S T A T E   O F   N E W   Y O R K
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                                  3433

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 22, 2015
                               ___________

Introduced  by  M.  of  A.  SCARBOROUGH -- read once and referred to the
  Committee on Small Business

AN ACT to amend the economic development law, the public authorities law
  and the New York state urban development corporation act, in  relation
  to  financial  assistance  to  small  businesses  for  the  purpose of
  pollution prevention, control and compliance

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

  Section  1.  Paragraphs l and m of subdivision 2 of section 137 of the
economic development law, paragraph l as  amended  and  paragraph  m  as
added  by  chapter  594 of the laws of 1994, are amended and a new para-
graph n is added to read as follows:
  l. providing information  to  small  business  stationary  sources  on
state-sponsored  programs  offering  financial and technical assistance,
and in locating sources of funding for compliance with the  requirements
of  article  nineteen of the environmental conservation law and the Act;
[and]
  m. establishing procedures for assuring the confidentiality of  infor-
mation received from small business stationary sources[.]; AND
  N.  MARKETING THE SMALL BUSINESS ENVIRONMENTAL FUND ESTABLISHED PURSU-
ANT TO SECTION TWELVE HUNDRED EIGHTY-FIVE-S OF  THE  PUBLIC  AUTHORITIES
LAW  TO  SMALL BUSINESS STATIONARY SOURCES, ASSISTING THE NEW YORK STATE
URBAN DEVELOPMENT CORPORATION IN THE PROJECTION OF DEMAND FOR  FINANCIAL
ASSISTANCE  PURSUANT  TO  SECTION  SIXTEEN-M OF THE NEW YORK STATE URBAN
DEVELOPMENT CORPORATION ACT.
  S 2. The public authorities law is amended by  adding  a  new  section
1285-s to read as follows:
  S  1285-S. SMALL BUSINESS ENVIRONMENTAL FUND. 1. THE CORPORATION SHALL
UNDERTAKE AND PROVIDE ASSISTANCE IN SUPPORT OF A PROGRAM TO ASSIST SMALL
BUSINESSES IN LEVERAGING CAPITAL FROM FINANCIAL INSTITUTIONS TO  ACHIEVE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08070-01-5

              

