S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10854
 
                           I N  A S S E M B L Y
 
                               May 23, 2018
                                ___________
 
 Introduced  by M. of A. VANEL -- read once and referred to the Committee
   on Economic Development
 
 AN ACT to amend the economic development law, in relation to the  devel-
   opment  and  creation  of  distributed  ledger technology and business
   entities that develop such technology
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 8 and 23 of section 352 of the economic devel-
 opment  law, as amended by section 1 of part K of chapter 59 of the laws
 of 2017, are amended to read as follows:
   8. "Financial services data centers  or  financial  services  customer
 back  office  operations"  means  operations  that  manage  the  data or
 accounts of existing customers or provide product or service information
 and support to customers  of  financial  services  companies,  including
 banks,  other  lenders,  securities and commodities brokers and dealers,
 investment banks, portfolio managers,  trust  offices,  [and]  insurance
 companies,  AND  FINANCIAL TECHNOLOGY COMPANIES THAT DEVELOP DISTRIBUTED
 LEDGER TECHNOLOGY. FOR PURPOSES OF THIS SUBDIVISION "DISTRIBUTED  LEDGER
 TECHNOLOGY"  MEANS  A  MATHEMATICALLY SECURED, CHRONOLOGICAL, AND DECEN-
 TRALIZED CONSENSUS LEDGER OR DATABASE, WHETHER MAINTAINED  VIA  INTERNET
 INTERACTION,  PEER-TO-PEER  NETWORK,  OR OTHERWISE USED TO AUTHENTICATE,
 RECORD, SHARE AND SYNCHRONIZE TRANSACTIONS IN THEIR RESPECTIVE ELECTRON-
 IC LEDGERS OR DATABASES.
   23. "Software development" means the creation  of  DISTRIBUTED  LEDGER
 TECHNOLOGY, coded computer instructions or production or post-production
 of  video  games, as defined in subdivision one-a of section six hundred
 eleven of the general business law, other than those embedded  and  used
 exclusively in advertising, promotional websites or microsites, and also
 includes  new  media as defined by the commissioner in regulations.  FOR
 PURPOSES OF THIS SUBDIVISION "DISTRIBUTED  LEDGER  TECHNOLOGY"  MEANS  A
 MATHEMATICALLY   SECURED,  CHRONOLOGICAL,  AND  DECENTRALIZED  CONSENSUS
 LEDGER OR DATABASE, WHETHER MAINTAINED VIA INTERNET  INTERACTION,  PEER-
 TO-PEER  NETWORK,  OR  OTHERWISE USED TO AUTHENTICATE, RECORD, SHARE AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15688-06-8

 A. 10854                            2
 
 SYNCHRONIZE TRANSACTIONS IN THEIR RESPECTIVE ELECTRONIC LEDGERS OR DATA-
 BASES.
   §  2. Subdivision 4 of section 353 of the economic development law, as
 separately amended by section 3 of part K and section 2 of  part  ZZ  of
 chapter 59 of the laws of 2017, is amended to read as follows:
   4.  A business entity operating predominantly in one of the industries
 referenced in paragraphs (a) through (h) or in paragraph (k) of subdivi-
 sion one of this section but which does not meet the job requirements of
 subdivision three of this section must have at least  twenty-five  full-
 time job equivalents unless such business is a business entity operating
 predominantly in manufacturing then it must have at least five full-time
 job  equivalents  and must demonstrate that its benefit-cost ratio is at
 least ten to one, OR UNLESS IT IS A  SOFTWARE  DEVELOPMENT  ENTITY  THAT
 DEVELOPS  DISTRIBUTED  LEDGER TECHNOLOGY WHICH HAS BEEN IN OPERATION FOR
 MORE THAN ONE YEAR AND LESS THAN FIVE YEARS, THEN IT MUST HAVE AT  LEAST
 TWO FULL-TIME JOB EQUIVALENTS.
   §  3. Section 354 of the economic development law is amended by adding
 a new subdivision 6 to read as follows:
   6. THE COMMISSIONER SHALL STRIVE TO ENSURE THAT THERE IS PARTICIPATION
 ON A BROAD REGIONAL GEOGRAPHIC BASIS WITHIN THE PROGRAM AND OUTREACH  TO
 ALL  ELIGIBLE  INDUSTRIES  DEFINED IN SECTION THREE HUNDRED FIFTY-TWO OF
 THIS ARTICLE. THE COMMISSIONER SHALL ALSO PROMOTE DIVERSE OWNERSHIP  AND
 WORKFORCES  OF  PARTICIPATING  BUSINESSES THROUGH OUTREACH TO BUSINESSES
 OWNED BY PEOPLE WITH DISABILITIES AS DEFINED UNDER  SUBDIVISION  TWENTY-
 ONE  OF  SECTION TWO HUNDRED NINETY-TWO OF THE EXECUTIVE LAW OR SUBDIVI-
 SIONS THREE AND TWENTY-TWO OF SECTION 1.03 OF  THE  THE  MENTAL  HYGIENE
 LAW,  MINORITY-  AND WOMEN-OWNED BUSINESSES AND VETERAN-OWNED BUSINESSES
 IN THOSE INDUSTRIES WHERE THEIR PARTICIPATION IS  NOT  CURRENTLY  PREVA-
 LENT.
   § 4. This act shall take effect immediately.