Bill Text: NY A10266 | 2019-2020 | General Assembly | Introduced


Bill Title: Enacts the "small business emergency recovery act of 2020"; requires the executive to direct all unallocated settlement funds that are reserved in the "economic uncertainties" fund and any further settlement money that may be received by the state to small business relief purposes consistent with the intent of the "small business emergency recovery act of 2020" (Part A); establishes the small business and not-for-profit recovery loan program; defines terms; loan eligibility; eligible uses of funding; loan forgiveness (Part B); provides that in the years two thousand twenty through two thousand twenty-four, the empire state film production credit shall first be used to provide assistance to small businesses negatively impacted during the emergency declaration relating to the COVID-19 outbreak (Part C); authorizes the executive to repurpose all monies of the New York state urban development corporation, the environmental facilities corporation, the dormitory authority of the state of New York, the New York state energy research and development authority and all other state resources as identified and needed by the executive to fully fund programs created by the small business emergency recovery act of 2020 (Part D); grants an automatic extension for small businesses affected by an emergency declaration (Part E); provides a regulatory amnesty period for small businesses (Part F); and relates to the effectiveness of provisions of law relating to New York state bag waste reduction act (Part G).

Spectrum: Partisan Bill (Republican 42-0)

Status: (Introduced) 2020-04-08 - referred to small business [A10266 Detail]

Download: New_York-2019-A10266-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          10266

                   IN ASSEMBLY

                                      April 8, 2020
                                       ___________

        Introduced  by  M.  of  A. BARCLAY, ASHBY, BLANKENBUSH, BRABENEC, BYRNE,
          BYRNES,  CROUCH,  DeSTEFANO,  DiPIETRO,  FINCH,  FITZPATRICK,  FRIEND,
          GARBARINO,  GIGLIO,  GOODELL,  HAWLEY,  JOHNS,  KOLB, LALOR, LAWRENCE,
          LiPETRI,  MALLIOTAKIS,  MANKTELOW,  McDONOUGH,   MIKULIN,   B. MILLER,
          M. L. MILLER,  MONTESANO,  MORINELLO,  NORRIS, PALMESANO, PALUMBO, RA,
          REILLY, SALKA, SCHMITT, SMITH, SMULLEN, STEC, TAGUE, WALCZYK, WALSH --
          read once and referred to the Committee on Small Business

        AN ACT in relation to requiring the executive to direct all  unallocated
          settlement  funds  that  are  reserved in the "economic uncertainties"
          fund and any further settlement money that  may  be  received  by  the
          state  to small business relief purposes consistent with the intent of
          the "small business emergency recovery act of 2020" (Part A); to amend
          the urban development corporation act, in relation to establishing the
          small business and not-for-profit recovery loan program (Part  B);  to
          amend  the  tax  law,  in  relation to providing that in the years two
          thousand twenty through two thousand  twenty-four,  the  empire  state
          film  production  credit  shall first be used to provide assistance to
          small businesses negatively impacted during the emergency  declaration
          relating  to  the COVID-19 outbreak (Part C); authorizes the executive
          to repurpose all monies of the New York state urban development corpo-
          ration,  the  environmental  facilities  corporation,  the   dormitory
          authority of the state of New York, the New York state energy research
          and  development authority and all other state resources as identified
          and needed by the executive to fully  fund  programs  created  by  the
          small  business  emergency recovery act of 2020 (Part D); to amend the
          tax law, in relation to granting  an  automatic  extension  for  small
          businesses  affected  by an emergency declaration (Part E); authorizes
          the commissioner of the department of economic development to  develop
          and  implement  a regulatory amnesty period for small businesses (Part
          F); and to amend part H of chapter 58 of the laws of 2019 amending the
          environmental conservation law, the alcoholic beverage control law and
          the state finance law, relating to  establishing  guidelines  for  bag
          waste reduction, in relation to the effectiveness thereof (Part G);

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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16074-03-0