A. 3433                             2

POLLUTION  PREVENTION  AND/OR  COMPLIANCE WITH FEDERAL OR STATE ENVIRON-
MENTAL LAWS.
  2.  THERE  IS  HEREBY  ESTABLISHED IN THE CUSTODY OF THE CORPORATION A
SPECIAL FUND TO BE KNOWN  AS  THE  SMALL  BUSINESS  ENVIRONMENTAL  FUND.
MONEYS  IN  SUCH  FUND SHALL BE SEGREGATED FROM ALL OTHER FUNDS OF OR IN
THE CUSTODY OF THE CORPORATION SUBJECT  TO  ANY  RIGHTS  OF  HOLDERS  OF
CORPORATION  BONDS  OR  NOTES  ISSUED  FOR THE PURPOSES OF THIS SECTION.
MONEYS IN SUCH FUND SHALL ONLY BE USED IN ACCORDANCE WITH THE PROVISIONS
OF THIS SECTION. THE MONEYS IN SUCH FUND SHALL BE APPLIED TO OR PAID OUT
FOR AUTHORIZED PURPOSES OF SUCH FUND ON THE DIRECTION OF THE CHAIRMAN OF
THE CORPORATION IN ACCORDANCE WITH SUBDIVISION FOUR OF THIS SECTION,  OR
SUCH OTHER PERSON AS THE CORPORATION SHALL AUTHORIZE TO MAKE SUCH DIREC-
TION.
  3.  SUCH FUND SHALL CONSIST OF ALL OF THE FOLLOWING: (A) MONEYS APPRO-
PRIATED BY THE STATE LEGISLATURE FOR THE PURPOSE OF SUCH FUND OR  OTHER-
WISE  TRANSFERRED BY THE STATE FOR DEPOSIT THEREIN BY THE COMPTROLLER AS
REQUIRED BY LAW; (B) PAYMENTS OF THE  LOAN  ORIGINATION  FEE  AUTHORIZED
PURSUANT  TO SUBDIVISION SIX OF THIS SECTION; (C) INVESTMENT EARNINGS ON
AMOUNTS IN SUCH FUND; (D) THE PROCEEDS OF BONDS OR NOTES ISSUED  BY  THE
CORPORATION  FOR PURPOSES OF LEVERAGING CAPITAL ON BEHALF OF SMALL BUSI-
NESSES SEEKING TO ACHIEVE POLLUTION PREVENTION AND/OR COMPLY WITH FEDER-
AL OR STATE ENVIRONMENTAL LAWS; AND (E) ANY OTHER PAYMENTS RECEIVED FROM
THE FEDERAL GOVERNMENT OR OTHER SOURCES FOR THE PURPOSES OF THE FUND.
  4. (A) MONEYS IN SUCH FUND SHALL BE APPLIED BY THE  CORPORATION  AS  A
LOAN  LOSS  RESERVE  FUND,  TO  PROVIDE  CREDIT ENHANCEMENT TO ENCOURAGE
FINANCIAL INSTITUTIONS TO MAKE POLLUTION PREVENTION OR COMPLIANCE  LOANS
INCLUDING  SUCH LOANS AS MAY BE NECESSARY TO PURCHASE, LEASE, INSTALL OR
ACQUIRE POLLUTION CONTROL EQUIPMENT TO SMALL BUSINESSES.
  (B) THE CORPORATION IS HEREBY AUTHORIZED TO PROVIDE ASSISTANCE IN  THE
