S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10266
 
                           I N  A S S E M B L Y
 
                               April 8, 2020
                                ___________
 
 Introduced  by  M.  of  A. BARCLAY, ASHBY, BLANKENBUSH, BRABENEC, BYRNE,
   BYRNES,  CROUCH,  DeSTEFANO,  DiPIETRO,  FINCH,  FITZPATRICK,  FRIEND,
   GARBARINO,  GIGLIO,  GOODELL,  HAWLEY,  JOHNS,  KOLB, LALOR, LAWRENCE,
   LiPETRI,  MALLIOTAKIS,  MANKTELOW,  McDONOUGH,   MIKULIN,   B. MILLER,
   M. L. MILLER,  MONTESANO,  MORINELLO,  NORRIS, PALMESANO, PALUMBO, RA,
   REILLY, SALKA, SCHMITT, SMITH, SMULLEN, STEC, TAGUE, WALCZYK, WALSH --
   read once and referred to the Committee on Small Business
 
 AN ACT in relation to requiring the executive to direct all  unallocated
   settlement  funds  that  are  reserved in the "economic uncertainties"
   fund and any further settlement money that  may  be  received  by  the
   state  to small business relief purposes consistent with the intent of
   the "small business emergency recovery act of 2020" (Part A); to amend
   the urban development corporation act, in relation to establishing the
   small business and not-for-profit recovery loan program (Part  B);  to
   amend  the  tax  law,  in  relation to providing that in the years two
   thousand twenty through two thousand  twenty-four,  the  empire  state
   film  production  credit  shall first be used to provide assistance to
   small businesses negatively impacted during the emergency  declaration
   relating  to  the COVID-19 outbreak (Part C); authorizes the executive
   to repurpose all monies of the New York state urban development corpo-
   ration,  the  environmental  facilities  corporation,  the   dormitory
   authority of the state of New York, the New York state energy research
   and  development authority and all other state resources as identified
   and needed by the executive to fully  fund  programs  created  by  the
   small  business  emergency recovery act of 2020 (Part D); to amend the
   tax law, in relation to granting  an  automatic  extension  for  small
   businesses  affected  by an emergency declaration (Part E); authorizes
   the commissioner of the department of economic development to  develop
   and  implement  a regulatory amnesty period for small businesses (Part
   F); and to amend part H of chapter 58 of the laws of 2019 amending the
   environmental conservation law, the alcoholic beverage control law and
   the state finance law, relating to  establishing  guidelines  for  bag
   waste reduction, in relation to the effectiveness thereof (Part G);
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16074-03-0

