S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7488
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             October 29, 2021
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the economic development law, the public authorities law
   and the New York state urban development corporation act, in  relation
   to  financial  assistance  to  small  businesses  for  the  purpose of
   pollution prevention, control and compliance
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraphs l and m of subdivision 2 of section 137 of the
 economic development law, paragraph l as  amended  and  paragraph  m  as
 added  by  chapter  594 of the laws of 1994, are amended and a new para-
 graph n is added to read as follows:
   l. providing information  to  small  business  stationary  sources  on
 state-sponsored  programs  offering  financial and technical assistance,
 and in locating sources of funding for compliance with the  requirements
 of  article  nineteen of the environmental conservation law and the Act;
 [and]
   m. establishing procedures for assuring the confidentiality of  infor-
 mation received from small business stationary sources[.]; AND
   N.  MARKETING THE SMALL BUSINESS ENVIRONMENTAL FUND ESTABLISHED PURSU-
 ANT TO SECTION TWELVE HUNDRED EIGHTY-FIVE-V OF  THE  PUBLIC  AUTHORITIES
 LAW  TO  SMALL BUSINESS STATIONARY SOURCES, ASSISTING THE NEW YORK STATE
 URBAN DEVELOPMENT CORPORATION IN THE PROJECTION OF DEMAND FOR  FINANCIAL
 ASSISTANCE  PURSUANT  TO  SECTION  SIXTEEN-M OF THE NEW YORK STATE URBAN
 DEVELOPMENT CORPORATION ACT.
   § 2. The public authorities law is amended by  adding  a  new  section
 1285-v to read as follows:
   §  1285-V. SMALL BUSINESS ENVIRONMENTAL FUND. 1. THE CORPORATION SHALL
 UNDERTAKE AND PROVIDE ASSISTANCE IN SUPPORT OF A PROGRAM TO ASSIST SMALL
 BUSINESSES IN LEVERAGING CAPITAL FROM FINANCIAL INSTITUTIONS TO  ACHIEVE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05839-01-1
 S. 7488                             2
              

 
 POLLUTION  PREVENTION  AND/OR  COMPLIANCE WITH FEDERAL OR STATE ENVIRON-
 MENTAL LAWS.
   2.  THERE  IS  HEREBY  ESTABLISHED IN THE CUSTODY OF THE CORPORATION A
 SPECIAL FUND TO BE KNOWN  AS  THE  SMALL  BUSINESS  ENVIRONMENTAL  FUND.
 MONEYS  IN  SUCH  FUND SHALL BE SEGREGATED FROM ALL OTHER FUNDS OF OR IN
 THE CUSTODY OF THE CORPORATION SUBJECT  TO  ANY  RIGHTS  OF  HOLDERS  OF
 CORPORATION  BONDS  OR  NOTES  ISSUED  FOR THE PURPOSES OF THIS SECTION.
 MONEYS IN SUCH FUND SHALL ONLY BE USED IN ACCORDANCE WITH THE PROVISIONS
 OF THIS SECTION. THE MONEYS IN SUCH FUND SHALL BE APPLIED TO OR PAID OUT
 FOR AUTHORIZED PURPOSES OF SUCH FUND ON THE DIRECTION OF THE CHAIRMAN OF
 THE CORPORATION IN ACCORDANCE WITH SUBDIVISION FOUR OF THIS SECTION,  OR
 SUCH OTHER PERSON AS THE CORPORATION SHALL AUTHORIZE TO MAKE SUCH DIREC-
 TION.
   3.  SUCH FUND SHALL CONSIST OF ALL OF THE FOLLOWING: (A) MONEYS APPRO-
 PRIATED BY THE STATE LEGISLATURE FOR THE PURPOSE OF SUCH FUND OR  OTHER-
 WISE  TRANSFERRED BY THE STATE FOR DEPOSIT THEREIN BY THE COMPTROLLER AS
 REQUIRED BY LAW; (B) PAYMENTS OF THE  LOAN  ORIGINATION  FEE  AUTHORIZED
 PURSUANT  TO SUBDIVISION SIX OF THIS SECTION; (C) INVESTMENT EARNINGS ON
 AMOUNTS IN SUCH FUND; (D) THE PROCEEDS OF BONDS OR NOTES ISSUED  BY  THE
 CORPORATION  FOR PURPOSES OF LEVERAGING CAPITAL ON BEHALF OF SMALL BUSI-
 NESSES SEEKING TO ACHIEVE POLLUTION PREVENTION AND/OR COMPLY WITH FEDER-
 AL OR STATE ENVIRONMENTAL LAWS; AND (E) ANY OTHER PAYMENTS RECEIVED FROM
 THE FEDERAL GOVERNMENT OR OTHER SOURCES FOR THE PURPOSES OF THE FUND.