FORM  OF A LOAN LOSS RESERVE FUND FOR LOANS BY FINANCIAL INSTITUTIONS TO
SMALL BUSINESSES THAT OTHERWISE FIND IT DIFFICULT TO OBTAIN BANK FINANC-
ING FOR POLLUTION PREVENTION OR  COMPLIANCE  ACTIVITIES  CONTROL.    THE
CORPORATION MAY USE MONEYS IN THE FUND TO GUARANTEE UP TO NINETY PERCENT
OF  THE  OUTSTANDING  PRINCIPAL  OF  EACH LOAN TO BE MADE BY A FINANCIAL
INSTITUTION TO A SMALL BUSINESS FOR POLLUTION PREVENTION  OR  COMPLIANCE
ACTIVITIES,  PROVIDED,  HOWEVER, THAT NO LOAN BY A FINANCIAL INSTITUTION
PURSUANT TO THIS SECTION SHALL EXCEED FIVE HUNDRED THOUSAND DOLLARS.
  5. (A) THE CORPORATION SHALL  ENTER  INTO  AGREEMENTS  WITH  FINANCIAL
INSTITUTIONS  GOVERNING  PARTICIPATION  IN THE FUND WHICH SHALL INCLUDE,
BUT NOT BE LIMITED TO, THE TERMS OF THE PAYMENT OF  CLAIMS  PURSUANT  TO
SUBDIVISION  SEVEN  OF THIS SECTION. SUCH AGREEMENTS SHALL SET FORTH ANY
LOAN APPLICATION FEE TO BE CHARGED BY THE FINANCIAL INSTITUTION  TO  THE
APPLICANT AND THE LOAN ORIGINATION FEE TO BE PAID TO THE CORPORATION FOR
LOANS  PURSUANT TO THIS SECTION. IN ENTERING INTO AGREEMENTS WITH FINAN-
CIAL INSTITUTIONS, THE CORPORATION SHALL GIVE PRIORITY TO THE  EXECUTION
OF  AGREEMENTS  WHICH  PROVIDE  FOR THE PARTICIPATION OF A CONSORTIUM OF
FINANCIAL INSTITUTIONS SERVING AN ENTIRE ECONOMIC DEVELOPMENT REGION  AS
DEFINED IN SECTION TWO HUNDRED THIRTY OF THE ECONOMIC DEVELOPMENT LAW.
  (B) THE CORPORATION SHALL ALSO ESTABLISH PROCEDURES AND OTHER REQUIRE-
MENTS  FOR SMALL BUSINESS PARTICIPATION. SUCH PROCEDURES SHALL INCLUDE A
SIMPLIFIED APPLICATION FORM FOR  SMALL  BUSINESSES  SEEKING  ASSISTANCE.
SUCH  APPLICATION  SHALL  REQUIRE  A DEMONSTRATION BY THE APPLICANT THAT
DIFFICULTY  IN  OBTAINING  CONVENTIONAL  BANK  FINANCING  FOR  POLLUTION
PREVENTION OR COMPLIANCE ACTIVITIES IN THE PURCHASE, LEASE, INSTALLATION
OR ACQUISITION OF POLLUTION CONTROL EQUIPMENT IMPEDES THE ABILITY OF THE
APPLICANT  TO  ACHIEVE  POLLUTION  PREVENTION  OR COMPLY WITH FEDERAL OR

