NY State Senate Bill 2019-S6037A

Senate Bill S6037A

2019-2020 Legislative Session

Relates to the development and creation of distributed ledger technology and business entities that develop such technology

download bill text pdf

Archive: Last Bill Status - In Assembly Committee

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

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 25, 2020	referred to ways and means delivered to assembly passed senate
Feb 13, 2020	advanced to third reading
Feb 12, 2020	2nd report cal.
Feb 11, 2020	1st report cal.414
Jan 23, 2020	committee discharged and committed to internet and technology
Jan 08, 2020	referred to commerce, economic development and small business returned to senate died in assembly
Jun 17, 2019	referred to ways and means delivered to assembly passed senate ordered to third reading cal.1436 committee discharged and committed to rules
Jun 12, 2019	print number 6037a
Jun 12, 2019	amend and recommit to commerce, economic development and small business
May 16, 2019	referred to commerce, economic development and small business

Votes

- Feb 25, 2020 - Floor Vote
  S6037A
  
  60
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Feb 25, 2020
      
      aye (60)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Borrello
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hoylman-Sigal
      
      Jackson
      
      Jacobs
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      O'Mara
      
      Ortt
      
      Persaud
      
      Ramos
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      excused (2)
      
      Boyle
      
      Parker
  Jun 17, 2019 - Floor Vote
  S6037A
  
  62
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 17, 2019
      
      aye (62)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Antonacci
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hoylman-Sigal
      
      Jackson
      
      Jacobs
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      O'Mara
      
      Ortt
      
      Parker
      
      Persaud
      
      Ramos
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
  Jun 17, 2019 - Rules Committee Vote
  S6037A
  
  19
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 17, 2019
      
      aye (19)
      
      Benjamin
      
      Breslin
      
      Comrie
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hoylman-Sigal
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      Parker
      
      Robach
      
      Savino
      
      Seward
      
      Stewart-Cousins
  Feb 11, 2020 - Internet And Technology Committee Vote
  S6037A
  
  7
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Internet And Technology Committee Vote: Feb 11, 2020
      
      aye (7)
      
      Borrello
      
      Jacobs
      
      Kaplan
      
      Kennedy
      
      Parker
      
      Savino
      
      Skoufis

Bill Amendments

Original

A (Active)

2019-S6037 - Details

See Assembly Version of this Bill:: A1398
Current Committee:: Assembly Ways And Means
Law Section:: Economic Development Law
Laws Affected:: Amd §§352 & 354, Ec Dev L
Versions Introduced in Other Legislative Sessions:: 2017-2018: A10854
2021-2022: S1800, A3813
2023-2024: A1052

2019-S6037 - Summary

Relates to the development and creation of distributed ledger technology, which is a mathematically secured, chronological, and decentralized consensus ledger or database, whether maintained via internet interaction, peer-to-peer network, or otherwise used to authenticate, record, share and synchronize transactions in their respective electronic ledgers or databases, and business entities that develop distributed ledger technology.

2019-S6037 - Sponsor Memo

                                
 
BILL NUMBER: S6037

SPONSOR: SAVINO
 
TITLE OF BILL:

An act to amend the economic development law, in relation to the devel-
opment and creation of distributed ledger technology and business enti-
ties that develop such technology

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would incorporate digital ledger technology into the defi-
nition and eligibility of businesses engaged in "financial services data
centers or financial services customer back office operations" and
"software development" in the Excelsior Jobs Program.

 
SUMMARY OF PROVISIONS:

This bill would amend the Economic Development Law to add "digital
ledger technology" into the definitions of businesses engaged in "finan-
cial services data centers or financial services customer back office

operations" and "software development" with in the Excelsior Jobs
Program. For the purposes of this section "distributed ledger technolo-
gy" means a mathematically secured, chronological, and decentralized
consensus ledger or database, whether maintained via Internet inter-
action, peer-to-peer network, or otherwise use to authenticate, record,
share and synchronize transactions in their respective electronic
ledgers or databases.

Further, this bill would amend the eligibility criteria of the Excelsior
Jobs Program to allow software companies developing digital ledger tech-
nology and which have been in business for more than one year and less
than five years, to have at least two full-time job equivalents.

Finally, this bill would require, during the application and approval
process that the commissioner of the Department of Economic Development
strive for broad regional geographic representation within the program.
The Commissioner would also be directed to promote diverse ownership and
workforces of participating businesses through outreach to businesses
owned by people with disabilities, minority- and women-owned businesses
and veteran-owned businesses.