   4. (A) MONEYS IN SUCH FUND SHALL BE APPLIED BY THE  CORPORATION  AS  A
 LOAN  LOSS  RESERVE  FUND,  TO  PROVIDE  CREDIT ENHANCEMENT TO ENCOURAGE
 FINANCIAL INSTITUTIONS TO MAKE POLLUTION PREVENTION OR COMPLIANCE  LOANS
 INCLUDING  SUCH LOANS AS MAY BE NECESSARY TO PURCHASE, LEASE, INSTALL OR
 ACQUIRE POLLUTION CONTROL EQUIPMENT TO SMALL BUSINESSES.
   (B) THE CORPORATION IS HEREBY AUTHORIZED TO PROVIDE ASSISTANCE IN  THE
 FORM  OF A LOAN LOSS RESERVE FUND FOR LOANS BY FINANCIAL INSTITUTIONS TO
 SMALL BUSINESSES THAT OTHERWISE FIND IT DIFFICULT TO OBTAIN BANK FINANC-
 ING FOR POLLUTION PREVENTION OR  COMPLIANCE  ACTIVITIES  CONTROL.    THE
 CORPORATION MAY USE MONEYS IN THE FUND TO GUARANTEE UP TO NINETY PERCENT
 OF  THE  OUTSTANDING  PRINCIPAL  OF  EACH LOAN TO BE MADE BY A FINANCIAL
 INSTITUTION TO A SMALL BUSINESS FOR POLLUTION PREVENTION  OR  COMPLIANCE
 ACTIVITIES,  PROVIDED,  HOWEVER, THAT NO LOAN BY A FINANCIAL INSTITUTION
 PURSUANT TO THIS SECTION SHALL EXCEED FIVE HUNDRED THOUSAND DOLLARS.
   5. (A) THE CORPORATION SHALL  ENTER  INTO  AGREEMENTS  WITH  FINANCIAL
 INSTITUTIONS  GOVERNING  PARTICIPATION  IN THE FUND WHICH SHALL INCLUDE,
 BUT NOT BE LIMITED TO, THE TERMS OF THE PAYMENT OF  CLAIMS  PURSUANT  TO
 SUBDIVISION  SEVEN  OF THIS SECTION. SUCH AGREEMENTS SHALL SET FORTH ANY
 LOAN APPLICATION FEE TO BE CHARGED BY THE FINANCIAL INSTITUTION  TO  THE
 APPLICANT AND THE LOAN ORIGINATION FEE TO BE PAID TO THE CORPORATION FOR
 LOANS  PURSUANT TO THIS SECTION. IN ENTERING INTO AGREEMENTS WITH FINAN-
 CIAL INSTITUTIONS, THE CORPORATION SHALL GIVE PRIORITY TO THE  EXECUTION
 OF  AGREEMENTS  WHICH  PROVIDE  FOR THE PARTICIPATION OF A CONSORTIUM OF
 FINANCIAL INSTITUTIONS SERVING AN ENTIRE ECONOMIC DEVELOPMENT REGION  AS
 DEFINED IN SECTION TWO HUNDRED THIRTY OF THE ECONOMIC DEVELOPMENT LAW.
   (B) THE CORPORATION SHALL ALSO ESTABLISH PROCEDURES AND OTHER REQUIRE-
 MENTS  FOR SMALL BUSINESS PARTICIPATION. SUCH PROCEDURES SHALL INCLUDE A
 SIMPLIFIED APPLICATION FORM FOR  SMALL  BUSINESSES  SEEKING  ASSISTANCE.
 SUCH  APPLICATION  SHALL  REQUIRE  A DEMONSTRATION BY THE APPLICANT THAT
 DIFFICULTY  IN  OBTAINING  CONVENTIONAL  BANK  FINANCING  FOR  POLLUTION
 PREVENTION OR COMPLIANCE ACTIVITIES IN THE PURCHASE, LEASE, INSTALLATION
 OR ACQUISITION OF POLLUTION CONTROL EQUIPMENT IMPEDES THE ABILITY OF THE
 APPLICANT  TO  ACHIEVE  POLLUTION  PREVENTION  OR COMPLY WITH FEDERAL OR
 S. 7488                             3

 STATE ENVIRONMENTAL LAWS.   SUCH APPLICATION  SHALL  ALSO  INCLUDE  SUCH
 SPECIFIC  INFORMATION AS THE CORPORATION MAY REQUIRE, WITH REGARD TO THE
 POLLUTION PREVENTION OR COMPLIANCE ACTIVITIES PROPOSED,  AND  THE  ESTI-
 MATED COST OF FINANCING SUCH ACTIVITIES.
