S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8179
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 1, 2017
                                ___________
 
 Introduced  by  M. of A. RYAN -- read once and referred to the Committee
   on Small Business
 
 AN ACT to amend the economic development law, in relation to  establish-
   ing an advisory panel on employee-owned enterprises; and providing for
   the repeal of such provisions upon expiration thereof

   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 139 to read as follows:
   §  139.  ADVISORY PANEL ON EMPLOYEE-OWNED ENTERPRISES. 1.  DEFINITION.
 AS USED IN THIS SECTION, THE TERM "EMPLOYEE-OWNED ENTERPRISE" SHALL MEAN
 A BUSINESS IN WHICH THE EMPLOYEES CONTROL THE  MAJORITY  OF  THE  VOTING
 STOCK, OR IF THE BUSINESS IS HELD IN A TRUST WHICH CONTROLS THE MAJORITY
 OF THE VOTING STOCK, THE TRUSTEES ARE ELECTED BY THE EMPLOYEES. THE TERM
 "EMPLOYEE-OWNED  ENTERPRISE" SHALL ALSO REFER TO A WORKER COOPERATIVE AS
 DEFINED IN SECTION EIGHTY-ONE OF THE COOPERATIVE CORPORATIONS LAW.
   2. ESTABLISHMENT OF  ADVISORY  PANEL.  AN  ADVISORY  PANEL  IS  HEREBY
 CREATED  WITHIN  THE  DEPARTMENT FOR THE PURPOSE OF REVIEWING STATE LAWS
 AND PROGRAMS IN ORDER TO REPORT AND MAKE RECOMMENDATIONS ON HOW BEST  TO
 SUPPORT  EXISTING EMPLOYEE-OWNED ENTERPRISES, PROMOTING THE FORMATION OF
 NEW EMPLOYEE-OWNED ENTERPRISES, AND PROMOTING THE  CONTINUED  GROWTH  OF
 SUCH BUSINESSES IN THE STATE.
   3. COMPOSITION OF ADVISORY PANEL. (A) THE ADVISORY PANEL SHALL CONSIST
 OF TWELVE MEMBERS, INCLUDING:
   (I)  THE COMMISSIONER, OR HIS OR HER DESIGNEE, WHO SHALL BE DESIGNATED
 AS CHAIR OF THE ADVISORY PANEL;
   (II) THE COMMISSIONER OF LABOR, OR HIS OR HER DESIGNEE;
   (III) THE COMMISSIONER OF TAX AND FINANCE, OR HIS OR HER DESIGNEE; AND
   (IV) NINE MEMBERS TO BE APPOINTED AS FOLLOWS: THREE SHALL BE APPOINTED
 BY THE GOVERNOR, TWO SHALL BE APPOINTED BY THE SPEAKER OF THE  ASSEMBLY,
 TWO  SHALL  BE  APPOINTED  BY THE TEMPORARY PRESIDENT OF THE SENATE, ONE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13030-01-7

