S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9497
 
                           I N  A S S E M B L Y
 
                               March 9, 2022
                                ___________
 
 Introduced by M. of A. GONZALEZ-ROJAS, CRUZ -- read once and referred to
   the Committee on Labor
 
 AN  ACT  to amend the labor law, in relation to establishing the restau-
   rant and restaurant worker recovery loan program; to amend  the  state
   finance law, in relation to establishing the restaurant and restaurant
   worker recovery fund; making an appropriation therefor; and to provide
   for the repeal of such provisions upon the expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as the "restaurant
 and restaurant worker recovery act of 2022".
   § 2. The labor law is amended by adding a new section 198-f to read as
 follows:
   § 198-F. RESTAURANT AND RESTAURANT WORKER RECOVERY LOAN PROGRAM.    1.
 THERE IS ESTABLISHED IN THE DEPARTMENT A RESTAURANT AND RESTAURANT WORK-
 ER RECOVERY FUND LOAN PROGRAM FOR THE PURPOSES OF SUPPORTING RESTAURANTS
 IN  THE  STATE  OF NEW YORK AND THEIR EMPLOYEES TO SURVIVE THE FINANCIAL
 HARDSHIPS CREATED BY THE COVID-19 PANDEMIC BY PROVIDING LOANS TO  QUALI-
 FYING  RESTAURANTS  TO  ASSIST  IN  COVERING  UNANTICIPATED  LABOR COSTS
 INCURRED AS A RESULT OF THE STATE OF  EMERGENCY  THAT  WAS  EXECUTED  IN
 EXECUTIVE ORDER NO. 202 ON MARCH 7, 2020, AND TO ENCOURAGE THE PROVISION
 OF A LIVABLE WAGE FOR RESTAURANT WORKERS WHO RECEIVE GRATUITIES.
   2. AS USED IN THIS SECTION:
   (A)  "EQUITY TRAINING" MEANS TRAINING AS DESCRIBED IN SUBDIVISION FIVE
 OF THIS SECTION.
   (B) "RESTAURANT AND RESTAURANT WORKER RECOVERY FUND" OR  "FUND"  MEANS
 THE  RESTAURANT  AND  RESTAURANT WORKER RECOVERY FUND CREATED BY SECTION
 NINETY-SEVEN-II OF THE STATE FINANCE LAW.
   (C) "QUALIFYING RESTAURANT" MEANS A RESTAURANT THAT MEETS THE CRITERIA
 ESTABLISHED IN SUBDIVISION THREE OF THIS SECTION.
   (D) "SMALL NEW YORK-BASED RESTAURANT" MEANS A RESTAURANT LOCATED WITH-
 IN THE STATE THAT IS A SMALL BUSINESS AS DEFINED BY SECTION ONE  HUNDRED
 THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14650-02-2
              