   (C)  WITHIN TWENTY-EIGHT DAYS OF RECEIPT OF AN APPLICATION PURSUANT TO
 THIS SECTION, THE CORPORATION SHALL EITHER APPROVE OR REJECT SUCH APPLI-
 CATION. THE CORPORATION SHALL APPROVE AN APPLICATION PURSUANT  TO  PARA-
 GRAPH (B) OF THIS SUBDIVISION BASED UPON A DETERMINATION THAT:
   (1)  THE  PROPOSED  POLLUTION PREVENTION OR COMPLIANCE ACTIVITIES WILL
 ASSIST THE SMALL BUSINESS IN ACHIEVING POLLUTION PREVENTION AND/OR  FULL
 COMPLIANCE WITH FEDERAL OR STATE ENVIRONMENTAL LAWS;
   (2)  A LOAN IS REQUIRED TO FINANCE THE POLLUTION PREVENTION OR COMPLI-
 ANCE ACTIVITIES OR TO FINANCE THE PURCHASE, LEASE, INSTALLMENT OR ACQUI-
 SITION OF POLLUTION CONTROL EQUIPMENT;
   (3) APPROVAL IS NOT SOUGHT FOR AN OUTSTANDING LOAN PREVIOUSLY MADE  BY
 A FINANCIAL INSTITUTION TO THE SMALL BUSINESS; AND
   (4) NO CONCURRENT LOAN HAS BEEN MADE TO THE SMALL BUSINESS PURSUANT TO
 THIS SECTION.
   (D)  IN THE APPROVAL OF APPLICATIONS, THE CORPORATION SHALL GIVE PREF-
 ERENCE TO THOSE SMALL BUSINESSES WHICH ARE:
   (1) SEEKING TO COMPLY WITH NEW REQUIREMENTS IMPOSED  PURSUANT  TO  THE
 FEDERAL  CLEAN AIR ACT (42 U.S.C.  7401 ET SEQ. AS AMENDED BY P.L.  101-
 549), THE NEW YORK STATE CLEAN AIR COMPLIANCE ACT AS, ESTABLISHED PURSU-
 ANT TO CHAPTER SIX HUNDRED EIGHT OF THE LAWS OF NINETEEN  HUNDRED  NINE-
 TY-THREE,  THE  PROVISIONS  OF  ARTICLE  SEVENTEEN  OF THE ENVIRONMENTAL
 CONSERVATION LAW RELATING TO WATER POLLUTION CONTROL, AND THE PROVISIONS
 OF TITLE NINE OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL  CONSERVATION
 LAW, RELATING TO INDUSTRIAL HAZARDOUS WASTE MANAGEMENT, OR ANY RULES AND
 REGULATIONS PROMULGATED THEREUNDER; AND ARE
   (2) SEEKING TO COMPLY WITH NEW REQUIREMENTS IMPOSED PURSUANT TO FEDER-
 AL OR STATE ENVIRONMENTAL LAWS; AND ARE
   (3)  IN HIGHLY DISTRESSED AREAS OR MINORITY-OWNED BUSINESS ENTERPRISES
 OR WOMEN-OWNED BUSINESS ENTERPRISES.
   (E) UPON APPROVAL OR DENIAL OF AN APPLICATION, THE  CORPORATION  SHALL
 NOTIFY THE APPLICANT OF SUCH ACTION BY REGULAR MAIL. THE CORPORATION MAY
 ALSO  NOTIFY  ANY  FINANCIAL INSTITUTION OF THE APPROVAL OR DENIAL OF AN
 APPLICATION.