A. 3433                             3

STATE ENVIRONMENTAL LAWS.   SUCH APPLICATION  SHALL  ALSO  INCLUDE  SUCH
SPECIFIC  INFORMATION AS THE CORPORATION MAY REQUIRE, WITH REGARD TO THE
POLLUTION PREVENTION OR COMPLIANCE ACTIVITIES PROPOSED,  AND  THE  ESTI-
MATED COST OF FINANCING SUCH ACTIVITIES.
  (C)  WITHIN TWENTY-EIGHT DAYS OF RECEIPT OF AN APPLICATION PURSUANT TO
THIS SECTION, THE CORPORATION SHALL EITHER APPROVE OR REJECT SUCH APPLI-
CATION. THE CORPORATION SHALL APPROVE AN APPLICATION PURSUANT  TO  PARA-
GRAPH (B) OF THIS SUBDIVISION BASED UPON A DETERMINATION THAT:
  (1)  THE  PROPOSED  POLLUTION PREVENTION OR COMPLIANCE ACTIVITIES WILL
ASSIST THE SMALL BUSINESS IN ACHIEVING POLLUTION PREVENTION AND/OR  FULL
COMPLIANCE WITH FEDERAL OR STATE ENVIRONMENTAL LAWS;
  (2)  A LOAN IS REQUIRED TO FINANCE THE POLLUTION PREVENTION OR COMPLI-
ANCE ACTIVITIES OR TO FINANCE THE PURCHASE, LEASE, INSTALLMENT OR ACQUI-
SITION OF POLLUTION CONTROL EQUIPMENT;
  (3) APPROVAL IS NOT SOUGHT FOR AN OUTSTANDING LOAN PREVIOUSLY MADE  BY
A FINANCIAL INSTITUTION TO THE SMALL BUSINESS; AND
  (4) NO CONCURRENT LOAN HAS BEEN MADE TO THE SMALL BUSINESS PURSUANT TO
THIS SECTION.
  (D)  IN THE APPROVAL OF APPLICATIONS, THE CORPORATION SHALL GIVE PREF-
ERENCE TO THOSE SMALL BUSINESSES WHICH ARE:
  (1) SEEKING TO COMPLY WITH NEW REQUIREMENTS IMPOSED  PURSUANT  TO  THE
FEDERAL  CLEAN AIR ACT (42 U.S.C.  7401 ET SEQ. AS AMENDED BY P.L.  101-
549), THE NEW YORK STATE CLEAN AIR COMPLIANCE ACT AS, ESTABLISHED PURSU-
ANT TO CHAPTER SIX HUNDRED EIGHT OF THE LAWS OF NINETEEN  HUNDRED  NINE-
TY-THREE,  THE  PROVISIONS  OF  ARTICLE  SEVENTEEN  OF THE ENVIRONMENTAL
CONSERVATION LAW RELATING TO WATER POLLUTION CONTROL, AND THE PROVISIONS
OF TITLE NINE OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL  CONSERVATION
LAW, RELATING TO INDUSTRIAL HAZARDOUS WASTE MANAGEMENT, OR ANY RULES AND
REGULATIONS PROMULGATED THEREUNDER; AND ARE
  (2) SEEKING TO COMPLY WITH NEW REQUIREMENTS IMPOSED PURSUANT TO FEDER-
AL OR STATE ENVIRONMENTAL LAWS; AND ARE
  (3)  IN HIGHLY DISTRESSED AREAS OR MINORITY-OWNED BUSINESS ENTERPRISES
OR WOMEN-OWNED BUSINESS ENTERPRISES.
  (E) UPON APPROVAL OR DENIAL OF AN APPLICATION, THE  CORPORATION  SHALL
NOTIFY THE APPLICANT OF SUCH ACTION BY REGULAR MAIL. THE CORPORATION MAY
ALSO  NOTIFY  ANY  FINANCIAL INSTITUTION OF THE APPROVAL OR DENIAL OF AN
APPLICATION.
  6. (A) DECISIONS TO EXECUTE A LOAN PURSUANT TO THIS SECTION  SHALL  BE
MADE SOLELY BY THE FINANCIAL INSTITUTION AND MAY PROVIDE FOR SUCH INTER-
EST  RATE, FEES AND OTHER TERMS AND CONDITIONS AS THE FINANCIAL INSTITU-
TION AND BORROWER MAY AGREE, PROVIDED, HOWEVER, THAT:
  (1) UNLESS APPROVED BY THE CORPORATION, THE TERM OF THE LOAN SHALL NOT
EXCEED SEVEN YEARS OR THE ESTIMATED USEFUL LIFE OF ANY FINANCED  CHANGES
IN  POLLUTION  PREVENTION  OR CONTROL METHODS OR EQUIPMENT, WHICHEVER IS
LESS; AND
  (2) IF THE AMOUNT OF THE LOAN IS DETERMINED BY A COMMITMENT  AGREEMENT
THAT  ESTABLISHES A LINE OF CREDIT, THE AMOUNT OF THE ACTUAL LOAN IS THE
MAXIMUM AMOUNT AVAILABLE TO THE BORROWER UNDER THE AGREEMENT.
  (B) A SMALL BUSINESS, IN RECEIPT OF A LOAN PURSUANT TO  THIS  SECTION,
SHALL  PAY  AN  ORIGINATION  FEE TO THE CORPORATION UPON DISTRIBUTION OF
LOAN PROCEEDS. MONEYS FROM SUCH A FEE SHALL BE DEPOSITED  IN  THE  FUND;
PROVIDED, HOWEVER, THAT THE CORPORATION, IN CONSULTATION WITH THE DIREC-
TOR  OF THE DIVISION OF THE BUDGET, MAY USE A PORTION OF SUCH MONEYS FOR
THE ADMINISTRATION OF THE FUND. NOTHING CONTAINED IN THIS SECTION  SHALL
PROHIBIT THE FINANCING OF THE ORIGINATION FEE IN THE TERMS OF THE LOAN.

