S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4432
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2021
                                ___________
 
 Introduced  by M. of A. RA -- 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07763-01-1

 A. 4432                             2
 
 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 TWENTY-ONE AND ON MARCH FIRST EVERY YEAR THER-
 EAFTER.
   § 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-
 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.

 A. 4432                             3
 
   [(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.