 A. 10266                            2
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "small business emergency recovery act of 2020".
   §  2.  Legislative  intent. The legislature seeks to provide immediate
 assistance to small businesses and employees impacted  by  the  COVID-19
 outbreak. The pandemic COVID-19, which threatens human lives here in New
 York  and  around  the globe, has created a public health emergency that
 has begun to severely impact our  state  economy,  engulfing  our  small
 businesses,  gutting  New  York's  financial  health,  and  shaking  the
 national economy as a whole. New York state is  home  to  608,351  small
 businesses  in  New  York  state  and these businesses employ 54% of the
 state's workforce, or nearly 4.2 million individuals.
   The legislature  recognizes  New  York's  small  business  owners  and
 employees are the backbone of our state economy and the legislature must
 act  boldly to address the negative impacts of the business sector shut-
 down. According to a recent poll by the National Federation of Independ-
 ent Businesses, 76% of its members  have  been  negatively  impacted  by
 COVID-19.   With the mandate to keep 100% of the non-essential workforce
 home, many small businesses have had to close their doors with no  indi-
 cation  of  when they will be able to reopen. For some, it may mean they
 never get to reopen, and the long-term impact of  the  shutdown  on  the
 economy is unclear. It is imperative that the legislature provides imme-
 diate assistance to small businesses and employees as they try to manage
 the  devastating  impact  of  the COVID-19 virus and the interruption of
 their business operations. The small business emergency recovery act  of
 2020  will  offer fiscal relief and protections for small businesses and
 their employees, while mitigating the risk of businesses being forced to
 permanently close their doors and further harm the local and state econ-
 omies.
   It is therefore the intent of the legislature to implement measures to
 assist New York's small businesses navigate these uncharted  waters  and
 provide financial assistance in the way of loans, grants and tax relief.
 The  legislature  recognizes  that extraordinary times call for extraor-
 dinary  measures  and  therefore  is  directing  that  settlement  money
 received  from financial or banking institutions, which in the past have
 been used for reoccurring costs for capital programs or to cover gaps in
 Financial Plan operations, to be  used  to  help  the  state  fight  the
 economic  crisis  brought  on  by  the  COVID-19  virus; these remaining
 settlement monies are cash funds that can be used  immediately  to  meet
 the  needs  of our struggling small businesses. In addition to directing
 the use of settlement monies, the small business emergency recovery  act
 of  2020  directs the urban development corporation to create a zero-in-
 terest loan program, which features 50% loan forgiveness for  businesses
 and  not-for-profits  that  return  to  2019  employment levels. The act
 repurposes the New York state film production tax credit to provide  tax
 relief  for  small businesses and authorizes the executive to access all
 monies available within certain state agencies and authorities  for  the
 purposes  consistent with this act.  Finally, the act provides automatic
 extensions for tax filings and exemption from fees, fines and  penalties
 to small businesses impacted by this public health emergency.
   §  3.  This  act enacts into law major components of legislation which
 are necessary to implement the small business emergency recovery act  of
 2020.  Each  component  is  wholly contained within a Part identified as
 Parts A through G. The effective  date  for  each  particular  provision
 contained  within  such  Part  is  set forth in the last section of such
 Part. Any provision in any section contained within  a  Part,  including
 the effective date of the Part, which makes a reference to a section "of

 A. 10266                            3
 
 this act", when used in connection with that particular component, shall
 be  deemed to mean and refer to the corresponding section of the Part in
 which it is found.   Section five of this act  sets  forth  the  general
 effective date of this act.
 
                                  PART A
 
   Section  1.  Notwithstanding any other law, rule and regulation to the
 contrary, the executive shall immediately direct all unallocated settle-
 ment funds that are reserved in the "economic  uncertainties"  fund  and
 any  further settlement money that may be received by the state to small
 business relief purposes consistent with the intent of the "small  busi-
 ness emergency recovery act of 2020".
   § 2. This act shall take effect immediately.
 
