BILL NUMBER: S7423

SPONSOR: AVELLA
 
TITLE OF BILL:  An act to amend the New York state urban development
corporation act, in relation to assistance for certain small businesses

 
PURPOSE:

This bill would expand the eligibility of the urban development corpo-
ration act to allow dry cleaning businesses and appearance enhancement
businesses, which practice nail specialty to make capital improvements
through grants and flexible financing programs.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends the urban development corporation act by
adding a new paragraph (o) to section 16-m, to provide capital improve-
ments through grants and flexible financing programs in order to assist:

1. Dry cleaning businesses for the purchase and installation of nonper-
chlorethylene machines and sprinkler systems to comply with state and
              

local codes, rules and regulations

2. Appearance enhancement businesses, which practice nail specialty to
make capital improvements and upgrades to mechanical ventilation systems
that, are necessary to comply with federal, state and local indoor air
quality codes, rules and regulations. The corporation shall consult with
the EFC and DEC to promulgate all necessary rules and regulations to
facilitate and administer such assistance program.

Section two of the bill sets forth the effective date.

 
JUSTIFICATION:

In recent years, New York has continued to take the initiative in
advancing air quality and environmental safety practices. In particular,
Governor Cuomo has taken several actions to promote environmental
protection in the workplace, including: creating the Task Force to
Combat Worker Exploitation; directing the Department of Environmental
Protection (DEP) to establish a statewide ban on dry cleaners' use of
perchlorethylene (PERC); and requiring all nail salons to install
mechanical ventilation systems.

However, this has led to significant financial challenges for our
state's small businesses. For dry cleaners, non-PERC alternatives cost
on average $70,0004120,000 per machine, representing one-third of a
typical neighborhood shop's annual sales revenue. In addition, the
flammability of non-PERC solvents would require those in New York City
to spend another $70,000-$100,000 installing up-to-date sprinkler
systems, in order to comply with municipal fire codes.  Similarly, any
nail salons established in New York after October of 2016 must install
mechanical ventilation systems and pre- existing nail salons must do so
within five years. This latest requirement will cost nearly $24,000 for
a nail salon to comply with.

These strenuous financial obligations will likely force many mom-and-pop
businesses to shut down or leave New York. Many more would be brought to
the brink of bankruptcy. The overall economic damage would be incalcula-
ble and devastating to both small businesses and the workers they
employ. Our state government previously established an implementation
fund for the restoration and preservation of New York's environmental
and natural resources, through the "Clean Water / Clean Air Bond Act of
1996." In accordance with this act, the NYS Environmental Facilities
Corporation created the Financial Assistance to Business (FAB) program,
which offered financial assistance to small business owners to comply by
transitioning to upgraded equipment. Unfortunately, FAB's subsidy
program expired in March 2004.

In the face of new regulations and mandates for environmental protection
and safety, we must restore and expand this program, creating a new fund
to assist dry cleaners, nail salons, and other small businesses through
the Urban Development Corporation Act. By providing the necessary finan-
cial assistance to survive these new regulations and mandates, New York
will become one of the leading examples throughout our nation for
comprehensive workplace safety, environmental protection and commercial
innovation.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

2017, S.6707/A.7636 (Kim), Vetoed

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.