 
JUSTIFICATION:

Distributed ledger technology is a transformative development that has
the potential to affect how governments, businesses and individuals
conduct daily operations from financial and real estate transactions to
complex legal court filings. Distributed ledger technology is the back-
bone to blockchain authentication. While it has come to prominence
because of its use in cryptocurrencies such as Bitcoin, it has enormous
potential in other sectors. This legislation would support those New
York State businesses that develop the software code to support distrib-
uted ledger technology and that develop the financial technology that
eventually authenticates transactions in a secure manner. It is impor-
tant that as this kind of technology continue to grow and expand, that
New York's industries are in the forefront of protecting and securing
information over the Internet, the electronic storage of data, electron-
ic record keeping and cyber security. Other countries and states around
the United States have already begun to developed similar initiatives to
try to integrate this technology into their economies. Situations such
as proving documentation, proof of purchase, and notarizing may become
more efficient if distributed ledger technology is integrated into new
systems and advancements.

 
PRIOR LEGISLATIVE HI TORY:

2018 Session - New Bill

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined

 
EFFECTIVE DATE:
Immediately

2019-S6037 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6037
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment and Small Business
 
 AN  ACT to amend the economic development law, in relation to the devel-
   opment and creation of  distributed  ledger  technology  and  business
   entities that develop such technology

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 8 and 23 of section 352 of the economic devel-
 opment law, as amended by section 1 of part K of chapter 59 of the  laws
 of 2017, are amended to read as follows:
   8.  "Financial  services  data  centers or financial services customer
 back office  operations"  means  operations  that  manage  the  data  or
 accounts of existing customers or provide product or service information
 and  support  to  customers  of  financial services companies, including
 banks, other lenders, securities and commodities  brokers  and  dealers,
 investment  banks,  portfolio  managers,  trust offices, [and] insurance
 companies, AND FINANCIAL TECHNOLOGY COMPANIES THAT  DEVELOP  DISTRIBUTED
 LEDGER  TECHNOLOGY. FOR PURPOSES OF THIS SUBDIVISION "DISTRIBUTED LEDGER
 TECHNOLOGY" MEANS A MATHEMATICALLY SECURED,  CHRONOLOGICAL,  AND  DECEN-
 TRALIZED  CONSENSUS  LEDGER OR DATABASE, WHETHER MAINTAINED VIA INTERNET
 INTERACTION, PEER-TO-PEER NETWORK, OR OTHERWISE  USED  TO  AUTHENTICATE,
 RECORD, SHARE AND SYNCHRONIZE TRANSACTIONS IN THEIR RESPECTIVE ELECTRON-
 IC LEDGERS OR DATABASES.
   23.  "Software  development"  means the creation of DISTRIBUTED LEDGER
 TECHNOLOGY, coded computer instructions or production or post-production
 of video games, as defined in subdivision one-a of section  six  hundred
 eleven  of  the general business law, other than those embedded and used
 exclusively in advertising, promotional websites or microsites, and also
 includes new media as defined by the commissioner in regulations.    FOR
 PURPOSES  OF  THIS  SUBDIVISION  "DISTRIBUTED LEDGER TECHNOLOGY" MEANS A
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01308-01-9