   6. (A) DECISIONS TO EXECUTE A LOAN PURSUANT TO THIS SECTION  SHALL  BE
 MADE SOLELY BY THE FINANCIAL INSTITUTION AND MAY PROVIDE FOR SUCH INTER-
 EST  RATE, FEES AND OTHER TERMS AND CONDITIONS AS THE FINANCIAL INSTITU-
 TION AND BORROWER MAY AGREE, PROVIDED, HOWEVER, THAT:
   (1) UNLESS APPROVED BY THE CORPORATION, THE TERM OF THE LOAN SHALL NOT
 EXCEED SEVEN YEARS OR THE ESTIMATED USEFUL LIFE OF ANY FINANCED  CHANGES
 IN  POLLUTION  PREVENTION  OR CONTROL METHODS OR EQUIPMENT, WHICHEVER IS
 LESS; AND
   (2) IF THE AMOUNT OF THE LOAN IS DETERMINED BY A COMMITMENT  AGREEMENT
 THAT  ESTABLISHES A LINE OF CREDIT, THE AMOUNT OF THE ACTUAL LOAN IS THE
 MAXIMUM AMOUNT AVAILABLE TO THE BORROWER UNDER THE AGREEMENT.
   (B) A SMALL BUSINESS, IN RECEIPT OF A LOAN PURSUANT TO  THIS  SECTION,
 SHALL  PAY  AN  ORIGINATION  FEE TO THE CORPORATION UPON DISTRIBUTION OF
 LOAN PROCEEDS. MONEYS FROM SUCH A FEE SHALL BE DEPOSITED  IN  THE  FUND;
 PROVIDED, HOWEVER, THAT THE CORPORATION, IN CONSULTATION WITH THE DIREC-
 TOR  OF THE DIVISION OF THE BUDGET, MAY USE A PORTION OF SUCH MONEYS FOR
 THE ADMINISTRATION OF THE FUND. NOTHING CONTAINED IN THIS SECTION  SHALL
 PROHIBIT THE FINANCING OF THE ORIGINATION FEE IN THE TERMS OF THE LOAN.
 S. 7488                             4

   7.  (A)  UPON  THE  DEFAULT OF A LOAN MADE PURSUANT TO THIS SECTION, A
 FINANCIAL INSTITUTION  MAY  FILE  CONTEMPORANEOUSLY  WITH  A  NOTICE  OF
 DEFAULT  TO  THE SMALL BUSINESS, A CLAIM WITH THE CORPORATION TO RECOVER
 THE OUTSTANDING PRINCIPAL PLUS ACCRUED  INTEREST  AND  ONE-HALF  OF  THE
 DOCUMENTED  OUT-OF-POCKET  EXPENSES INCURRED IN PURSUING LOAN COLLECTION
 EFFORTS, INCLUDING PRESERVATION OF COLLATERAL. THE AMOUNT  OF  PRINCIPAL
 AND  ACCRUED INTEREST INCLUDED IN THE CLAIM MAY NOT EXCEED THE PRINCIPAL
 AMOUNT AGREED UPON AT THE TIME OF CLOSING, PLUS ACCRUED INTEREST ATTRIB-
 UTABLE TO SUCH AGREED UPON AMOUNTS, CONSISTENT WITH THE REQUIREMENTS  OF
 THIS SECTION.
   (B) FOR LOANS MADE PURSUANT TO THIS SECTION, THE FINANCIAL INSTITUTION
 SHALL  DETERMINE  A  LOAN  TO  BE IN DEFAULT IN A MANNER CONSISTENT WITH
 METHODS EMPLOYED BY THE FINANCIAL INSTITUTION FOR SIMILAR LOANS NOT MADE
 PURSUANT TO THIS SECTION.
   (C) THE CORPORATION IS AUTHORIZED AND  DIRECTED  TO  ADOPT  RULES  AND
 REGULATIONS  GOVERNING  THE  PAYMENT OF CLAIMS FROM THE FUND. SUCH RULES
 AND REGULATIONS SHALL PROVIDE THAT UPON RECEIPT OF A CLAIM  FILED  BY  A
 FINANCIAL  INSTITUTION, THE CORPORATION SHALL, WITHIN TEN BUSINESS DAYS,
 PAY FROM THE FUND THE AMOUNT OF THE CLAIM AS SUBMITTED, UNLESS  INFORMA-
 TION  PROVIDED  BY THE FINANCIAL INSTITUTION IS FOUND BY THE CORPORATION
 TO BE INCOMPLETE OR WAS KNOWN BY THE FINANCIAL INSTITUTION TO  BE  FALSE
 AT  THE CLOSING OF THE LOAN. THE TERMS OF THE PAYMENT OF CLAIMS FROM THE
 FUND SHALL BE INCLUDED IN THE AGREEMENT ENTERED INTO BY THE  CORPORATION
 AND  THE  FINANCIAL  INSTITUTION  PURSUANT  TO  SUBDIVISION FIVE OF THIS
 SECTION.
