NY State Senate Bill 2023-S6779

Senate Bill S6779

2023-2024 Legislative Session

Enacts the HIRE NY act to provide loans through the urban development corporation for hiring by micro-businesses

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Current Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to corporations, authorities and commissions
May 09, 2023	referred to corporations, authorities and commissions

co-Sponsors

2023-S6779 (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Add §16-bb, UDC Act
Versions Introduced in Other Legislative Sessions:: 2013-2014: S5997
2015-2016: S2565
2017-2018: S2870
2019-2020: S4966
2021-2022: S5227

2023-S6779 (ACTIVE) - Summary

Enacts the HIRE NY act to provide zero interest loans through the urban development corporation for hiring by micro-businesses with fewer than five employees.

2023-S6779 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6779

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the New York state urban development corporation act, in
relation to enacting the HIRE NY act

 
PURPOSE:

To provide zero interest loans to businesses with less than 5 employees
to hire New York residents. To grow small businesses and get New Yorkers
hired.

 
SUMMARY OF PROVISIONS:

Section 1 titles this act as the "the hire individuals in the real econ-
omy New York Act." Or the "HIRE NY Act."

Section 2 of this bill amends section 1 of chapter 174 of the laws of
1968, constituting the New York State urban development corporation act
by adding a new section 16-bb. Subpart 1 sets out the legislative

intent. Subpart 2 set out definitions. Subpart 3 establishes the hire
New York fund and outlines its purposes. Subpart 4 sets for the loan
application process. Subpart 5 establishes an application fee.  Subpart
6 sets forth the loan terms. Subpart 7 establishes the criteria for loan
approval. Subpart 8 sets out application criteria.  Subpart 9 sets forth
that a micro-business may utilize funds only for salary of micro-busi-
ness qualifying new hire. Subpart 10 gives the corporation authorization
to establish an advisory committee. Subpart 11 outlines the corpo-
ration's reporting requirements. Subpart 12 authorizes the corporation
to promulgate rules and regulations required to fulfill the purposes of
this act.

Section 3 sets forth that this act shall be eligible to be funded from
any state agency, public authority, public benefit corporation or any
other entity for which this act is consistent with the mission.

Section 4 sets out that it shall take effect immediately.

 
JUSTIFICATION:

There are far too many unemployed New Yorkers and as a result New York's
economy is suffering. Getting unemployed New Yorkers back to work is the
key to New York's future economic development. At the same time, start-
ups and businesses with less than 5 employees lack the access to capital
required to hire new employees. Unfortunately, New York's current
economic incentivizes fail to target these businesses because most of
them lack taxable income to take advantage of the available tax credits
which make up a substantial portion of the state's economic development
incentives.

So while micro-businesses arc the backbones of our communities and the
engines of tomorrow's economy we are failing to provide them with the
appropriate support so that they can spur significant job creation
across the state. To get people back to work we need to offer economic
incentives that provide capital to micro-businesses for their use in
hiring new employees, instead of relying almost entirely on tax credits

that amount to feel good measures and cannot actually be used by the
businesses we are intending to help.

 
LEGISLATIVE HISTORY:

2021-22: S5227 - Referred to Corporations, Authorities and Commissions

2019-20: S4966 - Referred to Corporations, Authorities and Commissions

2017-18: S2870 - Referred TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

2015-16: S2565 - Referred to Corporations, Authorities and Commissions

2013-14: S5997B (Gipson) - Referred to Finance

 
FISCAL IMPLICATIONS:

None. This bill sets out that the program can be funded out of already
budgeted funds from any state agency, public authority, public benefit
corporation or any other entity for whiCh this act is consistent with
its mission.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S6779 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6779
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                May 9, 2023
                                ___________
 
 Introduced  by Sens. PARKER, COMRIE, SEPULVEDA -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Corpo-
   rations, Authorities and Commissions
 
 AN ACT to amend the New York state urban development corporation act, in
   relation to enacting the HIRE NY act