                                  PART B
 
   Section  1. 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 section 16-bb to read as follows:
   §  16-BB. SMALL BUSINESS AND NOT-FOR-PROFIT RECOVERY LOAN PROGRAM. (1)
 THE CORPORATION SHALL ESTABLISH A FUND TO BE KNOWN AS THE  "SMALL  BUSI-
 NESS AND NOT-FOR-PROFIT RECOVERY LOAN FUND" AND SHALL PAY INTO SUCH FUND
 ANY  MONIES  MADE  AVAILABLE  TO  THE CORPORATION FOR SUCH FUND FROM ANY
 SOURCE. THE MONIES HELD IN OR CREDITED TO THE  FUND  SHALL  BE  EXPENDED
 SOLELY FOR THE PURPOSES SET FORTH IN THIS SECTION. THE CORPORATION SHALL
 NOT  COMMINGLE  THE  MONIES  OF  SUCH  FUND WITH ANY OTHER MONIES OF THE
 CORPORATION OR ANY MONIES HELD IN TRUST BY THE CORPORATION.
   (2) THE CORPORATION SHALL ALLOCATE ANY MONIES MADE AVAILABLE FOR  SUCH
 FUND  FOR  THE PURPOSE OF MAKING ZERO INTEREST LOANS TO SMALL BUSINESSES
 AND SMALL NOT-FOR-PROFIT ORGANIZATIONS.
   (3) AS USED IN THIS  SECTION,  THE  FOLLOWING  TERMS  SHALL  HAVE  THE
 FOLLOWING MEANINGS:
   (A) "SMALL BUSINESS" SHALL HAVE THE SAME MEANING AS DEFINED IN SECTION
 ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW. SUCH SMALL BUSI-
 NESS MUST BE A RESIDENT IN THIS STATE, INDEPENDENTLY OWNED AND OPERATED,
 NOT DOMINANT IN ITS FIELD AND EMPLOYS ONE HUNDRED OR LESS PERSONS;
   (B)  "SMALL NOT-FOR-PROFIT ORGANIZATION" MEANS A NOT-FOR-PROFIT ORGAN-
 IZATION THAT EMPLOYS ONE HUNDRED OR LESS PERSONS;
   (C) "GRACE PERIOD" MEANS THE THREE HUNDRED SIXTY-FIVE DAY PERIOD AFTER
 A SMALL BUSINESS OR SMALL NOT-FOR-PROFIT RECEIVES A RECOVERY LOAN  UNDER
 THIS SECTION.
   (4)  THE  CORPORATION  MAY  MAKE  ZERO INTEREST LOANS TO BUSINESSES OR
 ORGANIZATIONS NEGATIVELY AFFECTED BY COVID-19 PANDEMIC, PROVIDED:
   (A) THE BUSINESS OR ORGANIZATION HAS PROVIDED TO THE CORPORATION PROOF
 THAT SUCH BUSINESS OR ORGANIZATION SUFFERED A LOSS IN REVENUE.
   (B) THE AMOUNT OF THE  LOAN  SHALL  NOT  EXCEED  TWENTY-FIVE  THOUSAND
 DOLLARS AND SHALL BE FOR A PERIOD OF FOUR YEARS.
   (C)  THE  LOAN  AGREEMENT  SHALL  NOT (I) REQUIRE REPAYMENT DURING THE
 GRACE PERIOD, OR (II) CHARGE INTEREST ON THE PRINCIPAL AMOUNT.
   (D) THE LOAN AGREEMENT SHALL REQUIRE THAT  THE  AFFECTED  BUSINESS  OR
 ORGANIZATION REPAY THE LOAN IN FULL NOT LATER THAN THREE YEARS AFTER THE
 END  OF  THE GRACE PERIOD. THE LOAN AGREEMENT SHALL NOT CONTAIN A FEE OR
 PENALTY FOR THE PREPAYMENT OR EARLY PAYMENT OF THE LOAN.
   (5) SMALL BUSINESS AND NOT-FOR-PROFIT RECOVERY LOANS MAY BE  USED  FOR
 ANY  OPERATING  AND  CAPITAL  EXPENSES,  INCLUDING  BUT  NOT LIMITED TO:

 A. 10266                            4
 
 PAYROLL, MARKETING, INVENTORY, INSURANCE, EMPLOYEE ASSISTANCE, TRAINING,
 AND ANY STATE OR LOCAL TAXES AND FEES.
   (6) ANY TIME DURING THE GRACE PERIOD OR THE THREE-YEAR REPAYMENT PERI-
 OD,  PARTICIPATING  SMALL  BUSINESSES AND SMALL NOT-FOR-PROFITS SHALL BE
 ELIGIBLE TO HAVE FIFTY PERCENT OF THE PRINCIPAL LOAN  FORGIVEN  IF  THEY
 MEET OR EXCEED THEIR TWO THOUSAND NINETEEN EMPLOYMENT LEVELS. THE CORPO-
 RATION  SHALL COORDINATE WITH THE DEPARTMENT OF LABOR AND THE DEPARTMENT
 OF TAXATION AND FINANCE TO VERIFY ELIGIBILITY.
   (7) (A) THE CORPORATION SHALL MAINTAIN RECORDS IN THE  REGULAR  COURSE
 OF ADMINISTRATION OF THE SMALL BUSINESS AND NOT-FOR-PROFIT RECOVERY LOAN
 PROGRAM,  INCLUDING  A RECORD OF LOANS ISSUED AND OF PAYMENTS MADE UNDER
 THIS SECTION. THE CORPORATION SHALL REGULARLY  REVIEW  SUCH  RECORDS  TO
 DETERMINE TOTAL LOANS ISSUED AND IDENTIFY DUPLICATIVE APPLICATIONS.
   (B)  THE  CORPORATION  MAY  TERMINATE  ANY LOAN IF THE ELIGIBLE ENTITY
 MISREPRESENTS ANY INFORMATION PERTAINING TO THE APPLICATION OR FAILS  TO
 COMPLY  WITH  ANY  REQUIREMENTS  OF  THIS SECTION IN CONNECTION WITH THE
 UNDERLYING LOAN.
   (8) THE CORPORATION SHALL ESTABLISH  ALL  NECESSARY  RULES  AND  REGU-
 LATIONS  FOR SMALL BUSINESS AND SMALL NOT-FOR-PROFIT PARTICIPATION. SUCH
 RULES AND REGULATIONS SHALL INCLUDE BUT NOT BE LIMITED TO  A  SIMPLIFIED
 APPLICATION  FORM  AND ANY ADDITIONAL INFORMATION AS THE CORPORATION MAY
 REQUIRE.
   (9) WITHIN TWENTY-EIGHT DAYS OF RECEIPT OF AN APPLICATION PURSUANT  TO
 THIS SECTION, THE CORPORATION SHALL EITHER APPROVE OR REJECT SUCH APPLI-
 CATION.
   § 2. This act shall take effect immediately.
 
                                  PART C
 
   Section  1.  Paragraph  4  of subdivision (e) of section 24 of the tax
 law, as amended by chapter 683 of the laws of 2019, is amended  to  read
 as follows:
   (4) Additional pool 2 - The aggregate amount of tax credits allowed in
 subdivision (a) of this section shall be increased by an additional four
 hundred twenty million dollars in each year starting in two thousand ten
 through two thousand twenty-four provided however, seven million dollars
 of  the  annual  allocation shall be available for the empire state film
 post production credit pursuant to section thirty-one of this article in
 two thousand thirteen and two  thousand  fourteen,  twenty-five  million
 dollars of the annual allocation shall be available for the empire state
 film post production credit pursuant to section thirty-one of this arti-
 cle  in  each year starting in two thousand fifteen through two thousand
 twenty-four and five million dollars of the annual allocation  shall  be
 made available for the television writers' and directors' fees and sala-
 ries  credit  pursuant  to section twenty-four-b of this article in each
 year starting in two thousand twenty through two  thousand  twenty-four.
 This  amount  shall  be  allocated  by  the governor's office for motion
 picture and television development among taxpayers  in  accordance  with
 subdivision  (a) of this section. If the commissioner of economic devel-
 opment determines that the aggregate amount  of  tax  credits  available
 from  additional  pool 2 for the empire state film production tax credit
 have been previously allocated, and determines that the pending applica-
 tions from eligible applicants for the empire state film post production
 tax credit pursuant to section thirty-one of this  article  is  insuffi-
 cient  to  utilize  the  balance  of  unallocated empire state film post
 production tax credits from such pool, the remainder, after such pending