 A. 9497                             2
 
   3.  (A) THE DEPARTMENT MAY MAKE LOANS TO QUALIFYING RESTAURANTS IN THE
 AMOUNT OF UP TO FIFTEEN THOUSAND DOLLARS BASED ON A FORMULA AND  PROCESS
 TO BE DETERMINED BY THE COMMISSIONER.
   (B)  TO  BE  ELIGIBLE FOR A LOAN FROM THE FUND, A SMALL NEW YORK-BASED
 RESTAURANT MUST MEET THE FOLLOWING CRITERIA:
   (1) THE RESTAURANT PAYS ALL TIPPED EMPLOYEES NOT LESS  THAN  THE  FULL
 MINIMUM  HOURLY WAGE RATE AS DEFINED BY SECTION SIX HUNDRED FIFTY-TWO OF
 THIS CHAPTER AS EVIDENCED BY:
   (A) PROOF THAT SUCH A POLICY AND PRACTICE IS IN EXISTENCE AT THE  TIME
 OF THE APPLICATION FOR A LOAN FROM THE FUND; OR
   (B)  EXECUTION  OF  A SWORN AFFIDAVIT ATTESTING THAT SUCH A POLICY AND
 PRACTICE SHALL BE INSTITUTED IN THE  RESTAURANT  WITHIN  SIX  MONTHS  OF
 RECEIPT OF A LOAN FROM THE FUND; AND
   (2)  THE  RESTAURANT  AGREES  TO  PARTICIPATE  IN  EQUITY TRAINING, AS
 PROVIDED IN SUBDIVISION FIVE OF  THIS  SECTION,  WITHIN  SIX  MONTHS  OF
 RECEIPT OF A LOAN FROM THE FUND.
   4. (A) A LOAN MADE PURSUANT TO THE PROVISIONS OF THIS SECTION SHALL BE
 FORGIVEN  IN  ITS ENTIRETY BY THE COMMISSIONER IF THE FOLLOWING CRITERIA
 ARE MET:
   (1) THE RESTAURANT PROVIDES PROOF TO  THE  COMMISSIONER  THAT  IT  HAS
 PARTICIPATED  IN  EQUITY  TRAINING  WITHIN  SIX MONTHS OF RECEIPT OF THE
 INTEREST-FREE LOAN FROM THE FUND; AND
   (2) THE RESTAURANT PROVIDES PROOF OF IMPLEMENTATION OF  A  POLICY  AND
 PRACTICE  OF  PAYING ITS TIPPED EMPLOYEES NOT LESS THAN THE FULL MINIMUM
 HOURLY WAGE RATE AS DEFINED BY SECTION SIX  HUNDRED  FIFTY-TWO  OF  THIS
 CHAPTER  AND  THAT  SUCH  POLICY AND PRACTICE HAS BEEN IN EFFECT FOR NOT
 LESS THAN TWO YEARS FROM THE DATE OF RECEIPT OF THE LOAN FROM  THE  FUND
 OR,  ALTERNATIVELY,  FROM  THE ACTUAL DATE OF THE IMPLEMENTATION OF SUCH
 POLICY AND PRACTICE, PROVIDED THAT THE IMPLEMENTATION OF SUCH POLICY AND
 PRACTICE IS NOT GREATER THAN SIX  MONTHS  AFTER  RECEIPT  OF  THE  LOAN,
 WHICHEVER IS LATER.
   (B)  IF  A RESTAURANT THAT RECEIVES A LOAN UNDER THIS SECTION FAILS TO
 MEET AND CONTINUE THE REQUIREMENTS FOR ACCEPTING SUCH LOAN, AS SET FORTH
 UNDER THIS ACT AND AS THE COMMISSIONER MAY REQUIRE, SHALL BE REQUIRED TO
 PAY BACK THE TOTAL AMOUNT OF THE LOAN ACCEPTED PLUS A PENALTY  OF  THREE
 PERCENT THE TOTAL AMOUNT OF THE LOAN.
   5.  (A)  THE  DEPARTMENT  SHALL DEVELOP AN EQUITY TRAINING PROGRAM FOR
 OWNERS AND  MANAGERS  OF  QUALIFYING  RESTAURANTS.  IN  DEVELOPING  SUCH
 PROGRAM,  THE  DEPARTMENT  MAY UTILIZE EXISTING DEPARTMENT RESOURCES AND
 PROGRAMS AND/OR MAY CONSULT WITH ORGANIZATIONS THAT HAVE  A  HISTORY  OF
 TRAINING  EMPLOYERS  ON  BEST  PRACTICES  TO INCREASE WAGES AND TEACHING
 GENDER AND RACIAL EQUITY.
   (B) THE EQUITY TRAINING PROGRAM SHALL INCLUDE INFORMATION AND  MATERI-
 ALS PERTAINING TO THE BEST PRACTICES WITH RESPECT TO:
   (1)  RAISING  WAGES  TO PAY A FULL MINIMUM WAGE TO ALL WORKERS PROFIT-
 ABLY;
   (2) EQUITABLE SHARING OF TIPS;
   (3) INCREASING RACE AND GENDER EQUITY AMONG EMPLOYEES, INCLUDING:
   (I) ASSESSING AND OVERHAULING HIRING, TRAINING, PROMOTION  AND  EVALU-
 ATION PRACTICES TO ENSURE EQUITY FOR WOMEN AND PEOPLE OF COLOR;
   (II) IMPLICIT BIAS TESTING AND TRAINING FOR MANAGEMENT.
   (C) MATERIALS PROVIDED TO PERSONS PARTICIPATING IN THE EQUITY TRAINING
 SHALL INCLUDE:
   (1)  A CALCULATOR THAT ALLOWS EMPLOYERS TO INPUT THE NUMBER OF EMPLOY-
 EES AND THE MENU PRICES AT THE QUALIFYING RESTAURANT  AND  PROVIDES  THE
 EMPLOYER WITH THE BEST PRICING OPTIONS TO INCREASE WAGES PROFITABLY;
 A. 9497                             3
 
