S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    540
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2023
                                ___________
 
 Introduced  by M. of A. GIBBS, AUBRY, SIMON -- read once and referred to
   the Committee on Economic Development
 
 AN ACT to amend the New York state urban development corporation act, in
   relation to establishing a Second Avenue Subway construction  economic
   development  grant program; and to amend the economic development law,
   in relation to the definition of micro business
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 1 of chapter 174 of the laws of 1968, constituting
 the New York state urban development  corporation  act,  is  amended  by
 adding a new section 16-bb to read as follows:
   §  16-BB. SECOND AVENUE SUBWAY CONSTRUCTION ECONOMIC DEVELOPMENT GRANT
 PROGRAM. (1) THERE IS HEREBY CREATED A SECOND AVENUE SUBWAY CONSTRUCTION
 ECONOMIC DEVELOPMENT GRANT PROGRAM FOR THE PURPOSE OF  PROVIDING  FINAN-
 CIAL  AND  TECHNICAL  ASSISTANCE TO BUSINESSES LOCATED WITHIN THE SECOND
 AVENUE  SUBWAY  CONSTRUCTION  BUSINESS  ZONE  AREA  DURING  PERIODS   OF
 CONSTRUCTION.
   (2)  FOR  THE  PURPOSES  OF  THIS SECTION THE FOLLOWING WORDS OR TERMS
 SHALL MEAN AS FOLLOWS:
   (A) "SMALL BUSINESS" SHALL HAVE THE SAME MEANING AS DEFINED IN SECTION
 131 OF THE ECONOMIC DEVELOPMENT LAW.
   (B) "QUALIFIED BUSINESS" SHALL MEAN A SMALL BUSINESS OR MICRO BUSINESS
 OPERATING WITHIN A ONE HUNDRED FIFTY FOOT RADIUS OF  THE  BUSINESS  ZONE
 AREA  DURING A PERIOD OF AUTHORIZED CONSTRUCTION, AND THE BUSINESS HAS A
 DEMONSTRATED LOSS.
   (C) "BUSINESS ZONE AREA" SHALL MEAN:
   (I) AN AREA IN WHICH THE CHAIR  OF  THE  CORPORATION  DETERMINES  THAT
 CONSTRUCTION  ON  THE SECOND AVENUE SUBWAY PROJECT HAS OCCURRED THAT HAS
 BEEN CERTIFIED BY THE COMMISSIONER FOR THE  METROPOLITAN  TRANSPORTATION
 AUTHORITY; OR
   (II) THE FOLLOWING AREAS:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01929-01-3
              

 A. 540                              2
 
   (A) 125TH STREET FROM 5TH AVENUE TO 3RD AVENUE;
   (B) 2ND AVENUE FROM 129TH STREET TO 91ST STREET;
   (C) 2ND AVENUE FROM 87TH STREET TO 83RD STREET;
   (D) 2ND AVENUE FROM 73RD STREET TO 69TH STREET;
   (E) 2ND AVENUE FROM 65TH STREET TO 58TH STREET;
   (F) 2ND AVENUE FROM 45TH STREET TO 41ST STREET;
   (G) 2ND AVENUE FROM 36TH STREET TO 32ND STREET;
   (H) 2ND AVENUE FROM 26TH STREET TO 23RD STREET;
   (I) 2ND AVENUE FROM 15TH STREET TO 11TH STREET;
   (J) 2ND AVENUE FROM 6TH STREET TO 4TH STREET;
   (K) 2ND AVENUE FROM 4TH STREET TO HOUSTON STREET;
   (L) CHRYSTIE STREET FROM HOUSTON STREET TO CANAL STREET;
   (M) BOWERY FROM PELL STREET TO WORTH STREET;
   (N) WORTH STREET FROM MOTT STREET TO ST. JAMES PLACE;
   (O) WATER STREET FROM DOVER STREET TO JOHN STREET;
   (P) WATER STREET FROM WALL STREET TO COENTIES SLIP.
   (D)  "MICRO  BUSINESS" SHALL HAVE THE SAME MEANING AS IN SECTION 131-A
 OF THE ECONOMIC DEVELOPMENT LAW.