 A. 10266                            5
 
 applications are considered, shall be made available for  allocation  in
 the  empire  state film tax credit pursuant to this section, subdivision
 twenty of section two hundred ten-B and subsection (gg) of  section  six
 hundred  six  of  this  chapter.  Also,  if the commissioner of economic
 development determines that the aggregate amount of tax  credits  avail-
 able  from  additional  pool 2 for the empire state film post production
 tax credit have been previously allocated, and determines that the pend-
 ing applications from eligible applicants  for  the  empire  state  film
 production  tax  credit  pursuant  to  this  section  is insufficient to
 utilize the balance of unallocated film production tax credits from such
 pool, then all or part of the remainder, after such pending applications
 are considered, shall be made available for allocation  for  the  empire
 state  film post production credit pursuant to this section, subdivision
 thirty-two of section two hundred ten-B and subsection (qq)  of  section
 six  hundred  six  of  this  chapter.  The  governor's office for motion
 picture and television development must notify taxpayers of their  allo-
 cation  year  and  include the allocation year on the certificate of tax
 credit. Taxpayers eligible to claim a credit must report the  allocation
 year  directly on their empire state film production credit tax form for
 each year a credit is claimed and include a copy of the certificate with
 their tax return. In the case of a qualified film  that  receives  funds
 from  additional pool 2, no empire state film production credit shall be
 claimed before the later of the taxable year the production of the qual-
 ified film is complete, or the taxable year  immediately  following  the
 allocation  year  for  which  the  film has been allocated credit by the
 governor's  office  for  motion  picture  and  television   development.
 PROVIDED, HOWEVER, IN THE YEARS TWO THOUSAND TWENTY THROUGH TWO THOUSAND
 TWENTY-FOUR,  SUCH  CREDIT  SHALL FIRST BE USED TO PROVIDE ASSISTANCE TO
 SMALL BUSINESSES NEGATIVELY IMPACTED DURING  THE  EMERGENCY  DECLARATION
 RELATING  TO  THE COVID-19 OUTBREAK. FOR THE PURPOSES OF THIS SECTION, A
 SMALL BUSINESS SHALL BE DEEMED TO BE  ONE  WHICH  IS  RESIDENT  IN  THIS
 STATE,  INDEPENDENTLY  OWNED AND OPERATED, NOT DOMINANT IN ITS FIELD AND
 EMPLOYS ONE HUNDRED OR LESS PERSONS. THIS CREDIT MAY BE USED AGAINST ANY
 OPERATING AND CAPITAL EXPENSES, INCLUDING BUT NOT LIMITED  TO:  PAYROLL,
 MARKETING,  INVENTORY, INSURANCE, EMPLOYEE ASSISTANCE, TRAINING, AND ANY
 STATE OR LOCAL TAXES AND FEES. THE CREDIT UNDER THIS  SUBDIVISION  SHALL
 BE  ALLOWED  AGAINST THE TAXES IMPOSED BY ARTICLES NINE-A AND TWENTY-TWO
 OF THIS CHAPTER. IF THE AMOUNT OF THE CREDIT UNDER THIS SUBDIVISION  FOR
 ANY  TAXABLE  YEAR  EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
 SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  AS
 PROVIDED BY LAW.
   § 2. This act shall take effect immediately.
 
                                  PART D
 
   Section  1.  Notwithstanding  any other law, rule or regulation to the
 contrary, the executive is hereby authorized to repurpose all monies  of
 the  New  York  state  urban  development corporation, the environmental
 facilities corporation, the dormitory authority  of  the  state  of  New
 York,  the  New York state energy research and development authority and
 all other state resources as identified and needed by the  executive  to
 fully fund programs created by this act.
   § 2. This act shall take effect immediately.
 
