NY State Assembly Bill 2009-A2819

Assembly Bill A2819

Signed By Governor

2009-2010 Legislative Session

Includes eligible businesses in certain areas designated under the Community Renewal Tax Relief Act of 2000 in the Excelsior Linked Deposit Act loan program

download bill text pdf

Archive: Last Bill Status - Signed by Governor

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
Sep 16, 2009	signed chap.424
Sep 04, 2009	delivered to governor
Jul 16, 2009	returned to assembly passed senate 3rd reading cal.552 substituted for s4436
May 04, 2009	referred to finance delivered to senate passed assembly
Apr 30, 2009	advanced to third reading cal.444
Apr 28, 2009	reported
Jan 21, 2009	referred to ways and means

Votes

- Jul 16, 2009 - Floor Vote
  A2819
  
  58
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  4
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jul 16, 2009
      
      aye (58)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Foley
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Monserrate
      
      Montgomery
      
      Morahan
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      excused (4)
      
      Diaz
      
      Johnson
      
      Kruger
      
      Squadron

2009-A2819 (ACTIVE) - Details

See Senate Version of this Bill:: S4436
Law Section:: State Finance Law
Laws Affected:: Amd §§213 & 218, St Fin L

2009-A2819 (ACTIVE) - Summary

Includes eligible businesses located in federally designated areas under the Community Renewal Tax Relief Act of 2000 (26 U.S.C. Sections 1391, 1400E and 1400G) in the state's Excelsior Linked Deposit Act loan program for the whole or any portion of the period in which the area where the business is located is designated as a federal "Empowerment Zone", "Enterprise Community", or "Renewal Community", respectively, under the federal Act.

2009-A2819 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A2819

TITLE OF BILL:
An act to amend the state finance law, in relation to including eligible
businesses located in certain areas designated pursuant to the federal
Community Renewal Tax Relief Act of 2000 in the state's Excelsior Linked
Deposit Act loan program

PURPOSE OF THE BILL:
This bill will allow qualifying businesses located in certain areas
designated under the Federal Community Renewal Tax Relief Act of 2000 to
be eligible for numerous loans at the most beneficial interest rate
provided through the Excelsior Linked Deposit program.

SUMMARY OF SPECIFIC PROVISIONS:
§ 1 - Amends § 213 of the State Finance Law by adding four new subdivi-
sions 12-a, 12-b, 22 and 23 to define "empowerment zone", "enterprise
community", "renewal community" and "renewal community business."

§ 2 - Amends subdivision 11 of §2l3 of the State Finance Law by adding
three new paragraphs (b-1), (b-2) and (b-3) that include a business
located in a renewal community, empowerment zone or enterprise community
within the definition of an eligible business.

§ 3 - Amends paragraph (c) of subdivision 12 of §213 of the State
Finance Law to add eligible businesses that are located in a renewal

community, empowerment zone or enterprise community within the defi-
nition of eligible projects.

§ 4 - Amends paragraph (a) of subdivision 16 of §213 of the State
Finance Law to add eligible businesses that are located in a renewal
community, empowerment zone or enterprise community within the defi-
nition of linked deposit interest rate.

§ 5 - Amends subdivision 1 of § 218 of the State Finance Law to add
eligible businesses that are located in a renewal community, empowerment
zone or enterprise community to provisions regarding interest rates for
linked loans and the lenders fees.

§ 6 - Effective date.

JUSTIFICATION:
The Linked Deposit Program leverages loans from participating banks and
other lending institutions at a reduced interest rate. In exchange, the
state accepts a commensurately lower return on short-term deposits
placed with the lenders that are used for the linked loans.

Currently, small businesses located in Empire Zones or in highly
distressed areas, and minority-owned and women-owned businesses or
defense industry manufacturers seeking financing for specified eligible
projects, are eligible for a linked loan interest rate three percentage
points below the interest rate the lender would charge absent the linked

deposit. This measure would include businesses located in federal empow-
erment zones, enterprise communities and renewal communities within this
category. All other linked loans are two percentage points below the
rate the lender would otherwise charge.

LEGISLATIVE HISTORY:
2007-2008: A.3265/S.4784
2005-2006: A.3209/S.445
2003-2004: A.6477/S.3432

FISCAL IMPLICATIONS:
Yet to be determined.

EFFECTIVE DATE:
This act shall take effect immediately.

