S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6312
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              April 13, 2023
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the general municipal law, in relation to establishing a
   state disaster emergency grant and loan program
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 16 and 17 of section 858 of the general munic-
 ipal  law,  as  renumbered by chapter 356 of the laws of 1993 are renum-
 bered subdivisions 18 and 19 and two new  subdivisions  16  and  17  are
 added to read as follows:
   (16)  TO  PROVIDE  LOANS  TO SMALL BUSINESSES AS AUTHORIZED IN SECTION
 EIGHT HUNDRED FIFTY-NINE-C OF THIS TITLE;
   (17) TO PROVIDE GRANTS TO SMALL BUSINESSES, AS  DEFINED  IN  PARAGRAPH
 (B)  OF  SUBDIVISION  ONE  OF SECTION EIGHT HUNDRED FIFTY-NINE-C OF THIS
 TITLE, FOR THE PURPOSE  OF  ADDRESSING  QUALIFIED  BUSINESS  LOSSES,  AS
 DEFINED  IN  PARAGRAPH  (E)  OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED
 FIFTY-NINE-C OF THIS TITLE, RESULTING FROM A STATE OR  LOCAL  EMERGENCY,
 AS  DEFINED IN PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED
 FIFTY-NINE-C OF THIS TITLE, TO BE PROVIDED IN A MANNER  CONSISTENT  WITH
 UNIFORM  CRITERIA,  AS  DEFINED  IN  SUBDIVISION  THREE OF SECTION EIGHT
 HUNDRED FIFTY-NINE-C OF THIS TITLE, SAID UNIFORM CRITERIA TO  BE  ESTAB-
 LISHED FOR THE EVALUATION AND SELECTION OF ELIGIBLE ENTITIES, AS DEFINED
 IN   PARAGRAPH   (A)   OF  SUBDIVISION  ONE  OF  SECTION  EIGHT  HUNDRED
 FIFTY-NINE-C OF THIS TITLE;
   § 2. The general municipal law is amended  by  adding  a  new  section
 859-c to read as follows:
   §  859-C.  DISASTER  EMERGENCY  LOAN  PROGRAM. 1. FOR PURPOSES OF THIS
 SECTION:
   (A) "ELIGIBLE ENTITY" SHALL MEAN A SMALL BUSINESS THAT:
   (I) IS PHYSICALLY LOCATED IN THE JURISDICTION OF THE APPLICABLE  AGEN-
 CY; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10119-01-3
              