   (D) UPON PAYMENT OF A CLAIM, THE CORPORATION SHALL REPORT THE CLAIM TO
 THE OFFICE OF THE ATTORNEY GENERAL, WHO THEN SHALL EXERCISE  THE  RIGHTS
 OF SUBROGATION. THE FINANCIAL INSTITUTION THEREAFTER SHALL ASSIGN TO THE
 ATTORNEY  GENERAL ANY RIGHT, TITLE, OR INTEREST TO ANY COLLATERAL, SECU-
 RITY, OR OTHER RIGHT OF RECOVERY IN CONNECTION WITH THE LOAN. ANY  MONEY
 RECEIVED  BY  THE  ATTORNEY  GENERAL  AS A RESULT OF ENFORCEMENT ACTIONS
 TAKEN WITH RESPECT TO ANY COLLATERAL, SECURITY OR OTHER RIGHTS OF RECOV-
 ERY SHALL BE PROMPTLY DEPOSITED BY  THE  ATTORNEY  GENERAL  THROUGH  THE
 CORPORATION IN THE FUND, LESS ANY OUT-OF-POCKET EXPENSES INCURRED BY THE
 ATTORNEY GENERAL IN TAKING SUCH ENFORCEMENT ACTIONS.
   8.  PURSUANT  TO  RULES AND REGULATIONS OF THE CORPORATION, THE CORPO-
 RATION MAY TERMINATE THE PARTICIPATION OF A FINANCIAL INSTITUTION IN THE
 FUND UPON A DETERMINATION THAT SUCH INSTITUTION IS  NOT  IN  SUBSTANTIAL
 COMPLIANCE WITH THE REQUIREMENTS OF THIS SECTION OR THE PROVISIONS OF AN
 AGREEMENT  EXECUTED  PURSUANT  TO SUBDIVISION FIVE OF THIS SECTION.  THE
 CORPORATION SHALL PROVIDE NOTICE TO A  FINANCIAL  INSTITUTION  AT  LEAST
 NINETY DAYS IN ADVANCE OF SUCH TERMINATION.
   9.  THE  CORPORATION  SHALL  MONITOR  THE  ACTIVITIES OF PARTICIPATING
 FINANCIAL INSTITUTIONS AND SMALL BUSINESSES AND MAY REQUIRE SUCH PERIOD-
 IC REPORTS OR OTHER INFORMATION AS DEEMED  NECESSARY  FROM  SUCH  INSTI-
 TUTIONS  AND  BUSINESSES  ON  THE  STATUS OF LOANS MADE PURSUANT TO THIS
 SECTION. ON OR BEFORE THE FIRST DAY OF  MARCH  FOLLOWING  THE  EFFECTIVE
 DATE  OF  THIS SECTION, AND ON SUCH DATE ANNUALLY THEREAFTER, THE CORPO-
 RATION SHALL SUBMIT TO THE GOVERNOR,  THE  TEMPORARY  PRESIDENT  OF  THE
 SENATE AND THE SPEAKER OF THE ASSEMBLY A REPORT ON THE FUND. SUCH REPORT
 SHALL INCLUDE, BUT NOT BE LIMITED TO:
   (A)  THE  TOTAL  NUMBER  AND AMOUNT OF LOANS AND THE AVERAGE AMOUNT OF
 LOANS LEVERAGED BY THE FUND FROM FINANCIAL INSTITUTIONS IN EACH ECONOMIC
 DEVELOPMENT REGION OF THE STATE AS DEFINED IN SECTION TWO HUNDRED THIRTY
 OF THE ECONOMIC DEVELOPMENT LAW;
 S. 7488                             5
 
   (B) THE TOTAL NUMBER AND AMOUNT OF LOANS AND  THE  AVERAGE  AMOUNT  OF
 LOANS  LEVERAGED  BY  THE  FUND  FROM FINANCIAL INSTITUTIONS PURSUANT TO
 PARAGRAPH (D) OF SUBDIVISION FIVE OF THIS SECTION IN EACH  SUCH  REGION;
 AND
   (C)  THE  TOTAL  NUMBER  AND  AMOUNT  OF CLAIMS SUBMITTED BY FINANCIAL
 INSTITUTIONS FOR RECOVERY OF MONEYS THROUGH THE FUND, THE  TOTAL  NUMBER
 AND  AMOUNT  OF  CLAIMS  PAID FROM THE FUND AND A SUMMARY OF THE CIRCUM-
 STANCES ASSOCIATED WITH CLAIMS ON THE FUND.