A. 3433                             4

  7.  (A)  UPON  THE  DEFAULT OF A LOAN MADE PURSUANT TO THIS SECTION, A
FINANCIAL INSTITUTION  MAY  FILE  CONTEMPORANEOUSLY  WITH  A  NOTICE  OF
DEFAULT  TO  THE SMALL BUSINESS, A CLAIM WITH THE CORPORATION TO RECOVER
THE OUTSTANDING PRINCIPAL PLUS ACCRUED  INTEREST  AND  ONE-HALF  OF  THE
DOCUMENTED  OUT-OF-POCKET  EXPENSES INCURRED IN PURSUING LOAN COLLECTION
EFFORTS, INCLUDING PRESERVATION OF COLLATERAL. THE AMOUNT  OF  PRINCIPAL
AND  ACCRUED INTEREST INCLUDED IN THE CLAIM MAY NOT EXCEED THE PRINCIPAL
AMOUNT AGREED UPON AT THE TIME OF CLOSING, PLUS ACCRUED INTEREST ATTRIB-
UTABLE TO SUCH AGREED UPON AMOUNTS, CONSISTENT WITH THE REQUIREMENTS  OF
THIS SECTION.
  (B) FOR LOANS MADE PURSUANT TO THIS SECTION, THE FINANCIAL INSTITUTION
SHALL  DETERMINE  A  LOAN  TO  BE IN DEFAULT IN A MANNER CONSISTENT WITH
METHODS EMPLOYED BY THE FINANCIAL INSTITUTION FOR SIMILAR LOANS NOT MADE
PURSUANT TO THIS SECTION.
  (C) THE CORPORATION IS AUTHORIZED AND  DIRECTED  TO  ADOPT  RULES  AND
REGULATIONS  GOVERNING  THE  PAYMENT OF CLAIMS FROM THE FUND. SUCH RULES
AND REGULATIONS SHALL PROVIDE THAT UPON RECEIPT OF A CLAIM  FILED  BY  A
FINANCIAL  INSTITUTION, THE CORPORATION SHALL, WITHIN TEN BUSINESS DAYS,
PAY FROM THE FUND THE AMOUNT OF THE CLAIM AS SUBMITTED, UNLESS  INFORMA-
TION  PROVIDED  BY THE FINANCIAL INSTITUTION IS FOUND BY THE CORPORATION
TO BE INCOMPLETE OR WAS KNOWN BY THE FINANCIAL INSTITUTION TO  BE  FALSE
AT  THE CLOSING OF THE LOAN. THE TERMS OF THE PAYMENT OF CLAIMS FROM THE
FUND SHALL BE INCLUDED IN THE AGREEMENT ENTERED INTO BY THE  CORPORATION
AND  THE  FINANCIAL  INSTITUTION  PURSUANT  TO  SUBDIVISION FIVE OF THIS
SECTION.
  (D) UPON PAYMENT OF A CLAIM, THE CORPORATION SHALL REPORT THE CLAIM TO
THE OFFICE OF THE ATTORNEY GENERAL, WHO THEN SHALL EXERCISE  THE  RIGHTS
OF SUBROGATION. THE FINANCIAL INSTITUTION THEREAFTER SHALL ASSIGN TO THE
ATTORNEY  GENERAL ANY RIGHT, TITLE, OR INTEREST TO ANY COLLATERAL, SECU-
RITY, OR OTHER RIGHT OF RECOVERY IN CONNECTION WITH THE LOAN. ANY  MONEY
RECEIVED  BY  THE  ATTORNEY  GENERAL  AS A RESULT OF ENFORCEMENT ACTIONS
TAKEN WITH RESPECT TO ANY COLLATERAL, SECURITY OR OTHER RIGHTS OF RECOV-
ERY SHALL BE PROMPTLY DEPOSITED BY  THE  ATTORNEY  GENERAL  THROUGH  THE
CORPORATION IN THE FUND, LESS ANY OUT-OF-POCKET EXPENSES INCURRED BY THE
ATTORNEY GENERAL IN TAKING SUCH ENFORCEMENT ACTIONS.
  8.  PURSUANT  TO  RULES AND REGULATIONS OF THE CORPORATION, THE CORPO-
RATION MAY TERMINATE THE PARTICIPATION OF A FINANCIAL INSTITUTION IN THE
FUND UPON A DETERMINATION THAT SUCH INSTITUTION IS  NOT  IN  SUBSTANTIAL
COMPLIANCE WITH THE REQUIREMENTS OF THIS SECTION OR THE PROVISIONS OF AN
AGREEMENT  EXECUTED  PURSUANT  TO SUBDIVISION FIVE OF THIS SECTION.  THE
CORPORATION SHALL PROVIDE NOTICE TO A  FINANCIAL  INSTITUTION  AT  LEAST
NINETY DAYS IN ADVANCE OF SUCH TERMINATION.
  9.  THE  CORPORATION  SHALL  MONITOR  THE  ACTIVITIES OF PARTICIPATING
FINANCIAL INSTITUTIONS AND SMALL BUSINESSES AND MAY REQUIRE SUCH PERIOD-
IC REPORTS OR OTHER INFORMATION AS DEEMED  NECESSARY  FROM  SUCH  INSTI-
TUTIONS  AND  BUSINESSES  ON  THE  STATUS OF LOANS MADE PURSUANT TO THIS
SECTION. ON OR BEFORE THE FIRST DAY OF  MARCH  FOLLOWING  THE  EFFECTIVE
DATE  OF  THIS SECTION, AND ON SUCH DATE ANNUALLY THEREAFTER, THE CORPO-
RATION SHALL SUBMIT TO THE GOVERNOR,  THE  TEMPORARY  PRESIDENT  OF  THE
SENATE AND THE SPEAKER OF THE ASSEMBLY A REPORT ON THE FUND. SUCH REPORT
SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (A)  THE  TOTAL  NUMBER  AND AMOUNT OF LOANS AND THE AVERAGE AMOUNT OF
LOANS LEVERAGED BY THE FUND FROM FINANCIAL INSTITUTIONS IN EACH ECONOMIC
DEVELOPMENT REGION OF THE STATE AS DEFINED IN SECTION TWO HUNDRED THIRTY
OF THE ECONOMIC DEVELOPMENT LAW;

