Source: https://www.nysenate.gov/legislation/bills/2017/s5985/amendment/original
Timestamp: 2020-08-03 10:03:24
Document Index: 593985385

Matched Legal Cases: ['§438', '§ 438', '§ 433', '§  2', '§  438', '§ 3', '§ 433']

May 09, 2018 referred to ways and means
ordered to third reading cal.1126
Apr 23, 2018 print number 5985a
Apr 23, 2018 amend and recommit to commerce, economic development and small business
May 09, 2017 referred to commerce, economic development and small business
Committee Vote: May 9, 2018
S5985 - Details
Amd §§438 & 433, Ec Dev L
S661, A2429
S5985 - Summary
Relates to reporting requirements for the START-UP NY program; requires an annual report be prepared and provided to the governor and the legislature including, but not limited to, the number of business applicants, number of businesses approved, benefits distributed and received and the number of net new jobs created per business including cumulative data that reflects the amount previously recorded and adjusted for net new jobs that have been lost.
S5985 - Sponsor Memo
BILL NUMBER:  S5985
relation to reporting requirements for the START-UP NY program
including specific data relating to net new jobs
This bill would revive and restore and improve the reporting
requirements for the "SUNY Tax-free Areas to Revitalize and Transform
Upstate New York program," or the "START-UP NY program."
Section one of this bill revives § 438 of the Economic Development Law
which had been wholly repealed in the enacted 2017-18 state budget.
Section two of this bill improves annual reporting requirements
consistent with A.3005-B, Part X.
Section three of this bill restores the reporting requirements for
participants in the START-UP NY program, as a condition of program
eligibility in § 433 of the Economic Development Law which had also
been repealed in the enacted 2017-18 budget.
Section four sets an immediate effective date.
This legislation restores and clarifies the annual reporting
requirement for Start-Up NY and statutorily sets the report submission
date for START-UP NY as April let, and annually thereafter. The
original statute was silent on the required reporting date, but the
current regulations require April 1st. This legislation also specifies
how job data is to be presented in annual reports issued by the
Department of Economic Development so that there are distinct annual
and adjusted cumulative data available for review.  Further, since the
inception of this program in 2013, participants in the START-UP NY
have, as a condition of program eligibility, reported on their
progress, including how many net new jobs their companies have
created, this legislation restores that requirement.
S5985 - Bill Text download pdf
Introduced  by  Sens.  BOYLE, DeFRANCISCO, AKSHAR, CROCI, MURPHY -- read
Committee on Commerce, Economic Development and Small Business
AN  ACT  to amend the economic development law, in relation to reporting
requirements for the  START-UP  NY  program  including  specific  data
relating to net new jobs
Section 1. Notwithstanding the provisions of article 5 of the  general
construction law, the provisions of section 438 of the economic develop-
ment  law, as amended by section two of this act, are hereby revived and
shall continue in full force and effect as such  provisions  existed  on
§  2. Section 438 of the economic development law, as added by section
1 of part A of chapter 68 of the laws of 2013, is  amended  to  read  as
§  438.  Disclosure  authorization  and reporting requirements. 1. The
commissioner and the department shall disclose publicly  the  names  and
addresses  of the businesses located within a tax-free NY area. In addi-
tion, the commissioner and the department shall  disclose  publicly  and
include  in  the  annual  report  required under subdivision two of this
section such other information contained in  such  businesses'  applica-
tions and annual reports, including the projected number of net new jobs
to  be  created, as they determine is relevant and necessary to evaluate
the success of this program.
2. (a) The commissioner shall prepare an annual report to the governor
and the legislature NO LATER THAN APRIL FIRST, TWO THOUSAND EIGHTEEN AND
ANNUALLY THEREAFTER.  Such report shall include the number  of  business
applicants,  number  of  businesses approved, the names and addresses of
the businesses located within a tax-free NY area, total amount of  bene-
fits distributed, benefits received per business, number of net new jobs
LBD11124-02-7
S. 5985                             2
created, net new jobs created per business, new investment per business,
the  types  of  industries represented and such other information as the
commissioner determines is necessary to evaluate  the  progress  of  the
START-UP  NY  program.   SUCH ANNUAL REPORT SHALL, AT A MINIMUM, INCLUDE
ANNUAL PROGRAM DATA AND INFORMATION ATTRIBUTABLE SOLELY TO THE PRECEDING
CALENDAR YEAR.  IN ADDITION, SUCH REPORT SHALL INCLUDE CUMULATIVE ANNUAL
PROGRAM DATA INCLUDING ALL NET NEW JOBS  PREVIOUSLY  RECORDED,  ADJUSTED
FOR NET NEW JOBS THAT HAVE BEEN SUBSEQUENTLY LOST. CUMULATIVE DATA SHALL
BE  PRESENTED  SEPARATE AND DISTINCT FROM ANNUAL PROGRAM DATA REPORTING.
SUCH REPORT SHALL BE POSTED AS A SEPARATE DOCUMENT ON  THE  DEPARTMENT'S
(b)  Any  business located in a tax-free NY area must submit an annual
report to the commissioner in a form and at  such  time  and  with  such
information  as  prescribed by the commissioner in consultation with the
commissioner of taxation and finance. Such information shall  be  suffi-
cient  for the commissioner and the commissioner of taxation and finance
to: (i) monitor the  continued  eligibility  of  the  business  and  its
employees  to participate in the START-UP NY program and receive the tax
benefits described in section thirty-nine of the tax law; (ii)  evaluate
the  progress  of  the START-UP NY program; and (iii) prepare the annual
report required by paragraph (a) of this subdivision. Such annual report
shall also include information regarding the wages paid during the  year
to  its employees employed in the net new jobs created and maintained in
the tax-free NY area.
