S T A T E O F N E W Y O R K
________________________________________________________________________
9618
I N A S S E M B L Y
March 22, 2016
___________
Introduced by M. of A. RYAN -- read once and referred to the Committee
on Labor
AN ACT to amend the workers' compensation law, in relation to coverage
for members of the worker cooperative; to amend the state finance law
and the education law, in relation to employee owned enterprises; to
amend the cooperative corporations law, in relation to creating an
advisory panel on the viability of increasing employee-owned enter-
prises; and to amend the tax law, in relation to a capital gains
exemption
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 54 of the workers' compensation law is amended by
adding a new subdivision 9 to read as follows:
9. A. ALL MEMBERS, DIRECTORS AND EXECUTIVE OFFICERS OF A WORKER COOP-
ERATIVE AS DEFINED IN ARTICLE FIVE-A OF THE COOPERATIVE CORPORATION LAW
SHALL BE EXCLUDED FROM THE COVERAGE OF THIS CHAPTER UNLESS ANY ONE OR
MORE OF THE MEMBERS, DIRECTORS OR EXECUTIVE OFFICERS ELECT OR ELECTS TO
BE COVERED. SUCH COVERAGE MAY BE EFFECTED BY OBTAINING AN INSURANCE
POLICY OR, IN THE CASE OF SELF-INSURANCE, BY THE COOPERATIVE SUBMITTING
A FORM PRESCRIBED BY THE CHAIR OF THE WORKERS' COMPENSATION BOARD,
GIVING NOTICE THAT THE COOPERATIVE ELECTS TO BRING ONE OR MORE OF THE
MEMBERS, DIRECTORS OR EXECUTIVE OFFICERS OF SUCH COOPERATIVE NAMED IN
THE NOTICE WITHIN THE COVERAGE OF THIS CHAPTER. IF ANY MEMBER, DIRECTOR
OR EXECUTIVE OFFICER DOES ELECT TO BE COVERED BY THE PROVISIONS OF THIS
CHAPTER, ANY PREMIUM FOR SUCH MEMBER, DIRECTOR OR EXECUTIVE OFFICER
SHALL BE CALCULATED BASED UPON ACTUAL WEEKLY WAGES EARNED BY THE MEMBER,
DIRECTOR OR EXECUTIVE OFFICER AND ANY MINIMUM WEEKLY REMUNERATION FOR
EXECUTIVE OFFICERS OR OTHER MINIMUM AMOUNTS SHALL NOT APPLY.
B. THE MEMBERS, DIRECTORS AND EXECUTIVE OFFICERS OF A WORKER COOPER-
ATIVE BROUGHT WITHIN THE COVERAGE OF THE INSURANCE CONTRACT, AND THE
DEPENDENTS OF ANY SUCH MEMBER, DIRECTOR OR EXECUTIVE OFFICER SHALL HAVE
THE SAME RIGHTS AND REMEDIES AS AN EMPLOYEE OR HIS DEPENDENTS AND SHALL
BE ENTITLED TO COMPENSATION AND MEDICAL CARE AS PROVIDED BY THIS CHAPTER
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14613-02-6
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AND THE INSURANCE CARRIER SHALL BE LIABLE THEREFOR AND FOR PAYMENTS INTO
SPECIAL FUNDS PROVIDED IN THIS CHAPTER AS IN THE CASE OF AN EMPLOYEE.
S 2. Paragraph j of subdivision 1 of section 163 of the state finance
law, as amended by chapter 569 of the laws of 2015, is amended to read
as follows:
j. "Best value" means the basis for awarding contracts for services to
the offerer which optimizes quality, cost and efficiency, among respon-
sive and responsible offerers. Such basis shall reflect, wherever possi-
ble, objective and quantifiable analysis. Such basis may also identify a
quantitative factor for offerers that are small businesses, certified
minority- or women-owned business enterprises as defined in subdivisions
one, seven, fifteen and twenty of section three hundred ten of the exec-
utive law or service-disabled veteran-owned business enterprises as
defined in subdivision one of section three hundred sixty-nine-h of the
executive law, OR EMPLOYEE-OWNED ENTERPRISES AS DEFINED BY SUBDIVISION
FIVE OF SECTION EIGHTEEN HUNDRED THIRTY-SIX-B OF THE PUBLIC AUTHORITIES
LAW to be used in evaluation of offers for awarding of contracts for
services.