 S. 6037                             2
 
 MATHEMATICALLY  SECURED,  CHRONOLOGICAL,  AND  DECENTRALIZED   CONSENSUS
 LEDGER  OR  DATABASE, WHETHER MAINTAINED VIA INTERNET INTERACTION, PEER-
 TO-PEER NETWORK, OR OTHERWISE USED TO AUTHENTICATE,  RECORD,  SHARE  AND
 SYNCHRONIZE TRANSACTIONS IN THEIR RESPECTIVE ELECTRONIC LEDGERS OR DATA-
 BASES.
   §  2. Subdivision 4 of section 353 of the economic development law, as
 separately amended by section 3 of part K and section 2 of  part  ZZ  of
 chapter 59 of the laws of 2017, is amended to read as follows:
   4.  A business entity operating predominantly in one of the industries
 referenced in paragraphs (a) through (h) or in paragraph (k) of subdivi-
 sion one of this section but which does not meet the job requirements of
 subdivision three of this section must have at least  twenty-five  full-
 time job equivalents unless such business is a business entity operating
 predominantly in manufacturing then it must have at least five full-time
 job  equivalents  and must demonstrate that its benefit-cost ratio is at
 least ten to one, OR UNLESS IT IS A  SOFTWARE  DEVELOPMENT  ENTITY  THAT
 DEVELOPS  DISTRIBUTED  LEDGER TECHNOLOGY WHICH HAS BEEN IN OPERATION FOR
 MORE THAN ONE YEAR AND LESS THAN FIVE YEARS, THEN IT MUST HAVE AT  LEAST
 TWO FULL-TIME JOB EQUIVALENTS.
   §  3. Section 354 of the economic development law is amended by adding
 a new subdivision 6 to read as follows:
   6. THE COMMISSIONER SHALL STRIVE TO ENSURE THAT THERE IS PARTICIPATION
 ON A BROAD REGIONAL GEOGRAPHIC BASIS WITHIN THE PROGRAM AND OUTREACH  TO
 ALL  ELIGIBLE  INDUSTRIES  DEFINED IN SECTION THREE HUNDRED FIFTY-TWO OF
 THIS ARTICLE. THE COMMISSIONER SHALL ALSO PROMOTE DIVERSE OWNERSHIP  AND
 WORKFORCES  OF  PARTICIPATING  BUSINESSES THROUGH OUTREACH TO BUSINESSES
 OWNED BY PEOPLE WITH DISABILITIES AS DEFINED UNDER  SUBDIVISION  TWENTY-
 ONE  OF  SECTION TWO HUNDRED NINETY-TWO OF THE EXECUTIVE LAW OR SUBDIVI-
 SIONS THREE AND TWENTY-TWO OF SECTION 1.03 OF  THE  THE  MENTAL  HYGIENE
 LAW,  MINORITY-  AND WOMEN-OWNED BUSINESSES AND VETERAN-OWNED BUSINESSES
 IN THOSE INDUSTRIES WHERE THEIR PARTICIPATION IS  NOT  CURRENTLY  PREVA-
 LENT.
   § 4. This act shall take effect immediately.

co-Sponsors

2019-S6037A (ACTIVE) - Details

See Assembly Version of this Bill:: A1398
Current Committee:: Assembly Ways And Means
Law Section:: Economic Development Law
Laws Affected:: Amd §§352 & 354, Ec Dev L
Versions Introduced in Other Legislative Sessions:: 2017-2018: A10854
2021-2022: S1800, A3813
2023-2024: A1052

2019-S6037A (ACTIVE) - Summary

2019-S6037A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6037A

SPONSOR: SAVINO
 
TITLE OF BILL:  An act to amend the economic development law, in
relation to the development and creation of distributed ledger technolo-
gy and business entities that develop such technology

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would incorporate digital ledger technology into the defi-
nition and eligibility of businesses engaged in "financial services data
centers or financial services customer back office operations" and
"software development" in the Excelsior Jobs Program.

 
SUMMARY OF PROVISIONS:

This bill would amend the Economic Development Law to add "digital
ledger technology" into the definitions of businesses engaged in "finan-
cial services data centers or financial services customer back office
operations" and "software development" with in the Excelsior Jobs
Program. For the purposes of this section "distributed ledger technolo-

gy" means a mathematically secured, chronological, and decentralized
consensus ledger or database, whether maintained via Internet inter-
action, peer-to-peer network, or otherwise use to authenticate, record,
share and synchronize transactions in their respective electronic
ledgers or databases.

Additionally, this bill would require, during the application and
approval process that the commissioner of the Department of Economic
Development strive for broad regional geographic representation within
the program. The Commissioner would also be directed to promote diverse
ownership and workforces of participating businesses through outreach to
businesses owned by people with disabilities, minority- and women-owned
businesses and veteran-owned businesses.

 
JUSTIFICATION:

Distributed ledger technology is a transformative development that has
the potential to affect how governments, businesses and individuals
conduct daily operations from financial and real estate transactions to
complex legal court filings. Distributed ledger technology is the back-
bone to blockchain authentication. While it has come to prominence
because of its use in cryptocurrencies such as Bitcoin, it has enormous
potential in other sectors. This legislation would support those New
York State businesses that develop the software code to support distrib-
uted ledger technology and that develop the financial technology that
eventually authenticates transactions in a secure manner. It is impor-
tant that as this kind of technology continue to grow and expand, that
New York's industries are in the forefront of protecting and securing
information over the Internet, the electronic storage of data, electron-
ic record keeping and cyber security. Other countries and states around
the United States have already begun to developed similar initiatives to
try to integrate this technology into their economies. Situations such
as proving documentation, proof of purchase, and notarizing may become
more efficient if distributed ledger technology is integrated into new
systems and advancements.