 A. 8179                             2
 
 SHALL BE APPOINTED BY THE MINORITY LEADER OF THE ASSEMBLY, AND ONE SHALL
 BE APPOINTED BY THE  MINORITY  LEADER  OF  THE  SENATE.  SUCH  APPOINTED
 MEMBERS  SHALL  REPRESENT  ENTITIES  AND  ORGANIZATIONS  WITH  EXPERTISE
 RELATED  TO  EMPLOYEE-OWNED ENTERPRISES OR BUSINESS DEVELOPMENT, PARTIC-
 ULARLY THOSE WITH AN EMPHASIS ON SMALL BUSINESSES, MINORITY  AND  WOMEN-
 OWNED  BUSINESSES,  AND  VETERAN-OWNED  BUSINESSES,  INCLUDING,  BUT NOT
 LIMITED TO:
   (1) EMPLOYEE-OWNED ENTERPRISES;
   (2) EMPLOYEE-OWNED ENTERPRISE ADVOCACY, SERVICE, SUPPORT, OR  DEVELOP-
 MENT ORGANIZATIONS;
   (3) BUSINESS DEVELOPMENT ORGANIZATIONS;
   (4)  NEW  YORK STATE COLLEGE AND UNIVERSITY PROGRAMS WITH EXPERTISE IN
 BUSINESS DEVELOPMENT;
   (5) COMMERCIAL LENDING ORGANIZATIONS FOCUSING ON ACCESS TO CAPITAL AND
 COMMUNITY DEVELOPMENT; AND
   (6) LABOR ORGANIZATIONS.
   (B) EACH MEMBER OF THE PANEL  SHALL  SERVE  AT  THE  PLEASURE  OF  THE
 APPOINTING  AUTHORITY,  AND  ANY VACANCY ON THE PANEL SHALL BE FILLED IN
 THE SAME MANNER AS THE ORIGINAL APPOINTMENT. SUCH  PANEL  MEMBERS  SHALL
 SERVE WITHOUT COMPENSATION EXCEPT THAT SUCH MEMBERS SHALL BE ENTITLED TO
 REIMBURSEMENT  FOR  ACTUAL  AND  NECESSARY  EXPENSES  INCURRED  IN  SUCH
 SERVICE.
   4. POWERS AND DUTIES OF THE ADVISORY PANEL. THE ADVISORY PANEL SHALL:
   (A) IDENTIFY AND RECOMMEND STRATEGIES  TO  PROMOTE  THE  CREATION  AND
 DEVELOPMENT  OF  NEW  EMPLOYEE-OWNED  ENTERPRISES IN ORDER TO CREATE NEW
 JOBS AND RETAIN EXISTING JOBS WITHIN THE STATE;
   (B) IDENTIFY AND RECOMMEND STRATEGIES TO FACILITATE  THE  CREATION  OF
 EMPLOYEE-OWNED  ENTERPRISES  THAT  PROMOTE  THE CONTINUATION OF EXISTING
 BUSINESSES EITHER AS PART  OF  A  PRE-EXISTING  BUSINESS  SUCCESSION  OF
 OWNERSHIP  PLAN  OR  AS  AN  ALTERNATIVE  OPTION  IF A BUSINESS IS BEING
 OFFERED FOR SALE OR TRANSFER BY THE CURRENT OWNER OR THE HEIRS OR ESTATE
 OF A DECEASED OWNER;
   (C) EVALUATE THE EFFECTIVENESS OF CURRENT STATE AND LOCAL TRAINING AND
 ASSISTANCE PROGRAMS DESIGNED TO PROVIDE SUPPORT TO EMPLOYEE-OWNED ENTER-
 PRISES, AND MAKE RECOMMENDATIONS AS TO HOW TO MORE  EFFECTIVELY  UTILIZE
 THESE PROGRAMS AND RESOURCES TO SUPPORT SUCH ENTERPRISES;
   (D) EXAMINE AND IDENTIFY STATE AND LOCAL LAWS AND REGULATIONS RELATING
 TO  THE  GOVERNANCE AND ADMINISTRATION OF EMPLOYEE-OWNED ENTERPRISES AND
 THEIR EFFECT ON THE CREATION, RETENTION, AND GROWTH OF SUCH ENTERPRISES;
   (E) EXAMINE AND IDENTIFY OTHER SUCCESSFUL  FEDERAL,  STATE  AND  LOCAL
 PROGRAMS  DESIGNED  TO  PROVIDE  SUPPORT  TO EMPLOYEE-OWNED ENTERPRISES,
 INCLUDING ANY PROGRAMS CURRENTLY UNDERUTILIZED BY INDIVIDUALS SEEKING TO
 ESTABLISH AN EMPLOYEE-OWNED ENTERPRISE IN THE STATE;
   (F) EVALUATE THE ABILITY OF NEW  AND  EXISTING  EMPLOYEE-OWNED  ENTER-
 PRISES  TO  ACQUIRE  THE  CAPITAL NECESSARY TO FORM, EXPAND, AND DEVELOP
 THEIR OPERATIONS;
   (G) EVALUATE THE ROLE OF IMMIGRANTS  AND  NEW  AMERICANS,  MINORITIES,
 WOMEN, AND VETERANS IN THE FORMATION OF EMPLOYEE-OWNED ENTERPRISES;
   (H) EVALUATE THE POTENTIAL FOR EMPLOYEE-OWNED ENTERPRISES TO ASSIST IN
 THE  REVITALIZATION  AND  REDEVELOPMENT  OF  ECONOMICALLY  DISADVANTAGED
 COMMUNITIES; AND
   (I) RECOMMEND A SET OF BEST PRACTICES AND  POLICIES  AS  A  GUIDE  FOR
 INDIVIDUALS  TO  USE WHEN FORMING AN EMPLOYEE-OWNED ENTERPRISE, AND MAKE
 SUCH GUIDE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE.
   5. REPORTING. THE ADVISORY PANEL SHALL ISSUE A REPORT  NO  LATER  THAN
 SEPTEMBER  THIRTIETH,  TWO  THOUSAND EIGHTEEN OUTLINING THE FINDINGS AND

 A. 8179                             3
 
 RECOMMENDATIONS OF THE PANEL. THE  REPORT  SHALL  BE  DELIVERED  TO  THE
 GOVERNOR,  THE  SPEAKER  OF THE ASSEMBLY, THE TEMPORARY PRESIDENT OF THE
 SENATE, THE MINORITY LEADER OF THE ASSEMBLY, THE MINORITY LEADER OF  THE
 SENATE, THE CHAIR OF THE ASSEMBLY COMMITTEE ON WAYS AND MEANS, THE CHAIR
 OF  THE SENATE COMMITTEE ON FINANCE, THE CHAIR OF THE ASSEMBLY COMMITTEE
 ON ECONOMIC DEVELOPMENT, THE CHAIR OF THE ASSEMBLY  COMMITTEE  ON  SMALL
 BUSINESS, THE CHAIR OF THE SENATE COMMITTEE ON COMMERCE, ECONOMIC DEVEL-
 OPMENT,  AND  SMALL  BUSINESS,  THE  CHAIR  OF THE ASSEMBLY COMMITTEE ON
 LABOR, AND THE CHAIR OF THE SENATE COMMITTEE ON LABOR.
   § 2. This act shall take effect immediately and shall  expire  October
 1,  2018  when upon such date the provisions of this act shall be deemed
 repealed.