The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7068--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 26, 2021
                                ___________
 
 Introduced  by  Sens. BROOKS, SANDERS -- read twice and ordered printed,
   and when printed to be committed to the Committee on Finance -- recom-
   mitted to the Committee on Finance in accordance with Senate  Rule  6,
   sec.  8  --  committee  discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee

 AN ACT to amend the state finance law,  in  relation  to  the  excelsior
   linked deposit program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 213 of the state finance law is amended by adding a
 new subdivision 25 to read as follows:
   25. "CERTIFIED  SERVICE-DISABLED  VETERAN-OWNED  BUSINESS  ENTERPRISE"
 MEANS ANY SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISE AS PROVIDED
 FOR  IN  SECTION  THREE  HUNDRED  SIXTY-NINE-H  OF THE EXECUTIVE LAW AND
 CERTIFIED PURSUANT TO SECTION THREE HUNDRED SIXTY-NINE-I OF  THE  EXECU-
 TIVE LAW.
   §  2.  Paragraphs  (f) and (g) of subdivision 11 of section 213 of the
 state finance law, paragraph (f) as added by chapter 705 of the laws  of
 1993 and paragraph (g) as added by section 1 of part HH of chapter 59 of
 the  laws  of 2013, are amended and a new paragraph (h) is added to read
 as follows:
   (f) any service business that is independently owned and operated,  is
 not  dominant  in  its  field, employs one hundred or fewer persons on a
 full-time basis within the state, and is seeking financing  through  the
 program  for  a project that will result in the retention or creation of
 permanent private sector jobs within the state, other  than  a  business
 that  sells a service rendered at a facility personally by an individual
 for another individual, directly, without the intervention  of  a  third
 party,  or  a  professional  service  business  such  as  health, legal,
 accounting, engineering, or architectural services[.]; OR
   (g) a qualifying technology  or  innovation  business  which  business
 employs  one  hundred or fewer employees within the state on a full-time
 basis and engages in:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD11424-03-1
 S. 7068--A                          2
 
   (1) biotechnologies, which shall be defined as technologies  involving
 the  scientific  manipulation  of  living  organisms,  especially at the
 molecular and/or the sub-molecular genetic level,  to  produce  products
 conducive  to  improving  the  lives  and health of plants, animals, and
 humans; and the associated scientific research, pharmacological, mechan-
 ical,  and  computational applications and services connected with these
 improvements;
   (2) information and communication technologies, equipment and  systems
 that  involve  advanced  computer  software  and hardware, visualization
 technologies, and human interface technologies;
   (3) advanced materials and processing technologies  that  involve  the
 development,  modification,  or  improvement of one or more materials or
 methods to produce devices  and  structures  with  improved  performance
 characteristics  or special functional attributes, or to activate, speed
 up, or otherwise alter chemical, biochemical, or medical processes;
   (4) electronic and photonic devices and components for use in  produc-
 ing  electronic,  optoelectronic,  mechanical  equipment and products of
 electronic distribution with interactive media content;
   (5) energy efficiency, renewable energy  and  environmental  technolo-
 gies, products, devices and services; or
   (6) small scale systems integration and packaging[.]; OR
   (H)  ANY CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES
 SEEKING FINANCING NECESSARY TO  CARRY   OUT   A   PROCUREMENT   CONTRACT
 WITH   AN   AGENCY  OR AUTHORITY OR OTHER ENTITY OF THE STATE OR FEDERAL
 GOVERNMENT.
   § 3. Paragraph (e) of subdivision 12  of  section  213  of  the  state
 finance law, as added by chapter 705 of the laws of 1993, is amended and
 a new paragraph (f) is added to read as follows:
   (e)  for  certified  minority-and  women-owned businesses, projects to
 provide financing necessary to carry out a procurement contract with  an
 agency  or  authority  or  other  entity of the state or federal govern-
 ment[.]; OR
   (F) FOR CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESS ENTERPRISES,
 PROJECTS TO PROVIDE FINANCING  NECESSARY  TO  CARRY  OUT  A  PROCUREMENT
 CONTRACT  WITH  AN  AGENCY  OR AUTHORITY OR OTHER ENTITY OF THE STATE OR
 FEDERAL GOVERNMENT.
   § 4. Subdivision 1 of section 218 of the state finance law, as amended
 by section 1 of part U of chapter 58 of the laws of 2012, is amended  to
 read as follows:
   1.  Linked  loans  made  to certified businesses in empire zones or to
 eligible businesses in highly distressed areas or to eligible businesses
 that are defined in paragraph (b-1) of subdivision eleven of section two
 hundred thirteen of this article that are located in a renewal community
 or defined in paragraph (b-2) of such subdivision that are located in an
 empowerment zone or defined in paragraph (b-3) of such subdivision  that
 are  located  in  an  enterprise  community,  respectively  for eligible
 projects defined in paragraph (c) of subdivision twelve of  section  two
 hundred  thirteen  of  this article OR TO SERVICE-DISABLED VETERAN-OWNED
 BUSINESS ENTERPRISES FOR AN ELIGIBLE PROJECT DEFINED IN PARAGRAPH (F) OF
 SUBDIVISION TWELVE OF SECTION TWO HUNDRED THIRTEEN OF THIS ARTICLE or to
 minority- or women-owned business enterprises for  an  eligible  project
 defined  in  paragraph  (e) of subdivision twelve of section two hundred
 thirteen of this article or to a defense  industry  manufacturer  for  a
 project  defined  in  paragraph (d) of subdivision twelve of section two
 hundred thirteen of this article or to an eligible business pursuant  to
 paragraph  (a)  of subdivision eleven of section two hundred thirteen of
 S. 7068--A                          3
 