        A. 10266                            2

     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "small business emergency recovery act of 2020".
     3    §  2.  Legislative  intent. The legislature seeks to provide immediate
     4  assistance to small businesses and employees impacted  by  the  COVID-19
     5  outbreak. The pandemic COVID-19, which threatens human lives here in New
     6  York  and  around  the globe, has created a public health emergency that
     7  has begun to severely impact our  state  economy,  engulfing  our  small
     8  businesses,  gutting  New  York's  financial  health,  and  shaking  the
     9  national economy as a whole. New York state is  home  to  608,351  small
    10  businesses  in  New  York  state  and these businesses employ 54% of the
    11  state's workforce, or nearly 4.2 million individuals.
    12    The legislature  recognizes  New  York's  small  business  owners  and
    13  employees are the backbone of our state economy and the legislature must
    14  act  boldly to address the negative impacts of the business sector shut-
    15  down. According to a recent poll by the National Federation of Independ-
    16  ent Businesses, 76% of its members  have  been  negatively  impacted  by
    17  COVID-19.   With the mandate to keep 100% of the non-essential workforce
    18  home, many small businesses have had to close their doors with no  indi-
    19  cation  of  when they will be able to reopen. For some, it may mean they
    20  never get to reopen, and the long-term impact of  the  shutdown  on  the
    21  economy is unclear. It is imperative that the legislature provides imme-
    22  diate assistance to small businesses and employees as they try to manage
    23  the  devastating  impact  of  the COVID-19 virus and the interruption of
    24  their business operations. The small business emergency recovery act  of
    25  2020  will  offer fiscal relief and protections for small businesses and
    26  their employees, while mitigating the risk of businesses being forced to
    27  permanently close their doors and further harm the local and state econ-
    28  omies.
    29    It is therefore the intent of the legislature to implement measures to
    30  assist New York's small businesses navigate these uncharted  waters  and
    31  provide financial assistance in the way of loans, grants and tax relief.
    32  The  legislature  recognizes  that extraordinary times call for extraor-
    33  dinary  measures  and  therefore  is  directing  that  settlement  money
    34  received  from financial or banking institutions, which in the past have
    35  been used for reoccurring costs for capital programs or to cover gaps in
    36  Financial Plan operations, to be  used  to  help  the  state  fight  the
    37  economic  crisis  brought  on  by  the  COVID-19  virus; these remaining
    38  settlement monies are cash funds that can be used  immediately  to  meet
    39  the  needs  of our struggling small businesses. In addition to directing
    40  the use of settlement monies, the small business emergency recovery  act
    41  of  2020  directs the urban development corporation to create a zero-in-
    42  terest loan program, which features 50% loan forgiveness for  businesses
    43  and  not-for-profits  that  return  to  2019  employment levels. The act
    44  repurposes the New York state film production tax credit to provide  tax
    45  relief  for  small businesses and authorizes the executive to access all
    46  monies available within certain state agencies and authorities  for  the
    47  purposes  consistent with this act.  Finally, the act provides automatic
    48  extensions for tax filings and exemption from fees, fines and  penalties
    49  to small businesses impacted by this public health emergency.
    50    §  3.  This  act enacts into law major components of legislation which
    51  are necessary to implement the small business emergency recovery act  of
    52  2020.  Each  component  is  wholly contained within a Part identified as
    53  Parts A through G. The effective  date  for  each  particular  provision
    54  contained  within  such  Part  is  set forth in the last section of such
    55  Part. Any provision in any section contained within  a  Part,  including
    56  the effective date of the Part, which makes a reference to a section "of

        A. 10266                            3

     1  this act", when used in connection with that particular component, shall
     2  be  deemed to mean and refer to the corresponding section of the Part in
     3  which it is found.   Section five of this act  sets  forth  the  general
     4  effective date of this act.

     5                                   PART A

     6    Section  1.  Notwithstanding any other law, rule and regulation to the
     7  contrary, the executive shall immediately direct all unallocated settle-
     8  ment funds that are reserved in the "economic  uncertainties"  fund  and
     9  any  further settlement money that may be received by the state to small
    10  business relief purposes consistent with the intent of the "small  busi-
    11  ness emergency recovery act of 2020".
    12    § 2. This act shall take effect immediately.