   10. (A) ON OR BEFORE THE FIRST DAY OF SEPTEMBER FOLLOWING  THE  EFFEC-
 TIVE  DATE OF THIS SECTION, AND ON SUCH DATE EVERY TWO YEARS THEREAFTER,
 THE CORPORATION SHALL SUBMIT TO THE DIRECTOR OF THE BUDGET, THE CHAIR OF
 THE SENATE FINANCE COMMITTEE AND THE CHAIR  OF  THE  ASSEMBLY  WAYS  AND
 MEANS  COMMITTEE AN EVALUATION OF THE EFFECTIVENESS OF THE FUND IN REAL-
 IZING POLLUTION PREVENTION BY SMALL BUSINESSES AND SECURING THE  COMPLI-
 ANCE OF SUCH BUSINESSES WITH FEDERAL AND STATE ENVIRONMENTAL LAWS.  SUCH
 EVALUATION SHALL BE PREPARED BY AN ENTITY INDEPENDENT OF THE CORPORATION
 SELECTED THROUGH A REQUEST FOR PROPOSAL PROCESS AND SHALL INCLUDE RECOM-
 MENDATIONS FOR IMPROVEMENTS TO THE IMPLEMENTATION OF THE FUND TO ENHANCE
 SMALL BUSINESS POLLUTION PREVENTION, CONTROL AND COMPLIANCE.
   (B)  ON  OR  BEFORE THE FIRST DAY OF SEPTEMBER FOLLOWING THE EFFECTIVE
 DATE OF THIS SECTION, AND ON SUCH DATE EVERY TWO YEARS  THEREAFTER,  THE
 CORPORATION SHALL SUBMIT TO THE DIRECTOR OF THE BUDGET, THE CHAIR OF THE
 SENATE  FINANCE  COMMITTEE  AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS
 COMMITTEE AN EVALUATION OF THE EFFECTIVENESS OF THE FUND IN SECURING THE
 COMPLIANCE OF SMALL BUSINESSES WITH  THE  REQUIREMENTS  OF  THE  FEDERAL
 CLEAN AIR ACT (42 U.S.C. §7401 ET SEQ. AS AMENDED BY P.L.  101-549), THE
 NEW  YORK  STATE  CLEAN  AIR  COMPLIANCE ACT, AS ESTABLISHED PURSUANT TO
 CHAPTER SIX HUNDRED EIGHT OF THE LAWS OF NINETEEN HUNDRED  NINETY-THREE,
 THE  PROVISIONS  OF  ARTICLE SEVENTEEN OF THE ENVIRONMENTAL CONSERVATION
 LAW RELATING TO WATER POLLUTION CONTROL, AND  THE  PROVISIONS  OF  TITLE
 NINE  OF  ARTICLE  TWENTY-SEVEN  OF  THE ENVIRONMENTAL CONSERVATION LAW,
 RELATING TO INDUSTRIAL HAZARDOUS WASTE  MANAGEMENT,  OR  ANY  RULES  AND
 REGULATIONS  PROMULGATED THEREUNDER.   SUCH EVALUATION SHALL BE PREPARED
 BY AN ENTITY INDEPENDENT OF THE CORPORATION SELECTED THROUGH  A  REQUEST
 FOR  PROPOSAL PROCESS AND SHALL INCLUDE RECOMMENDATIONS FOR IMPROVEMENTS
 TO THE IMPLEMENTATION OF THE FUND TO ENHANCE  SMALL  BUSINESS  POLLUTION
 PREVENTION, CONTROL AND COMPLIANCE.
