NY State Senate Bill 2021-S2028

Archive: Last Bill Status - In Senate Committee Commerce, Economic Development And Small Business Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
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Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to commerce, economic development and small business
Jan 16, 2021	referred to commerce, economic development and small business

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2021-S2028 (ACTIVE) - Details

Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Economic Development
Versions Introduced in 2019-2020 Legislative Session:: S8319

2021-S2028 (ACTIVE) - Summary

Creates the coronavirus business interruption and municipal recovery program to provide grants through the empire state development corporation to businesses and municipalities which sustain economic losses as a result of the COVID-19 emergency; authorizes the issuance of bonds to fund the grants.

2021-S2028 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2028

SPONSOR: AKSHAR
 
TITLE OF BILL:

An act to create the coronavirus business interruption and municipal
recovery program to provide grants to businesses and municipalities
which sustain economic losses as a result of the COVID-19 emergency

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would establish a Coronavirus Business Interruption and Munic-
ipal Recovery Program, for businesses and municipalities, to provide
grants for income and/or revenue loss, during the coronavirus outbreak,
from the Empire State Development Corporation.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section One of this Bill would establish the Coronavirus Business Inter-
ruption and Municipal Recovery Program. Subdivision 1 of Section One of
this bill would establish the definitions for the Coronavirus Business

Interruption and Municipal Recovery Program.  Subdivision 2 of Section
One of this bill would:

* Provide for monthly grants to For-Profit Businesses and Not-for-Profit
Corporations, from the Empire State Development (ESDC) corporation, for
"direct economic loss". Such "direct economic loss" would include the
amount of reduction in revenue or income, sustained by such For-Profit
Business or Not-for-Profit corporation, in any month during the period
of January 1, 2020 to April 30, 2021, as compared to the revenue or
income earned by such For-Profit Business or Not-for-Profit Corporation
during any month in the period of January 1, 2019 to December 31, 2019,
due to, or as a direct result of, the coronavirus, and/or a federal or
state executive order, and/or a federal or state statute, and/or a
federal or state regulation, and/or a local law, ordinance or regu-
lation. For any For-Profit Business, which did not operate in any part
of 2019, ESDC would be required to determine, by actuarial principles,
what such monthly loss would be. The awards made under this program,
would be a program of last resort, and no amount could be awarded by
ESDC, for a specific, individual grant award, if such loss was otherwise
covered or awarded to an applicant, by any other federal, state or local
recovery program, or by a policy of business interruption insurance or
other type of insurance.

* ESDC would administer this grant program, and would establish applica-
tion procedures to accomplish the purposes of this program. It would
further be empowered to contract for adjusters, actuaries and all other
personnel necessary to administer the program, and to determine and
award grants in accordance with this program. ESDC would additionally,
be authorized to issue bonds, notes or other indebtedness to pay for the
cost of the administration of this program, and would be empowered and
directed to award and payout the grants issued under its provisions.
Additionally, no individual monthly grant awarded under this subdivi-
sion, could be in excess of $1,000,000.

Subdivision 3 of Section One of this bill would:

* Provide for monthly grants to municipalities from the Empire State
Development (ESDC) corporation for "municipal loss" suffered by such any
County, City, Town, Village, School District, Fire District or Special
District. Such "municipal loss" would include the amount of the
reduction of revenue, or increase in municipal expenses, sustained by
such municipality, in any month during the period of January 1, 2020 to
April 30, 2021, as compared to the revenue or municipal expenses experi-
enced by such municipality in any month during the period of January 1,
2019 to December 31, 2019, due to, or as a direct result of, the coro-
na-virus, and/or a federal or state executive order, and/or a federal or
state statute, and/or a federal or state regulation, and/or a local law,
ordinance or regulation. The awards made under this program would be a
program of last resort, and no amount could be awarded by ESDC, for a
specific, individual grant award, if such loss was otherwise covered or
awarded to an applicant by any other federal, state or local recovery
program, or by a policy of business interruption insurance or other type
of insurance.

* ESDC would administer this grant program, and would establish applica-
tion procedures to accomplish the purposes of this program. It would
further be empowered to contract for adjusters, actuaries and all other
personnel necessary to administer the program, and to determine and
award grants in accordance with this bill. ESDC would additionally be
authorized to issue bonds, notes or other indebtedness to pay for the
cost of the administration of this program, and would be empowered and
directed to award and payout the grants issued under its provisions.
Additionally, no individual monthly grant awarded under this subdivi-
sion, could be in excess of $3,000,000, except for a city with a million
or more, where an individual grant shall not be in excess of
$10,000,000.