    13                                   PART B

    14    Section  1. Section 1 of chapter 174 of the laws of 1968, constituting
    15  the New York state urban development  corporation  act,  is  amended  by
    16  adding a new section 16-bb to read as follows:
    17    §  16-bb. Small business and not-for-profit recovery loan program. (1)
    18  The corporation shall establish a fund to be known as the  "small  busi-
    19  ness and not-for-profit recovery loan fund" and shall pay into such fund
    20  any  monies  made  available  to  the corporation for such fund from any
    21  source. The monies held in or credited to the  fund  shall  be  expended
    22  solely for the purposes set forth in this section. The corporation shall
    23  not  commingle  the  monies  of  such  fund with any other monies of the
    24  corporation or any monies held in trust by the corporation.
    25    (2) The corporation shall allocate any monies made available for  such
    26  fund  for  the purpose of making zero interest loans to small businesses
    27  and small not-for-profit organizations.
    28    (3) As used in this  section,  the  following  terms  shall  have  the
    29  following meanings:
    30    (a) "Small business" shall have the same meaning as defined in section
    31  one hundred thirty-one of the economic development law. Such small busi-
    32  ness must be a resident in this state, independently owned and operated,
    33  not dominant in its field and employs one hundred or less persons;
    34    (b)  "Small not-for-profit organization" means a not-for-profit organ-
    35  ization that employs one hundred or less persons;
    36    (c) "Grace period" means the three hundred sixty-five day period after
    37  a small business or small not-for-profit receives a recovery loan  under
    38  this section.
    39    (4)  The  corporation  may  make  zero interest loans to businesses or
    40  organizations negatively affected by COVID-19 pandemic, provided:
    41    (a) The business or organization has provided to the corporation proof
    42  that such business or organization suffered a loss in revenue.
    43    (b) The amount of the  loan  shall  not  exceed  twenty-five  thousand
    44  dollars and shall be for a period of four years.
    45    (c)  The  loan  agreement  shall  not (i) require repayment during the
    46  grace period, or (ii) charge interest on the principal amount.
    47    (d) The loan agreement shall require that  the  affected  business  or
    48  organization repay the loan in full not later than three years after the
    49  end  of  the grace period. The loan agreement shall not contain a fee or
    50  penalty for the prepayment or early payment of the loan.
    51    (5) Small business and not-for-profit recovery loans may be  used  for
    52  any  operating  and  capital  expenses,  including  but  not limited to:

        A. 10266                            4

     1  payroll, marketing, inventory, insurance, employee assistance, training,
     2  and any state or local taxes and fees.
     3    (6) Any time during the grace period or the three-year repayment peri-
     4  od,  participating  small  businesses and small not-for-profits shall be
     5  eligible to have fifty percent of the principal loan  forgiven  if  they
     6  meet or exceed their two thousand nineteen employment levels. The corpo-
     7  ration  shall coordinate with the department of labor and the department
     8  of taxation and finance to verify eligibility.
     9    (7) (a) The corporation shall maintain records in the  regular  course
    10  of administration of the small business and not-for-profit recovery loan
    11  program,  including  a record of loans issued and of payments made under
    12  this section. The corporation shall regularly  review  such  records  to
    13  determine total loans issued and identify duplicative applications.
    14    (b)  The  corporation  may  terminate  any loan if the eligible entity
    15  misrepresents any information pertaining to the application or fails  to
    16  comply  with  any  requirements  of  this section in connection with the
    17  underlying loan.
    18    (8) The corporation shall establish  all  necessary  rules  and  regu-
    19  lations  for small business and small not-for-profit participation. Such
    20  rules and regulations shall include but not be limited to  a  simplified
    21  application  form  and any additional information as the corporation may
    22  require.
    23    (9) Within twenty-eight days of receipt of an application pursuant  to
    24  this section, the corporation shall either approve or reject such appli-
    25  cation.
    26    § 2. This act shall take effect immediately.