A. 3433                             5

  (B) THE TOTAL NUMBER AND AMOUNT OF LOANS AND  THE  AVERAGE  AMOUNT  OF
LOANS  LEVERAGED  BY  THE  FUND  FROM FINANCIAL INSTITUTIONS PURSUANT TO
PARAGRAPH (D) OF SUBDIVISION FIVE OF THIS SECTION IN EACH  SUCH  REGION;
AND
  (C)  THE  TOTAL  NUMBER  AND  AMOUNT  OF CLAIMS SUBMITTED BY FINANCIAL
INSTITUTIONS FOR RECOVERY OF MONEYS THROUGH THE FUND, THE  TOTAL  NUMBER
AND  AMOUNT  OF  CLAIMS  PAID FROM THE FUND AND A SUMMARY OF THE CIRCUM-
STANCES ASSOCIATED WITH CLAIMS ON THE FUND.
  10. (A) ON OR BEFORE THE FIRST DAY OF SEPTEMBER FOLLOWING  THE  EFFEC-
TIVE  DATE OF THIS SECTION, AND ON SUCH DATE EVERY TWO YEARS THEREAFTER,
THE CORPORATION SHALL SUBMIT TO THE DIRECTOR OF THE BUDGET, THE CHAIR OF
THE SENATE FINANCE COMMITTEE AND THE CHAIR  OF  THE  ASSEMBLY  WAYS  AND
MEANS  COMMITTEE AN EVALUATION OF THE EFFECTIVENESS OF THE FUND IN REAL-
IZING POLLUTION PREVENTION BY SMALL BUSINESSES AND SECURING THE  COMPLI-
ANCE OF SUCH BUSINESSES WITH FEDERAL AND STATE ENVIRONMENTAL LAWS.  SUCH
EVALUATION SHALL BE PREPARED BY AN ENTITY INDEPENDENT OF THE CORPORATION
SELECTED THROUGH A REQUEST FOR PROPOSAL PROCESS AND SHALL INCLUDE RECOM-
MENDATIONS FOR IMPROVEMENTS TO THE IMPLEMENTATION OF THE FUND TO ENHANCE
SMALL BUSINESS POLLUTION PREVENTION, CONTROL AND COMPLIANCE.
  (B)  ON  OR  BEFORE THE FIRST DAY OF SEPTEMBER FOLLOWING THE EFFECTIVE
DATE OF THIS SECTION, AND ON SUCH DATE EVERY TWO YEARS  THEREAFTER,  THE
CORPORATION SHALL SUBMIT TO THE DIRECTOR OF THE BUDGET, THE CHAIR OF THE
SENATE  FINANCE  COMMITTEE  AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS
COMMITTEE AN EVALUATION OF THE EFFECTIVENESS OF THE FUND IN SECURING THE
COMPLIANCE OF SMALL BUSINESSES WITH  THE  REQUIREMENTS  OF  THE  FEDERAL
CLEAN AIR ACT (42 U.S.C. S7401 ET SEQ. AS AMENDED BY P.L.  101-549), THE
NEW  YORK  STATE  CLEAN  AIR  COMPLIANCE ACT, AS ESTABLISHED PURSUANT TO
CHAPTER SIX HUNDRED EIGHT OF THE LAWS OF NINETEEN HUNDRED  NINETY-THREE,
THE  PROVISIONS  OF  ARTICLE SEVENTEEN OF THE ENVIRONMENTAL CONSERVATION
LAW RELATING TO WATER POLLUTION CONTROL, AND  THE  PROVISIONS  OF  TITLE
NINE  OF  ARTICLE  TWENTY-SEVEN  OF  THE ENVIRONMENTAL CONSERVATION LAW,
RELATING TO INDUSTRIAL HAZARDOUS WASTE  MANAGEMENT,  OR  ANY  RULES  AND
REGULATIONS  PROMULGATED THEREUNDER.   SUCH EVALUATION SHALL BE PREPARED
BY AN ENTITY INDEPENDENT OF THE CORPORATION SELECTED THROUGH  A  REQUEST
FOR  PROPOSAL PROCESS AND SHALL INCLUDE RECOMMENDATIONS FOR IMPROVEMENTS
TO THE IMPLEMENTATION OF THE FUND TO ENHANCE  SMALL  BUSINESS  POLLUTION
PREVENTION, CONTROL AND COMPLIANCE.
  11.  THE CORPORATION SHALL MARKET THE FUND PROGRAM TO SMALL BUSINESSES
IN COOPERATION WITH FINANCIAL INSTITUTIONS, STATEWIDE TRADE ASSOCIATIONS
REPRESENTING FINANCIAL INSTITUTIONS  AND  SMALL  BUSINESSES,  LOCAL  AND
REGIONAL  ECONOMIC DEVELOPMENT AGENCIES, AND THE SMALL BUSINESS STATION-
ARY SOURCE  OMBUDSMAN  PROGRAM,  ESTABLISHED  PURSUANT  TO  SECTION  ONE
HUNDRED  THIRTY-SEVEN  OF  THE ECONOMIC DEVELOPMENT LAW. THE CORPORATION
SHALL DEVELOP A PROGRAM TO PROMOTE  AWARENESS  OF  THE  PROGRAM  IN  ALL
GEOGRAPHIC  REGIONS  OF  THE  STATE,  TO ENSURE MAXIMUM PARTICIPATION BY
SMALL BUSINESSES AND FINANCIAL INSTITUTIONS AND THE FISCAL INTEGRITY  OF
THE FUND.  AGREEMENTS ENTERED INTO BY THE CORPORATION PURSUANT TO SUBDI-
VISION  FIVE  OF  THIS  SECTION  SHALL  REQUIRE A PLAN BY EACH FINANCIAL
INSTITUTION FOR MARKETING THE FUND IN HIGHLY  DISTRESSED  AREAS,  EMPIRE
ZONES  AND  TO MINORITY-OWNED BUSINESS ENTERPRISES AND WOMEN-OWNED BUSI-
NESS ENTERPRISES, WITH APPROPRIATE LENDING OBJECTIVES IDENTIFIED BY EACH
FINANCIAL INSTITUTION FOR SUCH AREAS AND BUSINESSES.
  12. THE CORPORATION IS AUTHORIZED AND  DIRECTED  TO  ADOPT  RULES  AND
REGULATIONS  FOR  THE  ESTABLISHMENT  AND ADMINISTRATION OF THE FUND, IN
ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT. NO  FUNDS  SHALL