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "hire individuals in the real economy New York (HIRE NY) act".
   §  2.  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. THE HIRE NEW YORK PROGRAM. 1. LEGISLATIVE INTENT. THE  LEGIS-
 LATURE HEREBY FINDS THAT MICRO-BUSINESSES ARE THE ENGINES OF OUR ECONOMY
 AND  ARE  VITAL  TO  THE REVITALIZATION OF COMMUNITIES AND NEIGHBORHOODS
 THROUGHOUT THE STATE. THE LEGISLATURE FURTHER  FINDS  THAT  CURRENT  LAW
 FAILS  TO MOTIVATE PEOPLE TO START OR EXPAND BUSINESSES. THE LEGISLATURE
 FINDS THAT IT IS IMPORTANT TO SPUR START-UP MICRO-BUSINESSES  THAT  HAVE
 THE  POTENTIAL  TO  BECOME  THE  JOB ENGINES FOR TOMORROW'S ECONOMY. THE
 LEGISLATURE FURTHER FINDS INVESTMENTS IN ECONOMIC  DEVELOPMENT  FAIL  TO
 PROVIDE  ANY  FUNDING TO MICRO-BUSINESSES. THE LEGISLATURE FURTHER FINDS
 THAT SMALL MICRO-BUSINESSES WITH THE PROPER  INCENTIVES  ARE  POISED  TO
 PROVIDE SIGNIFICANT LOCAL JOB CREATION ACROSS THE STATE. THE LEGISLATURE
 FURTHER  FINDS THAT TAX CREDITS ARE NOT AN EFFECTIVE JOB CREATION INCEN-
 TIVE FOR MICRO-BUSINESSES BECAUSE MANY  OF  THESE  BUSINESSES  LACK  THE
 INCOME THAT MAKES A TAX CREDIT MEANINGFUL. THE LEGISLATURE FURTHER FINDS
 THAT  CREATION OF A STATEWIDE HIRE NEW YORK FUND WILL PROVIDE THE NEEDED
 CAPITAL FOR THE BUSINESSES OF TOMORROW TO GROW AND EMPLOY MORE NEW YORK-
 ERS.
   2. DEFINITIONS. AS USED IN THIS SECTION,  THE  FOLLOWING  TERMS  SHALL
 HAVE THE MEANINGS INDICATED:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07889-01-3