Subdivision 4, of Section One of this bill, would authorize ESDC,
through the attorney general to seek a recovery, by means of federal or
state court litigation, or by means of administrative procedure or arbi-
tration, against any foreign country, person, corporation, or any other
personal or legal entity, responsible for the initiation, outbreak,
continuation, distribution or infection of the COVID 19 corona virus.
This subdivision would prohibit such a recovery against any elected
official of the United States, New York State, or Municipality, or of
any public officer appointed by any such officials, who during the peri-
od of January 1, 2020 to April 30, 2021 were discharging their public
duties. Any recovery obtained by the ESDC in accordance with this
section would be deposited into a COVID 19 Recovery Account, opened and
maintained by ESDC, and would be used to pay off and retire any and all
bonds, notes or other indebtedness issued by ESDC in accordance with
this program. Any amount of a recovery obtained by ESDC, above that
necessary to pay off and retire any and all bonds, notes or other
indebtedness issued in accordance with this program, would be trans-
ferred to the State General Fund within two years of the date of the
receipt of the recovery.

Section Two of this Bill would provide for an immediate effective date.

 
JUSTIFICATION:

Since January 2020, businesses and municipalities have experienced
unprecedented economic loss and expenses due to the novel coronavirus,
and its reaction by the federal and state government.  Because of policy
exclusions, with such potential losses never being underwritten nor
reserved for, and with no premiums thus ever being collected for such an
event, few insurance policies are able to compensate such businesses and
municipalities for such non underwritten losses. In previous natural
disaster events, such as the unprecedented terrorist, storm and flooding
events, the state has used the power of the state's public authorities,
such as the Urban Development Corporation (operating as Empire State
Development Corporation), to issue bonds, notes and other indebtedness,
to create a financial recovery program for effected New Yorkers.

This bill would do just that, by establishing a monthly grant program,
to promote recovery from the natural disaster of the coronavirus, there-
by allowing much needed financial resources to flow to For-Profit Busi-
nesses and Not-for-Profit Corporations. Financing for this program would
come from a state public authority, the Empire State Development Corpo-
ration, which has been most often used to provide such disaster funding
relief. Modeled after highly successful programs implemented in the
past, seeking to address other natural disasters (including but not
limited to the legislation to state-wide flooding in the wake of the
Irene and Lee Storms of 2011), this program is hoped to equally provide
important relief to devastated New Yorkers, who have seen such serious
economic loss, and hardship, over the duration of the coronavirus. A
further critical aspect of this program, would be to also provide relief
to municipalities, thereby eliminating their need to increase real prop-
erty taxes, due to their lost revenue and increased expenses, during
this time.

Perhaps most importantly, however, this bill would also authorize ESDC,
through the attorney general, to also seek indemnification from against
any foreign country, person, corporation, or any other personal or legal
entity, responsible for the initiation, outbreak, continuation, distrib-
ution or infection of the COVID 19 coronavirus.  Such an action has
already been brought by the attorney general of the State of Missouri,
and New York should also consider the possibility of taking a similar
action. For should such an action prove successful, such recovery could
provide full financing for this program.

 
PRIOR LEGISLATIVE HISTORY:

2020 - S8319: Referred to Commerce, Economic Development and Small Busi-
ness

 
FISCAL IMPLICATIONS:

The funds under this bill would be provided by ESDC but could be recov-
ered pursuant to subdivision four. The total state cost is dependent
upon the virus duration and the amount of federal and/or recovered funds
received in offset, but is limited in the bill by designated monthly
grant cap amounts.

 
EFFECTIVE DATE:
Immediately.

2021-S2028 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2028
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 16, 2021
                                ___________
 
 Introduced  by Sens. AKSHAR, BORRELLO, BOYLE, GALLIVAN, GRIFFO, HELMING,
   JORDAN, LANZA, O'MARA, ORTT, RITCHIE, SERINO, TEDISCO  --  read  twice
   and ordered printed, and when printed to be committed to the Committee
   on Commerce, Economic Development and Small Business
 
 AN  ACT  to  create  the coronavirus business interruption and municipal
   recovery program to provide grants to  businesses  and  municipalities
   which sustain economic losses as a result of the COVID-19 emergency
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. There is hereby created  the  coronavirus  business  inter-
 ruption and municipal recovery program.
   1. Definitions. The following terms shall have the following meanings:
   (a) The term "for profit business" shall mean any sole proprietorship,
 partnership,  limited  liability  company  or corporation operating as a
 business for profit in New York State.
   (b) The term "not-for-profit corporation" shall mean any  not-for-pro-
 fit corporation operating or providing services in New York State.
   (c) The term "authority" shall mean the urban development corporation,
 operating as the empire state development corporation.
   (d)  The  term  "municipality"  shall  mean  any  county,  city, town,
 village, school district, fire district or special district.
   (e) The term "direct economic loss"  shall  mean  the  amount  of  the
 reduction  of  revenue  or  income sustained by a for profit business or
 not-for-profit corporation, as a result of a coronavirus event, for  any
 month  during  the  coronavirus period, as determined in accordance with
 the private sector loss formula.
   (f) The term "municipal loss" shall mean the amount of  the  reduction
 of  revenue,  or  increase  in municipal expenses sustained by a munici-
 pality, as a result of a coronavirus event, for  any  month  during  the
 coronavirus  period,  as  determined  in  accordance with the government
 sector loss formula.

