Senate Bill S6037A

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6037
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment and Small Business
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01308-01-9

 S. 6037                             2
 
 MATHEMATICALLY  SECURED,  CHRONOLOGICAL,  AND  DECENTRALIZED   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 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.