   (E) "PERIOD OF AUTHORIZED CONSTRUCTION" SHALL  MEAN  THOSE  DATES  FOR
 WHICH  THE  CHAIR OF THE CORPORATION DETERMINES THAT CONSTRUCTION ON THE
 SECOND AVENUE SUBWAY PROJECT HAS OCCURRED FOR THE  SPECIFIC  PORTION  OF
 THE BUSINESS ZONE AREA.
   (F)  "DEMONSTRATED LOSS" MEANS A TEN PERCENT DECLINE IN TAXABLE INCOME
 IN THE YEAR IN WHICH THE GRANT IS APPLIED FOR COMPARED TO THE  BUSINESS'
 BASE FISCAL YEAR.
   (G)  "BASE  FISCAL  YEAR" MEANS THE TAX YEAR IMMEDIATELY PRECEDING THE
 YEAR IN WHICH CONSTRUCTION BEGAN IN THAT PORTION OF  THE  BUSINESS  ZONE
 AREA IN WHICH THE BUSINESS IS LOCATED.
   (H)  "ENDANGERED  BUSINESS"  MEANS  A BUSINESS THAT WOULD OTHERWISE BE
 DEEMED A QUALIFIED BUSINESS AS DEFINED IN PARAGRAPH (B) OF THIS SUBDIVI-
 SION, BUT WHO CAN SHOW A DEMONSTRATED LOSS OF A THIRTY  PERCENT  DECLINE
 IN  TAXABLE  INCOME  IN  ANY  GIVEN  YEAR COMPARED TO THE BUSINESS' BASE
 FISCAL YEAR.
   (I) "TERMINAL BUSINESS" MEANS  A  BUSINESS  THAT  WOULD  OTHERWISE  BE
 DEEMED A QUALIFIED BUSINESS AS DEFINED IN PARAGRAPH (B) OF THIS SUBDIVI-
 SION, BUT WHO CAN SHOW A DEMONSTRATED LOSS OF A FIFTY PERCENT DECLINE IN
 TAXABLE  INCOME  IN ANY GIVEN YEAR COMPARED TO THE BUSINESS' BASE FISCAL
 YEAR.
   (3) ASSISTANCE, OUT OF MONEYS MADE AVAILABLE FOR THIS  PROGRAM,  SHALL
 BE PROVIDED TO QUALIFIED BUSINESSES FOR THE FOLLOWING PURPOSES:
   (A) CAPITAL IMPROVEMENTS COSTS RELATED TO THE FOLLOWING:
   (I)  IMPROVING SIGNAGE SO THAT PEDESTRIANS CAN EASILY SEE AND IDENTIFY
 THE BUSINESS AS AN OPERATING BUSINESS;
   (II) EXPANDING EXISTING ENTRYWAYS TO THE BUSINESS;
   (III) ALTERING THE EXISTING ENTRYWAYS, WINDOWS, WALLS OR STRUCTURE  TO
 PREVENT OR MINIMIZE EXCESSIVE NOISE OCCURRING FROM THE CONSTRUCTION;
   (IV) IMPROVING VENTILATION WITHIN THE BUILDING TO MAINTAIN AIR QUALITY
 WITHIN THE BUSINESS;
   (V)  EQUIPMENT,  MACHINERY, FURNITURE, FIXTURES AND FITTINGS NECESSARY
 TO THE RUNNING OF A QUALIFIED BUSINESS THAT  SHALL  BE  AFFIXED  TO  AND
 REMAIN  A  PART  OF  THE QUALIFIED BUSINESS LOCATION WITHIN THE BUSINESS
 ZONE AREA; AND
   (VI) SUCH OTHER CAPITAL IMPROVEMENTS AS DETERMINED BY THE CHAIR OF THE
 CORPORATION.
   (B) MARKETING AND ADVERTISING COSTS.
 A. 540                              3

   (C) FOR ENDANGERED BUSINESSES, AS  DETERMINED  BY  THE  CHAIR  OF  THE
 CORPORATION, SUCH AS:
   (I)  PAYROLL  ASSISTANCE;  PROVIDED,  HOWEVER,  ANY PAYROLL ASSISTANCE
 PAYMENTS MADE MUST BE MADE TO AN EMPLOYEE WHO HAS BEEN EMPLOYED  BY  THE
 BUSINESS  FOR  AT LEAST ONE YEAR, DOES NOT HAVE AN OWNERSHIP INTEREST IN
 THE BUSINESS, AND IS NOT RELATED, EITHER THROUGH BLOOD OR  MARRIAGE,  TO
 THE OWNER OF THE BUSINESS;
   (II) RENTAL PAYMENT ASSISTANCE, WHETHER FOR REAL PROPERTY OR EQUIPMENT
 AND SERVICES;
   (III)  UTILITIES,  INCLUDING  BUT  NOT  LIMITED TO ELECTRICITY, PHONE,
 CABLE, INTERNET, AND WATER; AND
   (IV) INSURANCE, AS DETERMINED BY THE CHAIR OF THE CORPORATION.