 S. 6779                             2
 
   (A)  "FUND" MEANS THE HIRE NEW YORK FUND AS ESTABLISHED BY SUBDIVISION
 THREE OF THIS SECTION.
   (B)  "LOCAL JOB" MEANS A JOB FILLED BY AN EMPLOYEE THAT RESIDES WITHIN
 THE SAME OR AN ADJACENT COUNTY AS THE  APPLICANT'S  PLACE  OF  BUSINESS.
 FOR  THE PURPOSES OF THIS PARAGRAPH, FOR THE CITY OF NEW YORK, THE ADJA-
 CENT COUNTIES SHALL BE DEEMED TO BE NASSAU, SUFFOLK, ROCKLAND AND  WEST-
 CHESTER.
   (C)  "MICRO-BUSINESS" MEANS A BUSINESS WITH FEWER THAN FIVE EMPLOYEES.
 A BUSINESS THAT IS OWNED IN ANY PORTION BY ANOTHER BUSINESS ENTITY SHALL
 NOT QUALIFY AS A "MICRO-BUSINESS."
   (D) "MICRO-BUSINESS QUALIFYING NEW HIRE" MEANS EITHER A NEW  FULL-TIME
 WAGE-PAYING LOCAL JOB OR THE EQUIVALENT OF A FULL-TIME WAGE-PAYING LOCAL
 JOB  REQUIRING AT LEAST THIRTY-FIVE HOURS PER WEEK AND IS FILLED FOR ONE
 YEAR. A MICRO-BUSINESS QUALIFYING NEW HIRE SHALL NOT BE:
   (I) AN EMPLOYEE WHO HAS BEEN TRANSFERRED FROM EMPLOYMENT WITH  ANOTHER
 BUSINESS  LOCATED IN THIS STATE, THROUGH AN ACQUISITION, MERGER, CONSOL-
 IDATION OR OTHER REORGANIZATION OF  BUSINESSES  OR  THE  ACQUISITION  OF
 ASSETS OF ANOTHER BUSINESS, OR
   (II)  AN  EMPLOYEE  WHO  HAS  BEEN  TRANSFERRED FROM EMPLOYMENT WITH A
 RELATED PERSON OR BUSINESS ENTITY, OR
   (III) AN EMPLOYEE WHO IS HIRED TO FILL A CURRENTLY  EXISTING  POSITION
 THAT RESULTS FROM A TERMINATION OR DEPARTURE OF A PREVIOUS EMPLOYEE, OR
   (IV) A TEMPORARY OR PART-TIME EMPLOYEE.
   3.  ESTABLISHMENT AND PURPOSES. THE CORPORATION SHALL ESTABLISH A FUND
 TO BE KNOWN AS THE "HIRE NEW YORK FUND" AND SHALL PAY INTO SUCH FUND ANY
 MONIES MADE AVAILABLE TO THE CORPORATION FOR SUCH FUND FROM ANY  SOURCE.
 THE  FUND  SHALL  CONSIST  OF  SUCH  AMOUNTS AS MAY BE APPROPRIATED, ANY
 REPAYMENT OF THE PRINCIPAL AMOUNT OF ANY LOAN MADE FROM  THE  FUND,  AND
 ANY  INTEREST EARNED BY THE CORPORATION FROM THE INVESTMENT OF MONEYS OF
 THE FUND. THE CORPORATION IS AUTHORIZED  TO  ACCEPT,  AS  AGENT  OF  THE
 STATE, ANY GIFT, GRANT, DEVISE OR BEQUEST, WHETHER CONDITIONAL OR UNCON-
 DITIONAL, INCLUDING BUT NOT LIMITED TO FEDERAL GRANTS, AND TO USE MONIES
 MADE  AVAILABLE  FOR  THE PROGRAM FROM ANY PUBLIC OR PRIVATE SOURCE, FOR
 THE PURPOSE OF IMPLEMENTING THE PROGRAM. THE CORPORATION SHALL BE  ENTI-
 TLED  TO  RECOVER FROM THE MONIES MADE AVAILABLE FOR THE PROGRAM ITS OWN
 NECESSARY AND DOCUMENTED COSTS INCURRED IN ADMINISTERING THE PROGRAM AND
 EVALUATING THE EFFECTIVENESS OF THE PROGRAM; PROVIDED, HOWEVER, THE  SUM
 THAT  MAY  BE RECOVERED FOR THE CORPORATION'S ADMINISTRATIVE COSTS SHALL
 NOT EXCEED FIVE PERCENT OF THE MONIES MADE AVAILABLE  FOR  THE  PROGRAM,
 AND THE SUM THAT MAY BE RECOVERED FOR THE CORPORATION'S EVALUATION COSTS
 SHALL  NOT  EXCEED  THREE  PERCENT  OF THE MONIES MADE AVAILABLE FOR THE
 PROGRAM.  THE MONIES HELD IN OR CREDITED TO THE FUND SHALL  BE  EXPENDED
 SOLELY FOR THE PURPOSES SET FORTH IN THIS SECTION. THE CORPORATION SHALL
 NOT  COMMINGLE  THE  MONIES  OF  SUCH  FUND WITH ANY OTHER MONIES OF THE
 CORPORATION OR ANY MONIES HELD IN TRUST BY THE CORPORATION.  THE  CORPO-
 RATION  IS  AUTHORIZED,  WITHIN AVAILABLE APPROPRIATIONS AND LOAN REPAY-
 MENTS TO PROVIDE ZERO INTEREST LOANS TO  MICRO-BUSINESSES  TO  HIRE  NEW
 EMPLOYEES.
   4. APPLICATIONS FOR LOAN. AN APPLICATION FOR A LOAN SHALL BE SUBMITTED
 IN  SUCH  FORM AND IN ACCORDANCE WITH SUCH PROCEDURES AS THE CORPORATION
 SHALL ESTABLISH. APPLICATIONS SUBMITTED TO  THE  FUND  MAY  INCLUDE  BUT
 SHALL NOT BE LIMITED TO:
   (A) A BUSINESS PLAN;
   (B) A JOB DESCRIPTION AND REQUIRED EMPLOYEE QUALIFICATIONS;
   (C) A GUARANTOR;
 S. 6779                             3
 