    27                                   PART C

    28    Section  1.  Paragraph  4  of subdivision (e) of section 24 of the tax
    29  law, as amended by chapter 683 of the laws of 2019, is amended  to  read
    30  as follows:
    31    (4) Additional pool 2 - The aggregate amount of tax credits allowed in
    32  subdivision (a) of this section shall be increased by an additional four
    33  hundred twenty million dollars in each year starting in two thousand ten
    34  through two thousand twenty-four provided however, seven million dollars
    35  of  the  annual  allocation shall be available for the empire state film
    36  post production credit pursuant to section thirty-one of this article in
    37  two thousand thirteen and two  thousand  fourteen,  twenty-five  million
    38  dollars of the annual allocation shall be available for the empire state
    39  film post production credit pursuant to section thirty-one of this arti-
    40  cle  in  each year starting in two thousand fifteen through two thousand
    41  twenty-four and five million dollars of the annual allocation  shall  be
    42  made available for the television writers' and directors' fees and sala-
    43  ries  credit  pursuant  to section twenty-four-b of this article in each
    44  year starting in two thousand twenty through two  thousand  twenty-four.
    45  This  amount  shall  be  allocated  by  the governor's office for motion
    46  picture and television development among taxpayers  in  accordance  with
    47  subdivision  (a) of this section. If the commissioner of economic devel-
    48  opment determines that the aggregate amount  of  tax  credits  available
    49  from  additional  pool 2 for the empire state film production tax credit
    50  have been previously allocated, and determines that the pending applica-
    51  tions from eligible applicants for the empire state film post production
    52  tax credit pursuant to section thirty-one of this  article  is  insuffi-
    53  cient  to  utilize  the  balance  of  unallocated empire state film post
    54  production tax credits from such pool, the remainder, after such pending

        A. 10266                            5

     1  applications are considered, shall be made available for  allocation  in
     2  the  empire  state film tax credit pursuant to this section, subdivision
     3  twenty of section two hundred ten-B and subsection (gg) of  section  six
     4  hundred  six  of  this  chapter.  Also,  if the commissioner of economic
     5  development determines that the aggregate amount of tax  credits  avail-
     6  able  from  additional  pool 2 for the empire state film post production
     7  tax credit have been previously allocated, and determines that the pend-
     8  ing applications from eligible applicants  for  the  empire  state  film
     9  production  tax  credit  pursuant  to  this  section  is insufficient to
    10  utilize the balance of unallocated film production tax credits from such
    11  pool, then all or part of the remainder, after such pending applications
    12  are considered, shall be made available for allocation  for  the  empire
    13  state  film post production credit pursuant to this section, subdivision
    14  thirty-two of section two hundred ten-B and subsection (qq)  of  section
    15  six  hundred  six  of  this  chapter.  The  governor's office for motion
    16  picture and television development must notify taxpayers of their  allo-
    17  cation  year  and  include the allocation year on the certificate of tax
    18  credit. Taxpayers eligible to claim a credit must report the  allocation
    19  year  directly on their empire state film production credit tax form for
    20  each year a credit is claimed and include a copy of the certificate with
    21  their tax return. In the case of a qualified film  that  receives  funds
    22  from  additional pool 2, no empire state film production credit shall be
    23  claimed before the later of the taxable year the production of the qual-
    24  ified film is complete, or the taxable year  immediately  following  the
    25  allocation  year  for  which  the  film has been allocated credit by the
    26  governor's  office  for  motion  picture  and  television   development.
    27  Provided, however, in the years two thousand twenty through two thousand
    28  twenty-four,  such  credit  shall first be used to provide assistance to
    29  small businesses negatively impacted during  the  emergency  declaration
    30  relating  to  the COVID-19 outbreak. For the purposes of this section, a
    31  small business shall be deemed to be  one  which  is  resident  in  this
    32  state,  independently  owned and operated, not dominant in its field and
    33  employs one hundred or less persons. This credit may be used against any
    34  operating and capital expenses, including but not limited  to:  payroll,
    35  marketing,  inventory, insurance, employee assistance, training, and any
    36  state or local taxes and fees. The credit under this  subdivision  shall
    37  be  allowed  against the taxes imposed by articles nine-A and twenty-two
    38  of this chapter. If the amount of the credit under this subdivision  for
    39  any  taxable  year  exceeds the taxpayer's tax for such year, the excess
    40  shall be treated as an overpayment of tax to be credited or refunded  as
    41  provided by law.
    42    § 2. This act shall take effect immediately.