   11.  THE CORPORATION SHALL MARKET THE FUND PROGRAM TO SMALL BUSINESSES
 IN COOPERATION WITH FINANCIAL INSTITUTIONS, STATEWIDE TRADE ASSOCIATIONS
 REPRESENTING FINANCIAL INSTITUTIONS  AND  SMALL  BUSINESSES,  LOCAL  AND
 REGIONAL  ECONOMIC DEVELOPMENT AGENCIES, AND THE SMALL BUSINESS STATION-
 ARY SOURCE  OMBUDSMAN  PROGRAM,  ESTABLISHED  PURSUANT  TO  SECTION  ONE
 HUNDRED  THIRTY-SEVEN  OF  THE ECONOMIC DEVELOPMENT LAW. THE CORPORATION
 SHALL DEVELOP A PROGRAM TO PROMOTE  AWARENESS  OF  THE  PROGRAM  IN  ALL
 GEOGRAPHIC  REGIONS  OF  THE  STATE,  TO ENSURE MAXIMUM PARTICIPATION BY
 SMALL BUSINESSES AND FINANCIAL INSTITUTIONS AND THE FISCAL INTEGRITY  OF
 THE FUND.  AGREEMENTS ENTERED INTO BY THE CORPORATION PURSUANT TO SUBDI-
 VISION  FIVE  OF  THIS  SECTION  SHALL  REQUIRE A PLAN BY EACH FINANCIAL
 INSTITUTION FOR MARKETING THE FUND IN HIGHLY  DISTRESSED  AREAS,  EMPIRE
 ZONES  AND  TO MINORITY-OWNED BUSINESS ENTERPRISES AND WOMEN-OWNED BUSI-
 NESS ENTERPRISES, WITH APPROPRIATE LENDING OBJECTIVES IDENTIFIED BY EACH
 FINANCIAL INSTITUTION FOR SUCH AREAS AND BUSINESSES.
   12. THE CORPORATION IS AUTHORIZED AND  DIRECTED  TO  ADOPT  RULES  AND
 REGULATIONS  FOR  THE  ESTABLISHMENT  AND ADMINISTRATION OF THE FUND, IN
 ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT. NO  FUNDS  SHALL
 S. 7488                             6
 
 BE  DISBURSED  FROM  THIS  PROGRAM UNTIL SUCH RULES AND REGULATIONS HAVE
 BEEN PROMULGATED BY THE CORPORATION.
   13.  FOR  THE  PURPOSES  OF THIS SECTION, THE FOLLOWING WORDS OR TERMS
 SHALL MEAN:
   (A) "FINANCIAL INSTITUTION" SHALL  MEAN  A  BANKING  ORGANIZATION,  AS
 DEFINED  PURSUANT  TO  SECTION  TWO OF THE BANKING LAW, A NEW YORK SMALL
 BUSINESS INVESTMENT COMPANY AND A NEW YORK  SPECIALIZED  SMALL  BUSINESS
 INVESTMENT  COMPANY,  AS DEFINED PURSUANT TO SECTION TWO HUNDRED TWENTY-
 EIGHT-A OF THE BANKING LAW, A LOCAL DEVELOPMENT CORPORATION, AS  DEFINED
 IN  SUBDIVISION  EIGHT  OF SECTION EIGHTEEN HUNDRED ONE OF THIS CHAPTER,
 AND THE NEW YORK BUSINESS DEVELOPMENT CORPORATION  ESTABLISHED  PURSUANT
 TO SECTION TWO HUNDRED TEN OF THE BANKING LAW.
   (B)  "FUND"  SHALL  MEAN  THE SMALL BUSINESS ENVIRONMENTAL FUND ESTAB-
 LISHED PURSUANT TO THIS SECTION.
   (C) "HIGHLY DISTRESSED AREA" SHALL MEAN AN AREA MEETING  THE  CRITERIA
 AS  SET  FORTH UNDER SUBDIVISION (A) OF SECTION NINE HUNDRED FIFTY-EIGHT
 OF THE GENERAL MUNICIPAL LAW.
   (D) "MINORITY-OWNED BUSINESS ENTERPRISE" SHALL HAVE THE  SAME  MEANING
 AS  DEFINED  IN  SUBDIVISION  SEVEN  OF SECTION THREE HUNDRED TEN OF THE
 EXECUTIVE LAW.
   (E) "POLLUTION CONTROL EQUIPMENT" SHALL MEAN ANY EQUIPMENT APPROVED BY
 THE CORPORATION AS NECESSARY FOR COMPLIANCE WITH NEW REQUIREMENTS OF THE
 FEDERAL CLEAN AIR ACT (42 U.S.C. § 7401 ET SEQ. AS AMENDED BY P.L.  101-
 549), THE NEW YORK STATE CLEAN AIR COMPLIANCE ACT, AS ESTABLISHED PURSU-
 ANT  TO  CHAPTER SIX HUNDRED EIGHT OF THE LAWS OF NINETEEN HUNDRED NINE-
 TY-THREE, THE PROVISIONS  OF  ARTICLE  SEVENTEEN  OF  THE  ENVIRONMENTAL
 CONSERVATION LAW RELATING TO WATER POLLUTION CONTROL, AND THE PROVISIONS
 OF  TITLE NINE OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION
 LAW, RELATING TO INDUSTRIAL HAZARDOUS WASTE MANAGEMENT, OR ANY RULES AND
 REGULATIONS PROMULGATED THEREUNDER.