                                  PART E

 A. 10266                            6
 
   Section  1.  Section  657  of  the  tax law is amended by adding a new
 subsection (d) to read as follows:
   (D)  AUTOMATIC EXTENSION FOR SMALL BUSINESSES AFFECTED BY AN EMERGENCY
 DECLARATION. AN AUTOMATIC EXTENSION SHALL BE GRANTED TO TAXPAYERS DURING
 A DECLARED EMERGENCY RELATING TO THE COVID-19 OUTBREAK.  SUCH  EXTENSION
 SHALL  BE  GRANTED  FOR  FILING  A  TAX RETURN OR PAYING A TAX OTHERWISE
 REQUIRED ON APRIL FIFTEENTH, TWO THOUSAND TWENTY.  THE  LENGTH  OF  SUCH
 EXTENSION  SHALL  BE  ONE  HUNDRED EIGHTY DAYS FROM APRIL FIFTEENTH, TWO
 THOUSAND TWENTY.   SUBSECTION (B) OF THIS SECTION  SHALL  NOT  APPLY  TO
 PERSONS  GRANTED  AN EXTENSION PURSUANT TO THIS SUBSECTION. NO PENALTIES
 OR INTEREST SHALL BE ASSESSED OR  IMPOSED  UPON  A  TAXPAYER  DURING  AN
 EXTENSION  GRANTED PURSUANT TO THIS SUBSECTION. FOR THE PURPOSES OF THIS
 SECTION, A SMALL BUSINESS SHALL BE DEEMED TO BE ONE WHICH IS RESIDENT IN
 THIS STATE, INDEPENDENTLY OWNED AND OPERATED, NOT DOMINANT IN ITS  FIELD
 AND EMPLOYS ONE HUNDRED OR LESS PERSONS.
   § 2. Section 213 of the tax law is amended by adding a new subdivision
 4 to read as follows:
   4.  AUTOMATIC  EXTENSION FOR SMALL BUSINESSES AFFECTED BY AN EMERGENCY
 DECLARATION. AN AUTOMATIC EXTENSION SHALL BE GRANTED TO TAXPAYERS DURING
 A DISEASE OUTBREAK RELATED DECLARED EMERGENCY. SUCH EXTENSION  SHALL  BE
 GRANTED  FOR  FILING A TAX RETURN OR PAYING A TAX REQUIRED BY THIS ARTI-
 CLE. THE LENGTH OF SUCH EXTENSION SHALL BE ONE HUNDRED EIGHTY DAYS  FROM
 THE  DATE  ON  WHICH  SUCH  FILING OR PAYMENT WOULD OTHERWISE BE DUE. NO
 PENALTIES OR INTEREST SHALL BE  ASSESSED  OR  IMPOSED  UPON  A  TAXPAYER
 DURING  AN  EXTENSION  GRANTED  PURSUANT  TO THIS SUBDIVISION.   FOR THE
 PURPOSES OF THIS SECTION, A SMALL BUSINESS SHALL BE  DEEMED  TO  BE  ONE
 WHICH  IS  RESIDENT IN THIS STATE, INDEPENDENTLY OWNED AND OPERATED, NOT
 DOMINANT IN ITS FIELD AND EMPLOYS ONE HUNDRED OR LESS PERSONS.
   § 3. This act shall take effect immediately.
 
                                  PART F
 
   Section 1. The commissioner of the department of economic  development
 shall  develop  and implement a "regulatory amnesty" period to allow for
 small businesses to remedy rules or  regulation  violations  before  any
 violations  or sanctions are levied. Such regulatory amnesty period must
 be at least six months. If a small business remedies the violation with-
 in the time period established by the commissioner, such business  shall
 not be subjected to fines or penalties.
   § 2. This act shall take effect immediately.
 
                                  PART G
 
   Section  1.  Section  5  of  part  H of chapter 58 of the laws of 2019
 amending the environmental  conservation  law,  the  alcoholic  beverage
 control  law, and the state finance law, relating to establishing guide-
 lines for bag waste reduction, is amended to read as follows:
   § 5. This act shall take effect [March 1,] SEPTEMBER 1, 2020.
   § 2. This act shall take effect immediately.
   § 4. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of

 A. 10266                            7
 
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   §  5.  This  act shall take effect immediately provided, however, that
 the applicable effective date of Parts A through G of this act shall  be
 as specifically set forth in the last section of such Parts.