S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10025
 
                           I N  A S S E M B L Y
 
                                May 1, 2024
                                ___________
 
 Introduced  by M. of A. ALVAREZ -- read once and referred to the Commit-
   tee on Governmental Operations
 
 AN ACT directing the comptroller and the commissioner  of  taxation  and
   finance  to  undertake  a  study  on the feasibility of establishing a
   venture capital program  within  the  common  retirement  fund  and  a
   venture  capital  tax  credit to ensure equitable access to investment
   opportunities, and foster the  growth  of  emerging  diverse  founding
   member businesses
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The comptroller and the commissioner of the  department  of
 taxation  and finance shall jointly undertake a study on the feasibility
 of a venture capital program within the common  retirement  fund  and  a
 venture capital tax credit, for investments in emerging diverse founding
 member businesses, and evaluate and make recommendations to ensure equi-
 table  access  to investment opportunities, promote diversity and inclu-
 sion in investment opportunities and foster the growth of diverse found-
 ing member businesses within the state.
   § 2. The comptroller and the commissioner of the department  of  taxa-
 tion  and  finance  shall  study  the  feasibility  of a venture capital
 program within the common retirement fund for the purpose  of  investing
 in  partnerships,  corporations,  trusts  or limited liability companies
 organized on a for-profit basis that enter into agreements to invest the
 moneys of the common retirement fund in qualified businesses as  defined
 in this act.
   §  3.  The  study  required  by  this act shall develop criteria for a
 venture capital tax credit for investments made to a  qualifying  organ-
 ization which shall include, at a minimum, the following:
   1. (a) A qualified organization shall have at least one diverse found-
 ing  team  member  who:  (i)  owned  initial shares or similar ownership
 interests of the business; (ii) contributed to the concept of,  research
 for,  development  of,  or work performed by the business before initial
 shares were issued; and (iii) was not a passive investor  in  the  busi-
 ness; or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14218-01-4
 A. 10025                            2
 
   (b) who has been designated as the chief executive officer, president,
 chief  financial  officer,  or  manager  of  a business, or who has been
 designated with a role with a similar level of authority as any of those
 positions.
   A  "diverse founding team member" shall mean a person who self-identi-
 fies as a woman, non-binary, Black, African American, Hispanic,  Latino-
 Latina, Asian, Pacific Islander, Native American, Native Hawaiian, Alas-
 kan  Native,  disabled,  veteran  or  disabled  veteran,  lesbian,  gay,
 bisexual, transgender, or queer.
   2. Qualified investments made by firms shall not be subject to limita-
 tion, and firms may deduct qualified investments of up to 100 percent of
 their taxable income.
   3. The venture capital tax credit shall  be  a  dollar-for-dollar  tax
 credit for investments made to a qualifying organization.
   §  4. A report on the study conducted pursuant to this act, along with
 such legislative proposals deemed necessary to implement its recommenda-
 tions, shall be submitted to the governor and the legislature within one
 year of the effective date of this act.
   § 5. This act shall take effect immediately.