NY State Senate Bill 2017-S6855A

Senate Bill S6855A

Vetoed By Governor

2017-2018 Legislative Session

Relates to the creation of micro-business worker cooperatives upon transfer of ownership

download bill text pdf

Archive: Last Bill Status Via A2804 - Vetoed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Vetoed By Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 07, 2018	tabled vetoed memo.274
Nov 26, 2018	delivered to governor
Jun 18, 2018	returned to assembly passed senate 3rd reading cal.1849 substituted for s6855a
Jun 18, 2018	substituted by a2804a ordered to third reading cal.1849 committee discharged and committed to rules
Jun 13, 2018	print number 6855a
Jun 13, 2018	amend and recommit to corporations, authorities and commissions
Jan 03, 2018	referred to corporations, authorities and commissions
Aug 21, 2017	referred to rules

Votes

- Jun 18, 2018 - Floor Vote
  A2804
  
  62
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 18, 2018
      
      aye (62)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      DeFrancisco
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kavanagh
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Marchione
      
      Mayer
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      excused (1)
      
      Croci
  Jun 18, 2018 - Rules Committee Vote
  S6855A
  
  25
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 18, 2018
      
      aye (25)
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hannon
      
      Kennedy
      
      Klein
      
      Krueger
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Parker
      
      Ranzenhofer
      
      Rivera
      
      Robach
      
      Savino
      
      Seward
      
      Stewart-Cousins
      
      Valesky
      
      Young

Bill Amendments

Original

A (Active)

2017-S6855 - Details

See Assembly Version of this Bill:: A2804
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Amd §16-m, UDC Act; amd §104-a, Ec Dev L
Versions Introduced in Other Legislative Sessions:: 2015-2016: A10099
2019-2020: S2176, A10156
2021-2022: S6394, A6286

2017-S6855 - Summary

Relates to the creation of micro-business worker cooperatives upon transfer of ownership.

2017-S6855 - Sponsor Memo

                                 BILL NUMBER:  S6855

 TITLE OF BILL :  An act to amend the New York state urban development
corporation act and the economic development law, in relation to the
creation of micro-business worker cooperatives upon transfer of
ownership

 PURPOSE OR GENERAL IDEA OF BILL :

This bill would provide for assistance in the creation of
micro-business worker cooperatives upon transfer of ownership of an
existing business.

 SUMMARY OF PROVISIONS :

This bill would add a new paragraph (o) to subdivision 1 of section
16-m of the New York State Urban Development Corporation Act that
would make micro-business worker cooperatives upon transfer of
ownership of an existing business, eligible to apply for assistance
under the Economic Development Fund.

Further, this legislation would amend section 104-a of the Economic
Development Law relating to Department of Economic Development to
provide assistance to micro-business worker cooperatives by expanding
the State entities that the Department must work in cooperation with
to include Office for New Americans and the Empire State Development

Corporation.

 JUSTIFICATION :

The purpose of this legislation is to provide an additional source of
funding to eligible worker-owned cooperatives upon the transfer of
ownership of an existing micro-business. This legislation would help
ensure that a viable business remains open and that the workers
currently employed by a business would have the ability to buy an
existing business. Creation of worker cooperatives is another tool to
help support a vibrant Main Street in our communities.

Historically, worker cooperatives offer workers with the opportunity
to become business owners. Worker ownership would convey to the
workers the opportunity to further improve their business, have
increased control over their work environment, and increased their
long-term job security. Worker cooperative also provide economic
benefits to their home communities in the form of a stable tax base
and retention of valuable jobs.

 LEGISLATIVE HISTORY :

2015-16: A.10099(Thiele)- Passed Assembly

 FISCAL IMPLICATIONS :

Undetermined.

 EFFECTIVE DATE :
This act shall take effect immediately, provided, however, that the
amendments to section sixteen-m of the Urban Development Corporation
Act made by section one of this act shall not affect the expiration of
such section and shall be deemed to expire therewith.

