S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4125
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 1, 2019
                                ___________
 
 Introduced by M. of A. RA, M. G. MILLER, BLANKENBUSH, McDONOUGH, GARBAR-
   INO,  DiPIETRO,  MONTESANO,  LAWRENCE,  B. MILLER,  MORINELLO, CROUCH,
   FRIEND, PALUMBO, BRABENEC, WALSH -- Multi-Sponsored by  --  M.  of  A.
   BARCLAY, HAWLEY -- 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02331-01-9

 A. 4125                             2
 
 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
 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-

 A. 4125                             3
 
 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.
   [(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.