Senate Bill S8111

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8111
 
                             I N  S E N A T E
 
                             January 25, 2022
                                ___________
 
 Introduced  by  Sen.  CLEARE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the executive law, in relation to establishing a  tempo-
   rary  state  assistance fund to provide legal counsel in certain bank-
   ruptcy proceedings and providing for the administration thereof

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "save merchants and retail tenants (SMART) act".
   § 2. The executive law is amended by adding a new section 94-d to read
 as follows:
   § 94-D. TEMPORARY STATE ASSISTANCE TO FUND LEGAL SERVICES  IN  CERTAIN
 BANKRUPTCY PROCEEDINGS. 1. DEFINITIONS. AS USED IN THIS SECTION:
   (A) "ADMINISTRATOR" MEANS THE NEW YORK OFFICE OF COURT ADMINISTRATION.
   (B) "COVERED BUSINESS" MEANS ANY SMALL BUSINESS, NOT-FOR-PROFIT CORPO-
 RATION,  LIMITED PARTNERSHIP, LIMITED LIABILITY COMPANY, LIMITED LIABIL-
 ITY PARTNERSHIP,  AS  WELL  AS  OTHER  MISCELLANEOUS  BUSINESSES,  WHICH
 CONDUCTS  A  MAJORITY  OF  ITS  BUSINESS  IN THE STATE AND WAS ADVERSELY
 AFFECTED BY COVID-19 OR PUBLIC HEALTH RESTRICTIONS ENFORCED BY THE STATE
 DURING THE COVID-19 PANDEMIC, WHICH ARE ELIGIBLE FOR  RELIEF  UNDER  THE
 FEDERAL SMALL BUSINESS REORGANIZATION ACT, AS AMENDED BY THE CORONAVIRUS
 AID,  RELIEF,  AND  ECONOMIC SECURITY (CARES) ACT OF 2020, AND FILES FOR
 BANKRUPTCY PROTECTION UNDER SUCH ACT PRIOR TO MARCH TWENTY-SEVENTH,  TWO
 THOUSAND TWENTY-TWO.
   (C)  "BANKRUPTCY  COURT"  MEANS THE UNITED STATES BANKRUPTCY COURT FOR
 THE NORTHERN, SOUTHERN, EASTERN OR WESTERN DISTRICT OF THE STATE.
   (D) "LEGAL SERVICES" MEANS INDIVIDUALIZED LEGAL ASSISTANCE IN A SINGLE
 CONSULTATION AND/OR ONGOING LEGAL REPRESENTATION, PROVIDED  BY  A  LEGAL
 SERVICES PROVIDER TO A COVERED BUSINESS, AND ALL LEGAL ADVICE, ADVOCACY,
 AND ASSISTANCE ASSOCIATED WITH SUCH SERVICE.
   (E)  "LEGAL  SERVICES  PROVIDER" MEANS AN INDIVIDUAL, ORGANIZATION, OR
 ASSOCIATION THAT HAS THE AUTHORITY TO  PROVIDE  LEGAL  SERVICES  AND  IS
 DESIGNATED BY THE ADMINISTRATOR TO PROVIDE SUCH SERVICES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05098-01-1
              