2017-S6855 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6855
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              August 21, 2017
                                ___________
 
 Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the New York state urban development corporation act and
   the economic development law, in relation to the creation of micro-bu-
   siness worker cooperatives upon transfer of ownership

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 1 of section 16-m of section 1 of chapter 174
 of the laws of 1968, constituting the New York state  urban  development
 corporation  act,  is  amended  by adding a new paragraph (o) to read as
 follows:
   (O) ASSISTANCE TO ELIGIBLE ENTITIES PURSUANT TO ARTICLE FIVE-A OF  THE
 COOPERATIVE  CORPORATIONS LAW TO PROVIDE FINANCING IN THE FORM OF LOANS,
 LOAN GUARANTEES, AND INTEREST SUBSIDY GRANTS  TO  SUBSIDIZE  LOANS  FROM
 FEDERALLY  CHARTERED  INSTRUMENTALITIES  AND  STATE  AND PRIVATE LENDING
 INSTITUTIONS TO FACILITATE THE  CREATION  OF  WORKER  COOPERATIVES  THAT
 PROMOTE  CONTINUATION OF EXISTING MICRO-BUSINESSES EITHER AS A PART OF A
 PREEXISTING BUSINESS SUCCESSION OF  OWNERSHIP  PLAN  OR  AS  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.  FOR  THE
 PURPOSES  OF  THIS SECTION, A MICRO-BUSINESS SHALL BE DEFINED AS A BUSI-
 NESS WITH FIVE OR LESS FULL-TIME OR FULL-TIME EQUIVALENT EMPLOYEES.  ALL
 ELIGIBLE ENTITIES SHALL BE REQUIRED TO SUBMIT A BUSINESS PLAN WITH THEIR
 APPLICATION REQUESTING ASSISTANCE.
   §  2.  The opening paragraph of section 104-a of the economic develop-
 ment law, as added by chapter 788 of the laws of  1983,  is  amended  to
 read as follows:
   With  respect  to  employee ownership assistance loans provided for in
 subtitle six of title eight of article eight of the  public  authorities
 law AND PARAGRAPH (O) OF SUBDIVISION ONE OF SECTION SIXTEEN-M OF SECTION
 ONE  OF CHAPTER ONE HUNDRED SEVENTY-FOUR OF THE LAWS OF NINETEEN HUNDRED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08416-01-7

 S. 6855                             2
 
 SIXTY-EIGHT, CONSTITUTING THE NEW YORK STATE  URBAN  DEVELOPMENT  CORPO-
 RATION  ACT, the department shall have the power and duty and in cooper-
 ation with the job development authority, OFFICE FOR NEW AMERICANS,  AND
 THE EMPIRE STATE DEVELOPMENT CORPORATION to:
   §  3.  This act shall take effect immediately, provided, however, that
 the amendments to section sixteen-m of the urban development corporation
 act made by section one of this act shall not affect the  expiration  of
 such section and shall be deemed to expire therewith.

2017-S6855A (ACTIVE) - Details

See Assembly Version of this Bill:: A2804
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Amd §16-m, UDC Act; amd §104-a, Ec Dev L
Versions Introduced in Other Legislative Sessions:: 2015-2016: A10099
2019-2020: S2176, A10156
2021-2022: S6394, A6286

2017-S6855A (ACTIVE) - Summary

Relates to the creation of micro-business worker cooperatives upon transfer of ownership.

2017-S6855A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6855A

SPONSOR: BAILEY
 
TITLE OF BILL:

An act to amend the New York state urban development corporation act and
the economic development law, in relation to the creation of micro-busi-
ness worker cooperatives upon transfer of ownership

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would provide for assistance in the creation of micro-business
worker cooperatives upon transfer of ownership of an existing business.

 
SUMMARY OF PROVISIONS:

This bill would add a new paragraph (o) to subdivision 1 of section 16-m
of the New York State Urban Development Corporation Act that would make
micro-business worker cooperatives upon transfer of ownership of an
existing business, eligible to apply for assistance under the Economic
Development Fund.

Further, this legislation would amend section 104-a of the Economic
Development Law relating to Department of Economic Development to
provide assistance to micro-business worker cooperatives by expanding
the State entities that the Department must work in cooperation with the
Empire State Development Corporation and any other applicable state
agency or office.