S 3. Paragraph (a) of subdivision 4 of section 3032 of the education
law, as amended by chapter 683 of the laws of 1986, is amended to read
as follows:
(a) Employer specific skill training grant programs shall be designed
to support, supplement and contribute to the expansion and maintenance
of the economy of the state. Local education agencies shall apply to the
commissioner for grants for conducting employer specific skill training
programs. Application for funds by local education agencies for training
programs shall be in a manner consistent with the application process
for business and industry specific training programs under the voca-
tional education act of 1963 and the job training partnership act; the
sum of such grants per region shall not exceed the total funds allocated
or reallocated to the region for such purposes. Such programs shall
provide retraining and upgrading to existing or potential personnel in
order to improve technology, quality control, production efficiency, or
to adapt to other changes in the labor market, or to provide unique
training programs to meet the emerging needs and occupations of the
state's business and industry or providing training to individuals to
promote the successful management and/or operation of [a business
purchased by such individuals to provide for their continued employment
through the formation of a worker owned cooperative or an employee stock
ownership plan] EMPLOYEE-OWNED ENTERPRISES, AS DEFINED BY SUBDIVISION
FIVE OF SECTION EIGHTEEN HUNDRED THIRTY-SIX-B OF THE PUBLIC AUTHORITIES
LAW, BY SUCH EMPLOYEES. No grant shall exceed fifty per centum of the
total program cost. Eligible program cost may include employer wages
paid to the employee for time spent in the training program. Applica-
tions for a grant by local education agencies shall be in a form
prescribed by the commissioner.
S 4. The cooperative corporations law is amended by adding a new
section 95 to read as follows:
S 95. ADVISORY PANEL ON VIABILITY OF INCREASING EMPLOYEE-OWNED ENTER-
PRISES. 1. AN ADVISORY PANEL IS HEREBY CREATED UNDER THE DEPARTMENT OF
LABOR TO INVESTIGATE HOW THE NUMBER OF WORKER COOPERATIVES AND EMPLOYEE
STOCK OWNERSHIP PLANS CAN BE INCREASED TO HELP KEEP LOCAL JOBS WITHIN
THE STATE. THE ADVISORY PANEL SHALL ALSO STUDY THE POSSIBILITY OF FUND-
ING A STATE CENTER FOR DEMOCRATIC EMPLOYEE OWNERSHIP THROUGH SECTION ONE
HUNDRED FOUR-A OF THE ECONOMIC DEVELOPMENT LAW, TO PROMOTE
EMPLOYEE-OWNED BUSINESSES, PROVIDE ASSISTANCE TO NEW COMPANIES, FACILI-
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TATE TRANSFERS FROM RETIRING BUSINESS OWNERS TO NEW EMPLOYEE-OWNED
ENTERPRISES, AS DEFINED BY SUBDIVISION FIVE OF SECTION EIGHTEEN HUNDRED
THIRTY-SIX-B OF THE PUBLIC AUTHORITIES LAW, AND PROVIDE TRAINING TO
EMPLOYEES OF WORKER COOPERATIVES AND EMPLOYEE STOCK OWNERSHIP PLANS.
2. SUCH ADVISORY PANEL SHALL BE APPOINTED BY THE COMMISSIONER OF LABOR
AND SUCH COMMISSIONER SHALL ESTABLISHED THE NUMBER AND COMPOSITION OF
INDIVIDUALS TO SERVE ON SUCH ADVISORY PANEL.
3. SUCH PANEL MEMBERS SHALL SERVE WITHOUT COMPENSATION EXCEPT THAT
SUCH MEMBERS SHALL BE ENTITLED TO REIMBURSEMENT FOR ACTUAL AND NECESSARY
EXPENSES INCURRED IN SUCH SERVICE.
4. THE ADVISORY PANEL SHALL MAKE AN ANNUAL UPDATE AND RECOMMENDATIONS
TO THE SPEAKER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF THE SENATE AND
THE GOVERNOR REGARDING THE FINDINGS OF SUCH INVESTIGATION AND STUDY
DESCRIBED IN SUBDIVISION ONE OF THIS SECTION.
S 5. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 44 to read as follows:
(44) FIFTY-PERCENT OF THE CAPITAL GAINS FROM THE SALE OF STOCK FROM A
NEW YORK CORPORATION TO AN EMPLOYEE-OWNED ENTERPRISE, AS DEFINED BY
SUBDIVISION FIVE OF SECTION EIGHTEEN HUNDRED THIRTY-SIX-B OF THE PUBLIC
AUTHORITIES LAW. IN ORDER TO QUALIFY FOR SUCH MODIFICATION AS DESCRIBED
IN THIS PARAGRAPH, SUCH EMPLOYEE-OWNED ENTERPRISE MUST HAVE ITS COMMER-
CIAL DOMICILE IN NEW YORK. IF THE EMPLOYEE-OWNED ENTERPRISE IS AN
"EMPLOYEE STOCK OWNERSHIP PLAN," IT MUST COMPLY WITH FEDERAL REQUIRE-
MENTS AS SUCH PLAN AS DEFINED IN 26 U.S.C. S 4975(E)(7).
S 6. This act shall take effect immediately; provided, however that
the amendments to section 163 of the state finance law made by section
two of this act shall not affect the repeal of such section and shall be
deemed repealed therewith.