   (D)  THE GUARANTOR'S NAME AND ADDRESS, AUDITED FINANCIAL STATEMENTS OR
 TAX RECORDS FOR THE PREVIOUS THREE YEARS, AND OTHER FINANCIAL DOCUMENTA-
 TION THE CORPORATION SHALL DEEM APPROPRIATE;
   (E)  A  DESCRIPTION OF HOW THE APPLICANT ANTICIPATES THE BUSINESS WILL
 GROW AS A RESULT OF THE ADDITIONAL WORKFORCE;
   (F) A LIST OF CURRENT EMPLOYEES AND JOB DESCRIPTION FOR EACH EMPLOYEE;
 AND
   (G) ANY ADDITIONAL INFORMATION THAT THE CORPORATION SHALL REQUIRE.
   ALL INFORMATION COLLECTED BY THE CORPORATION SHALL BE CONFIDENTIAL AND
 SHALL BE USED EXCLUSIVELY FOR PURPOSES OF THIS SECTION.
   5. APPLICATION FEE. EACH APPLICATION MUST BE ACCOMPANIED BY A  MINIMUM
 ONE  HUNDRED-DOLLAR  APPLICATION  FEE.  THIS  APPLICATION  FEE  IS TO BE
 APPLIED TO THE CORPORATION'S ADMINISTRATIVE EXPENSES.  APPLICATION  FEES
 ARE  TO  BE  REFUNDED TO ALL SUCCESSFUL APPLICANTS WITHIN THIRTY DAYS OF
 RECEIPT OF THE FINAL PAYMENT OF PRINCIPAL. THE PURPOSE OF THIS  APPLICA-
 TION  FEE  IS  TO ENSURE THAT APPLICATIONS ARE MADE IN GOOD FAITH AND TO
 AVOID WASTED ADMINISTRATIVE FEES THAT OCCUR FROM BAD FAITH APPLICATIONS.
 THE CORPORATION MAY REFUND ALL APPLICATION FEES, EVEN IF APPLICATION  IS
 DENIED WHEN IT BELIEVED THAT THE APPLICANT IN GOOD FAITH BELIEVED IT WAS
 ENTITLED TO RECEIVE A LOAN UNDER THIS SECTION.
   6. LOAN TERMS. (A) THE CORPORATION SHALL PROVIDE FUNDS FOR EACH OF THE
 FIRST  THREE  YEARS  OF THE MICRO-BUSINESS QUALIFYING NEW HIRE'S EMPLOY-
 MENT.
   (B) IN EACH OF THOSE YEARS THE CORPORATION WILL PROVIDE NO  MORE  THAN
 TWENTY  PERCENT OF THE MICRO-BUSINESS QUALIFYING NEW HIRE'S ANNUAL SALA-
 RY.
   (C) IN EACH YEAR THE CORPORATION WILL  PROVIDE  NO  MORE  THAN  TWENTY
 THOUSAND DOLLARS PER MICRO-BUSINESS QUALIFYING NEW HIRE.
   (D)  LOAN  PAYMENTS  TO THE CORPORATION FROM THE BUSINESS ARE DEFERRED
 UNTIL THREE YEARS FROM MICRO-BUSINESS QUALIFYING NEW HIRE'S START DATE.
   (E) PRINCIPAL IS TO BE PAID TO THE  CORPORATION  IN  MONTHLY  INSTALL-
 MENTS.
   (F) NO INTEREST SHALL BE CHARGED ON ANY LOAN PROVIDED PURSUANT TO THIS
 SECTION.
   (G)  THE LOAN WILL BE PAID BY THE CORPORATION IN THREE INSTALLMENTS AS
 FOLLOWS:
   (I) THE FIRST INSTALLMENT WILL BE PROVIDED BY THE CORPORATION NO LATER
 THAN TEN DAYS AFTER RECEIPT OF THE MICRO-BUSINESS QUALIFYING NEW  HIRE'S
 W-2 AND PROOF OF RESIDENCE; AND
   (II) THE PAYMENTS FOR EACH ADDITIONAL INSTALLMENT SHALL BE MADE WITHIN
 TEN  DAYS  OF THE DATE OF THE MICRO-BUSINESS QUALIFYING NEW HIRE'S ANNI-
 VERSARY OF EMPLOYMENT.
   (H) NO FEES OR PENALTIES SHALL BE CHARGED OR COLLECTED FOR  PREPAYMENT
 OF ANY SUCH LOAN.
   7.  LOAN  APPROVAL. IN AWARDING THE LOAN, THE CORPORATION SHALL SELECT
 FROM ELIGIBLE BUSINESS APPLICANTS BASED ON THE FOLLOWING CRITERIA:
   (A) THE LIKELIHOOD OF SUCCESS OF THE APPLICANT IN MEETING THE GOALS OF
 ITS STRATEGIC PLAN;
   (B) THE EXTENT OF NEED FOR LOANS AND DEVELOPMENT SERVICES  WITHIN  THE
 INVESTMENT AREAS OR TARGETED POPULATIONS;
   (C) THE CREDIT SCORE OF THE APPLICANT;
   (D) THE CREDIT SCORE OF THE GUARANTOR;
   (E) GOOD STANDING ON OTHER LOAN OBLIGATIONS; AND
   (F) OTHER FACTORS DEEMED TO BE APPROPRIATE BY THE CORPORATION.
   8. APPLICATION CRITERIA. THE CORPORATION SHALL DEVELOP AND USE A STAN-
 DARD  APPLICATION FORM. IN ADDITION TO SUCH OTHER CRITERIA AS THE CORPO-
 S. 6779                             4
 
