NY State Senate Bill 2009-S4436

Senate Bill S4436

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 Via A2819 - 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
Jul 16, 2009	substituted by a2819
Jun 04, 2009	advanced to third reading
Jun 03, 2009	2nd report cal.
Jun 02, 2009	1st report cal.552
Apr 23, 2009	referred to finance

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-S4436 (ACTIVE) - Details

See Assembly Version of this Bill:: A2819
Law Section:: State Finance Law
Laws Affected:: Amd §§213 & 218, St Fin L

2009-S4436 (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-S4436 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4436

 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 of2000
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
subdivisions 12-a, 12-b, 22 and 23 to define "empowerment zone",
"enterprise community", "renewal community" and "renewal community
business."

§ 2 - Amends subdivision 11 of §213 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
definition 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
definition 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 empowerment 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-S4436 (ACTIVE) - Bill Text download pdf

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

                                  4436

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 23, 2009
                               ___________

Introduced  by  Sen.  STACHOWSKI  -- read twice and ordered printed, and
  when printed to be committed to the Committee on Finance

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.
  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

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

S. 4436                             2

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
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

S. 4436                             3

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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