   (D) FOR TERMINAL BUSINESSES, AS DETERMINED BY THE CHAIR OF THE  CORPO-
 RATION, SUCH AS:
   (I)  ASSISTANCE  OFFERED  TO QUALIFIED AND ENDANGERED BUSINESSES UNDER
 THIS SUBDIVISION; AND
   (II) PROFESSIONAL COUNSELING SERVICES, DISSOLUTION  SERVICES,  PROFES-
 SIONAL BANKRUPTCY ASSISTANCE SERVICES, AND DEBT MANAGEMENT SERVICES.
   (4)  THE CHAIRMAN SHALL ESTABLISH RULES AND REGULATIONS TO ENSURE THAT
 ALL MONEYS GIVEN PURSUANT TO THIS SECTION  ARE  USED  FOR  THE  PURPOSES
 SPECIFIED  BY  THE  APPLICANT.  IF  IT IS DETERMINED THAT A RECIPIENT OF
 FUNDS USED THE MONEY IN A MANNER INCONSISTENT WITH THE  INFORMATION  SET
 OUT  IN HIS OR HER APPLICATION, THE APPLICANT SHALL BE REQUIRED TO REIM-
 BURSE THE CORPORATION TWICE THE AMOUNT GIVEN TO THE APPLICANT.
   (5) THE CORPORATION SHALL ALSO:
   (A) (I) ESTABLISH A  COMPREHENSIVE  TECHNICAL  ASSISTANCE  PROGRAM  IN
 COOPERATION  WITH THE DEPARTMENT OF ECONOMIC DEVELOPMENT TO ASSIST SMALL
 AND MICRO  BUSINESSES  THROUGH  THIRD  PARTY  SERVICE  PROVIDERS,  WHICH
 ASSISTANCE SHALL INCLUDE, BUT NOT BE LIMITED TO:
   (A)  TECHNICAL  ASSISTANCE  WITH APPLICATIONS FOR OBTAINING FUNDS FROM
 PUBLIC AND PRIVATE FINANCING SOURCES;
   (B) TECHNICAL ASSISTANCE IN THE DEVELOPMENT OF A WORKING CAPITAL BUDG-
 ET;
   (C) REFERRALS TO OTHER PROVIDERS OF TECHNICAL ASSISTANCE TO SMALL  AND
 MICRO  BUSINESSES,  WHERE  APPROPRIATE,  INCLUDING  THE  ENTREPRENEURIAL
 ASSISTANCE PROGRAM ESTABLISHED PURSUANT TO ARTICLE  9  OF  THE  ECONOMIC
 DEVELOPMENT LAW; AND
   (D) TECHNICAL ASSISTANCE THROUGH EDUCATION PROGRAMS.
   (II)  TECHNICAL  ASSISTANCE  MAY  BE PROVIDED THROUGH DIRECT CORPORATE
 SUPPORT, OR THROUGH GRANTS TO OR CONTRACTS  WITH  SERVICE  PROVIDERS  OR
 GOVERNMENTAL ENTITIES.
   (B)  ESTABLISH PROGRAMS TO ASSIST SMALL AND MICRO BUSINESSES IN DEVEL-
 OPING WORKPLACE POLICIES, INCLUDING BUT NOT LIMITED  TO  THE  DESIGN  OF
 EMPLOYEE  BENEFIT  AND  ASSISTANCE  PROGRAMS  AND  DEVELOPING CHILD CARE
 PROGRAMS.
