S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7427--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 25, 2017
                                ___________
 
 Introduced  by  M.  of  A. SCHIMMINGER, THIELE, WALTER, BARRETT, BARRON,
   BRAUNSTEIN, BRINDISI, BRONSON, BUTLER, CAHILL, CROUCH, ERRIGO,  JENNE,
   SKARTADOS,   SKOUFIS,   BENEDETTO,   LUPARDO,  M. G. MILLER,  HYNDMAN,
   JEAN-PIERRE, WILLIAMS,  GALEF,  ROZIC,  ABINANTI,  D'URSO,  MORINELLO,
   JAFFEE,  GOTTFRIED,  ORTIZ,  OAKS, RA, MURRAY, MONTESANO, BLANKENBUSH,
   DICKENS, HEVESI, LAWRENCE, BRABENEC, BLAKE, SEPULVEDA,  KOLB,  LAVINE,
   WRIGHT,  FAHY, COOK, HAWLEY -- Multi-Sponsored by -- M. of A. BARCLAY,
   BUCHWALD, GLICK, MAGEE, McDONOUGH, PRETLOW, SIMON, WALSH, WEINSTEIN --
   read once and referred to the Committee  on  Economic  Development  --
   reported  and referred to the Committee on Ways and Means -- recommit-
   ted to the Committee on Ways and Means  in  accordance  with  Assembly
   Rule  3,  sec.  2  --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the economic development law, in relation  to  reporting
   requirements  for  the  START-UP  NY  program  including specific data
   relating to net new jobs
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1. Notwithstanding the provisions of article 5 of the general
 construction law, the provisions of section 438 of the economic develop-
 ment law, as amended by section two of this act, are hereby revived  and
 shall  continue  in  full force and effect as such provisions existed on
 April 10, 2017.
   § 2. Section 438 of the economic development law, as added by  section
 1  of  part  A  of chapter 68 of the laws of 2013, is amended to read as
 follows:
   § 438. Disclosure authorization and  reporting  requirements.  1.  The
 commissioner  and  the  department shall disclose publicly the names and
 addresses of the businesses located within a tax-free NY area. In  addi-
 tion,  the  commissioner  and the department shall disclose publicly and
 include in the annual report required  under  subdivision  two  of  this

