* § 139. Advisory panel on employee-owned enterprises. 1. Definition.
As used in this section, the term "employee-owned enterprise" shall mean
a business in which the employees control the majority of the voting
stock, or if the business is held in a trust which controls the majority
of the voting stock, the trustees are elected by the employees. The term
"employee-owned enterprise" shall also refer to a worker cooperative as
defined in section eighty-one of the cooperative corporations law.

2. Establishment of advisory panel. An advisory panel is hereby
created within the department for the purpose of reviewing state laws
and programs in order to report and make recommendations on how best to
support existing employee-owned enterprises, promoting the formation of
new employee-owned enterprises, and promoting the continued growth of
such businesses in the state.

3. Composition of advisory panel. (a) The advisory panel shall consist
of thirteen members, including:

(i) the commissioner, or his or her designee, who shall be designated
as chair of the advisory panel;

(ii) the commissioner of labor, or his or her designee;

(iii) the commissioner of tax and finance, or his or her designee; and

(iv) ten members to be appointed as follows: four shall be appointed
by the governor, two shall be appointed by the speaker of the assembly,
two shall be appointed by the temporary president of the senate, one
shall be appointed by the minority leader of the assembly, and one shall
be appointed by the minority leader of the senate. Such appointed
members shall represent entities and organizations with expertise
related to employee-owned enterprises or business development,
particularly those with an emphasis on small businesses, minority and
women-owned businesses, and veteran-owned businesses, including, but not
limited to:

(1) employee-owned enterprises;

(2) employee-owned enterprise advocacy, service, support, or
development organizations;

(3) business development organizations;

(4) New York state college and university programs with expertise in
business development;

(5) commercial lending organizations focusing on access to capital and
community development; and

(6) labor organizations.

(b) Each member of the panel shall serve at the pleasure of the
appointing authority, and any vacancy on the panel shall be filled in
the same manner as the original appointment. Such panel members shall
serve without compensation except that such members shall be entitled to
reimbursement for actual and necessary expenses incurred in such
service.

4. Powers and duties of the advisory panel. The advisory panel shall:

(a) identify and recommend strategies to promote the creation and
development of new employee-owned enterprises in order to create new
jobs and retain existing jobs within the state;

(b) identify and recommend strategies to facilitate the creation of
employee-owned enterprises that promote the continuation of existing
businesses either as part of a pre-existing business succession of
ownership plan or as an alternative option if a business is being
offered for sale or transfer by the current owner or the heirs or estate
of a deceased owner;

(c) evaluate the effectiveness of current state and local training and
assistance programs designed to provide support to employee-owned
enterprises, and make recommendations as to how to more effectively
utilize these programs and resources to support such enterprises;

(d) examine and identify state and local laws and regulations relating
to the governance and administration of employee-owned enterprises and
their effect on the creation, retention, and growth of such enterprises;

(e) examine and identify other successful federal, state and local
programs designed to provide support to employee-owned enterprises,
including any programs currently underutilized by individuals seeking to
establish an employee-owned enterprise in the state;

(f) evaluate the ability of new and existing employee-owned
enterprises to acquire the capital necessary to form, expand, and
develop their operations;

(g) evaluate the role of immigrants and new Americans, minorities,
women, and veterans in the formation of employee-owned enterprises;

(h) evaluate the potential for employee-owned enterprises to assist in
the revitalization and redevelopment of economically disadvantaged
communities; and

(i) recommend a set of best practices and policies as a guide for
individuals to use when forming an employee-owned enterprise, and make
such guide publicly available on the department's website.

5. Reporting. The advisory panel shall issue a report no later than
June thirtieth, two thousand twenty-five outlining the findings and
recommendations of the panel. The report shall be delivered to the
governor, the speaker of the assembly, the temporary president of the
senate, the minority leader of the assembly, the minority leader of the
senate, the chair of the assembly committee on ways and means, the chair
of the senate committee on finance, the chair of the assembly committee
on economic development, the chair of the assembly committee on small
business, the chair of the senate committee on commerce, economic
development, and small business, the chair of the assembly committee on
labor, and the chair of the senate committee on labor.

* NB Repealed October 1, 2025