S T A T E O F N E W Y O R K
________________________________________________________________________
5473
2011-2012 Regular Sessions
I N A S S E M B L Y
February 22, 2011
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Introduced by M. of A. TOWNS, COOK, STEVENSON, JEFFRIES -- Multi-Spon-
sored by -- M. of A. BOYLAND -- read once and referred to the Commit-
tee on Economic Development
AN ACT to amend the economic development law, in relation to establish-
ing the "minimum standards for subsidized jobs 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 "minimum standards for subsidized jobs act".
S 2. Findings and purpose. The legislature hereby finds and declares
that every year, the state of New York awards increasingly large amounts
of dollars in economic development subsidies to for-profit businesses.
When government invests in economic development, it makes no economic
sense to support the creation or promotion of jobs that do not give
workers the chance to earn a decent living. When state-subsidized jobs
provide low wages and poor benefits, they increase the need for govern-
ment services, including public assistance for food, housing, health
care, and childcare.
The purpose of this act is to improve the effectiveness of economic
development expenditures, take pressure off state social services
programs, and improve the public health and welfare by ensuring that
major state subsidies are used to support at least minimum living stand-
ards for working families.
S 3. The economic development law is amended by adding a new article
18 to read as follows:
ARTICLE 18
MINIMUM STANDARDS FOR SUBSIDIZED JOBS ACT
SECTION 360. DEFINITIONS.
361. MINIMUM STANDARDS FOR WAGES AND BENEFITS.
362. ENFORCEMENT.
S 360. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01619-01-1
A. 5473 2
1. "ECONOMIC DEVELOPMENT SUBSIDY" MEANS ANY EXPENDITURE OF PUBLIC
FUNDS WITH A VALUE OF AT LEAST ONE HUNDRED THOUSAND DOLLARS, FOR THE
PURPOSE OF STIMULATING ECONOMIC DEVELOPMENT WITHIN THE STATE, INCLUDING
BUT NOT LIMITED TO BONDS, GRANTS, LOANS, LOAN GUARANTEES, ENTERPRISE
ZONES, EMPOWERMENT ZONES, TAX INCREMENT FINANCING, GRANTS, FEE WAIVERS,
LAND PRICE SUBSIDIES, MATCHING FUNDS, TAX ABATEMENTS, TAX EXEMPTIONS,
AND TAX CREDITS.
2. "COMMISSIONER" MEANS THE COMMISSIONER OF LABOR, OR THE COMMISSION-
ER'S DESIGNEE OR DESIGNEES.
S 361. MINIMUM STANDARDS FOR WAGES AND BENEFITS. 1. NO PERSON, ASSOCI-
ATION, CORPORATION OR OTHER ENTITY SHALL BE ELIGIBLE TO RECEIVE ANY
ECONOMIC DEVELOPMENT SUBSIDY UNLESS THAT ENTITY:
(A) PAYS EACH OF ITS EMPLOYEES IN THE STATE A MINIMUM WAGE THAT IS AT
LEAST ONE DOLLAR PER HOUR HIGHER THAN THE STATE MINIMUM WAGE PROVIDED IN
ARTICLE NINETEEN OF THE LABOR LAW;
(B) OFFERS TO EACH OF ITS EMPLOYEES IN THE STATE WHO WORK AT LEAST
THIRTY-FIVE HOURS PER WEEK A HEALTH INSURANCE BENEFITS PLAN FOR WHICH
THE EMPLOYER PAYS AT LEAST EIGHTY PERCENT OF THE MONTHLY PREMIUM, AND
THE COVERAGE PAYS AT LEAST EIGHTY PERCENT OF THE COSTS OF PHYSICIAN
OFFICE VISITS, EMERGENCY CARE, SURGERY, AND PRESCRIPTIONS WITH AN ANNUAL
DEDUCTIBLE OF NO MORE THAN ONE THOUSAND DOLLARS; AND
(C) OFFERS TO AT LEAST TWENTY PERCENT OF ITS WORKERS IN THE STATE A
WORKER TRAINING PROGRAM THAT MEETS MINIMUM STANDARDS ISSUED BY THE
COMMISSIONER.
2. THIS SECTION DOES NOT APPLY TO:
(A) A NOT-FOR-PROFIT ENTITY THAT IS EXEMPT FROM TAXATION UNDER THE
INTERNAL REVENUE CODE; OR
(B) AN INTERN OR TRAINEE WHO IS UNDER TWENTY-ONE YEARS OF AGE AND WHO
IS EMPLOYED FOR A PERIOD NOT LONGER THAN THREE MONTHS.
3. IF THE COMMISSIONER DETERMINES THAT APPLICATION OF THIS SECTION
WOULD CONFLICT WITH A FEDERAL PROGRAM REQUIREMENT, THE COMMISSIONER,
AFTER NOTICE AND PUBLIC HEARING, MAY GRANT A WAIVER FROM THE REQUIRE-
MENTS OF THIS SECTION.
S 362. ENFORCEMENT. 1. THE COMMISSIONER SHALL PROMULGATE SUCH REGU-
LATIONS AS ARE NECESSARY TO IMPLEMENT AND ADMINISTER COMPLIANCE OF THIS
SECTION.
2. NO PERSON, ASSOCIATION, CORPORATION OR OTHER ENTITY SHALL
DISCHARGE, DEMOTE, HARASS OR OTHERWISE TAKE ADVERSE ACTIONS AGAINST ANY
INDIVIDUAL BECAUSE SUCH INDIVIDUAL SEEKS THE ENFORCEMENT OF THIS
SECTION, OR TESTIFIES, ASSISTS OR PARTICIPATES IN ANY MANNER IN AN
INVESTIGATION, HEARING OR OTHER PROCEEDING TO ENFORCE THE PROVISIONS OF
THIS SECTION.
3. NO ENTITY SHALL PAY AN EMPLOYEE THROUGH A THIRD PARTY, OR TREAT AN
EMPLOYEE AS A SUBCONTRACTOR OR INDEPENDENT CONTRACTOR, TO AVOID THE
REQUIREMENTS OF THIS SECTION.
S 4. This act shall take effect on the first of July next succeeding
the date on which it shall have become a law and shall apply to any
economic development subsidy awarded or renewed on or after such date;
provided, however, that effective immediately, the addition, amendment
and/or repeal of any rule or regulation necessary for the implementation
of this act on its effective date are authorized and directed to be made
and completed on or before such date.