 
PRIOR LEGISLATIVE HISTORY:

2018 Session - New Bill

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined

 
EFFECTIVE DATE:
Immediately

2019-S6037A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6037--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment  and  Small  Business  --  committee  discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the economic development law, in relation to the  devel-
   opment  and  creation  of  distributed  ledger technology and business
   entities that develop such technology
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 8 and 23 of section 352 of the economic devel-
 opment  law, as amended by section 1 of part K of chapter 59 of the laws
 of 2017, are amended to read as follows:
   8. "Financial services data centers  or  financial  services  customer
 back  office  operations"  means  operations  that  manage  the  data or
 accounts of existing customers or provide product or service information
 and support to customers  of  financial  services  companies,  including
 banks,  other  lenders,  securities and commodities brokers and dealers,
 investment banks, portfolio managers,  trust  offices,  [and]  insurance
 companies,  AND  FINANCIAL TECHNOLOGY COMPANIES THAT DEVELOP DISTRIBUTED
 LEDGER TECHNOLOGY. FOR PURPOSES OF THIS SUBDIVISION "DISTRIBUTED  LEDGER
 TECHNOLOGY"  MEANS  A  MATHEMATICALLY SECURED, CHRONOLOGICAL, AND DECEN-
 TRALIZED CONSENSUS LEDGER OR DATABASE, WHETHER MAINTAINED  VIA  INTERNET
 INTERACTION,  PEER-TO-PEER  NETWORK,  OR OTHERWISE USED TO AUTHENTICATE,
 RECORD, SHARE AND SYNCHRONIZE TRANSACTIONS IN THEIR RESPECTIVE ELECTRON-
 IC LEDGERS OR DATABASES.
   23. "Software development" means the creation  of  DISTRIBUTED  LEDGER
 TECHNOLOGY, coded computer instructions or production or post-production
 of  video  games, as defined in subdivision one-a of section six hundred
 eleven of the general business law, other than those embedded  and  used
 exclusively in advertising, promotional websites or microsites, and also
 includes  new  media as defined by the commissioner in regulations.  FOR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01308-03-9

 S. 6037--A                          2
 
 PURPOSES OF THIS SUBDIVISION "DISTRIBUTED  LEDGER  TECHNOLOGY"  MEANS  A
 MATHEMATICALLY   SECURED,  CHRONOLOGICAL,  AND  DECENTRALIZED  CONSENSUS
 LEDGER OR DATABASE, WHETHER MAINTAINED VIA INTERNET  INTERACTION,  PEER-
 TO-PEER  NETWORK,  OR  OTHERWISE USED TO AUTHENTICATE, RECORD, SHARE AND
 SYNCHRONIZE TRANSACTIONS IN THEIR RESPECTIVE ELECTRONIC LEDGERS OR DATA-
 BASES.
   § 2. Section 354 of the economic development law is amended by  adding
 a new subdivision 6 to read as follows:
   6. THE COMMISSIONER SHALL STRIVE TO ENSURE THAT THERE IS PARTICIPATION
 ON  A BROAD REGIONAL GEOGRAPHIC BASIS WITHIN THE PROGRAM AND OUTREACH TO
 ALL ELIGIBLE INDUSTRIES DEFINED IN SECTION THREE  HUNDRED  FIFTY-TWO  OF
 THIS  ARTICLE. THE COMMISSIONER SHALL ALSO PROMOTE DIVERSE OWNERSHIP AND
 WORKFORCES OF PARTICIPATING BUSINESSES THROUGH  OUTREACH  TO  BUSINESSES
 OWNED  BY  PEOPLE WITH DISABILITIES AS DEFINED UNDER SUBDIVISION TWENTY-
 ONE OF SECTION TWO HUNDRED NINETY-TWO OF THE EXECUTIVE LAW  OR  SUBDIVI-
 SIONS  THREE  AND  TWENTY-TWO  OF SECTION 1.03 OF THE THE MENTAL HYGIENE
 LAW, MINORITY- AND WOMEN-OWNED BUSINESSES AND  VETERAN-OWNED  BUSINESSES
 IN  THOSE  INDUSTRIES  WHERE THEIR PARTICIPATION IS NOT CURRENTLY PREVA-
 LENT.
   § 3. This act shall take effect immediately.

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