   (C) PROVIDE GRANTS TO BUSINESS IMPROVEMENT DISTRICTS,  LOCAL  DEVELOP-
 MENT  CORPORATIONS,  OTHER NOT-FOR-PROFIT ECONOMIC DEVELOPMENT ORGANIZA-
 TIONS, AND MUNICIPALITIES FOR TOURISM, MARKETING, PROMOTION, INFORMATION
 ACTIVITIES AND COMMERCIAL REVITALIZATION ACTIVITIES IN THE BUSINESS ZONE
 AREA, SUCH ACTIVITIES MAY INCLUDE, BUT ARE NOT LIMITED TO, JOINT  PRINT,
 MAILED  AND  INTERNET ADVERTISEMENTS, MARKETING CAMPAIGNS AND REDEVELOP-
 MENT WORK IN CONNECTION WITH THE DESIGN AND IMPLEMENTATION OF A PLAN FOR
 FACADE AND OTHER IMPROVEMENTS THROUGHOUT THE BUSINESS ZONE AREA.    SUCH
 GRANTS  MAY  INCLUDE  MONIES  AVAILABLE  FOR  INDIVIDUAL PROPERTY OWNERS
 AND/OR TENANTS WHO AGREE TO IMPROVE THEIR PROPERTY IN ACCORDANCE WITH AN
 OVERALL DESIGN PLAN, PROVIDED  THAT,  SUCH  INDIVIDUAL  PROPERTY  OWNERS
 A. 540                              4

 AND/OR  TENANTS SHALL BE REQUIRED TO MATCH AT LEAST FIFTY PERCENT OF THE
 AMOUNT OF ANY GRANT AWARDED TO THEM.
   (D) PROVIDE GRANTS TO SMALL AND MICRO BUSINESSES TO OFFSET COSTS ASSO-
 CIATED  WITH  THE START-UP OF NEW BUSINESS ENTERPRISES PROVIDED THAT THE
 SPACE IN WHICH THE BUSINESS IS GOING TO BE LOCATED HAS BEEN  VACANT  FOR
 AT  LEAST  ONE  YEAR, THE BUSINESS OWNER HAS ENTERED INTO A LEASE FOR AT
 LEAST TWO YEARS AND THE LANDLORD OR BUSINESS OWNER SHALL BE REQUIRED  TO
 MATCH  AT  LEAST  HALF  THE  AMOUNT  OF ANY GRANT AWARDED TO THEM.  SUCH
 GRANTS MAY BE USED TO PROVIDE TECHNICAL ASSISTANCE  IN  DEVELOPMENT  AND
 EXECUTION OF BUSINESS PLANS, INCLUDING THE FORMATION OF, ACQUISITION OF,
 MANAGEMENT OF, OR DIVERSIFICATION OF A SMALL OR MICRO BUSINESS.
   (6)(A)  THE  CORPORATION SHALL, WITHIN AVAILABLE APPROPRIATIONS, AWARD
 GRANTS OR ENTER INTO CONTRACTS FOR SERVICES PURSUANT TO THIS SECTION  TO
 SMALL  AND MICRO BUSINESSES, THROUGH DIRECT APPLICATIONS ACCEPTED AT THE
 DISCRETION OF THE CORPORATION. FOR THE PURPOSES OF THIS SUBDIVISION  THE
 CORPORATION  SHALL  ENTER  INTO  ANNUAL  CONTRACTS FOR SERVICES OR AWARD
 GRANTS IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE TOTAL PROJECT COSTS TO
 QUALIFIED BUSINESSES.
   (B) THE CORPORATION SHALL ENTER INTO NO MORE THAN ONE CONTRACT OR MAKE
 MORE THAN ONE GRANT PER YEAR PER APPLICANT UNDER THIS  SUBDIVISION  WITH
 ANY QUALIFIED BUSINESS REGARDLESS OF THE NUMBER OF PROJECTS FOR WHICH AN
 APPLICANT  HAS  APPLIED  AND FOR WHICH FUNDING HAS BEEN APPROVED. IN THE
 CASE OF APPLICATIONS FOR MULTIPLE PROJECTS TO BE CONDUCTED BY  A  SINGLE
 APPLICANT,  THE  CORPORATION  MAY, AT ITS DISCRETION, PROVIDE A GRANT OR
 ENTER INTO A SINGLE CONTRACT FOR SERVICES WITH THE APPLICANT FOR SOME OR
 ALL OF THE PROJECTS FOR WHICH AN APPLICANT HAS APPLIED.
