S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7524
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 1, 2017
                                ___________
 
 Introduced  by M. of A. RA -- read once and referred to the Committee on
   Economic Development
 
 AN ACT to amend the economic development law, in relation  to  reporting
   requirements for the START-UP NY program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The economic development law is amended  by  adding  a  new
 section 438 to read as follows:
   §  438.  DISCLOSURE  AUTHORIZATION AND REPORTING REQUIREMENTS. 1.  THE
 COMMISSIONER AND THE DEPARTMENT SHALL DISCLOSE PUBLICLY  THE  NAMES  AND
 ADDRESSES  OF THE BUSINESSES LOCATED WITHIN A TAX-FREE NY AREA. IN ADDI-
 TION, THE COMMISSIONER AND THE DEPARTMENT SHALL  DISCLOSE  PUBLICLY  AND
 INCLUDE  IN  THE  ANNUAL  REPORT  REQUIRED UNDER SUBDIVISION TWO OF THIS
 SECTION SUCH OTHER INFORMATION CONTAINED IN  SUCH  BUSINESSES'  APPLICA-
 TIONS AND ANNUAL REPORTS, INCLUDING THE PROJECTED NUMBER OF NET NEW JOBS
 TO  BE  CREATED, AS THEY DETERMINE IS RELEVANT AND NECESSARY TO EVALUATE
 THE SUCCESS OF THIS PROGRAM.
   2. (A) THE COMMISSIONER SHALL PREPARE AN ANNUAL REPORT TO THE GOVERNOR
 AND THE LEGISLATURE.  SUCH REPORT SHALL INCLUDE THE NUMBER  OF  BUSINESS
 APPLICANTS,  NUMBER  OF  BUSINESSES APPROVED, THE NAMES AND ADDRESSES OF
 THE BUSINESSES LOCATED WITHIN A TAX-FREE NY AREA, TOTAL AMOUNT OF  BENE-
 FITS DISTRIBUTED, BENEFITS RECEIVED PER BUSINESS, NUMBER OF NET NEW JOBS
 CREATED, NET NEW JOBS CREATED PER BUSINESS, NEW INVESTMENT PER BUSINESS,
 THE  TYPES  OF  INDUSTRIES REPRESENTED AND SUCH OTHER INFORMATION AS THE
 COMMISSIONER DETERMINES IS NECESSARY TO EVALUATE  THE  PROGRESS  OF  THE
 START-UP NY PROGRAM.
   (B)  ANY  BUSINESS LOCATED IN A TAX-FREE NY AREA MUST SUBMIT AN ANNUAL
 REPORT TO THE COMMISSIONER IN A FORM AND AT  SUCH  TIME  AND  WITH  SUCH
 INFORMATION  AS  PRESCRIBED BY THE COMMISSIONER IN CONSULTATION WITH THE
 COMMISSIONER OF TAXATION AND FINANCE. SUCH INFORMATION SHALL  BE  SUFFI-
 CIENT  FOR THE COMMISSIONER AND THE COMMISSIONER OF TAXATION AND FINANCE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11153-01-7