 S. 8111                             2
 
   2.  TEMPORARY ACCESS TO LEGAL SERVICES FOR SMALL BUSINESSES IN CERTAIN
 BANKRUPTCY PROCEEDINGS. ALL COVERED  BUSINESSES  SHALL  HAVE  ACCESS  TO
 LEGAL  SERVICES  AS PROVIDED IN THIS SUBDIVISION AND MADE AVAILABLE IN A
 FUND MAINTAINED BY THE ADMINISTRATOR PURSUANT  TO  SUBDIVISION  FOUR  OF
 THIS SECTION.
   (A)   COVERED   BUSINESSES  AFFECTED  BY  COVID-19  OR  PUBLIC  HEALTH
 RESTRICTIONS ENFORCED BY THE STATE DURING THE COVID-19  PANDEMIC,  WHICH
 FILE  FOR RELIEF UNDER THE FEDERAL SMALL BUSINESS REORGANIZATION ACT, AS
 AMENDED BY THE CORONAVIRUS AID, RELIEF, AND  ECONOMIC  SECURITY  (CARES)
 ACT,  PRIOR TO MARCH TWENTY-SEVENTH, TWO THOUSAND TWENTY-TWO, SHALL HAVE
 ACCESS TO LEGAL SERVICES IN CONNECTION WITH THE FILING  AND  PROSECUTION
 UNDER CHAPTER ELEVEN OF THE FEDERAL BANKRUPTCY CODE.
   (B)  IN  ALL  CASES, ACCESS TO LEGAL SERVICES ESTABLISHED IN PARAGRAPH
 (A) OF THIS SUBDIVISION SHALL TERMINATE:
   (I) UPON THE TERMINATION OR DISMISSAL OF THE BANKRUPTCY PROCEEDING;
   (II) AT THE RECOMMENDATION OF THE UNITED STATES TRUSTEE; OR
   (III) AT THE RECOMMENDATION OF THE ASSIGNED UNITED  STATES  BANKRUPTCY
 JUDGE.
   (C) IN ALL CASES, THE RIGHT TO COUNSEL ESTABLISHED IN PARAGRAPH (A) OF
 THIS SUBDIVISION SHALL NOT EXTEND TO APPEALS.
   3.  POWERS  AND  DUTIES  OF  THE  ADMINISTRATOR.  THE ADMINISTRATOR IS
 CHARGED WITH IMPLEMENTING THE REQUIREMENTS OF THIS SECTION NO LATER THAN
 OCTOBER FIRST, TWO THOUSAND TWENTY-ONE, AND MAY PROMULGATE  SUCH  RULES,
 POLICIES,  AND  PROCEDURES AS MAY BE NECESSARY AND APPROPRIATE TO ACCOM-
 PLISH SUCH IMPLEMENTATION. THE ADMINISTRATOR SHALL HAVE  THE  POWER  AND
 RESPONSIBILITY TO:
   (A)  ENSURE  INDEPENDENT,  COMPETENT,  AND  ZEALOUS  REPRESENTATION OF
 COVERED BUSINESSES RECEIVING LEGAL SERVICES PROVIDED  PURSUANT  TO  THIS
 SECTION;
   (B) EXAMINE, EVALUATE, AND MONITOR LEGAL SERVICES PROVIDED PURSUANT TO
 THIS SECTION;
   (C)  ESTABLISH MEASURES OF PERFORMANCE TO MONITOR THE QUALITY OF LEGAL
 SERVICES AND THE OVERALL EFFECTIVENESS OF SUCH LEGAL SERVICES;
   (D)  TARGET  GRANTS  IN  SUPPORT  OF  INNOVATIVE  AND   COST-EFFECTIVE
 SOLUTIONS THAT ENHANCE THE PROVISION OF LEGAL SERVICES; AND
   (E)  INVESTIGATE  AND  MONITOR  ANY  OTHER  MATTERS  RELEVANT  TO  THE
 PROVISION OF LEGAL SERVICES WHICH THE ADMINISTRATOR DEEMS IMPORTANT.
   4. FUNDING. (A) THE STATE SHALL ESTABLISH A DEDICATED FUND  AND  SHALL
 APPROPRIATE  SUFFICIENT  SUMS  INTO  SUCH  FUND  TO  FULLY CARRY OUT THE
 REQUIREMENTS OF THIS SECTION. FUNDS NECESSARY TO  FULLY  CARRY  OUT  THE
 REQUIREMENTS  OF  THIS SECTION SHALL BE DETERMINED BY THE ADMINISTRATOR,
 IN CONSULTATION WITH THE DIRECTOR OF THE DIVISION OF THE BUDGET.
   (B) THE ADMINISTRATOR SHALL BE CHARGED WITH ENSURING THAT APPROPRIATED
 FUNDS ARE  TIMELY  DISTRIBUTED  TO  LEGAL  SERVICES  PROVIDERS  FOR  THE
 PROVISION OF LEGAL SERVICES.
   § 3. This act shall take effect immediately.