§ 3. Subdivision 1 of section 433 of the economic development law,  as
amended  by  section 3 of part UUU of chapter 59 of the laws of 2017, is
1. In order to participate in the START-UP NY program, a business must
satisfy all of the following criteria.
(a) The mission and activities of the  business  must  align  with  or
further  the academic mission of the campus, college or university spon-
soring the tax-free NY area in which it seeks to locate, and  the  busi-
ness's  participation  in  the  START-UP  NY  program must have positive
(b) The business must demonstrate that it will, in its first  year  of
operation,  create  net new jobs. After its first year of operation, the
business must maintain net new jobs. In addition, the average number  of
employees  of  the  business and its related persons in the state during
the year must equal or exceed the sum of:  (i)  the  average  number  of
the year immediately preceding the year in which  the  business  submits
its  application  to locate in a tax-free NY area; and (ii) net new jobs
of the business in the tax-free NY area during  the  year.  The  average
number of employees of the business and its related persons in the state
shall  be determined by adding together the total number of employees of
the business and its related persons in the state on March thirty-first,
June thirtieth, September thirtieth and December thirty-first and divid-
ing the total by the number of such dates occurring within such year.
(c) Except as provided in paragraphs [(f)] (G) and [(g)] (H)  of  this
subdivision,  at the time it submits its application for the START-UP NY
program, the business must be a new business to the state.
(d) The business may be organized as  a  corporation,  a  partnership,
limited liability company or a sole proprietorship.
(e)  UPON  COMPLETION OF ITS FIRST YEAR IN THE START-UP NY PROGRAM AND
THEREAFTER, THE BUSINESS MUST COMPLETE AND TIMELY FILE THE ANNUAL REPORT
REQUIRED UNDER SECTION FOUR HUNDRED THIRTY-EIGHT OF THIS ARTICLE.
S. 5985                             3
(F) Except as provided in paragraphs [(f)] (G) and [(g)] (H)  of  this
subdivision, the business must not be engaged in a line of business that
is  currently  or  was previously conducted by the business or a related
person in the last five years in New York state.
[(f)]  (G) If a business does not satisfy the eligibility standard set
forth in paragraph (c) or [(e)] (F) of this subdivision, because at  one
point in time it operated in New York state but moved its operations out
of  New  York  state on or before June first, two thousand thirteen, the
commissioner shall grant that business permission to  apply  to  partic-
ipate in the START-UP NY program if the commissioner determines that the
business has demonstrated that it will substantially restore the jobs in
New York state that it previously had moved out of state.
[(g)]  (H) If a business seeks to expand its current operations in New
York state into a tax-free NY area but the business does not qualify  as
a new business because it does not satisfy the criteria in paragraph (c)
of subdivision six of section four hundred thirty-one of this article or
the  business  does  not  satisfy  the eligibility standard set forth in
paragraph [(e)] (F) of this subdivision, the  commissioner  shall  grant
the  business  permission  to  apply  to  participate in the START-UP NY
program if the commissioner determines  that  the  business  has  demon-
strated  that  it  will  create net new jobs in the tax-free NY area and
that it or any related person has not eliminated any jobs in  the  state
in connection with this expansion.
S5985A (ACTIVE) - Details
S5985A (ACTIVE) - Summary
S5985A (ACTIVE) - Sponsor Memo
BILL NUMBER: S5985A
relation to reporting requirements for the START-UP NY program including
specific data relating to net new jobs
This bill would revive and restore and improve the reporting require-
ments for the "SUNY Tax-free Areas to Revitalize and Transform Upstate
New York program," or the "START-UP NY program."
Section one of this bill revives 8 438 of the Economic Development Law
Section two of this bill improves annual reporting requirements consist-
ent with A.3005-B, Part X.
eligibility in § 433 of the Economic Development Law which had also been
repealed in the enacted 2017-18 budget.
This legislation restores and clarifies the annual reporting requirement
for Start-Up NY and statutorily sets the report submission date for
START-UP NY as April let, and annually thereafter. The original statute
was silent on the required reporting date, but the current regulations
require April 1st. This legislation also specifies how job data is to be
presented in annual reports issued by the Department of Economic Devel-
opment so that there are distinct annual and adjusted cumulative data
available for review.  Further, since the inception of this program in
2013, participants in the START-UP NY have, as a condition of program
eligibility, reported on their progress, including how many net new jobs
their companies have created, this legislation restores that require-
S5985A (ACTIVE) - Bill Text download pdf
5985--A
Introduced  by  Sens. BOYLE, DeFRANCISCO, AKSHAR, CROCI, HELMING, LANZA,
MURPHY, ORTT, SERINO -- read  twice  and  ordered  printed,  and  when
and the legislature NO LATER THAN APRIL FIRST, TWO THOUSAND NINETEEN AND
LBD11124-04-8
S. 5985--A                          2
S. 5985--A                          3
[(f)] (G) If a business does not satisfy the eligibility standard  set
forth  in paragraph (c) or [(e)] (F) of this subdivision, because at one
of New York state on or before June first, two  thousand  thirteen,  the
commissioner  shall  grant  that business permission to apply to partic-
[(g)] (H) If a business seeks to expand its current operations in  New
York  state into a tax-free NY area but the business does not qualify as
the business does not satisfy the  eligibility  standard  set  forth  in
paragraph  [(e)]  (F)  of this subdivision, the commissioner shall grant
the business permission to apply  to  participate  in  the  START-UP  NY
program  if  the  commissioner  determines  that the business has demon-
strated that it will create net new jobs in the  tax-free  NY  area  and
that  it  or any related person has not eliminated any jobs in the state