   (F) "POLLUTANT" SHALL MEAN ANY SUBSTANCE, CONTAMINANT, WASTE OR  EMIS-
 SION  WHICH  CONTRIBUTES  TO  POLLUTION AS DEFINED IN ARTICLE ONE OF THE
 ENVIRONMENTAL CONSERVATION LAW.
   (G) "POLLUTION PREVENTION" SHALL MEAN CHANGES IN PRODUCTION METHODS OR
 RAW MATERIALS THAT REDUCE, AVOID, OR  ELIMINATE  THE  USE  OF  TOXIC  OR
 HAZARDOUS  SUBSTANCES OR THE GENERATION OF SUCH SUBSTANCES OR POLLUTANTS
 PER UNIT OF PRODUCT, SO AS TO REDUCE RISKS TO  THE  HEALTH  OF  WORKERS,
 CONSUMERS,  OR  THE ENVIRONMENT, WITHOUT SHIFTING RISKS BETWEEN WORKERS,
 CONSUMERS, OR ENVIRONMENTAL MEDIA.  POLLUTION  PREVENTION  INCLUDES  THE
 REDESIGN,  MODIFICATION, UPGRADE OR REPLACEMENT OF PRODUCTION PROCESSES,
 EQUIPMENT OR TECHNOLOGY; REFORMULATION OR REDESIGN OF PRODUCTS;  SUBSTI-
 TUTION OF INPUTS OR RAW MATERIALS; IMPROVEMENTS IN HOUSEKEEPING, MAINTE-
 NANCE,  TRAINING,  OR  INVENTORY  CONTROL;  AND EXTENDED USE OR REUSE OF
 MATERIALS THROUGH METHODS INTEGRAL TO THE PRODUCTION  PROCESS,  SUCH  AS
 IN-PROCESS,  CLOSED-LOOP  RECYCLING.  IT  DOES NOT INCLUDE INCINERATION,
 TRANSFER FROM ONE MEDIUM OF RELEASE OR DISCHARGE TO ANOTHER MEDIA,  OFF-
 SITE  OR OUT-OF-PRODUCTION RECYCLING, END-OF-PIPE TREATMENT OR POLLUTION
 CONTROL.
   (H) "TOXIC OR HAZARDOUS SUBSTANCE" SHALL MEAN ANY SUBSTANCE LISTED  AS
 A  SUBSTANCE  HAZARDOUS  TO  PUBLIC HEALTH, SAFETY OR THE ENVIRONMENT IN
 REGULATIONS PROMULGATED PURSUANT TO ARTICLE THIRTY-SEVEN OF THE ENVIRON-
 MENTAL CONSERVATION LAW.
   (I) "SMALL BUSINESS" SHALL HAVE THE SAME MEANING AS DEFINED IN SECTION
 ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW.
   (J) "WOMEN-OWNED BUSINESS ENTERPRISE" SHALL HAVE THE SAME  MEANING  AS
 SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW.
 S. 7488                             7
 
   §  3. Subdivision 1 of section 16-m of section 1 of chapter 174 of the
 laws of 1968, constituting the New York state urban  development  corpo-
 ration act, is amended by adding a new paragraph (o) to read as follows:
   (O)  ASSISTANCE  TO  CAPITALIZE THE SMALL BUSINESS ENVIRONMENTAL FUND,
 ESTABLISHED PURSUANT TO SECTION  TWELVE  HUNDRED  EIGHTY-FIVE-V  OF  THE
 PUBLIC AUTHORITIES LAW.
   § 4. This act shall take effect on the one hundred eightieth day after
 it  shall  have  become a law; provided, however, that the amendments to
 section 16-m of section 1 of chapter 174 of the laws of 1968, constitut-
 ing the New York  state  urban  development  corporation  act,  made  by
 section  three  of  this  act,  shall  not affect the expiration of such
 section and shall be deemed to expire therewith. Effective  immediately,
 the  addition,  amendment and/or repeal of any rule or regulation neces-
 sary for the implementation of  this  act  on  its  effective  date  are
 authorized to be made and completed on or before such effective date.