   (2)  THREE  MODELS  AND CASE STUDIES OF EQUITABLE WAGE/GRATUITY STRUC-
 TURES, INCLUDING ONE THAT ADDRESSES FAIR WAGE AND TIP SHARING, ONE  THAT
 ADDRESSES SERVICE CHARGES, AND ONE THAT ADDRESSES GRATUITY-FREE MODELS;
   (3)  CASE  STUDIES  OF  THE  BOTTOM-LINE BENEFITS OF INCREASING EQUITY
 AMONG EMPLOYEES; AND
   (4) A MODEL POLICY TO ADDRESS SEXUAL HARASSMENT.
   (D) THE DEPARTMENT SHALL PROVIDE  QUALIFYING  RESTAURANT  OWNERS  WITH
 TECHNICAL  ASSISTANCE  TO  HELP  SUCH  OWNERS  TO DEVELOP THEIR OWN WAGE
 INCREASE STRUCTURE.
   (E) THE DEPARTMENT IS AUTHORIZED TO EXPEND UP TO SEVEN  HUNDRED  FIFTY
 THOUSAND  DOLLARS  FOR  PURPOSES  OF  IMPLEMENTING  THE  EQUITY TRAINING
 DESCRIBED IN THIS SUBDIVISION.
   6. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO MODIFY IN ANY WAY  AN
 EMPLOYEE'S  RIGHT  TO RECEIVE GRATUITIES PURSUANT TO SECTION ONE HUNDRED
 NINETY-SIX-D OF THIS ARTICLE.
   7. THE COMMISSIONER IS AUTHORIZED TO PROMULGATE, AMEND  AND/OR  REPEAL
 RULES  AND REGULATIONS NECESSARY FOR IMPLEMENTATION OF THE PROVISIONS OF
 THIS SECTION.
   § 3. The state finance law is amended by adding a new section 97-ii to
 read as follows:
   § 97-II. RESTAURANT AND RESTAURANT  WORKER  RECOVERY  FUND.  THERE  IS
 HEREBY  ESTABLISHED IN THE JOINT CUSTODY OF THE COMMISSIONER OF TAXATION
 AND FINANCE AND THE COMPTROLLER, A SPECIAL  FUND  TO  BE  KNOWN  AS  THE
 RESTAURANT  AND  RESTAURANT  WORKER  RECOVERY FUND.   MONIES IN THE FUND
 SHALL BE KEPT SEPARATE FROM AND NOT COMMINGLED WITH OTHER FUNDS HELD  IN
 THE CUSTODY OF THE COMMISSIONER OF TAXATION AND FINANCE.
   2.  THE FUND SHALL CONSIST OF ALL MONIES APPROPRIATED FOR ITS PURPOSE,
 ALL MONIES REQUIRED BY THIS SECTION OR ANY OTHER PROVISIONS OF LAW TO BE
 PAID INTO OR CREDITED TO SUCH FUND, AND ALL  OTHER  MONEY  APPROPRIATED,
 CREDITED,  OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT
 TO LAW. NOTHING IN THIS SECTION SHALL PREVENT THE STATE  FROM  RECEIVING
 GRANTS,  GIFTS  OR  BEQUESTS  FOR THE PURPOSES OF THE FUND AS DEFINED IN
 THIS SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO LAW.
   3. MONIES OF THE FUND SHALL, AFTER APPROPRIATION BY  THE  LEGISLATURE,
 BE  MADE AVAILABLE TO THE DEPARTMENT OF LABOR AND SHALL BE EXPENDED ONLY
 FOR THE PURPOSES OF LOANS AND EQUITY TRAINING THROUGH AND ADMINISTRATIVE
 EXPENSES OF THE RESTAURANT AND  RESTAURANT  WORKER  RECOVERY  FUND  LOAN
 PROGRAM  ESTABLISHED  BY SECTION ONE HUNDRED NINETY-EIGHT-F OF THE LABOR
 LAW. MONIES SHALL BE PAYABLE FROM THE FUND BY THE COMMISSIONER OF  TAXA-
 TION AND FINANCE ON VOUCHERS APPROVED BY THE COMMISSIONER OF LABOR.
   4.  ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE COMMISSIONER
 OF LABOR SHALL PROVIDE A WRITTEN REPORT TO THE GOVERNOR,  THE  TEMPORARY
 PRESIDENT  OF  THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIR OF THE
 SENATE FINANCE COMMITTEE AND THE CHAIR OF THE ASSEMBLY  WAYS  AND  MEANS
 COMMITTEE.  SUCH  REPORT  SHALL  INCLUDE HOW THE MONIES OF THE FUND WERE
 UTILIZED DURING THE PRECEDING CALENDAR YEAR AND SHALL INCLUDE:
   (A) THE AMOUNT OF MONEY DISBURSED FROM THE FUND;
   (B) THE RECIPIENTS OF LOANS FROM THE FUND;
   (C) THE AMOUNT AWARDED TO EACH RECIPIENT;
   (D) THE PURPOSES FOR WHICH SUCH LOANS WERE GRANTED;
   (E) THE AMOUNT OF LOANS THAT WERE  REPAID  UNDER  THE  RESTAURANT  AND
 RESTAURANT WORKER RECOVERY FUND LOAN PROGRAM;
   (F)  THE  AMOUNT  OF  LOANS  THAT  WERE  FORGIVEN UNDER RESTAURANT AND
 RESTAURANT WORKER RECOVERY FUND LOAN PROGRAM; AND
   (G) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
 MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
 A. 9497                             4
 