 RATION MAY ADOPT IN RULES  AND  REGULATIONS  FOR  THE  CONSIDERATION  OF
 APPLICATIONS  FOR LOANS OR LOAN GUARANTEES PURSUANT TO THIS SECTION, THE
 CORPORATION SHALL:
   (A)  DETERMINE THAT THE COMPANY IS UNABLE TO OBTAIN SUFFICIENT FUNDING
 ON REASONABLE TERMS FROM OTHER PUBLIC OR PRIVATE SOURCES TO  PERMIT  THE
 COMPANY'S PLANNED HIRING;
   (B)  CONSIDER  WHETHER  THE  LOAN  OR  LOAN GUARANTEE WILL RESULT IN A
 REASONABLE LIKELIHOOD OF SUCCESS IN MEETING THE PURPOSES  FOR  WHICH  IT
 WAS SOUGHT BY THE APPLICANT COMPANY; AND
   (C) ASSESS THE DEMONSTRATED NEED FOR SUCH ASSISTANCE, ESTABLISHED BY A
 SHOWING  OF  A SHORT-TERM LACK OF LIQUIDITY OF AN EXISTING SOLVENT BUSI-
 NESS.
   9. USE OF LOAN. A MICRO-BUSINESS MAY UTILIZE FUNDS ONLY FOR SALARY  OF
 A MICRO-BUSINESS QUALIFYING NEW HIRE.
   10. ADVISORY COMMITTEE. THE CORPORATION MAY CREATE AN ADVISORY COMMIT-
 TEE,  CONSISTING  OF AT LEAST FIVE MEMBERS, TO ADVISE THE CORPORATION IN
 THE PROMOTION, IMPLEMENTATION AND ADMINISTRATION OF THE  HIRE  NEW  YORK
 PROGRAM.
   11.  REPORTING  REQUIREMENTS. THE CORPORATION SHALL SUBMIT A REPORT TO
 THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF
 THE SENATE ON OR BEFORE THE FIRST OF OCTOBER, AND  ANNUALLY  THEREAFTER,
 DESCRIBING  THE  FINANCIAL AND TECHNICAL ASSISTANCE PROVIDED PURSUANT TO
 THIS SECTION, INCLUDING: THE  NUMBER  OF  LOAN  APPLICATIONS  FILED  AND
 ACCEPTED;  THE  AMOUNT AND TYPE OF ASSISTANCE PROVIDED; A DESCRIPTION OF
 BUSINESSES ASSISTED BY FUND MONIES; THE NUMBER  OF  LOCAL  JOBS  CREATED
 THROUGH  THE  LOANS  OF  FUND  MONIES; AND SUCH OTHER INFORMATION AS THE
 CORPORATION MAY DEEM APPROPRIATE.
   12. RULES AND REGULATIONS. THE CORPORATION  IS  HEREBY  AUTHORIZED  TO
 PROMULGATE  RULES  AND REGULATIONS IN ACCORDANCE WITH THE STATE ADMINIS-
 TRATIVE PROCEDURE ACT THAT ARE NECESSARY TO FULFILL THE PURPOSES OF THIS
 SECTION. SUCH RULES AND REGULATIONS MUST BE COMPLETED WITHIN ONE HUNDRED
 EIGHTY DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION.
   § 3. The provisions of this act shall be eligible to  be  funded  from
 any  state  agency,  public authority, public benefit corporation or any
 other entity for which this act is consistent with the  mission  of  the
 state  agency, public authority, public benefit corporation or any other
 entity.
   § 4. This act shall take effect immediately.

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Senate Bill S6779

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Sponsored By

Kevin S. Parker