 A. 7524                             2
 
 TO: (I) MONITOR THE  CONTINUED  ELIGIBILITY  OF  THE  BUSINESS  AND  ITS
 EMPLOYEES  TO PARTICIPATE IN THE START-UP NY PROGRAM AND RECEIVE THE TAX
 BENEFITS DESCRIBED IN SECTION THIRTY-NINE OF THE TAX LAW; (II)  EVALUATE
 THE  PROGRESS  OF  THE START-UP NY PROGRAM; AND (III) PREPARE THE ANNUAL
 REPORT REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION. SUCH ANNUAL REPORT
 SHALL ALSO INCLUDE INFORMATION REGARDING THE WAGES PAID DURING THE  YEAR
 TO  ITS EMPLOYEES EMPLOYED IN THE NET NEW JOBS CREATED AND MAINTAINED IN
 THE TAX-FREE NY AREA.
   3. THE COMMISSIONER SHALL PREPARE ON AN ANNUAL BASIS A PROGRAM  REPORT
 FOR  POSTING  ON  THE  DEPARTMENT'S  WEBSITE. THE REPORT SHALL BE DUE ON
 MARCH FIRST, TWO THOUSAND EIGHTEEN AND ON MARCH FIRST EVERY YEAR  THERE-
 AFTER.
   §  2. Subdivision 1 of section 433 of the economic development law, as
 amended by section 3 of part UUU of chapter 59 of the laws of  2017,  is
 amended to read as follows:
   1. In order to participate in the START-UP NY program, a business must
 satisfy all of the following criteria.
   (a)  The  mission  and  activities  of the business must align with or
 further the academic mission of the campus, college or university  spon-
 soring  the  tax-free NY area in which it seeks to locate, and the busi-
 ness's participation in the  START-UP  NY  program  must  have  positive
 community and economic benefits.
   (b)  The  business must demonstrate that it will, in its first year of
 operation, create net new jobs. After its first year of  operation,  the
 business  must maintain net new jobs. In addition, the average number of
 employees of the business and its related persons in  the  state  during
 the  year  must  equal  or  exceed the sum of: (i) the average number of
 employees of the business and its related persons in  the  state  during
 the  year  immediately  preceding the year in which the business submits
 its application to locate in a tax-free NY area; and (ii) net  new  jobs
 of  the  business  in  the tax-free NY area during the year. The average
 number of employees of the business and its related persons in the state
 shall be determined by adding together the total number of employees  of
 the business and its related persons in the state on March thirty-first,
 June thirtieth, September thirtieth and December thirty-first and divid-
 ing the total by the number of such dates occurring within such year.
   (c)  Except  as provided in paragraphs [(f)] (G) and [(g)] (H) of this
 subdivision, at the time it submits its application for the START-UP  NY
 program, the business must be a new business to the state.
   (d)  The  business  may  be organized as a corporation, a partnership,
 limited liability company or a sole proprietorship.
   (e) UPON COMPLETION OF ITS FIRST YEAR IN THE START-UP NY  PROGRAM  AND
 THEREAFTER, THE BUSINESS MUST COMPLETE AND TIMELY FILE THE ANNUAL REPORT
 REQUIRED UNDER SECTION FOUR HUNDRED THIRTY-EIGHT OF THIS ARTICLE.
   (F)  Except  as provided in paragraphs [(f)] (G) and [(g)] (H) of this
 subdivision, the business must not be engaged in a line of business that
 is currently or was previously conducted by the business  or  a  related
 person in the last five years in New York state.
   [(f)]  (G) If a business does not satisfy the eligibility standard set
 forth in paragraph (c) or [(e)] (F) of this subdivision, because at  one
 point in time it operated in New York state but moved its operations out
 of  New  York  state on or before June first, two thousand thirteen, the
 commissioner shall grant that business permission to  apply  to  partic-
 ipate in the START-UP NY program if the commissioner determines that the
 business has demonstrated that it will substantially restore the jobs in
 New York state that it previously had moved out of state.

 A. 7524                             3
 
   [(g)]  (H) If a business seeks to expand its current operations in New
 York state into a tax-free NY area but the business does not qualify  as
 a new business because it does not satisfy the criteria in paragraph (c)
 of subdivision six of section four hundred thirty-one of this article or
 the  business  does  not  satisfy  the eligibility standard set forth in
 paragraph [(e)] (F) of this subdivision, the  commissioner  shall  grant
 the  business  permission  to  apply  to  participate in the START-UP NY
 program if the commissioner determines  that  the  business  has  demon-
 strated  that  it  will  create net new jobs in the tax-free NY area and
 that it or any related person has not eliminated any jobs in  the  state
 in connection with this expansion.
   § 3. This act shall take effect immediately.