 
JUSTIFICATION:

The purpose of this legislation is to provide an additional source of
funding to eligible worker-owned cooperatives upon the transfer of
ownership of an existing micro-business. This legislation would help
ensure that a viable business remains open and that the workers current-
ly employed by a business would have the ability to buy an existing
business. Creation of worker cooperatives is another tool to help
support a vibrant Main Street in our communities.

Historically, worker cooperatives offer workers with the opportunity to
become business owners. Worker ownership would convey to the workers the
opportunity to further improve their business, have increased control
over their work environment, and increased their long-term job security.
Worker cooperative also provide economic benefits to their home communi-
ties in the form of a stable tax base and retention of valuable jobs.

 
LEGISLATIVE HISTORY:

2015-16: A.10099 (Thiele)- Passed Assembly

 
FISCAL IMPLICATIONS:

Undetermined.

 
EFFECTIVE DATE:
This act shall take effect immediately, provided, however, that the
amendments to section sixteen-m of the Urban Development Corporation Act
made by section one of this act shall not affect the expiration of such
section and shall be deemed to expire therewith.

2017-S6855A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6855--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              August 21, 2017
                                ___________
 
 Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules  --  recommitted  to
   the  Committee on Corporations, Authorities and Commissions in accord-
   ance with Senate Rule 6, sec. 8 -- committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee

 AN ACT to amend the New York state urban development corporation act and
   the economic development law, in relation to the creation of micro-bu-
   siness worker cooperatives upon transfer of ownership
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 1 of section 16-m of section 1 of chapter 174
 of the laws of 1968, constituting the New York state  urban  development
 corporation  act,  is  amended  by adding a new paragraph (o) to read as
 follows:
   (O) ASSISTANCE TO ELIGIBLE ENTITIES PURSUANT TO ARTICLE FIVE-A OF  THE
 COOPERATIVE  CORPORATIONS LAW TO PROVIDE FINANCING IN THE FORM OF LOANS,
 LOAN GUARANTEES, AND INTEREST SUBSIDY GRANTS  TO  SUBSIDIZE  LOANS  FROM
 FEDERALLY  CHARTERED  INSTRUMENTALITIES  AND  STATE  AND PRIVATE LENDING
 INSTITUTIONS TO FACILITATE THE  CREATION  OF  WORKER  COOPERATIVES  THAT
 PROMOTE  CONTINUATION OF EXISTING MICRO-BUSINESSES EITHER AS A PART OF A
 PREEXISTING BUSINESS SUCCESSION OF  OWNERSHIP  PLAN  OR  AS  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.  FOR  THE
 PURPOSES  OF  THIS SECTION, A MICRO-BUSINESS SHALL BE DEFINED AS A BUSI-
 NESS WITH FIVE OR LESS FULL-TIME OR FULL-TIME EQUIVALENT EMPLOYEES.  ALL
 ELIGIBLE ENTITIES SHALL BE REQUIRED TO SUBMIT A BUSINESS PLAN WITH THEIR
 APPLICATION REQUESTING ASSISTANCE.
   §  2.  The opening paragraph of section 104-a of the economic develop-
 ment law, as added by chapter 788 of the laws of  1983,  is  amended  to
 read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08416-09-8

 S. 6855--A                          2
 
   With  respect  to  employee ownership assistance loans provided for in
 subtitle six of title eight of article eight of the  public  authorities
 law AND PARAGRAPH (O) OF SUBDIVISION ONE OF SECTION SIXTEEN-M OF SECTION
 ONE  OF CHAPTER ONE HUNDRED SEVENTY-FOUR OF THE LAWS OF NINETEEN HUNDRED
 SIXTY-EIGHT,  CONSTITUTING  THE  NEW YORK STATE URBAN DEVELOPMENT CORPO-
 RATION ACT, the department shall have the power and duty and in  cooper-
 ation  with  the job development authority, THE EMPIRE STATE DEVELOPMENT
 CORPORATION AND ANY OTHER APPLICABLE STATE AGENCY OR OFFICE to:
   § 3. This act shall take effect immediately, provided,  however,  that
 the  amendments to section 16-m of the urban development corporation act
 made by section one of this act shall not affect the expiration of  such
 section and shall be deemed to expire therewith.

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