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

                                                            LBD11124-03-8

 A. 7427--A                          2
 
 section  such  other  information contained in such businesses' applica-
 tions and annual reports, including the projected number of net new jobs
 to be created, as they determine is relevant and necessary  to  evaluate
 the success of this program.
   2. (a) The commissioner shall prepare an annual report to the governor
 and the legislature NO LATER THAN APRIL FIRST, TWO THOUSAND NINETEEN AND
 ANNUALLY  THEREAFTER.   Such report shall include the number of business
 applicants, number of businesses approved, the names  and  addresses  of
 the  businesses located within a tax-free NY area, total amount of bene-
 fits distributed, benefits received per business, number of net new jobs
 created, net new jobs created per business, new investment per business,
 the types of industries represented and such other  information  as  the
 commissioner  determines  is  necessary  to evaluate the progress of the
 START-UP NY program.  SUCH ANNUAL REPORT SHALL, AT  A  MINIMUM,  INCLUDE
 ANNUAL PROGRAM DATA AND INFORMATION ATTRIBUTABLE SOLELY TO THE PRECEDING
 CALENDAR YEAR.  IN ADDITION, SUCH REPORT SHALL INCLUDE CUMULATIVE ANNUAL
 PROGRAM  DATA  INCLUDING  ALL NET NEW JOBS PREVIOUSLY RECORDED, ADJUSTED
 FOR NET NEW JOBS THAT HAVE BEEN SUBSEQUENTLY LOST. CUMULATIVE DATA SHALL
 BE PRESENTED SEPARATE AND DISTINCT FROM ANNUAL PROGRAM  DATA  REPORTING.
 SUCH  REPORT  SHALL BE POSTED AS A SEPARATE DOCUMENT ON THE DEPARTMENT'S
 WEBSITE.
   (b) Any business located in a tax-free NY area must submit  an  annual
 report  to  the  commissioner  in  a form and at such time and with such
 information as prescribed by the commissioner in consultation  with  the
 commissioner  of  taxation and finance. Such information shall be suffi-
 cient for the commissioner and the commissioner of taxation and  finance
 to:  (i)  monitor  the  continued  eligibility  of  the business and its
 employees to participate in the START-UP NY program and receive the  tax
 benefits  described in section thirty-nine of the tax law; (ii) evaluate
 the progress of the START-UP NY program; and (iii)  prepare  the  annual
 report required by paragraph (a) of this subdivision. Such annual report
 shall  also include information regarding the wages paid during the year
 to its employees employed in the net new jobs created and maintained  in
 the tax-free NY area.
   §  3. Subdivision 1 of section 433 of the economic development law, as
 amended by section 3 of part UUU of chapter 59 of the laws of  2017,  is
 amended to read as follows:
   1. In order to participate in the START-UP NY program, a business must
 satisfy all of the following criteria.
   (a)  The  mission  and  activities  of the business must align with or
 further the academic mission of the campus, college or university  spon-
 soring  the  tax-free NY area in which it seeks to locate, and the busi-
 ness's participation in the  START-UP  NY  program  must  have  positive
 community and economic benefits.
   (b)  The  business must demonstrate that it will, in its first year of
 operation, create net new jobs. After its first year of  operation,  the
 business  must maintain net new jobs. In addition, the average number of
 employees of the business and its related persons in  the  state  during
 the  year  must  equal  or  exceed the sum of: (i) the average number of
 employees of the business and its related persons in  the  state  during
 the  year  immediately  preceding the year in which the business submits
 its application to locate in a tax-free NY area; and (ii) net  new  jobs
 of  the  business  in  the tax-free NY area during the year. The average
 number of employees of the business and its related persons in the state
 shall be determined by adding together the total number of employees  of
 the business and its related persons in the state on March thirty-first,

 A. 7427--A                          3

 June thirtieth, September thirtieth and December thirty-first and divid-
 ing the total by the number of such dates occurring within such year.
   (c)  Except  as provided in paragraphs [(f)] (G) and [(g)] (H) of this
 subdivision, at the time it submits its application for the START-UP  NY
 program, the business must be a new business to the state.
   (d)  The  business  may  be organized as a corporation, a partnership,
 limited liability company or a sole proprietorship.
   (e) UPON COMPLETION OF ITS FIRST YEAR IN THE START-UP NY  PROGRAM  AND
 THEREAFTER, THE BUSINESS MUST COMPLETE AND TIMELY FILE THE ANNUAL REPORT
 REQUIRED UNDER SECTION FOUR HUNDRED THIRTY-EIGHT OF THIS ARTICLE.
   (F)  Except  as provided in paragraphs [(f)] (G) and [(g)] (H) of this
 subdivision, the business must not be engaged in a line of business that
 is currently or was previously conducted by the business  or  a  related
 person in the last five years in New York state.
   [(f)]  (G) If a business does not satisfy the eligibility standard set
 forth in paragraph (c) or [(e)] (F) of this subdivision, because at  one
 point in time it operated in New York state but moved its operations out
 of  New  York  state on or before June first, two thousand thirteen, the
 commissioner shall grant that business permission to  apply  to  partic-
 ipate in the START-UP NY program if the commissioner determines that the
 business has demonstrated that it will substantially restore the jobs in
 New York state that it previously had moved out of state.
   [(g)]  (H) If a business seeks to expand its current operations in New
 York state into a tax-free NY area but the business does not qualify  as
 a new business because it does not satisfy the criteria in paragraph (c)
 of subdivision six of section four hundred thirty-one of this article or
 the  business  does  not  satisfy  the eligibility standard set forth in
 paragraph [(e)] (F) of this subdivision, the  commissioner  shall  grant
 the  business  permission  to  apply  to  participate in the START-UP NY
 program if the commissioner determines  that  the  business  has  demon-
 strated  that  it  will  create net new jobs in the tax-free NY area and
 that it or any related person has not eliminated any jobs in  the  state
 in connection with this expansion.
   § 4. This act shall take effect immediately.