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

                                                            LBD04364-01-1

 S. 2028                             2
 
   (g) The term "coronavirus period" shall mean the period between  Janu-
 ary 1, 2020 through April 30, 2021.
   (h)  The term "coronavirus event" shall mean the suffering of a direct
 economic loss or a municipal loss, as a direct result of:
   i. The corona pandemic which occurred during January 1,  2020  through
 April 30, 2021;
   ii.  The  contraction  of  the  coronavirus  by any employee, officer,
 director or contractor of the for profit business, not-for-profit corpo-
 ration or municipality;
   iii. A federal or state executive order;
   iv. A federal or state statute;
   v. A federal or state regulation; and/or
   vi. A local law, ordinance or regulation.
   (i) The term "private sector loss formula" shall mean  the  method  of
 determining  a direct economic loss, during any month in the coronavirus
 period, by calculating the total loss  experience,  that  a  for  profit
 business  or  a not-for-profit corporation has sustained in any month of
 the coronavirus period, by comparing the total  amount  of  revenue,  or
 total  the  amount of income, during a specific month in the coronavirus
 period, as compared with the total  amount  of  revenue,  or  the  total
 amount of income, in the same month during the period of January 1, 2019
 through  December  31,  2019,  resulting  in  the  amount of such direct
 economic loss being the total amount of loss in revenue,  or  the  total
 amount  of  loss in income, reflected by such comparison for such month,
 whichever is greater.  For any for profit business not operating in  any
 part of 2019, the authority shall determine by actuarial principles what
 the monthly loss would be.
   (j) The term "government sector loss formula" shall mean the method of
 determining  a municipal loss, during any month in the coronavirus peri-
 od,  by  calculating  the  total  loss  experience  a  municipality  has
 sustained,  by  comparing the total amount of revenue, during a specific
 month in the coronavirus period, as compared with  the  average  of  the
 total  amount  of revenue in the same month during the period of January
 1, 2019 through December 31, 2019, and by further  comparing  the  total
 amount of expense, during a specific month in the coronavirus period, as
 compared  with  the  average of the total amount of expenses in the same
 month during the period of January 1, 2019 through  December  31,  2019,
 resulting in the amount of such municipal loss being the total amount of
 the  loss  in  revenue  plus  the  total  amount  of increased expenses,
 reflected by the comparison for such month. In calculating the amount of
 increased expenses in the governmental sector loss formula,  the  calcu-
 lation  shall  reduce  the  amount  of the increased expenses during the
 coronavirus period by the percentage of increase in  the  municipality's
 budget between the 2018 and 2019 fiscal years.
   2. Grants to businesses. (a) Any for profit business or not-for-profit
 corporation, that sustained a direct economic loss, shall be eligible to
 apply for a grant under this subdivision.
   (b)  Grants  under this subdivision shall be awarded by the authority,
 in an amount of the direct economic loss sustained by the applicant, for
 any month in the coronavirus period, as calculated by the  authority  in
 accordance  with the definition of private sector loss formula contained
 in paragraph (i) of subdivision one of this  section.  The  awards  made
 under  this  program  would  be the program of last resort and no amount
 shall be awarded by the authority under  a  specific,  individual  grant
 award, if such amount is otherwise covered or awarded to such applicant,
 by any other federal, state or local recovery program, or by a policy of

