE COMMISSIONER'S DESIG-
NEES SHALL RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING THIS
CREDIT AND THE AMOUNT OF THE CREDIT EARNED BY  THE  TAXPAYER.  PROVIDED,
HOWEVER,  IF  A  TAXPAYER CLAIMS THIS CREDIT BECAUSE IT IS A MEMBER OF A
LIMITED LIABILITY COMPANY, A PARTNER IN A PARTNERSHIP, OR A  SHAREHOLDER
IN  A  SUBCHAPTER S CORPORATION, ONLY THE AMOUNT OF CREDIT EARNED BY THE
ENTITY AND NOT THE AMOUNT OF CREDIT  CLAIMED  BY  THE  TAXPAYER  MAY  BE
RELEASED.
  S  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xliii)  to  read  as
follows:
(XLIII) EMPIRE STATE APPRENTICESHIP  AMOUNT OF CREDIT UNDER
TAX CREDIT UNDER SUBSECTION          SUBDIVISION FORTY-NINE OF
(VVV)                                 SECTION TWO HUNDRED TEN-B
  S 5. This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2016.

                                 PART B

  Section  1.  The  labor law is amended by adding a new article 23-D to
read as follows:
                              ARTICLE 23-D
           EMPIRE STATE APPRENTICESHIP GRANT PROGRAM FOR SMALL
                BUSINESS AND NOT-FOR-PROFIT CORPORATIONS
SECTION 833. EMPIRE STATE APPRENTICESHIP GRANT PROGRAM FOR  SMALL  BUSI-
               NESS AND NOT-FOR-PROFIT CORPORATIONS.
  S  833.  EMPIRE  STATE APPRENTICESHIP GRANT PROGRAM FOR SMALL BUSINESS
AND NOT-FOR-PROFIT CORPORATIONS.  1. THE DEPARTMENT  SHALL  ESTABLISH  A

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GRANT  PROGRAM  DESIGNED  TO  ENCOURAGE  THE ADOPTION OF APPRENTICESHIPS
ADMINISTERED BY SMALL BUSINESSES AND NOT-FOR-PROFIT CORPORATIONS.    THE
DEPARTMENT  SHALL  PROVIDE  GRANTS WITHIN AVAILABLE APPROPRIATIONS, ON A
COMPETITIVE  BASIS,  IN RESPONSE TO A REQUEST FOR PROPOSAL FROM ELIGIBLE
ENTITIES.  THE PROGRAM SHALL PROVIDE ONE TO ONE STATE MATCHING FUNDS  TO
ELIGIBLE  ENTITIES  NOT  TO  EXCEED  FIFTY THOUSAND DOLLARS ANNUALLY. AN
ELIGIBLE ENTITY SHALL INCLUDE A BUSINESS EMPLOYING  AND/OR  TRAINING  AN
APPRENTICE  PURSUANT  TO AN APPRENTICESHIP AGREEMENT REGISTERED WITH THE
DEPARTMENT PURSUANT TO PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT
HUNDRED ELEVEN OF THIS CHAPTER WHICH IS RESIDENT IN  THIS  STATE,  INDE-
PENDENTLY  OWNED  AND OPERATED, AND EMPLOYS TWENTY-FIVE OR LESS PERSONS,
OR A NOT-FOR-PROFIT ORGANIZATION EMPLOYING AND/OR TRAINING AN APPRENTICE
PURSUANT TO AN APPRENTICESHIP AGREEMENT  AS  DEFINED  BY  SECTION  EIGHT
HUNDRED  SIXTEEN OF THIS CHAPTER AND REGISTERED WITH THE DEPARTMENT.  AN
ELIGIBLE ENTITY SHALL NOT INCLUDE AN EMPLOYER WHO  IS  A  CONTRACTOR  OR
SUBCONTRACTOR WHO IS A PARTNERSHIP, FIRM, CORPORATION, LIMITED LIABILITY
COMPANY,  ASSOCIATION OR OTHER LEGAL ENTITY PERMITTED BY LAW TO DO BUSI-
NESS WITHIN THE STATE WHO ENGAGES IN CONSTRUCTION.  FOR PURPOSES OF THIS
SECTION, THE TERM  "CONSTRUCTION"  MEANS  CONSTRUCTING,  RECONSTRUCTING,
ALTERING,  MAINTAINING,  MOVING,  REHABILITATING, REPAIRING, RENOVATING,
FABRICATING, SERVICING, OR DEMOLITION OF  ANY  BUILDING,  STRUCTURE,  OR
IMPROVEMENT,  OR  COMPONENT,  OR  RELATING TO THE EXCAVATION OF OR OTHER
DEVELOPMENT OR IMPROVEMENT TO LAND.  THE DEPARTMENT MAY USE GRANT  FUNDS
ONLY  FOR  COSTS  RELATED  TO APPRENTICESHIP PROGRAMS FOR CAPITAL AND/OR
OPERATING EXPENSES, AND TO SUPPORT DEDICATED  MENTORS  FOR  APPRENTICES.
THE  COMMISSIONER IS DIRECTED TO ESTABLISH GUIDELINES AND AN APPLICATION
PROCESS. TOTAL STATEWIDE EXPENDITURES FOR THE GRANT  PROGRAM  SHALL  NOT
EXCEED TWO MILLION FIVE HUNDRED THOUSAND DOLLARS PER YEAR.
  2. THE STATE APPRENTICESHIP AND TRAINING COUNCIL SHALL REVIEW REQUESTS
FOR PROPOSALS AND WILL RECOMMEND PROJECT APPLICATIONS DEEMED TO MEET THE
INTENT OF THE PROGRAM TO THE DEPARTMENT.
  3.  THE  DEPARTMENT SHALL REPORT ON OR BEFORE OCTOBER FIRST, TWO THOU-
SAND SEVENTEEN AND ANNUALLY THEREAFTER TO THE GOVERNOR, TEMPORARY PRESI-
DENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, AND CHAIRS OF THE  ASSEMBLY
COMMITTEE  ON LABOR AND THE LEGISLATIVE COMMISSION ON SKILLS DEVELOPMENT
AND CAREER EDUCATION ON ACTIVITIES  AND  PROGRESS  OF  THE  GRANT.  SUCH
REPORT SHALL CONTAIN THE NAMES, ADDRESSES AND DESCRIPTIONS OF ANY ELIGI-
BLE  ENTITY  ISSUED  A GRANT UNDER THIS SECTION, THE AMOUNT OF THE GRANT
ALLOWED TO THE EMPLOYER, FOR WHAT PURPOSES, THE  NUMBER  OF  APPRENTICES
AND  THEIR TRADE OR TRADES, AND WHETHER EACH APPRENTICESHIP IS A NEW JOB
CREATED AFTER BEING ISSUED A GRANT PURSUANT TO THIS PROGRAM.
  S 2. This act shall take effect immediately.
  S 3. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  S  4.  This  act shall take effect immediately provided, however, that
the applicable effective date of Parts A through B of this act shall  be
as specifically set forth in the last section of such Parts.