    43                                   PART D

    44    Section  1.  Notwithstanding  any other law, rule or regulation to the
    45  contrary, the executive is hereby authorized to repurpose all monies  of
    46  the  New  York  state  urban  development corporation, the environmental
    47  facilities corporation, the dormitory authority  of  the  state  of  New
    48  York,  the  New York state energy research and development authority and
    49  all other state resources as identified and needed by the  executive  to
    50  fully fund programs created by this act.
    51    § 2. This act shall take effect immediately.

    52                                   PART E

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     1    Section  1.  Section  657  of  the  tax law is amended by adding a new
     2  subsection (d) to read as follows:
     3    (d)  Automatic extension for small businesses affected by an emergency
     4  declaration. An automatic extension shall be granted to taxpayers during
     5  a declared emergency relating to the COVID-19 outbreak.  Such  extension
     6  shall  be  granted  for  filing  a  tax return or paying a tax otherwise
     7  required on April fifteenth, two thousand twenty.  The  length  of  such
     8  extension  shall  be  one  hundred eighty days from April fifteenth, two
     9  thousand twenty.   Subsection (b) of this section  shall  not  apply  to
    10  persons  granted  an extension pursuant to this subsection. No penalties
    11  or interest shall be assessed or  imposed  upon  a  taxpayer  during  an
    12  extension  granted pursuant to this subsection. For the purposes of this
    13  section, a small business shall be deemed to be one which is resident in
    14  this state, independently owned and operated, not dominant in its  field
    15  and employs one hundred or less persons.
    16    § 2. Section 213 of the tax law is amended by adding a new subdivision
    17  4 to read as follows:
    18    4.  Automatic  extension for small businesses affected by an emergency
    19  declaration. An automatic extension shall be granted to taxpayers during
    20  a disease outbreak related declared emergency. Such extension  shall  be
    21  granted  for  filing a tax return or paying a tax required by this arti-
    22  cle. The length of such extension shall be one hundred eighty days  from
    23  the  date  on  which  such  filing or payment would otherwise be due. No
    24  penalties or interest shall be  assessed  or  imposed  upon  a  taxpayer
    25  during  an  extension  granted  pursuant  to this subdivision.   For the
    26  purposes of this section, a small business shall be  deemed  to  be  one
    27  which  is  resident in this state, independently owned and operated, not
    28  dominant in its field and employs one hundred or less persons.
    29    § 3. This act shall take effect immediately.

    30                                   PART F

    31    Section 1. The commissioner of the department of economic  development
    32  shall  develop  and implement a "regulatory amnesty" period to allow for
    33  small businesses to remedy rules or  regulation  violations  before  any
    34  violations  or sanctions are levied. Such regulatory amnesty period must
    35  be at least six months. If a small business remedies the violation with-
    36  in the time period established by the commissioner, such business  shall
    37  not be subjected to fines or penalties.
    38    § 2. This act shall take effect immediately.

    39                                   PART G

    40    Section  1.  Section  5  of  part  H of chapter 58 of the laws of 2019
    41  amending the environmental  conservation  law,  the  alcoholic  beverage
    42  control  law, and the state finance law, relating to establishing guide-
    43  lines for bag waste reduction, is amended to read as follows:
    44    § 5. This act shall take effect [March 1,] September 1, 2020.
    45    § 2. This act shall take effect immediately.
    46    § 4. Severability clause. If any clause, sentence, paragraph, subdivi-
    47  sion, section or part of this act shall be  adjudged  by  any  court  of
    48  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    49  impair, or invalidate the remainder thereof, but shall  be  confined  in
    50  its  operation  to the clause, sentence, paragraph, subdivision, section
    51  or part thereof directly involved in the controversy in which such judg-
    52  ment shall have been rendered. It is hereby declared to be the intent of

        A. 10266                            7

     1  the legislature that this act would  have  been  enacted  even  if  such
     2  invalid provisions had not been included herein.
     3    §  5.  This  act shall take effect immediately provided, however, that
     4  the applicable effective date of Parts A through G of this act shall  be
     5  as specifically set forth in the last section of such Parts.
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