A. 3433                             6

BE  DISBURSED  FROM  THIS  PROGRAM UNTIL SUCH RULES AND REGULATIONS HAVE
BEEN PROMULGATED BY THE CORPORATION.
  13.  FOR  THE  PURPOSES  OF THIS SECTION, THE FOLLOWING WORDS OR TERMS
SHALL MEAN:
  (A) "FINANCIAL INSTITUTION" SHALL  MEAN  A  BANKING  ORGANIZATION,  AS
DEFINED  PURSUANT  TO  SECTION  TWO OF THE BANKING LAW, A NEW YORK SMALL
BUSINESS INVESTMENT COMPANY AND A NEW YORK  SPECIALIZED  SMALL  BUSINESS
INVESTMENT   COMPANY,   AS  DEFINED  PURSUANT  TO  SECTION  TWO  HUNDRED
TWENTY-EIGHT-A OF THE BANKING LAW, A LOCAL DEVELOPMENT  CORPORATION,  AS
DEFINED  IN  SUBDIVISION  EIGHT  OF SECTION EIGHTEEN HUNDRED ONE OF THIS
CHAPTER, AND THE NEW YORK BUSINESS DEVELOPMENT  CORPORATION  ESTABLISHED
PURSUANT TO SECTION TWO HUNDRED TEN OF THE BANKING LAW.
  (B)  "FUND"  SHALL  MEAN  THE SMALL BUSINESS ENVIRONMENTAL FUND ESTAB-
LISHED PURSUANT TO THIS SECTION.
  (C) "HIGHLY DISTRESSED AREA" SHALL MEAN AN AREA MEETING  THE  CRITERIA
AS  SET  FORTH UNDER SUBDIVISION (A) OF SECTION NINE HUNDRED FIFTY-EIGHT
OF THE GENERAL MUNICIPAL LAW.
  (D) "MINORITY-OWNED BUSINESS ENTERPRISE" SHALL HAVE THE  SAME  MEANING
AS  DEFINED  IN  SUBDIVISION  SEVEN  OF SECTION THREE HUNDRED TEN OF THE
EXECUTIVE LAW.
  (E) "POLLUTION CONTROL EQUIPMENT" SHALL MEAN ANY EQUIPMENT APPROVED BY
THE CORPORATION AS NECESSARY FOR COMPLIANCE WITH NEW REQUIREMENTS OF THE
FEDERAL CLEAN AIR ACT (42 U.S.C. S 7401 ET SEQ. AS AMENDED BY P.L.  101-
549), THE NEW YORK STATE CLEAN AIR COMPLIANCE ACT, AS ESTABLISHED PURSU-
ANT  TO  CHAPTER SIX HUNDRED EIGHT OF THE LAWS OF NINETEEN HUNDRED NINE-
TY-THREE, THE PROVISIONS  OF  ARTICLE  SEVENTEEN  OF  THE  ENVIRONMENTAL
CONSERVATION LAW RELATING TO WATER POLLUTION CONTROL, AND THE PROVISIONS
OF  TITLE NINE OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION
LAW, RELATING TO INDUSTRIAL HAZARDOUS WASTE MANAGEMENT, OR ANY RULES AND
REGULATIONS PROMULGATED THEREUNDER.
  (F) "POLLUTANT" SHALL MEAN ANY SUBSTANCE, CONTAMINANT, WASTE OR  EMIS-
SION  WHICH  CONTRIBUTES  TO  POLLUTION AS DEFINED IN ARTICLE ONE OF THE
ENVIRONMENTAL CONSERVATION LAW.
  (G) "POLLUTION PREVENTION" SHALL MEAN CHANGES IN PRODUCTION METHODS OR
RAW MATERIALS THAT REDUCE, AVOID, OR  ELIMINATE  THE  USE  OF  TOXIC  OR
