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
              

A. 9618                             2

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.