2009-A2819 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2819

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 21, 2009
                               ___________

Introduced  by  M. of A. SCHIMMINGER, V. LOPEZ, HOOPER, MORELLE, GREENE,
  MILLMAN, CANESTRARI, DelMONTE, SCHROEDER, COLTON -- Multi-Sponsored by
  -- M. of A. CAHILL, DESTITO,  FARRELL,  JOHN,  KOON,  MARKEY,  PAULIN,
  PERRY,  PHEFFER -- read once and referred to the Committee on Ways and
  Means

AN ACT to amend the state finance law, in relation to including eligible
  businesses located in certain areas designated pursuant to the federal
  Community Renewal Tax Relief Act of  2000  in  the  state's  Excelsior
  Linked Deposit Act loan program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 213 of the state finance law is amended  by  adding
four new subdivisions 12-a, 12-b, 22 and 23 to read as follows:
  12-A.  "EMPOWERMENT ZONE" MEANS AN AREA WITHIN THE STATE THAT HAS BEEN
DESIGNATED BY SUCH TERM PURSUANT TO SECTION 1391 OF THE FEDERAL INTERNAL
REVENUE CODE (26 UNITED STATES CODE S 1391) UNDER THE FEDERAL  COMMUNITY
RENEWAL TAX RELIEF ACT OF 2000.
  12-B.  "ENTERPRISE  COMMUNITY" MEANS AN AREA WITHIN THE STATE THAT HAS
BEEN DESIGNATED BY SUCH TERM PURSUANT TO SECTION  1391  OF  THE  FEDERAL
INTERNAL  REVENUE  CODE (26 UNITED STATES CODE S 1391) UNDER THE FEDERAL
COMMUNITY RENEWAL TAX RELIEF ACT OF 2000.
  22. "RENEWAL COMMUNITY" MEANS AN AREA WITHIN THE STATE THAT  HAS  BEEN
DESIGNATED  BY SUCH TERM IN ACCORDANCE WITH SECTION 1400E OF THE FEDERAL
INTERNAL REVENUE CODE (26 UNITED STATES CODE S 1400E) UNDER THE  FEDERAL
COMMUNITY RENEWAL TAX RELIEF ACT OF 2000.
  23.  "RENEWAL  COMMUNITY BUSINESS" MEANS A BUSINESS THAT IS DESIGNATED
BY SUCH TERM PURSUANT TO SECTION 1400G OF THE FEDERAL  INTERNAL  REVENUE
CODE (26 UNITED STATES CODE S 1400G) UNDER THE FEDERAL COMMUNITY RENEWAL
TAX RELIEF ACT OF 2000.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03969-01-9

