S T A T E   O F   N E W   Y O R K
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                                  2804--A
                                                         Cal. No. 223
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2017
                                ___________
 
 Introduced by M. of A. THIELE -- read once and referred to the Committee
   on  Small  Business -- advanced to a third reading, passed by Assembly
   and delivered to the Senate, recalled from the Senate, vote  reconsid-
   ered,  bill  amended,  ordered  reprinted,  retaining its place on the
   order of third reading
 
 AN ACT to amend the New York state urban development corporation act and
   the economic development law, in relation to the creation of micro-bu-
   siness worker cooperatives upon transfer of ownership
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 1 of section 16-m of 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 paragraph (o) to read as
 follows:
   (O) ASSISTANCE TO ELIGIBLE ENTITIES PURSUANT TO ARTICLE FIVE-A OF  THE
 COOPERATIVE  CORPORATIONS LAW TO PROVIDE FINANCING IN THE FORM OF LOANS,
 LOAN GUARANTEES, AND INTEREST SUBSIDY GRANTS  TO  SUBSIDIZE  LOANS  FROM
 FEDERALLY  CHARTERED  INSTRUMENTALITIES  AND  STATE  AND PRIVATE LENDING
 INSTITUTIONS TO FACILITATE THE  CREATION  OF  WORKER  COOPERATIVES  THAT
 PROMOTE  CONTINUATION OF EXISTING MICRO-BUSINESSES EITHER AS A PART OF A
 PREEXISTING BUSINESS SUCCESSION OF  OWNERSHIP  PLAN  OR  AS  ALTERNATIVE
 OPTION  IF  A  BUSINESS  IS  BEING  OFFERED  FOR SALE OR TRANSFER BY THE
 CURRENT OWNER OR THE HEIRS OR  ESTATE  OF  A  DECEASED  OWNER.  FOR  THE
 PURPOSES  OF  THIS SECTION, A MICRO-BUSINESS SHALL BE DEFINED AS A BUSI-
 NESS WITH FIVE OR LESS FULL-TIME OR FULL-TIME EQUIVALENT EMPLOYEES.  ALL
 ELIGIBLE ENTITIES SHALL BE REQUIRED TO SUBMIT A BUSINESS PLAN WITH THEIR
 APPLICATION REQUESTING ASSISTANCE.
   §  2.  The opening paragraph of section 104-a of the economic develop-
 ment law, as added by chapter 788 of the laws of  1983,  is  amended  to
 read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08416-08-8

 A. 2804--A                          2
 
   With  respect  to  employee ownership assistance loans provided for in
 subtitle six of title eight of article eight of the  public  authorities
 law AND PARAGRAPH (O) OF SUBDIVISION ONE OF SECTION SIXTEEN-M OF SECTION
 ONE  OF CHAPTER ONE HUNDRED SEVENTY-FOUR OF THE LAWS OF NINETEEN HUNDRED
 SIXTY-EIGHT,  CONSTITUTING  THE  NEW YORK STATE URBAN DEVELOPMENT CORPO-
 RATION ACT, the department shall have the power and duty and in  cooper-
 ation  with  the job development authority, THE EMPIRE STATE DEVELOPMENT
 CORPORATION AND ANY OTHER APPLICABLE STATE AGENCY OR OFFICE to:
   § 3. This act shall take effect immediately, provided,  however,  that
 the  amendments to section 16-m of the urban development corporation act
 made by section one of this act shall not affect the expiration of  such
 section and shall be deemed to expire therewith.