S T A T E O F N E W Y O R K
________________________________________________________________________
1398
2019-2020 Regular Sessions
I N A S S E M B L Y
January 15, 2019
___________
Introduced by M. of A. VANEL, SCHIMMINGER -- read once and referred to
the Committee on Economic Development
AN ACT to amend the economic development law, in relation to the devel-
opment and creation of distributed ledger technology and business
entities that develop such technology
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivisions 8 and 23 of section 352 of the economic devel-
opment law, as amended by section 1 of part K of chapter 59 of the laws
of 2017, are amended to read as follows:
8. "Financial services data centers or financial services customer
back office operations" means operations that manage the data or
accounts of existing customers or provide product or service information
and support to customers of financial services companies, including
banks, other lenders, securities and commodities brokers and dealers,
investment banks, portfolio managers, trust offices, [and] insurance
companies, AND FINANCIAL TECHNOLOGY COMPANIES THAT DEVELOP DISTRIBUTED
LEDGER TECHNOLOGY. FOR PURPOSES OF THIS SUBDIVISION "DISTRIBUTED LEDGER
TECHNOLOGY" MEANS A MATHEMATICALLY SECURED, CHRONOLOGICAL, AND DECEN-
TRALIZED CONSENSUS LEDGER OR DATABASE, WHETHER MAINTAINED VIA INTERNET
INTERACTION, PEER-TO-PEER NETWORK, OR OTHERWISE USED TO AUTHENTICATE,
RECORD, SHARE AND SYNCHRONIZE TRANSACTIONS IN THEIR RESPECTIVE ELECTRON-
IC LEDGERS OR DATABASES.
23. "Software development" means the creation of DISTRIBUTED LEDGER
TECHNOLOGY, coded computer instructions or production or post-production
of video games, as defined in subdivision one-a of section six hundred
eleven of the general business law, other than those embedded and used
exclusively in advertising, promotional websites or microsites, and also
includes new media as defined by the commissioner in regulations. FOR
PURPOSES OF THIS SUBDIVISION "DISTRIBUTED LEDGER TECHNOLOGY" MEANS A
MATHEMATICALLY SECURED, CHRONOLOGICAL, AND DECENTRALIZED CONSENSUS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01308-01-9
A. 1398 2
LEDGER OR DATABASE, WHETHER MAINTAINED VIA INTERNET INTERACTION, PEER-
TO-PEER NETWORK, OR OTHERWISE USED TO AUTHENTICATE, RECORD, SHARE AND
SYNCHRONIZE TRANSACTIONS IN THEIR RESPECTIVE ELECTRONIC LEDGERS OR DATA-
BASES.
§ 2. Subdivision 4 of section 353 of the economic development law, as
separately amended by section 3 of part K and section 2 of part ZZ of
chapter 59 of the laws of 2017, is amended to read as follows:
4. A business entity operating predominantly in one of the industries
referenced in paragraphs (a) through (h) or in paragraph (k) of subdivi-
sion one of this section but which does not meet the job requirements of
subdivision three of this section must have at least twenty-five full-
time job equivalents unless such business is a business entity operating
predominantly in manufacturing then it must have at least five full-time
job equivalents and must demonstrate that its benefit-cost ratio is at
least ten to one, OR UNLESS IT IS A SOFTWARE DEVELOPMENT ENTITY THAT
DEVELOPS DISTRIBUTED LEDGER TECHNOLOGY WHICH HAS BEEN IN OPERATION FOR
MORE THAN ONE YEAR AND LESS THAN FIVE YEARS, THEN IT MUST HAVE AT LEAST
TWO FULL-TIME JOB EQUIVALENTS.
§ 3. Section 354 of the economic development law is amended by adding
a new subdivision 6 to read as follows:
6. THE COMMISSIONER SHALL STRIVE TO ENSURE THAT THERE IS PARTICIPATION
ON A BROAD REGIONAL GEOGRAPHIC BASIS WITHIN THE PROGRAM AND OUTREACH TO
ALL ELIGIBLE INDUSTRIES DEFINED IN SECTION THREE HUNDRED FIFTY-TWO OF
THIS ARTICLE. THE COMMISSIONER SHALL ALSO PROMOTE DIVERSE OWNERSHIP AND
WORKFORCES OF PARTICIPATING BUSINESSES THROUGH OUTREACH TO BUSINESSES
OWNED BY PEOPLE WITH DISABILITIES AS DEFINED UNDER SUBDIVISION TWENTY-
ONE OF SECTION TWO HUNDRED NINETY-TWO OF THE EXECUTIVE LAW OR SUBDIVI-
SIONS THREE AND TWENTY-TWO OF SECTION 1.03 OF THE THE MENTAL HYGIENE
LAW, MINORITY- AND WOMEN-OWNED BUSINESSES AND VETERAN-OWNED BUSINESSES
IN THOSE INDUSTRIES WHERE THEIR PARTICIPATION IS NOT CURRENTLY PREVA-
LENT.
§ 4. This act shall take effect immediately.