HAZARDOUS  SUBSTANCES OR THE GENERATION OF SUCH SUBSTANCES OR POLLUTANTS
PER UNIT OF PRODUCT, SO AS TO REDUCE RISKS TO  THE  HEALTH  OF  WORKERS,
CONSUMERS,  OR  THE ENVIRONMENT, WITHOUT SHIFTING RISKS BETWEEN WORKERS,
CONSUMERS, OR ENVIRONMENTAL MEDIA.  POLLUTION  PREVENTION  INCLUDES  THE
REDESIGN,  MODIFICATION, UPGRADE OR REPLACEMENT OF PRODUCTION PROCESSES,
EQUIPMENT OR TECHNOLOGY; REFORMULATION OR REDESIGN OF PRODUCTS;  SUBSTI-
TUTION OF INPUTS OR RAW MATERIALS; IMPROVEMENTS IN HOUSEKEEPING, MAINTE-
NANCE,  TRAINING,  OR  INVENTORY  CONTROL;  AND EXTENDED USE OR REUSE OF
MATERIALS THROUGH METHODS INTEGRAL TO THE PRODUCTION  PROCESS,  SUCH  AS
IN-PROCESS,  CLOSED-LOOP  RECYCLING.  IT  DOES NOT INCLUDE INCINERATION,
TRANSFER FROM ONE MEDIUM OF RELEASE OR DISCHARGE TO ANOTHER MEDIA,  OFF-
SITE  OR OUT-OF-PRODUCTION RECYCLING, END-OF-PIPE TREATMENT OR POLLUTION
CONTROL.
  (H) "TOXIC OR HAZARDOUS SUBSTANCE" SHALL MEAN ANY SUBSTANCE LISTED  AS
A  SUBSTANCE  HAZARDOUS  TO  PUBLIC HEALTH, SAFETY OR THE ENVIRONMENT IN
REGULATIONS PROMULGATED PURSUANT TO ARTICLE THIRTY-SEVEN OF THE ENVIRON-
MENTAL CONSERVATION LAW.
  (I) "SMALL BUSINESS" SHALL HAVE THE SAME MEANING AS DEFINED IN SECTION
ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW.
  (J) "WOMEN-OWNED BUSINESS ENTERPRISE" SHALL HAVE THE SAME  MEANING  AS
SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW.

A. 3433                             7

  S  3. Subdivision 1 of section 16-m of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban  development  corpo-
ration act, is amended by adding a new paragraph (o) to read as follows:
  (O)  ASSISTANCE  TO  CAPITALIZE THE SMALL BUSINESS ENVIRONMENTAL FUND,
ESTABLISHED PURSUANT TO SECTION  TWELVE  HUNDRED  EIGHTY-FIVE-S  OF  THE
PUBLIC AUTHORITIES LAW.
  S 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that effective immediate-
ly,  the  addition,  amendment and/or repeal of any rules or regulations
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
and provided further that the amendments to section 16-m of section 1 of
chapter 174 of the laws of 1968, constituting the New York  state  urban
development  corporation  act,  made by section three of this act, shall
not affect the expiration of such section and shall be deemed to  expire
therewith.