Bill Text: NY A09801 | 2023-2024 | General Assembly | Amended

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Bill Title: Relates to loans and grants by industrial development agencies; requires uniform criteria for evaluation and selection of an eligible entity for a loan; defines terms; outlines such criteria.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-04-19 - print number 9801a [A09801 Detail]

Download: New_York-2023-A09801-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         9801--A

                   IN ASSEMBLY

                                      April 9, 2024
                                       ___________

        Introduced  by  M.  of A. THIELE, JONES -- read once and referred to the
          Committee on Local Governments -- committee discharged, bill  amended,
          ordered reprinted as amended and recommitted to said committee

        AN  ACT to amend the general municipal law, in relation to the powers of
          industrial development agencies and certain loans and grants to eligi-
          ble entities

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 17 of section 858 of the general municipal law,
     2  as renumbered by chapter 356 of the laws of 1993, is renumbered subdivi-
     3  sion 19 and two new subdivisions 17 and 18 are added to read as follows:
     4    (17)  To provide loans in accordance with section eight hundred fifty-
     5  nine-c of this article, to any eligible entity as defined in paragraph a
     6  of subdivision one of section eight hundred fifty-nine-c of this  title,
     7  provided  such loan is memorialized in an appropriate loan agreement and
     8  further provided that the loan proceeds are used in furtherance  of  the
     9  agency's corporate purposes;
    10    (18)  To provide grants to any eligible entity as defined in paragraph
    11  a of subdivision one of  section  eight  hundred  fifty-nine-c  of  this
    12  title,  provided  said  grant  is  memorialized  in an appropriate grant
    13  agreement stipulating the services to be provided in furtherance of  the
    14  agency's  corporate purposes, to be provided in a manner consistent with
    15  uniform criteria, as defined in subdivision two of section eight hundred
    16  fifty-nine-c of this title, said uniform criteria to be established  for
    17  the evaluation and selection of eligible entities;
    18    §  2.  The  general  municipal  law is amended by adding a new section
    19  859-c to read as follows:
    20    § 859-c. Uniform criteria for evaluation  and  selection  of  eligible
    21  entities  for  loans. 1. For the purposes of this section, the following
    22  terms shall have the following meanings:
    23    (a) "eligible entity" shall mean a small  business  or  not-for-profit
    24  with  not  more  than  fifty employees that is physically located in the
    25  jurisdiction of the applicable agency.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14908-02-4
        A. 9801--A                          2

     1    (b) "small business" means a business with not more than fifty employ-
     2  ees.
     3    2.  (a)  An  agency  shall  develop,  and adopt by resolution, uniform
     4  criteria for the evaluation and selection of an eligible  entity  for  a
     5  loan  through the funding program, such criteria may include, but is not
     6  limited to, whether the eligible entity:
     7    (i) is a financially viable entity;
     8    (ii) conducts business in the area served by the agency;
     9    (iii) is creditworthy;
    10    (iv) has a proposed plan  to  use  the  funds  received  through  this
    11  program; and
    12    (v) will undertake efforts to retain jobs.
    13    (b) Any agencies that serve within the same municipalities shall coor-
    14  dinate the distribution of funds to a single entity.
    15    (c)  No eligible entity may receive a grant or loan from more than one
    16  agency per project.
    17    (d) An outstanding loan must be paid back in full prior to  an  agency
    18  issuing an additional loan agreement to the same eligible entity.
    19    2. Prior to administering a loan program, an agency shall develop, and
    20  adopt  by  resolution,  the terms and conditions of such loans, provided
    21  that the amount of any funding provided pursuant to this  section  shall
    22  not  exceed  twenty-five thousand dollars, and further provided that the
    23  total amount of all funds received  by  an  eligible  entity  shall  not
    24  exceed twenty-five thousand dollars.
    25    3.  Each  agency  shall  maintain records related to the loan program,
    26  including a record of  the  number  of  loans  issued  and  of  payments
    27  received,  the  number  of  loans  fully  repaid, any outstanding loans,
    28  defaults and bad debts, and  include  such  information  in  the  annual
    29  report  required  by section twenty-eight hundred of the public authori-
    30  ties law.
    31    4. Any interest deferred or not  charged  related  to  a  loan  issued
    32  pursuant  the loan program shall be exempt from all state taxes that may
    33  be applicable to such interest amounts as such taxes relate to an eligi-
    34  ble entity. Agencies shall disclose to eligible entity borrowers in loan
    35  documents that there may be federal  tax  consequences  to  the  program
    36  loans.
    37    § 3. This act shall take effect immediately.