 S. 6312                             2
 
   (II) WAS OPERATIONAL PRIOR TO, AND DURING, TO THE EXTENT POSSIBLE, THE
 STATE OR LOCAL EMERGENCY.
   (B) "SMALL BUSINESS" MEANS A BUSINESS WITH NOT MORE THAN FIFTY EMPLOY-
 EES.
   (C)  "STATE  OR LOCAL EMERGENCY" MEANS THE PERIOD BEGINNING WITH (I) A
 DECLARATION BY THE GOVERNOR PURSUANT  TO  SECTION  TWENTY-EIGHT  OF  THE
 EXECUTIVE LAW, THAT A DISASTER HAS OCCURRED IN NEW YORK STATE, OR (II) A
 PROCLAMATION BY THE CHIEF EXECUTIVE, AS DEFINED IN PARAGRAPH F OF SUBDI-
 VISION TWO OF SECTION TWENTY OF THE EXECUTIVE LAW, OF ANY COUNTY, THAT A
 LOCAL STATE OF EMERGENCY HAS OCCURRED, AND WITH RESPECT TO EITHER OF THE
 FOREGOING, SAID PERIOD ENDING ON THE TERMINATION THEREOF.
   (D)  "DISASTER  EMERGENCY  LOAN  PROGRAM"  MEANS  A LOAN PROGRAM TO BE
 ADMINISTERED BY AN AGENCY IN RELATION TO A STATE OR LOCAL EMERGENCY.
   (E) "QUALIFIED BUSINESS LOSSES" ARE DEFINED AS:
   (I) DAMAGE TO A BUSINESS'S INTERIOR OR EXTERIOR STRUCTURE, CAUSED BY A
 STATE OR LOCAL EMERGENCY;
   (II) LOSSES OF INVENTORY CAUSED BY A STATE OR LOCAL EMERGENCY, INCLUD-
 ING:
   (1) SHIPPING DELAYS; AND
   (2) EXPIRATION OF PERISHABLE GOODS DUE TO POWER OUTAGES CAUSED BY  THE
 STATE  OR  LOCAL  EMERGENCY  OR FORCED CLOSURE DUE TO THE STATE OR LOCAL
 EMERGENCY; AND
   (III) LOSS OF REVENUE DUE TO IMPACTS OF THE STATE OR LOCAL EMERGENCY.
   2. ANY AGENCY MAY ADMINISTER A  DISASTER  EMERGENCY  LOAN  PROGRAM  TO
 PROVIDE  LOANS  FROM  AVAILABLE  REVENUE  TO  SUCH AN ELIGIBLE ENTITY AS
 DEFINED IN SUBDIVISION ONE OF THIS SECTION.
   3. (A) AN AGENCY SHALL  DEVELOP,  AND  ADOPT  BY  RESOLUTION,  UNIFORM
 CRITERIA  FOR  THE  EVALUATION AND SELECTION OF AN ELIGIBLE ENTITY FOR A
 LOAN THROUGH THE DISASTER EMERGENCY  LOAN  PROGRAM,  SUCH  CRITERIA  MAY
 INCLUDE, BUT IS NOT LIMITED TO, WHETHER THE ELIGIBLE ENTITY:
   (I)  WAS A FINANCIALLY VIABLE ENTITY PRIOR TO THE STATE OR LOCAL EMER-
 GENCY;
   (II) CONDUCTS BUSINESS IN THE AREA SERVED BY THE AGENCY;
   (III) HAS BEEN NEGATIVELY IMPACTED BY THE STATE OR LOCAL EMERGENCY;
   (IV) WAS CREDITWORTHY PRIOR TO THE STATE OR LOCAL EMERGENCY;
   (V) HAS A PROPOSED  PLAN  TO  USE  THE  FUNDS  RECEIVED  THROUGH  THIS
 PROGRAM; AND
   (VI)  WILL  UNDERTAKE  EFFORTS  TO RETAIN JOBS DURING AND/OR AFTER THE
 STATE OR LOCAL EMERGENCY.
   (B) NO APPLICANT SHALL BE PERMITTED TO RECEIVE LOANS  FROM  MORE  THAN
 ONE AGENCY PER EACH SUCH STATE OR LOCAL EMERGENCY.
   (C) ANY AGENCIES THAT SERVE WITHIN THE SAME MUNICIPALITIES SHALL COOR-
 DINATE THE DISTRIBUTION OF LOANS IN THE DISASTER EMERGENCY LOAN PROGRAM.
   4. PRIOR TO ADMINISTERING A DISASTER EMERGENCY LOAN PROGRAM, AN AGENCY
 SHALL DEVELOP, AND ADOPT BY RESOLUTION, THE TERMS AND CONDITIONS OF SUCH
 LOANS,  PROVIDED  THAT  THE AMOUNT OF ANY LOAN PROVIDED PURSUANT TO THIS
 SECTION SHALL NOT  EXCEED  TWENTY-FIVE  THOUSAND  DOLLARS,  AND  FURTHER
 PROVIDED  THAT  THE  TOTAL  AMOUNT  OF ALL LOANS RECEIVED BY AN ELIGIBLE
 ENTITY SHALL NOT EXCEED TWENTY-FIVE THOUSAND DOLLARS.
   5. EACH AGENCY SHALL MAINTAIN RECORDS RELATED TO THE DISASTER EMERGEN-
 CY LOAN PROGRAM, INCLUDING A RECORD OF THE NUMBER OF LOANS ISSUED AND OF
 PAYMENTS RECEIVED, THE NUMBER OF LOANS  FULLY  REPAID,  ANY  OUTSTANDING
 LOANS, DEFAULTS AND BAD DEBTS, AND INCLUDE SUCH INFORMATION IN THE ANNU-
 AL REPORT REQUIRED BY SECTION TWENTY-EIGHT HUNDRED OF THE PUBLIC AUTHOR-
 ITIES LAW.
 S. 6312                             3
 
   6.  ANY  INTEREST  DEFERRED  OR  NOT  CHARGED RELATED TO A LOAN ISSUED
 PURSUANT THE DISASTER EMERGENCY LOAN PROGRAM SHALL BE  EXEMPT  FROM  ALL
 STATE  TAXES  THAT  MAY  BE  APPLICABLE TO SUCH INTEREST AMOUNTS AS THEY
 RELATE TO AN ELIGIBLE ENTITY. AGENCIES SHALL DISCLOSE TO ELIGIBLE ENTITY
 BORROWERS  IN  LOAN DOCUMENTS THAT THERE MAY BE FEDERAL TAX CONSEQUENCES
 TO THE PROGRAM LOANS.
   7. NO NEW LOAN APPLICATIONS PURSUANT TO THIS SECTION SHALL BE ACCEPTED
 FOR QUALIFIED BUSINESS LOSSES THAT OCCUR AFTER THE STATE OR LOCAL  EMER-
 GENCY  ENDS  AND  ANY  SUCH  LOAN APPLICATION SO SUBMITTED FOR QUALIFIED
 BUSINESS LOSSES MUST BE SUBMITTED WITHIN THIRTY DAYS OF  THE  END  OF  A
 STATE OR LOCAL EMERGENCY.
   § 3. This act shall take effect immediately.