Senate Bill S5923B

                                 BILL NUMBER:  S5923

 TITLE OF BILL :

An act to amend the urban development corporation act, in relation to
assistance for certain small businesses

 PURPOSE OR GENERAL IDEA OF BILL :

This bill would expand the eligibility of the urban development
corporation act to allow dry cleaning businesses and appearance
enhancement businesses which practice nail specialty to make capital
improvements through grants and flexible financing programs.

 SUMMARY OF SPECIFIC PROVISIONS :

Section one of the bill amends the urban development corporation act
by adding a new paragraph (o) to section 16-m, to provide capital
improvements through grants and flexible financing programs in order
to assist:

1. Dry cleaning businesses for the purchase and installation of
nonperchlorethylene machines and sprinkler systems to comply with
state and local codes, rules and regulations

2. Appearance enhancement businesses which practice nail specialty to
              

make capital improvements and upgrades to mechanical ventilation
systems that are necessary to comply with federal, state and local
indoor air quality codes, rules and regulations.  The corporation
shall consult with the EFC and DEC to promulgate all necessary rules
and regulations to facilitate and administer such assistance program.

Section two of the bill sets forth the effective date.

 JUSTIFICATION :

In recent years, New York has continued to take the initiative in
advancing air quality and environmental safety practices. In
particular, Governor Cuomo has taken several actions to promote
environmental protection in the workplace, including: creating the
Task Force to Combat Worker Exploitation; directing the Department of
Environmental Protection (DEP) to establish a statewide ban on dry
cleaners' use of perchlorethylene (PERC); and requiring all nail
salons to install mechanical ventilation systems.

However, this has led to significant financial challenges for our
state's small businesses. For dry cleaners, non-PERC alternatives cost
on average $70,000-$120,000 per machine, representing one-third of a
typical neighborhood shop's annual sales revenue. In addition, the
flammability of non-PERC solvents would require those in New York City
to spend another $70,000-$100,000 installing up-to-date sprinkler
systems, in order to comply with municipal fire codes.  Similarly, any
nail salons established in New York after October of 2016 must install
mechanical ventilation systems and pre-existing nail salons must do so
within five years. This latest requirement will cost nearly $24,000
for a nail salon to comply with.

These strenuous financial obligations will likely force many
mom-and-pop businesses to shut down or leave New York. Many more would
be brought to the brink of bankruptcy. The overall economic damage
would be incalculable and devastating to both small businesses and the
workers they employ. Our state government previously established an
implementation fund for the restoration and preservation of New York's
environmental and natural resources, through the "Clean Water / Clean
Air Bond Act of 1996." In accordance with this act, the NYS
Environmental Facilities Corporation created the Financial Assistance
to Business (FAB) program, which offered financial assistance to small
business owners to comply by transitioning to upgraded equipment.
Unfortunately, FAB's subsidy program expired in March 2004.

In the face of new regulations and mandates for environmental
protection and safety, we must restore and expand this program,
creating a new fund to assist dry cleaners, nail salons, and other
small businesses through the Urban Development Corporation Act. By
providing the necessary financial assistance to survive these new
regulations and mandates, New York will become one of the leading
examples throughout our nation for comprehensive workplace safety,
environmental protection and commercial innovation.

 PRIOR LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect on the ninetieth day after it shall have
become a law.

                                 BILL NUMBER:  S5923A

 TITLE OF BILL :  An act to amend the New York state urban development
corporation act, in relation to assistance for certain small
businesses

 PURPOSE OR GENERAL IDEA OF BILL :

This bill would expand the eligibility of the urban development
corporation act to allow dry cleaning businesses and appearance
enhancement businesses which practice nail specialty to make capital
improvements through grants and flexible financing programs.

 SUMMARY OF SPECIFIC PROVISIONS :

Section one of the bill amends the urban development corporation act
by adding a new paragraph (o) to section 16-m, to provide capital
improvements through grants and flexible financing programs in order
to assist:

1. Dry cleaning businesses for the purchase and installation of
nonperchlorethylene machines and sprinkler systems to comply with
state and local codes, rules and regulations

2. Appearance enhancement businesses which practice nail specialty to
make capital improvements and upgrades to mechanical ventilation
              

systems that are necessary to comply with federal, state and local
indoor air quality codes, rules and regulations.

The corporation shall consult with the EFC and DEC to promulgate all
necessary rules and regulations to facilitate and administer such
assistance program.

Section two of the bill sets forth the effective date.

 JUSTIFICATION :

In recent years, New York has continued to take the initiative in
advancing air quality and environmental safety practices. In
particular, Governor Cuomo has taken several actions to promote
environmental protection in the workplace, including: creating the
Task Force to Combat Worker Exploitation; directing the Department of
Environmental Protection (DEP) to establish a statewide ban on dry
cleaners' use of perchlorethylene (PERC); and requiring all nail
salons to install mechanical ventilation systems.

However, this has led to significant financial challenges for our
state's small businesses. For dry cleaners, non-PERC alternatives cost
on average $70,000$120,000 per machine, representing one-third of a
typical neighborhood shop's annual sales revenue. In addition, the
flammability of non-PERC solvents would require those in New York City
to spend another $70,000-$100,000 installing up-to-date sprinkler
systems, in order to comply with municipal fire codes.  Similarly, any
nail salons established in New York after October of 2016 must install
mechanical ventilation systems and pre-existing nail salons must do so
within five years. This latest requirement will cost nearly $24,000
for a nail salon to comply with.

These strenuous financial obligations will likely force many
mom-and-pop businesses to shut down or leave New York. Many more would
be brought to the brink of bankruptcy. The overall economic damage
would be incalculable and devastating to both small businesses and the
workers they employ. Our state government previously established an
implementation fund for the restoration and preservation of New York's
environmental and natural resources, through the "Clean Water / Clean
Air Bond Act of 1996." In accordance with this act, the NYS
Environmental Facilities Corporation created the Financial Assistance
to Business (FAB) program, which offered financial assistance to small
business owners to comply by transitioning to upgraded equipment.
Unfortunately, FAB's subsidy program expired in March 2004.

In the face of new regulations and mandates for environmental
protection and safety, we must restore and expand this program,
creating a new fund to assist dry cleaners, nail salons, and other
small businesses through the Urban Development Corporation Act. By
providing the necessary financial assistance to survive these new
regulations and mandates, New York will become one of the leading
examples throughout our nation for comprehensive workplace safety,
environmental protection and commercial innovation.

 PRIOR LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect on the ninetieth day after it shall have
become a law.