 this article that  produces  products  defined  in  subdivision  two  of
 section  three  hundred  one  of  the agriculture and markets law for an
 eligible project as defined in paragraph (b) of  subdivision  twelve  of
 section  two  hundred  thirteen of this article shall bear interest at a
 fixed rate equal to three percentage points  below  the  fixed  interest
 rate  the  lender  would  have  charged for the loan in the absence of a
 linked deposit based on its usual  credit  considerations.    All  other
 linked loans shall bear interest at a fixed rate equal to two percentage
 points  below  the fixed interest rate the lender would have charged for
 the loan in the absence of a linked deposit based on  its  usual  credit
 considerations.  Lenders  shall  certify to the commissioner of economic
 development that the rate to be charged on a linked loan is two percent-
 age points or three percentage points, as the case  may  be,  below  the
 interest  rate the lender would have charged for the loan in the absence
 of a linked deposit.
   § 5. Section 220 of the state finance law, as added by  section  2  of
 part H of chapter 60 of the laws of 2011, is amended to read as follows:
   § 220. Renewal of linked deposit. A lender may, on behalf of a borrow-
 er,  apply  to  the  commissioner  of  economic development to request a
 renewal of the linked deposit for an  additional  four  year  period  to
 correspond  with  a second four year period of a borrower's linked loan.
 The commissioner may grant such application if the  commissioner  deter-
 mines  that  the  borrower,  during  the  second four year period of the
 linked loan, will create additional industrial modernization benefits or
 additional export trade benefits or additional jobs. If the commissioner
 of economic development grants such application, the commissioner  shall
 notify  the  authorized  depositor  who made the linked deposit that the
 commissioner has determined that the application satisfies the  require-
 ments  of  this  article  and  shall request the authorized depositor to
 continue the linked deposit with the lender for an additional four  year
 period  in  accordance  with  section ninety-eight-a of this chapter and
 with the authorized  depositor's  established  procedures.  Such  linked
 deposit  shall  continue to be secured in accordance with the provisions
 of section one hundred five of this chapter. The fixed interest rate  on
 the  continued  linked deposit shall be the linked deposit interest rate
 in effect on the first day of the continuation of  the  linked  deposit.
 The  authorized  depositor  and  the  lender  shall enter into a written
 deposit agreement governing the continuation of the linked deposit.  The
 interest rate payable on the linked loan for the second four year period
 shall be, in the case of a certified business in an economic development
 zone  or an eligible business located in an economically distressed area
 or federal empowerment zone or enterprise  or  renewal  community  or  a
 minority  or  women-owned business enterprise OR SERVICE-DISABLED VETER-
 AN-OWNED BUSINESS ENTERPRISES, three percentage points below the  inter-
 est  rate  the  lender  would have charged for the loan in effect on the
 first day of the continuation of the linked deposit; or in the case of a
 business not located in an economic  development  zone  or  economically
 distressed  area  or  federal  empowerment zone or enterprise or renewal
 community or which is not a minority or women-owned business enterprise,
 SERVICE-DISABLED  VETERAN-OWNED  BUSINESS  ENTERPRISES,  two  percentage
 points  below  the  interest  rate the lender would have charged for the
 loan in the absence of a linked deposit in effect on the  first  day  of
 the continuation of the linked deposit.
   § 6. This act shall take effect immediately.