 S. 2028                             3
 
 business interruption insurance or other type of insurance purchased and
 maintained by such applicant. No application may be made by an applicant
 until  two  months  have  elapsed  since the conclusion of the month for
 which  such application is submitted. An applicant may also receive only
 one grant award for any specific, individual month within the  coronavi-
 rus  period, but may receive a specific, individual grant award for each
 and every month within the coronavirus period.
   (c) The authority shall administer the grant program, and shall estab-
 lish application procedures to accomplish the purposes of this act.  The
 authority shall further be empowered to contract for adjusters,  actuar-
 ies  and any other personnel necessary to administer the program, and to
 determine and award grants in accordance with this  act.  The  authority
 shall  additionally  hereby be authorized to issue bonds, notes or other
 indebtedness to pay for the cost of the administration of  this  program
 and to award and payout the grants issued under the program.
   (d) No specific, individual, monthly grant awarded under this subdivi-
 sion shall be in excess of $1,000,000.
   (e) The authority shall determine the amount of any specific, individ-
 ual,  monthly  award requested in accordance with the provisions of this
 act, and shall pay any such applicant seeking such specific, individual,
 monthly award, within 90 days of the  date  of  the  submission  of  the
 application  for  such  award.  The authority shall further establish an
 appeal procedure for all applicants that contend that the  determination
 of  the  award  by  the  authority  was not determined correctly or paid
 promptly as required by this act.
   3. Grants to municipalities. (a) Any  municipality  that  sustained  a
 municipal loss, shall be eligible to apply for a grant under this subdi-
 vision.
   (b)  Grants  under this subdivision shall be awarded by the authority,
 in an amount of the sustained municipal loss experienced by  the  appli-
 cant,  for  any  month  in  the coronavirus period, as calculated by the
 authority in accordance with the definition of  government  sector  loss
 formula  contained  in paragraph (j) of subdivision one of this section.
 The awards made under this program would be the program of  last  resort
 and  no amount shall be awarded by the authority under a specific, indi-
 vidual grant award, if such amount is otherwise covered  or  awarded  to
 such  applicant,  by any other federal, state or local recovery program,
 or by a policy of business  interruption  insurance  or  other  type  of
 insurance  purchased  and  maintained by such applicant.  No application
 may be made by an applicant until two  months  have  elapsed  since  the
 conclusion  of  the  month  for  which such application is submitted. An
 applicant may also receive only one grant award for any specific,  indi-
 vidual  month within the coronavirus period, but may receive a specific,
 individual grant award for each and every month within  the  coronavirus
 period.
   (c) The authority shall administer the grant program, and shall estab-
 lish application procedures to accomplish the purposes of this act.  The
 authority  shall further be empowered to contract for adjusters, actuar-
 ies and any other personnel necessary to administer the program, and  to
 determine  and  award grants in accordance with this act. The authority,
 shall additionally hereby be authorized to issue  bonds, notes or  other
 indebtedness  to  pay for the cost of the administration of this program
 and to award and payout the grants issued under the program.
   (d) No specific, individual, monthly grant awarded under this subdivi-
 sion shall be in excess of $3,000,000, except for a city  with  a  popu-
 lation  of  one  million or more where any specific, individual, monthly

 S. 2028                             4
 
 grant  awarded  under  this  subdivision  shall  not  be  in  excess  of
 $10,000,000.
   (e) The authority shall determine the amount of any specific, individ-
 ual,  monthly award requested, in accordance with the provisions of this
 act, and shall pay any such applicant seeking  such  award,  within  120
 days of the date of the submission of the application for such specific,
 individual,  monthly  award.    The authority shall further establish an
 appeal procedure for all applicants that contend that the  determination
 of  the  award  by  the  authority  was not determined correctly or paid
 promptly as required by this act.
   4. Recovery by the authority.  The  authority,  through  the  attorney
 general,  may seek financial damages, by means of federal or state court
 litigation, or by means  of  administrative  procedure  or  arbitration,
 against  any foreign country, person, corporation, or any other personal
 or legal entity, responsible for the initiation, outbreak, continuation,
 distribution or infection of the COVID-19, coronavirus.  No  federal  or
 state  court litigation, or administrative procedure or arbitration, may
 be maintained for a recovery under this subdivision against any  elected
 official  of  the  United States, New York State, or municipality, or of
 any public officer appointed by any such officials, who during the peri-
 od of January 1, 2020 through April 30,  2021,  were  discharging  their
 public duties. Any recovery obtained by the authority in accordance with
 this  subdivision  shall  be deposited into a COVID-19 recovery account,
 opened and maintained by the authority, and shall be used to pay off and
 retire any and all bonds, notes or  other  indebtedness  issued  by  the
 authority in accordance with the program under this act. Any amount of a
 recovery  obtained by the authority, above that necessary to pay off and
 retire any and all bonds, notes or  other  indebtedness  issued  by  the
 authority  in  accordance with this program, shall be transferred to the
 state general fund within two years of the date of the  receipt  of  the
 recovery.
   § 2. This act shall take effect immediately.

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Senate Bill S2028

Sponsored By

Archive: Last Bill Status - In Senate Committee Commerce, Economic Development And Small Business Committee

co-Sponsors

2021-S2028 (ACTIVE) - Details

2021-S2028 (ACTIVE) - Summary

2021-S2028 (ACTIVE) - Sponsor Memo

2021-S2028 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2028

Share this bill

Sponsored By

Archive: Last Bill Status - In Senate Committee Commerce, Economic Development And Small Business Committee

co-Sponsors

2021-S2028 (ACTIVE) - Details

2021-S2028 (ACTIVE) - Summary

2021-S2028 (ACTIVE) - Sponsor Memo

2021-S2028 (ACTIVE) - Bill Text download pdf

Comments