   (C) NOT-FOR-PROFIT CORPORATIONS, BUSINESS  IMPROVEMENT  DISTRICTS  AND
 COMMUNITY  DEVELOPMENT  ORGANIZATIONS  SHALL  BE  ELIGIBLE  TO APPLY FOR
 SUPPORT UNDER THIS SUBDIVISION TO OPERATE A PROGRAM OR PROGRAMS OF BUSI-
 NESS AND ECONOMIC DEVELOPMENT SERVICES TO STABILIZE, RETAIN OR  REVITAL-
 IZE EXISTING QUALIFIED BUSINESSES, AND TO ASSIST SMALL, MICRO, AND REIN-
 VESTING   BUSINESSES,  INCLUDING,  BUT  NOT  LIMITED  TO  ASSISTANCE  TO
 INDIVIDUAL BUSINESSES IN SUCH PROJECT AREAS AS:
   (I) BUSINESS  PLANNING,  MANAGEMENT  ASSISTANCE  AND  COUNSELING,  AND
 FINANCIAL  PACKAGING ASSISTANCE TO SMALL AND MICRO BUSINESSES, INCLUDING
 THE  ESTABLISHMENT  OF  NEIGHBORHOOD-BASED  BUSINESS   SERVICE   CENTERS
 DESIGNED  TO DELIVER COMPREHENSIVE TECHNICAL ASSISTANCE TO NEW AND SMALL
 BUSINESSES IN SPECIFIC COMMUNITIES AND NEIGHBORHOODS;
   (II) PROGRAMS TO ASSIST SMALL AND MICRO  BUSINESSES  IN  THE  BUSINESS
 ZONE  AREA  TO  IDENTIFY NEW BUSINESS OPPORTUNITIES, PLAN FOR NEW ENTER-
 PRISE DEVELOPMENT, AND MANAGE ECONOMIC DEVELOPMENT PROJECTS;
   (III) INNOVATIVE PROGRAMS OF PUBLIC AND PRIVATE COOPERATION TO  FOSTER
 NEW ENTERPRISE DEVELOPMENT AND SMALL AND MICRO BUSINESS GROWTH;
   (IV) PROGRAMS TO ASSIST NEW ENTERPRISES AND SMALL AND MICRO BUSINESSES
 TO  IDENTIFY  AND  ACCESS  PUBLIC AND PRIVATE SOURCES OF EQUITY, WORKING
 CAPITAL AND OTHER TYPES OF FINANCING; AND
   (V) PROGRAMS THAT IMPROVE THE ABILITY OF SMALL AND MICRO BUSINESSES TO
 ACCESS STATE JOB TRAINING PROGRAMS.
   (7) ANY APPLICANT, WHO IS AWARDED A GRANT  PURSUANT  TO  THIS  SECTION
 WHERE  THE  MONEYS  OF  SUCH  GRANT ARE TO BE USED FOR THE CONSTRUCTION,
 DEMOLITION, RECONSTRUCTION, EXCAVATION,  REHABILITATION,  REPAIR,  RENO-
 VATION  OR  ALTERATION OF A FACILITY OR AN IMPROVEMENT TO PROPERTY SHALL
 REQUIRE THAT THE WORK COVERED BY SUCH CONTRACT SHALL BE  DEEMED  "PUBLIC
 WORK"  AND  SUBJECT TO AND PERFORMED IN ACCORDANCE WITH ARTICLES 8 AND 9
 OF THE LABOR LAW.
 A. 540                              5
 
   (8) AN APPLICANT WHO RECEIVES A GRANT PURSUANT TO THIS  SECTION  SHALL
 ENSURE AND SHALL SIGN A WRITTEN DECLARATION PRIOR TO RECEIVING ANY FUNDS
 STATING THAT ALL PROVISIONS OF THE LABOR LAW, SPECIFICALLY INCLUDING THE
 MINIMUM  WAGE  PROVISIONS OF ARTICLE 19 OF THE LABOR LAW, ARE ADHERED TO
 BY THE BUSINESS RECEIVING THE GRANT.
   §  2.  The economic development law is amended by adding a new section
 131-a to read as follows:
   § 131-A. DEFINITION OF A MICRO BUSINESS.  FOR  THE  PURPOSES  OF  THIS
 CHAPTER, A MICRO BUSINESS SHALL BE DEEMED TO BE ONE WHICH IS RESIDENT IN
 THIS  STATE, INDEPENDENTLY OWNED AND OPERATED, NOT DOMINANT IN ITS FIELD
 AND EMPLOYS TEN OR LESS PERSONS ON A FULL-TIME BASIS.
   § 3. This act shall take effect immediately.