 ING FISCAL YEARS, ALONG WITH THE ACTUAL RESULTS FROM  THE  PRIOR  FISCAL
 YEAR.
   § 4. The sum of fifty million dollars ($50,000,000), or so much there-
 of  as  may  be  available,  is hereby appropriated to the department of
 labor from any moneys in the state treasury in the general fund  to  the
 credit  of  the  state purposes account, not otherwise appropriated, and
 made  immediately  available,  for  the  purpose  of  carrying  out  the
 provisions  of  this act.  Such moneys shall be payable on the audit and
 warrant of the comptroller on vouchers  certified  or  approved  by  the
 commissioner of labor in the manner prescribed by law.
   §  5. Upon the expiration and repeal of this act, any monies remaining
 in the restaurant and restaurant worker recovery fund established pursu-
 ant to section 97-ii of the state finance law shall be refunded  to  the
 state  treasury  in the general fund to the credit of the state purposes
 account.
   § 6. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder of this act, but shall  be  confined
 in  its  operation  to  the  clause,  sentence,  paragraph, subdivision,
 section or part of this act directly  involved  in  the  controversy  in
 which  such  judgment shall have been rendered. It is hereby declared to
 be the intent of the legislature that this act would have  been  enacted
 even  if  such invalid clause, sentence, paragraph, subdivision, section
 or part had not been included herein.
   § 7. This act shall take effect immediately and shall  expire  and  be
 deemed repealed July 1, 2025.