A. 2819                             2

  S 2. Subdivision 11 of section 213 of the state finance law is amended
by  adding  three  new  paragraphs  (b-1),  (b-2)  and  (b-3) to read as
follows:
  (B-1)  DURING  THE  WHOLE  OR ANY PORTION OF A PERIOD IN WHICH AN AREA
CONTINUES TO BE DESIGNATED AS A RENEWAL COMMUNITY, ANY RENEWAL COMMUNITY
BUSINESS LOCATED IN SUCH AREA THAT EMPLOYS ONE HUNDRED OR FEWER  EMPLOY-
EES WITHIN THE STATE ON A FULL-TIME BASIS; OR
  (B-2)  DURING  THE  WHOLE  OR ANY PORTION OF A PERIOD IN WHICH AN AREA
CONTINUES TO BE DESIGNATED AS AN EMPOWERMENT ZONE, ANY BUSINESS  LOCATED
IN  SUCH  AREA  THAT  EMPLOYS  ONE HUNDRED OR FEWER EMPLOYEES WITHIN THE
STATE ON A FULL-TIME BASIS; OR
  (B-3) DURING THE WHOLE OR ANY PORTION OF A PERIOD  IN  WHICH  AN  AREA
CONTINUES  TO  BE  DESIGNATED  AS  AN ENTERPRISE COMMUNITY, ANY BUSINESS
LOCATED IN SUCH AREA THAT EMPLOYS ONE HUNDRED OR FEWER EMPLOYEES  WITHIN
THE STATE ON A FULL-TIME BASIS; OR
  S  3.  Paragraph  (c)  of  subdivision  12 of section 213 of the state
finance law, as added by chapter 705 of the laws of 1993 and as  further
amended  pursuant  to section 15 of part GG of chapter 63 of the laws of
2000, is amended to read as follows:
  (c) for certified businesses located in empire zones, [and] for retail
businesses located in highly distressed areas, FOR  ELIGIBLE  BUSINESSES
THAT  ARE  DEFINED  IN  PARAGRAPH  (B-1)  OF  SUBDIVISION ELEVEN OF THIS
SECTION THAT ARE LOCATED IN A RENEWAL COMMUNITY, FOR ELIGIBLE BUSINESSES
THAT ARE DEFINED IN  PARAGRAPH  (B-2)  OF  SUBDIVISION  ELEVEN  OF  THIS
SECTION  THAT ARE LOCATED IN AN EMPOWERMENT ZONE, AND FOR ELIGIBLE BUSI-
NESSES THAT ARE DEFINED IN PARAGRAPH (B-3) OF SUBDIVISION ELEVEN OF THIS
SECTION THAT ARE LOCATED IN AN ENTERPRISE COMMUNITY, projects that  will
create  or  retain  full-time,  permanent jobs within the empire zone OR
EMPOWERMENT ZONE OR ENTERPRISE COMMUNITY or highly  distressed  area  OR
RENEWAL COMMUNITY, as the case may be; or
  S  4.  Paragraph  (a)  of  subdivision  16 of section 213 of the state
finance law, as amended by chapter 291 of the laws of 2004,  is  amended
to read as follows:
  (a)  for  a  linked deposit made in connection with a linked loan to a
certified business in an empire zone or to an eligible business  located
in  a  highly distressed area OR TO AN ELIGIBLE BUSINESS THAT IS DEFINED
IN PARAGRAPH (B-1) OF SUBDIVISION ELEVEN OF THIS SECTION THAT IS LOCATED
IN A RENEWAL COMMUNITY OR DEFINED IN PARAGRAPH (B-2) OF SUCH SUBDIVISION
THAT IS LOCATED IN AN EMPOWERMENT ZONE OR DEFINED IN PARAGRAPH (B-3)  OF
SUCH SUBDIVISION THAT IS LOCATED IN AN ENTERPRISE COMMUNITY, RESPECTIVE-
LY  FOR ELIGIBLE PROJECTS DEFINED IN PARAGRAPH (C) OF SUBDIVISION TWELVE
OF THIS SECTION or a certified minority- or women-owned business  enter-
prise  for  an  eligible project defined in paragraph (e) of subdivision
twelve of this section or to  a  defense  industry  manufacturer  for  a
project  defined in paragraph (d) of subdivision twelve of this section,
a fixed rate of interest which is three hundred basis points  below  the
lender's  posted four year certificate of deposit rate or, if the lender
does not offer a four year certificate  of  deposit,  is  three  hundred
basis points below the average statewide rate for four year certificates
of deposit as determined by the commissioner of economic development;
  S  5.  Subdivision 1 of section 218 of the state finance law, as added
by chapter 705 of the laws of 1993 and as further  amended  pursuant  to
section  15  of part GG of chapter 63 of the laws of 2000, is amended to
read as follows:
  1. Linked loans made to certified businesses in  empire  zones  or  to
eligible businesses in highly distressed areas OR TO ELIGIBLE BUSINESSES

A. 2819                             3

THAT ARE DEFINED IN PARAGRAPH (B-1) OF SUBDIVISION ELEVEN OF SECTION TWO
HUNDRED THIRTEEN OF THIS ARTICLE THAT ARE LOCATED IN A RENEWAL COMMUNITY
OR DEFINED IN PARAGRAPH (B-2) OF SUCH SUBDIVISION THAT ARE LOCATED IN AN
EMPOWERMENT  ZONE OR DEFINED IN PARAGRAPH (B-3) OF SUCH SUBDIVISION THAT
ARE LOCATED  IN  AN  ENTERPRISE  COMMUNITY,  RESPECTIVELY  FOR  ELIGIBLE
PROJECTS  DEFINED  IN PARAGRAPH (C) OF SUBDIVISION TWELVE OF SECTION TWO
HUNDRED THIRTEEN OF THIS ARTICLE or to [minority]  MINORITY-  or  women-
owned  business enterprises for an eligible project defined in paragraph
(e) of subdivision twelve of section two hundred thirteen of this  arti-
cle or to a defense industry manufacturer for a project defined in para-
graph  (d) of subdivision twelve of section two hundred thirteen of this
article shall bear interest at a fixed rate equal  to  three  percentage
points  below  the fixed interest rate the lender would have charged for
the loan in the absence of a linked deposit based on  its  usual  credit
considerations.  All  other  linked loans shall bear interest at a fixed
rate equal to two percentage points below the fixed  interest  rate  the
lender would have charged for the loan in the absence of a linked depos-
it  based  on its usual credit considerations.  Lenders shall certify to
the commissioner of economic development that the rate to be charged  on
a  linked  loan  is two percentage points or three percentage points, as
the case may be, below the interest rate the lender would  have  charged
for the loan in the absence of a linked deposit.
  S 6. This act shall take effect immediately.

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