senate Bill S5997A

2013-2014 Legislative Session

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

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 09, 2014 print number 5997b
amend (t) and recommit to finance
Mar 10, 2014 notice of committee consideration - requested
Jan 23, 2014 print number 5997a
amend and recommit to finance
Jan 08, 2014 referred to finance
Nov 27, 2013 referred to finance

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

Co-Sponsors

S5997 - Bill Details

Current Committee:
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Add §16-w, UDC Act

S5997 - Bill Texts

view summary

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

view sponsor memo
BILL NUMBER:S5997

TITLE OF BILL: An act to amend the New York state urban development
corporation act, in relation to enacting the HIRE NY act; and making
an appropriation therefor

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:

economy 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-w. 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 9 sets forth that a
micro-business may utilize funds only for salary of micro-business
qualifying new hire. Subpart 10 gives the corporation authorization to
establish an advisory committee. Subpart 11 outlines the corporation's
reporting requirements. Subpart 12 authorizes the corporation to
promulgate rules and regulations required to fulfill the purposes of
this act.

Section 3 appropriates twenty million dollars ($20,000.000) to the
urban development corporation out of the monies in the general fund
for the hire New York fund.

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 are 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:

This is a new bill.

FISCAL IMPLICATIONS:

This bill would transfer twenty million dollars ($20,000,000.00) from
the general fund to the urban development corporation to establish the
hire New York fund. Loan funds that create jobs would result in
increased state revenues from income taxes. In addition, revenue
growth experienced by participating businesses would translate into
increased state revenue.

EFFECTIVE DATE:

This act shall take effect immediately

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

                                  5997

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            November 27, 2013
                               ___________

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

AN ACT to amend the New York state urban development corporation act, in
  relation to enacting the HIRE NY  act;  and  making  an  appropriation
  therefor

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

  Section 1. This act shall be known and may be cited as the "hire indi-
viduals in the real economy New York (HIRE NY) act".
  S 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-w to read as follows:
  S 16-W. THE HIRE NEW YORK PROGRAM. 1. LEGISLATIVE INTENT. THE LEGISLA-
TURE  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.
                                                           LBD13164-01-3

S. 5997                             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.
  (C) "MICRO-BUSINESS" MEANS A BUSINESS WITH FEWER THAN 5  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 JOB OR THE EQUIVALENT OF A FULL-TIME WAGE-PAYING JOB REQUIR-
ING  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;
  (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;

S. 5997                             3

  (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-
RATION  MAY  ADOPT  IN  RULES  AND  REGULATIONS FOR THE CONSIDERATION OF
APPLICATIONS FOR LOANS OR LOAN GUARANTEES PURSUANT TO THIS SECTION,  THE
CORPORATION SHALL:

S. 5997                             4

  (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 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.
  S 3. The sum of twenty million dollars ($20,000,000), is hereby appro-
priated to the urban development corporation out of the  moneys  in  the
state  treasury  in the general fund to the credit of hire New York fund
established pursuant to section 16-w of the New York state urban  devel-
opment corporation act.
  S 4. This act shall take effect immediately.

Co-Sponsors

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S5997A - Bill Details

Current Committee:
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Add §16-w, UDC Act

S5997A - Bill Texts

view summary

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

view sponsor memo
BILL NUMBER:S5997A

TITLE OF BILL: An act to amend the New York state urban development
corporation act, in relation to enacting the HIRE NY act; and making
an appropriation therefor

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
economy 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-w. 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 9 sets forth that a
micro-business may utilize funds only for salary of micro-business
qualifying new hire. Subpart 10 gives the corporation authorization to
establish an advisory committee. Subpart 11 outlines the corporation's
reporting requirements. Subpart 12 authorizes the corporation to
promulgate rules and regulations required to fulfill the purposes of
this act.

Section 3 appropriates twenty million dollars ($20,000,000) to the
urban development corporation out of the monies in the general fund
for the hire New York fund.

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 are 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:

This is a new bill.

FISCAL IMPLICATIONS:

This bill would transfer twenty million dollars ($20,000,000.00) from
the general fund to the urban development corporation to establish the
hire New York fund. Loan funds that create jobs would result in
increased state revenues from income taxes. In addition, revenue
growth experienced by participating businesses would translate into
increased state revenue.

EFFECTIVE DATE:

This act shall take effect immediately

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

                                 5997--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            November 27, 2013
                               ___________

Introduced  by  Sens. GIPSON, DILAN, MONTGOMERY, PARKER, TKACZYK -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee  on  Finance  --  recommitted to the Committee on Finance in
  accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

AN ACT to amend the New York state urban development corporation act, in
  relation to enacting the HIRE NY  act;  and  making  an  appropriation
  therefor

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

  Section 1. This act shall be known and may be cited as the "hire indi-
viduals in the real economy New York (HIRE NY) act".
  S 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-w to read as follows:
  S 16-W. THE HIRE NEW YORK PROGRAM. 1. LEGISLATIVE INTENT. THE LEGISLA-
TURE  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13164-02-4

S. 5997--A                          2

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:
  (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 JOB OR THE EQUIVALENT OF A FULL-TIME WAGE-PAYING JOB REQUIR-
ING  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:

S. 5997--A                          3

  (A) A BUSINESS PLAN;
  (B) A JOB DESCRIPTION AND REQUIRED EMPLOYEE QUALIFICATIONS;
  (C) A GUARANTOR;
  (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

S. 5997--A                          4

  (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-
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 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.
  S 3. The sum of twenty million dollars ($20,000,000), is hereby appro-
priated  to  the  urban development corporation out of the moneys in the
state treasury in the general fund to the credit of hire New  York  fund
established  pursuant to section 16-w of the New York state urban devel-
opment corporation act.
  S 4. This act shall take effect immediately.

Co-Sponsors

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S5997B (ACTIVE) - Bill Details

Current Committee:
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Add §16-w, UDC Act

S5997B (ACTIVE) - Bill Texts

view summary

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

view sponsor memo
BILL NUMBER:S5997B

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
economy 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-w. 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 9 sets forth that a
micro-business may utilize funds only for salary of micro-business
qualifying new hire. Subpart 10 gives the corporation authorization to
establish an advisory committee. Subpart 11 outlines the corporation'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: This is a new bill.

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

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

                                 5997--B

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            November 27, 2013
                               ___________

Introduced by Sens. GIPSON, DILAN, KRUEGER, LATIMER, MONTGOMERY, PARKER,
  STAVISKY,  TKACZYK -- read twice and ordered printed, and when printed
  to be committed to the Committee on  Finance  --  recommitted  to  the
  Committee  on  Finance  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted  to  said committee -- committee discharged, bill amended,
  ordered reprinted as amended and recommitted to said committee

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. This act shall be known and may be cited as the "hire indi-
viduals in the real economy New York (HIRE NY) act".
  S  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-x to read as follows:
  S 16-X. THE HIRE NEW YORK PROGRAM. 1. LEGISLATIVE INTENT. THE LEGISLA-
TURE 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13164-08-4

S. 5997--B                          2

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:
  (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:

S. 5997--B                          3

  (A) A BUSINESS PLAN;
  (B) A JOB DESCRIPTION AND REQUIRED EMPLOYEE QUALIFICATIONS;
  (C) A GUARANTOR;
  (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

S. 5997--B                          4

  (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-
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.
  S  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.
  S 4. This act shall take effect immediately.

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